01 Introduction _amp; AARP Major 2008 Changes by dffhrtcv3


									Site Procedures, Quality
   Reviews, In-Scope

          Tax Year 2010    1

   Intake and Interview Form 13614-C
   Site Sign-In Sheet
   Interview Process
   Prepare Return
   Quality Review Return
   Taxpayer’s signature
   Site Sign-In Sheet (End)
                    Tax Year 2010       2
     Get to Know the Tax Payer(s)
   Greet the Taxpayer
   Determine what the taxpayer needs are
       Full tax return
       Return for tax assessor - qualifying income
       NY Real Property Tax Credit
   Determine if taxpayer has any out-of
    scope items in their tax return

                           Tax Year 2010              3
          Intake/Interview Sheet
          Form 13614-C 2010TY
   All sites must use the IRS F13614-C
    Intake and Interview form
   Walk-In site - TP signs in and starts on
    their Intake/Interview Form
   Appointment site – After ascertaining TP
    has an appointment – TP should start on
    their Intake/Interview Form

                     Tax Year 2010             4
            Intake/Interview Sheet
              (first of two pages)
   Thorough entry sheet for the Taxpayers
    Tax Relevant Information
   Unfortunately the Taxpayer does not
    receive the Form until they come to the
       Form is equivalent to what many Medical
        facilities require patients to fill-out before their

                             Tax Year 2010                 5
          Form 13614-C TP Input
   Page 1 Form 13614-C
       Taxpayers Personal Information
       Taxpayers marital status
       Taxpayers members of the household

                       Tax Year 2010     6
Taxpayer’s Input Section A

            Tax Year 2010    7
Part II Family & (possile) Dependent
              (part 1)

               Tax Year 2010           8
        TPs Filling Status Caution
   Prior experience with taxpayers may
    indicate that filing status can be assumed
    using only Part II Family and Dependent
   Without continuing the Interview, you
    might not select a more favorable filing
    status or they may no longer qualify for
    the most favorable filing status
                       Tax Year 2010             9
Other members of the
 household (part 2)

         Tax Year 2010   10
         Interview/Intake Sheet
                     Page 2

   Part III Eleven Income items
       Yes , No or Unsure
   Part IV Nine Expense items
       Yes , No or Unsure
   Part V Twelve Life Items
       Yes , No or Unsure

                      Tax Year 2010   11
Page 2 Income – In 2010
         Part III

         Tax Year 2010    12
Expenses in 2010
    Part IV

      Tax Year 2010   13
Part V Life Events

       Tax Year 2010   14
        Taxpayer(s) completed their
          Intake/Interview Sheet
   Counselor starts to work with their “client”
   Counselor adds TP name to Site Intake
   Start TP Interview
       TP Identity - Information Social Security Card
       TP Prior Year Return
       TP Tax Year 2010 data sources

                           Tax Year 2010                 15
               Site Sign-In Sheet
   Misnamed – don’t let the taxpayer near it
   Counselor or Greeter only ones that
    should make an entry
   Fill in the “Type of Service” column only
    after “service completed”
   Use one Sign-In Sheet per site
       All Counselors use the same sheet

                           Tax Year 2010        16
AARP Site Sign-In Sheet

         Tax Year 2010    17
              Site Sign-In sheet
                 Initial enties
   Taxpayers Name Column
       Taxpayer Name(s) or reference
   Column 7
       Counselor’s Initials

                          Tax Year 2010   18
         Purpose of the Interview
   Review TP information in Parts I, II, III,
    IV and V
       Counselor determines if TP data is complete
       Counselor determines if the return will be
        within the scope of his Certification
   Counselor complete Questions in Section
    B on Page 3
       Counselor determines TP filing status

                         Tax Year 2010            19
                 Interview the TP
   Go over Part I Personal Information
       Verify SSN and Name Spelling against source
   Go over Part II 2 household members and
    those that they supported
       Determine which, if any, qualify as a
       Answer Section B Questions (page 3) to
        determine which ones qualify as a dependent

                           Tax Year 2010              20
Assessment of individuals listed
   on Part II of Intake Form

             Tax Year 2010         21
Assessment of individuals listed
on Part II of Intake Form (cont’d)

               Tax Year 2010         22
       Interview Part II 2. cont’d
   Determine which individuals qualify as
    dependents (if any)

   Flag which individuals will appear in
    Taxpayer return

                       Tax Year 2010         23
                 TPs Filing Status
   Single Taxpayer
       Head of Household
       Single with dependents
   Widow
       Qualifying Widow
       Head of Household
   Married filing separate status

                            Tax Year 2010   24
                   Part III Page 2
                   Interview Form

   Counselor reviews TP Information
    in Part & Determines if in scope
       Income Line 4 - Int & Div Only
       Line 7 – Business Income meets restricted
        Schedule C requirements
       Line 8 – No sale of Business Property
       Line 13 Rental Income
   Any income out of scope
                           Tax Year 2010            25
                           Part V
                        Life Events
   Question 2 –Have a debt forgiven

       No Bankruptcy Involved

       Not Insolvent

                           Tax Year 2010   26
        Taxpayer Entries on Intake
             Interview Sheet
   Part I Family
       Need acceptable proof of taxpayer’s SS
        Number and SS Name
   Taxpayer’s dependent information on the
    bottom of the form
       Need acceptable proof of dependents SS
        Number and SS Name
       Information to determine TP’s dependent

                           Tax Year 2010          27
                     Start Return
   TaxWise User
       Fill in taxpayer Information on Main
        Information sheet
       Do Not Enter Tax Payer PIN(s) yet
       Complete Initial Entries in Preparers Use
        Field (bottom of Main Information sheet
   Paper Only Filer
       Enter taxpayer identification data

                           Tax Year 2010            28
    TaxWise User
Main Information Sheet

         Tax Year 2010   29
   Return with Invalid SSN
   ITIN return without approved ITIN
   Prior year returns
   Spouse not available to sign the 8879 form
   Amended Returns (1040X & IT-201X)
      (Can be prepared using TaxWise – but

       not e-filed)‫‏‬

                        Tax Year 2010            30
    Return preparation reminder

   Use Intake and Interview Form to verify
    you included everything that the
    taxpayer needs to have in their return

   Quality Reviewer will use the form to
    verify nothing missing in the return or
    incorrectly entered in the review

                      Tax Year 2010           31
             Form 8453
         (electronic returns)
   8453 form is a transmittal cover sheet
    for documents or forms required for
    some electronic returns
   In-Scope Forms
      Broker statement (D-1)

      Form 8332, Release of Claim to

       Exemption for Child of Divorced
      Power of Attorney Form

                      Tax Year 2010          32
      Form 8453
Examples of attachments

          Tax Year 2010   33
        Form 8453 Distribution
           and attachments

   Print three copies of Form 8453
     Copy 1 for taxpayer records
     Copy 2 – Mailed to IRS Austin,

      Texas with attachments
     Copy 3 – Sent to IRS District Office

      with attachments

                      Tax Year 2010          34
    Review Content of the return
         with the Taxpayer

   Line-by-line 1040 entries
   Any other ‘issues’ that came up
   Respond to any questions

   Explain the Quality Review
                   Tax Year 2010      35
             QUALITY REVIEW

   100% quality review
       A second set of counselor eyes
       Use Intake & Interview check off list in
        Section C Page 3 Intake/Interview &
        Quality Review Sheet
   IRS will do reviews on sample basis:
       Site Reviews & Tax Return Reviews
       Three sites per County

                            Tax Year 2010          36
         QR of an Electronic Return
   Quality Reviewer should move to
    preparer’s computer to check return
       Eliminate unnecessary printing
       Minimizes amount of material that needs
        to be shredded

                          Tax Year 2010           37
  QR Check List 12 Items
F13614-C Page 3 Section C

          Tax Year 2010     38
Questions Cont’d.

      Tax Year 2010   39
QR Questions (end)

      Tax Year 2010   40
      Electronic Return
    (bad practice checks)
   Validate use of scratch pads
       Never use when a form or worksheet
        was available
   Remove unnecessary overrides
       Few exceptions
       No incomplete forms or entries

                         Tax Year 2010       41
Paper Return Quality Review

   Use TP Intake and Interview form and
    SSN information are correctly entered
    into the 1040 return.
   Use Preparer’s worksheets to Verify that
    income sources and TP Income forms
    have been entered (amount and location)
    into the return

                     Tax Year 2010         42
        Paper Return Quality
           Review cont’d.
   Verify Taxable social security
   Verify that the tax owed has been
    correctly calculated (CGs & QD rates)
   Verify that all the remaining entries on
    the Intake and Interview form have
    been included in the return

                      Tax Year 2010            43
           QR Check Complete
   e-file return
       Print the taxpayer’s copy of the return
       Ready for TP signatures
       Instruct TP about tax payments due
   Paper return
       Reviewed return ready for TP signatures
       Copy can be provided to TP for signatures

                        Tax Year 2010               44
         TP Signatures cont’d
   Electronic Returns
       Two 8879 & TR-579 forms must be signed by
       Taxpayer gets one copy of 8879 & TR-579 form
        with their return
       ERO gets 1 copy of 8879 (with all W-2’s and 1099-
        Rs + Federal copies of all 1099’s with withholding
        on them)
       ERO gets one copy of TR-579

                               Tax Year 2010                 45
        TP Signatures cont’d
   1040 & 1040A Paper Returns
       Attach withholding forms to 1040
   IT201 & IT150
     All IT2s
     IT1099R, IT1099-UI & W2-G with

      state withholding on

                       Tax Year 2010       46
          TP Document
   Carryovers highlighted
   Authorization (Form 8879)
   1040 (page 1 and 2)
   Schedule A, B, C-EZ, D
   Supporting Worksheets if

                 Tax Year 2010   47
   Keep Taxpayer information strictly
    confidential –do not disclose to
    unauthorized individuals
   Counsellors should remove taxpayer
    data after not needed for e-filing
   ERO retains signature forms,
    withholding and/or broker forms and
    the electronic data necessary for e-
    file process during the season
                    Tax Year 2010      48
             The Last Words to

       Remind taxpayers to:
         Bring back their record envelopes next year
         Retain tax return records for three years
       Thank them for participating in the
       If they want to donate to the program,
        there is way to make a NY-4 donation
                             Tax Year 2010              49
       New AARP Sign-In Sheet
      “Portal” Activity Reporting
• Start of a 2 year transition period

• Number of electronically filed returns taken
  from IRS (TaxWise) Report

• Number of Paper Filed returns take from
  totals recorded on the Sign-In sheet

                       Tax Year 2010             50
           Classification of our sites
   E-filing site – one or more Counselors
    preparing electronic returns
       Site has its own EFIN or prepares returns
        using another sites EFIN
       20 Sites classified as “E-file”
   Paper Only Site
       Does not prepare electronic returns
       5 sites classified as “Paper Only”

                           Tax Year 2010            51
            Why is Activity Reporting
                  so Important?
• The WHAT: It is the details on the volunteer site-level
  services: # of tax return prepared and the other services
  that volunteers deliver to AARP Tax-Aide clients
• WHY: The information is needed:
   – Primarily to:
      • Secure funding from sponsors and to meet grant reporting
        requirements (IRS, AARP, and others)

   – To:
      • Monitor site and program growth, effectiveness and equipment

                                  Tax Year 2010                        52

          Tax Year 2010     53
       What information is reported
              by volunteers?
1)   Federal Paper Returns (Current Year)
2)   Federal Returns (Prior Years)
3)   Federal Returns (Amended)
4)   State Only Returns
5)   Questions & Answers Only
6)   Quality Reviews (Paper Designated
     Sites Only)*
                      Tax Year 2010         54
“Paper Only” Designated Site
Columns used on Sign-In sheet

             Tax Year 2010      55
      Electronic Filing
designated site sign-in sheet

            Tax Year 2010       56
        Site Administrative work

   End of day wrap up
     Summarize the Sign-In Form
     Secure equipment

     Dispose of sensitive working papers

      with taxpayer data

                   Tax Year 2010            57

   Designated Site R.I. Totals the columns
    on the Site Sign-In Sheet
   Site R.I. combines daily sign-in sheet
    totals to create the total monthly

                     Tax Year 2010            58
Monthly site activity summary
   Site R.I. Sends the Monthly Site Sign-In
    Totals to the District Coordinator

   District Coordinator enters the site
    activity totals into the AARP automated
    data collection system.

                    Tax Year 2010             59
           Due Dates for sites

   Monthly Reporting Periods for sites to
    District Coordinator Louis Eber

Report Period                Due Date
2/2 to 2/28                  March 3
3/1 to 3/31                  April 3
4/1 to 4/15                  April 18

                        Tax Year 2010        60
         Required Site References
         (hard copy or electronic copy)
   Counselor’ Volunteer Agreement
       Certification Proof 2010 TY
   Pub 4012 Volunteer Resource Guide
   Pub 17
   AARP Cyber Tax Messages
       Volunteer Tax Alerts (Quality Issues)
       Other site alerts
       IRS SPEC Quality Requirements

                         Tax Year 2010          61
    Required Site References cont’d
      (hard copy or electronic copy)
   1040 Instructions
   Electronic Filing Sites (all sites that e-
       Publication 3189 Volunteer e-file
        Administrator Guide

                           Tax Year 2010         62
Counselor Reference

      Tax Year 2010   63
   End of Tax Season
Expense Reimbursement
   Flat-rate reimbursement of $35 or
   Itemized driving expenses (only)
       Mileage at $ 0.51 rate per mile max
     Need specific dates/locations
     Counseling site exceeding $250*

   Covers counseling 2/1 – 4/15
   Expense report - submit to LC or
    DC after season ends
                       Tax Year 2010          64

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