Bank Support Trust by eqw18005

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									book covers bank support seminar   12/11/06   12:06 PM   Page 1




                                   BankServices            Tax Year 2006
Foreward
TaxWorks has contracted with three banks to offer various bank services to our customers: Santa Barbara Bank
& Trust, Chase, and HSBC Bank USA, N.A. These bank products are available to individuals filing their tax
returns electronically. Taxpayers authorize the IRS to send their refund to one of the banks. The selected bank
handles the disbursement of the client’s refund, making funds available much faster. The tax preparation, e-file,
document, bank, and transmission fees are deducted by the bank before the disbursement is made to the client.
We are pleased to have you participate in offering this service to your clients.
Each bank provides user manuals detailing information applicable to the individual bank. Reference the bank’s
user manual for complete details, as products and procedures vary per bank.




Table of Contents
Highlights for Tax Year 2006 ............................................................................................................................................2
General Overview ...............................................................................................................................................................3
  RAL/RT Process ............................................................................................................................................................3
  Bank Product Flow Chart .............................................................................................................................................5
  Bank Setup and Enrollment..........................................................................................................................................5
  Bank Products .................................................................................................................................................................7
     Refund Anticipation Loan (RAL)............................................................................................................................7
     Advance Refund Anticipation Loan (ARAL) ........................................................................................................7
     Advance Refund Transfer (ART) ............................................................................................................................7
     Refund Transfer (RT)(RAC)(Bonu$) ......................................................................................................................7
     State Refund Transfer (SR) .......................................................................................................................................8
  Disbursement Methods .................................................................................................................................................8
     Check ...........................................................................................................................................................................8
     Direct Deposit ............................................................................................................................................................8
     Cash Card ....................................................................................................................................................................8
  Responsibilities of Tax Preparer in Bank Services Program ...................................................................................9
  Completing the Bank Application ...............................................................................................................................9
E-File Center .......................................................................................................................................................................14
  E-File/Bank Transmission ............................................................................................................................................14
  Test Print Checks............................................................................................................................................................15
  Check Alignment ............................................................................................................................................................15
  Print Checks ....................................................................................................................................................................16
  Issuing the Check ...........................................................................................................................................................17
  Reprint Checks ................................................................................................................................................................17
  Delete Available Check Records ..................................................................................................................................18
  Summary ..........................................................................................................................................................................18
  Bank Deadlines ...............................................................................................................................................................18
  Database...........................................................................................................................................................................18
  Reports .............................................................................................................................................................................20
  Helpful Links ..................................................................................................................................................................21
Banks Websites and Customer Support Numbers ........................................................................................................21
Bank Criteria ........................................................................................................................................................................22
Bank Comparison ..................................................................................................................................................see insert




                                                                                                                                                   Bank Services 2006
Highlights for Tax Year 2006
All Banks
    •   Price changes (reference the Bank Comparison spreadsheet at the back of this manual).
    •   Separation of Finance Charge and Account Handling Fee.

Santa Barbara Bank & Trust
    •   RAL limit raised to $9,999.
    •   No longer charges ATM/POS fees for cash card. One time cash card activation fee of $29.95.
    •   Will not accept new IRS Form 8888, Direct Deposit of Refund (multiple bank accounts only) for
        RALs.

Chase
    •   RAL limit raised to $10,000.
    •   Name change (formerly Bank One).
    •   No longer offers direct funds card.
    •   Will accept new IRS Form 8888, Direct Deposit of Refund.

HSBC Bank USA, N.A.
    •   Instant RAL added.
    •   Change in pricing structure.
    •   Will accept new IRS Form 8888, Direct Deposit of Refund.




2        Bank Services 2006
General Overview
TaxWorks, in conjunction with Santa Barbara Bank & Trust, Chase, and HSBC Bank USA, N.A., is making
available Federal Refund Anticipation Loans, Federal and State Refund Transfers, Federal Advance Refund
Anticipation Loans, and Federal and State Advance Refund Transfers. These products are available to taxpayers
filing their returns electronically and receiving a refund. Taxpayers authorize the IRS to send their refunds to
one of the banks. The selected bank handles the disbursement of the client’s refund, making the funds avail-
able much faster. Advance Refund Loans and Transfers are available within five minutes. Refund Anticipation
Loans are available within 12 hours. Refund Transfers are available within 9 to 14 days. The bank deducts the
tax preparation, EF, document, bank, and transmission fees before the disbursement is made to the client. Bank
Services offers ways for taxpayers to receive their refunds as soon as possible.
As bank product names vary, throughout the manual we will refer to the five-minute loan as Advance Refund
Anticipation Loan (ARAL) or Advance Refund Transfer (ART). We will refer to the 12-hour loan as Refund
Anticipation Loan (RAL). We will refer to the 9- to 14-day products as Refund Transfers (RT). We will refer to
state products as State Refund Transfers (SR).



RAL/RT Process
The Bank Services process is described in the following 10 steps. You will be responsible for steps 1 and 6.

Step 1
The preparer interviews the client and enters the tax return and RAL/RT information using the TaxWorks
software (reference the Completing the Bank Application instructions). The completed Form 8879 or Form 8453,
Form 1040, and Bank Application are generated automatically by the software during processing (exception:
HSBC distributes preprinted bank applications to be completed manually). The preparer reviews the docu-
ments with the taxpayers. The taxpayers sign the completed forms and applications.
The preparer will transmit the files to TaxWorks through the Send option in the E-File Center. If the Cash
Card disbursement method is selected, the preparer will issue the cash card to the taxpayers.

Step 2
TaxWorks transmits the files to the IRS and the bank.

Step 3
The IRS pulls the electronic file(s) from the main frame 12 to 24 hours after the transmission. The IRS ac-
knowledges whether the returns are accepted or rejected.
States pick up the files and create acknowledgments within one to four days.
The banks will review prior bank records, tax credit reports (in certain cases), and other data relevant to the
approval process.
ARAL/ART client information is passed to the bank immediately. The bank will review the approval process
information and send an approval or denial record within five minutes. If approved, the ARAL/ART disburse-
ment will be available. If denied, the RAL/RT process will take affect.




                                                                                       Bank Services 2006      3
Step 4
After TaxWorks receives the IRS/State acceptance acknowledgments, the bank applicant acknowledgments
will be transmitted to the bank. The bank processes the IRS/State acknowledgments for bank applicants and
transmits the disbursement approvals back to TaxWorks. This process generally takes one hour (RT/SR: two
weeks).

Step 5
TaxWorks passes the IRS/State acknowledgments and bank disbursement approvals to the preparer.

Step 6
The preparer views the IRS/State acknowledgments and bank disbursement approvals from the E-File Center
(reference the E-File/Bank Transmission instructions).
If applicable, the preparer then mails the completed federal Form 8453 to the IRS (the state 8453 per the state
instructions) or the preparer retains Form 8879 with the client’s tax return.
The preparer or bank handles the disbursement.
If the Check disbursement method was selected, the preparer will receive a check print record through the In-
ternet. The preparer will print the check on bank-issued check stock. An internal disbursement reconcilement
record is created. The preparer will secure the taxpayers’ signatures before presenting the check to the taxpay-
ers. The preparer updates the Bank Check Control Log (reference the Print Checks instructions).
If the Direct Deposit disbursement method was selected, the bank will transfer the disbursement to the appro-
priate account.
If the Cash Card disbursement method was selected, the preparer will have issued the cash card to the tax-
payer(s) at the time of the initial application. The bank will transfer the disbursement to the cash card.
The preparer retains the signed bank applications. Applications are only submitted to the bank upon request.
Reference the individual bank’s user manual for the Check Control Log and Void Check submission proce-
dures.

Step 7
TaxWorks transmits the disbursement reconcilement records to the bank.

Step 8
The bank receives the records.

Step 9
The bank deposits the preparer fees into the preparer’s account through ACH one day after the loan approval.
For Refund Transfer applicants, the preparer fees are deposited upon receipt of the taxpayer’s refund from the
IRS/State.




4      Bank Services 2006
Bank Product Flow Chart




Bank Check Disbursement Breakdown
Taxpayer’s Refund ..............................................$1,500
Less RAL Finance Charge ................................ 38
Less RAL Account Handling Fee .................... 30.95
Less Preparer Fee ............................................... 100
Less Electronic Filing Fee................................. 10
Less Document Fee ........................................... 10
Less TaxWorks Transmission Fee....................- 5
Taxpayer’s RAL Check ......................................$1,306.05


Bank Setup and Enrollment
Bank enrollment is handled on the web or through the software. The bank enrollment process is completely
paperless.

Step-by-Step Bank Setup
   •In the program, click the Settings menu and select EF and Bank Settings.
            In prior years, we have issued an Other Access Code for the bank setup. This year, the Other Access
  NOTE      Code will not be issued for the bank setup as we have done away with the $195 setup fee. There-
            fore, you may not have an Other Access Code to enter, unless you have purchased the TaxPlanner,
            or signed up for our EF buy-downs and/or rebate program.
   • On the EF Switches tab, verify or enter your Default EFIN. Your EFIN will automatically be listed if
     you entered it on the Control Data, Firm tab in the Default EFIN field, or during the initial configuration.
   • Click the Bank tab.
   • Select the desired bank. Click OK.




                                                                                       Bank Services 2006     5
Step-by-Step Bank Enrollment
Web Enrollment
    • Log on to www.taxworks.com.
    • Click the 2006 EF Center Login link.
    • Enter your User Name and Password. Click Log In.
    • Follow the step-by-step instructions below.
TaxWorks Software Enrollment
    • Click the EF Cntr button on the button bar.
    • Enter your User Name and Password. Click Log In.
    • Follow the step-by-step instructions below.
Step-by-Step Instructions
    •   On the Overview screen, click on Bank Enrollment at the bottom of the right-hand col-
        umn, or click on Bank and then Enrollment.




                                                                                      Click to complete the bank
                                                                                      enrollment.




    • On the Bank Enrollment screen, click Add.
    • From the drop down box, select the bank you want to do business with.
    • In the second box, enter your six-digit EFIN. Click Next.
    • If you are working with Santa Barbara Bank & Trust, read the Best Practices Guide and Financial Ser-
      vices Agreement (FSA), then click Agree. Both documents can be printed, if desired.
    • If your company’s EFIN and bank haven’t changed from the previous filing season, some of the infor-
      mation will automatically populate. Verify the fields for accuracy.
    • Complete all fields of the application noted on the screen. If you do not complete all information
      at one time, click Save and Exit. When all entries have been made, click Save and Submit.
    • The verification will be performed after clicking Save and Submit. Any errors will appear in red. You must
      correct all fields that report an error. Click Save and Submit again.
    • The Submitted screen will note information regarding the bank processing time. Click OK to return to
      the Bank Enrollment grid.
    • After waiting the suggested time, return to the E-File Center, Bank Enrollment screen. View the enrollment
      status noted in the Status column.
               Once an enrollment record has been submitted, it cannot be deleted. If changes need to be
    NOTE       made, you can resubmit the enrollment. Resubmitted information will overwrite any previously
               submitted information. Chase users must also contact the bank.




6        Bank Services 2006
Bank Products
Refund Anticipation Loan (RAL)
Clients can receive a loan against their anticipated refund usually within 12 to 24 hours, upon receipt of the au-
thorization from the bank. The authorization is initiated upon the IRS acknowledgment and bank approval. If
there are refund limitations, split disbursements may occur. The tax preparation, electronic filing, RAL docu-
ment, bank, and transmission fees are deducted from the refund.

Advance RAL (ARAL) (FARAL) (IRAL)
Clients can receive an advance loan against their anticipated refund within five minutes after a credit check and
upon receipt of the authorization from the bank. This is available before the tax return is sent and accepted by
the IRS. The Advance RAL is based on the amount of the refund in excess of any fees. The balance of the re-
fund may come as a RAL after the IRS acknowledgment and bank approval, or as an RT if the RAL is denied.
SBBT offers ARALs of either $1,200 (minimum refund of $2,800) or $1,900 (minimum refund of $4,500).
Chase offers ARALs up to $1,500. The taxpayer must have a refund of at least $2,500 to qualify.
HSBC offers ARALs of $1,828 (refund of $4,000+), $1,218 (refund between $2,500 - $3,999), $598 (refund
between $1,500 - $2,499), or the full amount (refund between $200 - $1,499).

Advance Refund Transfer (ART)
Clients can receive an advance loan against their anticipated refund within five minutes after a credit check and
upon receipt of the authorization from the bank. This is available before the tax return is sent and accepted
by the IRS. The Advance RT is based on the amount of the refund in excess of any fees. The balance of the
refund may come as an RT after receiving funds from the IRS.
SBBT offers ARTs for refunds between $500 - $1,200. The taxpayer must have a refund of at least $500 to
qualify.



Refund Transfer (RT) (Bonu$) (RAC)
The client’s refund can be available usually within 9 to 14 days. Refund disbursements will be made after the
IRS funding is received. If more than one disbursement is received from the IRS, split disbursements may oc-
cur. The tax preparation, electronic filing, RAL document, bank, and transmission fees are deducted from the
refund.
              Denied RAL participants automatically fall into the RT category.
  NOTE



                               RAL                                                           Cash
          SBBT        RAL                 ARAL/ART         RT          RTDD        State
                               DD                                                            Card


                               RAL                                     RAC
          HSBC        RAL                 IRAL             RAC                     State
                               DD                                      DD


                               RAL        FARAL                        Bonu$
          Chase       RAL                                  Bonu$                   State
                               Direct                                  Direct


                                                                                        Bank Services 2006      7
State Refund Transfer (SR)
The client’s state refund can be available usually within 5 to 14 days. Loans are not available for state bank
products. Refund disbursements will be made after the state funding is received. A federal bank product must
be requested in order to request a state bank product.
Separate disbursements will be made for federal and state refunds. The state refund disbursement coincides
with the federal selection as follows:

                                 If FEDERAL is:         Then STATE will be:
                                 RAL                    RT
                                 ARAL                   RT
                                 ART                    RT
                                 RT                     RT
                                 Check                  Check
                                 Direct Deposit         Direct Deposit
                                 Cash Card              Cash Card



Disbursement Methods
Check
The preparer will print a check for the client’s refund in their office upon the bank authorization. Check stock
is supplied by the bank. Multiple check disbursements will be made if required.

Direct Deposit
The client’s refund is directly deposited into their bank account. Multiple disbursements will be made if re-
quired.

Cash Card
The client’s refund will be disbursed via a bank cash card/debit card. The cash card will receive multiple de-
posits if required. Funds are available from any ATM or Point of Sale terminal that supports the Star, Curius,
or Maestro systems.
              The Cash Card disbursement method is available through SBBT only.
    NOTE
              Reference the Bank Comparison spreadsheet at the back of this manual for bank product pricing
    NOTE      and rebate programs..




8      Bank Services 2006
Responsibilities of Tax Preparer in Bank
Services Program
The responsibilities of the preparer are listed in each bank’s user manual. We want to emphasize the impor-
tance of following the procedures in establishing client identity and recording the proper ID on the bank
application. You are under contract with the bank to comply with the procedures of establishing customer
identity and recording the ID. If the procedures are not followed, you may be required to indemnify any loans
not collected by the bank. To help ensure that you follow the procedures, reference the bank’s user manual and
the following checklist.

RAL/RT Application Checklist
  •   Name/date of birth (must be 18 for RAL)
  •   Correct phone numbers
  •   Residential address
  •   Name/SSN validation
  •   Identification section complete
  •   Valid W-2 forms
  •   Signature on application


Completing the Bank Application
In documenting the bank application requirements for three different banks, all information is covered, but
may not be applicable for the bank you are working with.

Client Tax Information
  • Click Clients and Open, or enter a New Client.
  • Enter the federal and state tax information.

Accessing Bank Input
Complete all bank information. Depending on the General Information screen option you are working on,
there are multiple ways to access the Bank screen:
  • Lite/EZ – Complete the bank application information in the Bank section on the General Information
      screen, or click Bank on the General Information screen to link to the Bank input screen.
  • Advanced – Click Bank Products on the General Information screen to link to the Bank input screen.
  • Advanced/Lite/EZ – Select BANK - Bank Apps from the Forms pane to link to the Bank input screen.




                                                                                      Bank Services 2006      9
Bank Product Type
Select the applicable Bank Product Type from the drop down box.
If applying for a state bank product, select the state from the drop down box or enter the two-letter state
code.
Loan Amount Requested (Chase only)
If the taxpayer would like to request a loan for less than the total refund amount, make an entry here. The
minimum request is $300 and the maximum is $10,000.
Disbursement Method
There are various refund disbursement types. Select between Paper Check, Direct Deposit, and Cash Card.
Paper Check
The default is a paper check. This means the preparer will print the client’s check in their office and present it
to the taxpayer.
Direct Deposit
If the taxpayer would like their refund sent to the bank service provider, who will deduct the applicable fees,
and then to ACH, who will deposit the remainder into the taxpayer’s bank account, complete the following
information.
Direct Deposit               Check the box if you would like the refund disbursement method to be direct
                             deposit.
                             Return to the General Information screen. Click the Direct Deposit and Elec-
                             tronic Funds Withdrawal grid.
Financial Institution        Enter the name of the taxpayer’s bank to receive the direct deposit or select from
Name                         the drop down box.
Routing Transit Number       The routing transit number is usually located at the bottom of a check or deposit
                             slip. It is nine digits long; the first two numbers must begin with 01-12 or 21-32.

Depositor Account            The deposit account number is found at the bottom of a check or deposit slip. It
Number                       varies in length and does not need to fill all of the allotted spaces.
Account Type                 From the drop down box, select the type of account (either Savings or Checking).
DD/EFW                       From the drop down box, select DD for direct deposit.
Amount and Percent           If you are depositing your refund into only one bank account, you do not need to
                             fill out the Amount or Percent columns. However, if you are using the new IRS
                             Form 8888, Direct Deposit of Refund, to deposit your refund in more than one
                             account (up to three accounts total), you must enter either specific amounts in the
                             Amount column, or percentages in the Percent column to equal the total refund.
               The amount entered on line 1 will be used for the bank loan amount. Lines 2 and 3 will be used
  NOTE         for non-bank product direct deposits.
               SBBT does not allow Form 8888, Direct Deposit of Refund, with a bank loan product.
  NOTE
                             Click Close. Select Bank - Bank Apps from the Forms pane to return to the
                             Bank screen.
Cash Card (SBBT only)
Cash Card                    Check the box if you would like the refund disbursement method to be a cash
Disbursement                 card.
Cash Card Number             Enter the number printed on the cash card that you are issuing to the taxpayer.

10      Bank Services 2006
Verify Cash Card            Re-enter the number printed on the cash card that you are issuing to the taxpayer.
Number                      The software will verify that the same number has been entered in the Cash Card
                            and Verify cash card number fields.

Fee Information
Carry Preparer Fees         Check this box to carry the preparer fee to be deducted from the refund accord-
From Invoice                ing to the invoice total. The invoice fee will override the preparer fee if it has been
                            entered on the Bank screen.
Preparer Fee                Enter the amount of the preparer fee to be deducted from the refund. If you
                            enter an amount in this field, do not check the Carry Preparer Fees from Invoice box.
                            The Preparer Fee field is used to enter the amount you charge for preparing the tax
                            return.
Document Fee                Enter the amount of the document fee to be deducted from the refund. This is
                            in addition to the preparer fee. The Document Fee field is used to enter the amount
                            you charge for handling bank documents.
Electronic Filing Fee       Enter the amount of the electronic filing fee to be deducted from the refund. This
                            is in addition to the preparer fee. The Electronic Filing Fee field is used to enter the
                            amount you charge for electronically filing the tax return.

                                              Preparer      Document       Electronic
                              SBBT            Fee           Fee *          Filing Fee

                                              Preparer      Document       Electronic
                              HSBC            Fee           Fee **         Filing Fee

                                              Preparer      Document
                              Chase           Fee           Fee

* The SBBT document fee cannot exceed $40.
** The HSBC document fee must remain constant for every bank client. This fee is set during the bank setup.
It cannot exceed $40. After setting this fee, you are allowed a 10-day grace period to make changes. After this
time, the document fee cannot be changed.

Application Information
Date of Birth               Enter the taxpayer and spouse dates of birth in MMDDYYYY format. These
                            dates will carry if entered on the federal General Information screen.
Home Telephone              Enter the taxpayer and spouse area codes and phone numbers, without dashes or
                            parentheses. Phone numbers will carry if entered on the federal General Informa-
                            tion screen.
Work Telephone              Enter the taxpayer and spouse area codes and work phone numbers, without
                            dashes or parentheses. Phone numbers will carry if entered on the federal General
                            Information screen.
Taxpayer SSN                Re-enter the taxpayer’s SSN.
Taxpayer’s Last Name        Re-enter the first four letters of the taxpayer’s last name.
Taxpayer has Checking       Select Yes or No to verify the taxpayer’s checking account status.
Account



                                                                                          Bank Services 2006     11
Taxpayer has Savings    Select Yes or No to verify the taxpayer’s savings account status.
Account
Taxpayer Housing Status From the drop down box, select if the taxpayer’s housing status is Owns, Rents,
                        or Other.
Taxpayer’s Beginning    Enter the date the taxpayer began employment with their current employer.
Employment Date

Name/Social Security Number Validation
Verification must be one of the following methods:
Current Social Security    Check this box if the verification is from a current Social Security card.
Card
             If the SSN cannot be tied to the RAL/RT applicant with a high degree of certainty, the applica-
 NOTE        tion should not be taken and the return should not be filed.
Picture ID                  Check this box if the verification is from some form of picture ID.
              The preparer must initial the appropriate SSN validation line on the bank application.
  NOTE

Current Military ID Card    Check this box if the verification is from a current Military ID.
2006 IRS Mailing Label The IRS mailing codes are the two letters found at the top of the IRS mailing
Code                    label.
           Always check to see if the taxpayer has the IRS label.
  NOTE

Prior Client/2005 Tax       Check this box if the verification is from a 2005 tax return or if this is a previous
Return                      client.

Identification of Taxpayer(s)
Identification/ID           One or two forms of ID must be presented. Select the kind of identification from
Description                 the drop down box or enter the ID description. Match the taxpayers’ signatures
                            with the signatures on the IDs. One of the IDs must be a picture ID.
Identifying Number          Enter the identification number from the proof of ID.
Expiration Date             Enter the expiration date from the proof of ID.
Place of Issuance           Enter the place where the ID was issued.
Date of Issuance            Enter the date the ID was issued.
Taxpayer’s Current          Enter the EIN of the taxpayer’s current employer.
Employer’s EIN
Additional Information      Enter any additional ID information.
ID Address Mismatch         If this ID address does not match the current address, please select the reason.
Reason E-Other              If reason E-Other is selected, provide an explanation.
              To override the date format in a date field, press Ctrl+Y.
  NOTE




12     Bank Services 2006
Residential Address
Taxpayer’s Residential      Enter the residential address if the address on the General Information screen is a
Address                     P.O. Box.

Required Entries if MFJ and Spouse’s Address Is Different from
Taxpayer’s
Spouse’s Residential        Enter the spouse’s residential address if the filing status is MFJ and the address is
Address                     different from the taxpayer’s.
Spouse’s Mailing            Enter the spouse’s mailing address if the filing status is MFJ and the address is dif-
Address                     ferent from the taxpayer’s.

Spanish Translation
If a Spanish translation of the RAL application and loan agreement documents is required, click the Spanish
translation link (HSBC only).

Loan Assumed By
If the filing status is MFJ and the loan is not being assumed by both the taxpayer and spouse, make the appli-
cable selection.

Printing the Application
  • After completing all tax form and bank application entries, click Review on the button bar.
  • Correct any EF Audits, if applicable. Verify that the bank application and Form 8879 or Form 8453 were
    processed.
  • Print the bank application and e-file forms.
  • Click Create E-File(s).
              HSBC clients must manually complete the preprinted bank application mailed to EROs.
  NOTE


Obtaining Signatures
  •   The Bank Application, Loan Agreement, Truth in Lending Agreement, ERO Fee Worksheet, and Form
      8879 or Form 8453 must be reviewed with the taxpayers before they are asked to sign the forms. Have
      the clients read the contents. Clarify any questions they may have.
  •   If applicable, witness the client signatures and sign the Witnessed (ERO) line.
  •   The taxpayers must be given a completed copy of the above bank forms.
  •   Retain a copy of the bank application until December 31, 2007. Do not mail the application to the bank
      unless requested.
  •   Retain a copy of Form 8453 or Form 8879. Form 8453 must be mailed to the IRS within 72 hours of
      the IRS acceptance. The preparer must retain Form 8879 for three years.




                                                                                       Bank Services 2006       13
E-File Center
            The E-File Center is where you will handle all e-file and bank transactions. You must be online with
            your ISP in order to access the E-File Center.




E-File/Bank Transmission
     1   Click EF Cntr on the button bar.
     2   Enter your User Name and Password. Click Log In.
     3   Verify that 1040 has been selected from the System drop down box.
     4   Click Send Clients. Verify that RAL or RT appears in the Bank column.
     5   Tag the clients and click Send.
     6   Verify the information and click OK to transmit the files to TaxWorks.


                                                                                 Click to transmit clients to
Click to access the bank clients                                                 TaxWorks.
that are ready to transmit.

Tag clients that are ready to
transmit.




14       Bank Services 2006
Test Print Checks
You can create a sample e-file/bank return and test the check printing.
   1 Click Clients on the button bar.
   2 On the Client Selection screen, select the Samples folder.
   3 Click New Client. Enter some simple tax return information. Complete the Bank screen information.
   4 Review the return and click Create E-File(s), and then OK.
   5 Click EF Cntr on the button bar.
   6 Enter your User Name and Password. Click Log In.
   7 Verify that 1040 has been selected from the System drop down box.
   8 Click the Samples tab.
   9 Click Send Clients. Verify that RAL or RT appears in the Bank column.
  10 Tag the clients and click Send.
  11 Verify the information and click OK to transmit the files to TaxWorks.
  12 The return will be sent to the TaxWorks Filing Center.
  13 View or print the transmission report. Click Close.
  14 Wait 5 to 10 minutes and then click the Bank button, and then Checks.
  15 Tag the check. Click Print.
  16 Enter an eight-digit check number and click Next.
  17 Verify the check number and click Print.
  18 Verify that the check printed correctly. Click Yes or No.
  19 If Yes, you are done.
  20 If No, tag the check and click Next.
  21 A screen will appear with reasons the check may have printed incorrectly. Select the applicable reason
       and click Next.
  22 The check to be reprinted will appear. Verify the information and click Finish.
  23 The check will reappear on the Bank, Checks screen. Repeat steps 15 through 22.


Check Alignment
Each printer functions differently. Your printer may pull check stock differently than another. This could im-
pact the check print alignment. If the check print alignment needs to be adjusted, proceed through the follow-
ing steps.
   1 Click the Bank button, and then Check Alignment.
   2 Load the check(s) in the printer. Click Print Test Check.
   3 From the vertical and/or horizontal alignment drop down boxes, make the applicable selection. Click
        Save Settings.
   4 Repeat steps 2 and 3 until the alignment is correct.




                                                                                      Bank Services 2006     15
Print Checks
When the bank releases the check print records, they will automatically appear in the E-File Center. You do
not have to retrieve the checks from TaxWorks.



     Click to access the available
     checks.                                                                            Click to print the checks.


     Tag the checks to be printed.




     1    Click EF Cntr on the button bar.
     2    Enter your User Name and Password. Click Log In.
     3    Verify that 1040 has been selected from the System drop down box.
     4    Click the Bank button, then click Checks.
     5    Tag the check(s) that are ready to print. Click Print.
     6    Enter the first check number in the sequence and click Next. The computer will automatically list the
           rest of the check numbers.
     7    Verify the check numbers. Load the checks in the correct sequence into your printer and click Print.
           The checks will print.
     8    Verify that the check(s) printed correctly. Click Yes or No.
     9    If Yes, the check reconcilement record(s) will be created automatically. TaxWorks will forward these
          records to the bank so the preparer fees can be released.
     10    If No, tag the check(s) that did not print correctly and click Next.
     11    A screen will appear with reasons the check(s) may have printed incorrectly. Select the applicable rea-
           son and click Next.
     12    The check(s) to be reprinted will appear. Verify the information and click Finish to continue or Back
           to make adjustments.
     13    After clicking Finish, the checks will reappear on the Bank, Checks screen. Repeat the Print Checks pro-
           cess.
     14    Manually update the Bank Check Logs.
                 Separate disbursements will be made for the federal and state check records.
     NOTE
                 Reference the bank’s user manual for check stock storage and security instructions.
     NOTE




16        Bank Services 2006
Issuing the Check
   1 Before issuing the check to the client, verify the client’s identification again.
   2 Verify that the check number printed by the computer matches the number preprinted on the check. If
      there is a discrepancy, DO NOT issue the check. Reference the Reprint Checks instructions.
   3 Explain to the client the APR (Annual Percentage Rate) and loan charges printed on the check stub.
   4 If applicable, secure the client’s signature on the Check Received By line at the bottom of the bank
      application to certify the receipt the of the check. Write the number of the check and the date received.
   5 Issue the check to the client. The bank provides a Good Funds Letter, if needed.

Multiple Disbursements
If more than one disbursement is required, the bank will:
   • Issue multiple check print records.
   • Make multiple direct deposits.
   • Restock the cash cards.
If the client decides to decline the check, contact the bank for Stop Check information.
If the client decides to decline the loan, contact the bank.



Reprint Checks
Printed checks that are damaged, torn, or used out of sequence prior to the disbursement to the taxpayer may
be reconciled internally using the Reprint Checks procedure. An automatic VOID check reconcilement record
will be created.
   1 Click the Bank button, then click Reprint.
   2 Enter the taxpayer’s SSN for the check to be reprinted. Click Go. Tag the desired check and click
     Reprint. Use caution when selecting checks to be reprinted as one client could receive multiple checks.
   3 A screen will appear with reasons the check may need to be reprinted. Select the applicable reason and
     click Next.
   4 The check to be reprinted will appear. Verify the information and click Finish to continue or Back to
     make adjustments.
   5 After clicking Finish, the check will reappear on the Bank, Checks screen. Follow the Print Checks proce-
     dure.
   6 After printing the check, a check reconcilement record is again created for the reprinted check. The
     previously printed check will have a VOID reconcilement record created automatically. TaxWorks will
     forward both reconcilement records to the bank.
   7 Reference the bank’s user manual for procedures on handling VOID checks.
              The reprint option is not available for all banks. You may need to contact the bank for assistance
  NOTE        in reprinting checks.

Lost or Stolen Checks
Printed checks that are damaged, lost, or stolen after the disbursement to the taxpayer may require bank inter-
vention. Due to the tight security related to lost and stolen checks, and different scenarios encountered, the
ERO should contact the bank.
Once you have contacted the bank and determined that you need to reprint a lost or stolen check, follow steps
1 through 7 in the Reprint Checks instructions.



                                                                                       Bank Services 2006      17
Delete Available Check Records
If for some reason a check you have already printed appears on the Bank, Checks screen, you may delete the
check record from the screen
     1 Tag the check you want to delete and click Delete. The check will disappear from the screen.



Summary
The Bank, Summary screen is where you will find information for items passed to you from the bank. Available
check print records, fee records, deposits, checks cleared, RAL denials, and other bank information are detailed
on the summary reports.
   1 Click the Bank button, then click Summary.
   2 Tag the report and click View, or double click on the desired summary report.
   3 The reports can be printed, saved as PDF files, or e-mailed.
   4 Click Close to return to the EF Center.
   5 After viewing the summary reports, tag the report and click Archive to remove the report from the
       screen, if desired.


Bank Deadlines
     1 Click the Bank button, then click Deadlines to view the various cut-off dates for each bank’s available
       products.


Database
The E-File Center Database is a great utility to help you track the bank status on clients that have been trans-
mitted to the TaxWorks E-File Center. From the E-File Center, click the Database button.

     1 Select the desired database option.

Click to view clients with
pending bank products.


Click to view various bank
client situations.


Click to view clients with
unresolvable bank products.




18       Bank Services 2006
    •   Common, Pending Bank Products – Click to view bank clients with pending bank products. These
        include nonfunded and partially funded clients.
    •   Bank, All Bank Products – Click to view all bank clients and all associated bank products.
    •   Bank, Federal Bank Products – Click to view federal bank clients only.
    •   Bank, State Bank Products – Click to view state bank clients only.
    •   Bank, Accepted RALs – Click to view accepted RAL bank clients only.
    •   Bank, Accepted RTs – Click to view accepted RT bank clients only.
    •   Other, Unresolvable Bank Products – Click to view bank clients with unresolvable bank products.


Find a specific client by
entering the name or SSN.




Click on the name to view                                                  Move through the screens by
the client information.                                                    page number.

                                                                           Check the box to view clients
                                                                           by last name from the alpha
                                                                           character selected.



2 Click the client name to view the detailed information.
3 The following screen will appear.

Select Bank from the drop
down box to view the detailed
bank information.




                                                                                 Bank Services 2006        19
Reports
Reports are a great way to manage and track the status of your bank clients.
     1 Click the Reports button.
     2 Select the desired bank report.




     3   Select the report range, type and status, and sort by options, if applicable.




     4   Click View. The report may be printed, emailed, or saved as a PDF file. Click Close.
         • Approved RAL/RT Advance – Lists clients with approved Advance RAL/RT products.
         • Bank Product Disbursements – Lists acknowledgment status, bank product, and authorization
             information.
         • Declined RAL and RAL/RT Advance – Lists declined clients and associated denial codes.
         • Outstanding Bank Products – Lists clients who have not received funds or have received only
             partial funding.
         • Preparer Fees from Bank – Lists requested bank fees, bank fees received, and deposit dates.
         • Unpaid Bank Fees – Lists acknowledgment dates, requested bank fees, fee amounts received, and
             statuses.




20       Bank Services 2006
Helpful Links
From the E-File Center, Overview screen, click Compare Banks under Helpful Links. View the bank fees, rebates,
incentives, available states, products offered, and contact information for the individual banks.

Click to view the detailed
information for each bank.




Bank Websites and Customer
Support Numbers
SBBT                     www.sbbtral.com             (800) 779-SBBT (779-7228)
Chase                    www.chasetrp.com            (800) 766-7405
HSBC                     www.hsbctfs.com             (800) 342-5699




                                                                                     Bank Services 2006     21
Bank Criteria
The IRS will pass a Debt Indicator (DI) for all e-file clients. The DI is set by the IRS and tells the client if they
will receive a full or partial federal refund. This code is noted on the Acknowledgment report under the Debt
Code column. The DI codes come in the following format:
        N or Blank = None (They will get the refund)
        I = IRS debt
        F = Financial Management Services (FMS) debt (i.e., Child Support, Student Loan, etc.)
        B = Both (both IRS & FMS debt)


RAL Denial Criteria
If the Debt Indicator received from the IRS notes that the taxpayer has an outstanding debt, the RAL will be
denied. RALs automatically fall to a Refund Transfer (RT) product.
Following are some criteria that might restrict a taxpayer from receiving a RAL. We have included bank audits
in the software when possible. The bank criteria varies per bank. Reference the individual bank’s user manual
for details.
   • Taxpayer must be of binding age to enter into a legal agreement (age 18 in most states).
   • P.O. Box instead of physical address.
   • Form 8862 is present (reclaim EIC after disallowed) (SBBT, Chase).
   • Schedule C loss is greater than $500 and Schedule EIC is present.
   • Form 4136 is present (SBBT).
   • Estimated tax payments are present (SBBT, Chase).
   • Taxpayer is dependent of another.
   • No W-2s or 1099-Rs are present (SBBT, Chase).
   • Refund less than $200 (Chase, HSBC).
   • Refund minus EITC is less than $0 (SBBT).




22      Bank Services 2006
                                                           BANK PRODUCT COMPARISON

                                   SBBT                        Chase                                                 HSBC
                               RAL / RAL DD              RAL / RAL Direct                                             RAL                            RAL RPT (DD)
                                                                                                            2.75% of loan amount                   2.75% of loan amount
                                                                                                            (max. $97) + $29.95 *                  (max. $97) + $19.95 *

     $300 - $1,000                 $43.95                      $33.00               $300 - $1,000              $38.20 - $57.45                        $28.20 - $47.45
    $1,001 - $1,500                $68.95                      $69.00              $1,001 - $1,500             $57.48 - $71.20                        $47.48 - $61.20
    $1,501 - $2,000                $83.95                      $79.00              $1,501 - $2,000             $71.23 - $84.95                        $61.23 - $74.95
    $2,001 - $3,500                $110.95                    $104.00              $2,001 - $3,500            $84.98 - $126.20                       $74.98 - $116.20
$3,501 - $9,999 (SBBT)
                                   $120.95                    $114.00              $3,501 - $9,500           $126.23 - $126.95                      $116.23 - $116.95
$3,501 - $10,000 (Chase)
                                                                                                        * HSBC now bases their prices on the calculation above. The tiers have
                                                                                                        been provided for comparison purposes.
      RT / BONU$                   $30.95                      $30.00             RAC (paper check)                  $29.95
RTDD / BONU$ DIRECT                $30.95                      $30.00                 RPT (DD)                       $19.95
        STATE                      $10.00                      $10.00                  STATE                         $11.00

                                  PREPARER REBATE PROGRAM                                                             ADDITIONAL INFORMATION
                                   SBBT                        Chase                   HSBC             ?Performance Incentives will only be paid on fully funded loans.
                                                                                                        ?Minimum Loans required to qualify for Performance Incentive:
    RAL / RAL DD                $5.00 - $7.00               $4.00 - $6.00               $5.00            SBBT-25; HSBC-50; Chase-1.
                                                                                                        ?HSBC first year EROs will receive an additional $3.00 for
   RT / BONU$ / RAC             $4.00 - $6.00               $4.00 - $6.00               $3.00            Express Refund Loan (RAL) and Check (RAC) products. (Minimum
                                                                                                         requirement - 100 loans).
RTDD / BONU$ DIRECT /
                                    $6.00                   $4.00 - $6.00               $2.00           ?Chase and HSBC rebates increase after ERO reaches 1,000+ bank
         RPT                                                                                             products. (Contact banks for additional details.)
        STATE                                                  $1-$2                     $1             ?SBBT offers an Advance RAL of either $1,200 (min. refund $2,800)
                                                                                                         or $1,900 (min. refund $4,500) for the RAL price plus $55.00. Check
                           .76% - 1.00%     =   $1.00   1.01% - 1.25% = $1.00   1.01% - 1.25% = $0.50    or Cash Card only.
                                                                                                        ?SBBT offers an Advance RT for refunds between $500-$1,200 (min.
   RAL/RAL DD                0.51 - 0.75% = $2.00       0.76% - 1.00% = $1.75   0.76% - 1.00% = $1.50    refund $500) for the RT price plus $55.00. Check or Cash Card only.
                                                                                                        ?Chase offers an Advance RAL up to $1,500 (min.
  PERFORMANCE               0.26% - 0.50% = $3.00       0.51% - .075% = $2.50   0.51% - 0.75%= $2.50     refund $2,500) for the RAL/Bonu$ price plus $39.00. Check only.
    INCENTIVE                                                                                           ?HSBC offers an Instant RAL or Instant RAC of $1,828 (refund
                                                        0.26% - 0.50% = $3.25
                            0.00% - 0.25% = $4.00                               0.00% - 0.50% = $4.00    $4,000+), $1,218 (refund between $2,500-$3,999), $598 (refund
                                                        0.00% - 0.25% = $4.00                            between $1,500-$2,499), full amount if refund is between $200-
                                                                                                         $1,499.
                                                                                                        ?SBBT offers Cash Card transfers for the RAL / RT price plus $29.95.
                               AL, AR, AZ, CA, CO, CT, DC, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA,      ?SBBT rebates increase $2.00 on non-check products. These
                                 MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NJ, NM, NY,                 include direct deposit and cash card transfers.
STATES AVAILABLE                                                                                         * Products and fees for each bank subject to change.
                                         OH, OK, OR, PA, RI, SC, UT, VA, VT, WI, WV                      * The most current information available was used in
                                     Federal Bank Product required if doing State Bank Product             this comparison.

								
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