Transcript ERO TRAINING

ERO TRAINING
ELECTRONIC RETURN ORIGINATOR
(ERO)
(Transmitter in Tax-Wise)
NTTC/NTC ERO Training 2011
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ERO QUALIFICATIONS
EROs must:
 Be certified AARP Tax-Aide
volunteers
 Be (or become) proficient with IRSsupplied tax preparation software.
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ERO RESPONSIBILITIES
 Security of taxpayer data
 Transmission of e-file returns
 Record keeping
 Communications
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SECURITY OF TAXPAYER DATA
IRS Pub 3189 requires all volunteers:
 To be vigilant
 To physically protect
 Printed data
 Electronic data
 Equipment
See IRS Pub 4299 “Privacy and Confidentiality”
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SECURITY OF TAXPAYER DATA
This means:
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Taxpayer data must be encrypted
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Taxpayer documents must be secured
Computers must be physically secured
Operating System and TW must be
password protected
See Pub 3189
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TRANSMISSION OF E-FILE
RETURNS
 Restore returns to transmitting
computer, if using different
computers with TW Desktop
 Check for errors (i.e. “red” indicators
are cleared on forms and tree)
 Run diagnostics and re-create e-files,
if necessary
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TRANSMISSION OF E-FILE
RETURNS
 Print (or save) and review E-file
Submission Report
 Transmit returns and get
Acknowledgments
 Update Filing Status Logs, if used
See PUB 3189
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TRANSMISSION OF E-FILE
RETURNS
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TRANSMISSION OF E-FILE
RETURNS
 If Transmitting State Returns:
 New for TaxWise 2011
 You can transmit state returns “LINKED”
to your Federal Return.
This means that State Return is not
forwarded to the state until after the
federal return is accepted.
 State Returns can still be sent
“UNLINKED” and without a Federal
Return.
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ACKNOWLEDGEMENTS
 Get Acknowledgements
 Federal and State ACKs
 TaxWise e-mails
 Print (or save)Acknowledgement
Report
 Check for rejects
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ACKNOWLEDGEMENTS
 Match to transmitting document or other
tracking document
 Update Return Status logs (if used)
 If no acknowledgement within 3 days:
 Contact CCH and investigate
 Ensure problem is corrected
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ACKNOWLEDGEMENTS
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HANDLING REJECTS
 Correcting Rejects:
 ERO – i.e. generally simple fixes,
some may require contacting the
taxpayer
 Site Volunteers when issue is more
complex - LC, QR or Counselors
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HANDLING REJECTS
(cont’d)
 Look for the reject code
 TaxWise describes and shows error in
return
 The first step is to clearly identify what
caused the reject
 The most common rejects involve SSN and
EIN mismatches
 Look at return or contact site or
taxpayer to correct.
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HANDLING REJECTS
(cont’d)
 Correct error, if possible
 If name or SSN is unchanged, rejected
returns can be re-transmitted without
new Form 8879 signatures if :
 Change in total income or AGI is less than
$50 and….
 Change in total tax, federal tax withheld,
refund or amount due is less than $14
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HANDLING REJECTS
(cont’d)
 The taxpayer should be advised of the
change and typically should be provided a
corrected copy of the return, even if it
does not require a resigned Form 8879.
(unless it is just an EIN correction)
 If cannot be e-filed, convert to paper and
have the taxpayer mail the return
 Provide feedback to counselor and
quality reviewer to prevent similar errors
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RECORD KEEPING

Beginning 2011 tax year, we no longer will
retain and send to the IRS:
 A signed copy of Form 8879 and income
statements (W2, W2G and 1099s’)
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AARP will no longer permit retaining a paper
copy or supporting documents at the site
except for use with Form 8453 mailing
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This will require sites to revise their e-filing
procedures
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Form 8453 - New Option
(Not supported by AARP 2011)
 New option for both TWO & Desktop
with MeF to allow (“scanned “.pdf)
attachments with returns
 Eliminates mailing the Form 8453 and
with supporting documents to the IRS
 AARP Tax-Aide will not use this option
for 2011 (i.e. also AARP will not provide
scanners for this purpose)
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Tracking of Returns
for E-filing
 Each site will track returns to
make sure the ERO knows which
returns are ready for e-filing
 Returns must be transmitted and
accepted in a timely manner.
 Each site must adopt a method to
protect TP data and privacy
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Taxpayer Data and Privacy
Policy
 The Site or ERO will not keep any forms
or documents with a taxpayer identity
and/or SSN that is not mandated by the
IRS or a State. ie. Form 8453 if used for
mailing
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Tracking Returns for e-filing
 Use Return Stage in TaxWise to track
return status
 Use the site activity sign-in or log to
track the returns for communication
to the ERO for transmitting both
federal and state returns
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Return Stage
 This feature in TaxWise is used to
communicate to ERO status of return
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e-file - Ready to File
e-file - Needs QR
e-file - Needs signed 8879
e-file – Incomplete
Paper – Complete
Paper – Incomplete
Do not file
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Site sign-in/log sheet
 In addition to using Return Stage in
TaxWise;
 The site will record on the site signin/log sheet the status of the return:
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Ready to e-file;
Waiting for signature of Form 8879;
Return will be paper filed;
Waiting for Taxpayer documents
Question only – no return prepared
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Modified TaxAide Site Sign-In Sheet
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Other Recommendations for
Communications to ERO
 Use of a client letter for
communication to the ERO – must
not contain taxpayer SSN
 Separate logs for each counselor
tracking their completed returns
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ERO TRAINING

TaxWise Training is currently
available from www.IRS.gov
 Accessed through Link
and Learn
 Will also be on the
Extranet
 Scenarios specifically
designed to cover the
types of tax returns that
volunteers encounter
 Click the starburst to
begin the login process
for the Practice Lab
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ERO TRAINING
Lessons offered for
TaxWise are grouped by
task for both TWO &
Desktop
Administrative
Return Preparation
Other topics include
Customer Support Site
University
Differences between
TWO\TWD
Tax Law Changes
Contact Information
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ERO TRAINING
The TaxWise Desktop
Classes for Admin included
lessons such as
System requirements
Security Manager
Electronic Filing
Reports
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TaxWise Online ADMIN Training

The TaxWise Online
Classes for
Administrators
included lessons such
as
 System
requirements
 Security
Manager
 Electronic Filing
 Reports
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END-OF-SEASON CLOSEOUT
for TWO SOFTWARE
 Items to be sent to Local IRS SPEC
Office
 Copy of any Form 8453’s with
attachments
Verify with your local IRS SPEC office if
they want any additional items or
reports
See Pub 3189
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END-OF-SEASON CLOSEOUT
for TWO SOFTWARE
 Deactivate Users except for a very
limited number of Supervisors
OR
 Move returns to Administrator
and change Users to Return
Preparer, if you want them to be
able to access the training website
during the off-season
See Pub 3189
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END-OF-SEASON CLOSEOUT
for DESKTOP SOFTWARE
 Backup all returns
 Create any final reports
 Create files on removable media for:
 IRS SPEC
 AARP (retention for carry-forward)
 All returns may be kept for data
retention, following required
procedures, as detailed in the Policy
Manual
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END-OF-SEASON CLOSEOUT
for DESKTOP SOFTWARE
 Items to be sent to Local IRS SPEC
Office
 Electronic copy of e-filed returns
 TaxWise backup
 IRS Acknowledgement reports
 Can be electronic copies
 Copy of any Form 8453’s with
attachments
Check with your local IRS SPEC office to see if
they want any additional items or reports.
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END-OF-SEASON CLOSEOUT
for DESKTOP SOFTWARE
 Delete returns from all computers
 Clear taxpayer data – AARP & other
computers
 Be sure to use current version
 Run “Wipe Disk”on IRS
Computers
 Return IRS laptops to depot
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COMMUNICATIONS
VERY IMPORTANT!
ERO must communicate with:
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Counselors
Quality Reviewers
Other EROs
District and Local Coordinators
Technology Coordinators
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ERO TRAINING
QUESTIONS?
COMMENTS?
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