I thought they already did that! I assumed that as FAFSA and IRS were both federal they already communicated and everything had to match and if it didn't red flags would be popping up. In fact I have told people that frequently. Silly me - we are talking about government here after all

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It was proposed in 2003. Never passed and is now gone from the books.
http://www.govtrack.us/congress/bill.xpd?bill=h108-3613