Transcript www.cashoregon.org

AARP Tax-Aide
Policy and Procedures Review
For Review by All Volunteers TY2014
TAX-AIDE
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
1
Overall Objectives:
● Ensure awareness of
 AARP Foundation Tax-Aide Program Policies
and Procedures
 AARP Foundation Tax-Aide Standards of
Professionalism
 IRS Quality Site Requirements (QSR)
● Provide IRS-mandated training for all
volunteers on:


IRS Quality Site Requirements (QSR)
IRS Volunteer Standards of Conduct (VSC)
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
2
Goal
Improve volunteer satisfaction and create
a more satisfying experience for taxpayers
by ensuring that all sites comply with TaxAide policy
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
3
Key Resource:
Client Service Provider Digest
● Additional important information provided in
the Client Service Provider Digest:
 Counselor Guidelines and Policies
 Conflict of Interest Guidelines
 Confidentiality and Security of Taxpayer Data
 Liability Protection
 AARP Foundation Volunteer Standards of
Professionalism
 Activity Reporting
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
4
Summary of IRS Quality
Site Requirements (QSR)
What is required and who is responsible?
Who is responsible?
1
2
3
4
5
6
Volunteer certification
Intake and Interview
Quality Review
Reference Material
Signed Volunteer Agreement
All Returns filed on timely basis
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
LC/Instructor
Counselors
Counselors
LC
Counselors
LC/ERO
5
Quality Site Requirements
Who is responsible?
7 Taxpayers informed of their
Civil Rights
LC
8 Must use correct Electronic
Filing Identification Number
(EFIN)
LC/ERO
9 Must use correct Site ID
number (SIDN)
LC/ERO
10 Taxpayer Identification
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
Counselors
6
What Counselors Need to Know
 Must use current year
QSR #2
Intake/Interview
Process
Goal: 100% use of form
with sufficient interview
of taxpayer to ensure
accuracy and
completeness of return
(More later)
TAX-AIDE
Form 13614-C –
Interview Intake &
Quality Review Sheet
for every taxpayer
 Ask probing questions
to ensure accurate
and complete answers
 Document new or
changed information
on form for QR
Volunteer/Site Policies and Procedures –
2014
7
What Counselors Need to Know
 QR must be in front of
QSR #3
Quality Review Process
taxpayer
 Fully review and
account for all pages
of Intake Sheet
Goal:
 QR should ask probing
100% Quality Review by
2nd Counselor
(More later)
TAX-AIDE
questions to ensure
correct application of
tax law, not just verify
name and numbers
Volunteer/Site Policies and Procedures –
2014
8
What Counselors Need to Know
QSR #5
 Must pass Volunteer
Volunteer Agreement
 Must agree to IRS
Standards of Conduct test
Standards of Conduct
 Must also agree to abide
by program’s Standards of
Professionalism
Goal:
100% volunteers sign
Volunteer Agreement
Form and understand
Standards of Conduct
TAX-AIDE
 Volunteer Agreement
must be signed by
volunteer and instructor
or local coordinator
Volunteer/Site Policies and Procedures –
2014
9
Volunteer Standards of Conduct
All volunteers must sign Volunteer Agreement
Form 13615 – critical text below
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
10
Form 13615, Page 2
Electronic OK
Must be Handwritten
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
11
IRS Volunteer Standards of Conduct
(VSC)
#1: Follow the Quality Site Requirements
#2: Not accept payment or solicit donations for federal
or state tax return preparation
#3: Never solicit business for self or others
#4: Not knowingly prepare a false return
#5: Not engage in any criminal or any conduct deemed
to have a negative effect on the program
#6: Treat all taxpayers in a professional, courteous and
respectful manner
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
12
AARP Foundation Tax-Aide
Standards of Professionalism
● Discussions of politics, race, nationality,
gender identity, religion are
inappropriate.
● Treat all taxpayers/volunteers equally
and with courtesy – no discrimination
● Only prepare “in-scope” returns
● All tax returns will receive a Quality
Review by a 2nd certified counselor
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
13
Standards of Professionalism
● Do not discuss taxpayer information with
anyone who does not have a “need to know”
● When an issue arises regarding taxpayer return
that requires consultation with 2nd volunteer:
 Discuss away from taxpayer
 Discuss quietly to ensure other taxpayers do
not hear private information
 Resolve differences of opinion privately to
sustain taxpayer confidence in the knowledge
and skills of the counselors
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
14
Standards of Professionalism
● Angry taxpayer?

Attempt to diffuse situation

Move to quiet area, if possible

Immediately notify local coordinator
● Provide assistance to disabled

Assure welcome

If requested assistance not available, notify local
coordinator
● Do not provide personal information for any volunteer

First name and last initial only on name tag

Refer inquiries to local coordinator
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
15
What Counselors Need to Know
 Both Taxpayer and spouse
QSR #6
Timely Filing of Tax
Returns
Goal: 100% taxpayers
are reminded that the
accuracy of the return
is their responsibility
TAX-AIDE
must sign Form 8879 to give
authorization to e-file
return—counselors may
never sign for a taxpayer
 All counselors should Inform
Taxpayer he/she is
responsible for accuracy of
the return before signing the
8879
 Any rejects should be
resolved in timely manner
(usually within 3 days and
usually by ERO, not
counselor)
Volunteer/Site Policies and Procedures –
2014
16
What Counselors Need to Know
QSR #8 All Returns must have the correct Site
Identification Number
QSR #9 All Sites must have the correct Electronic
Filing Identification Number
Both usually
defaulted
In software
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
17
What Counselors Need to Know
QSR #10
 All taxpayers should show
Security, Privacy,
Confidentiality
 No taxpayer forms or
Goals:
 All returns must be prepared
photo ID and SS cards for all
people on return*
information should be
retained by volunteers
at site
100% Taxpayer
identification
 Promptly report any lost data
No loss of taxpayer data
*see notes
TAX-AIDE
to National office
Volunteer/Site Policies and Procedures –
2014
18
What Counselors Need to Know
QSR #10
 Know and comply with new
Security, Privacy,
Confidentiality
 Never post password on or
Password requirements
near computer
 Lock computer if you step
away; turn screen so can’t be
seen by others than taxpayer
Goal:
 Restrict cell phone usage by
All taxpayer financial
data are secure
taxpayers to prevent pictures
of financial data
 Don’t talk about a taxpayer’s
return where others can hear
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
19
Secure Equipment and Tax Data
● AARP Foundation Tax-Aide approved
anti-virus software must be installed and
running on computers
● AARP Foundation Tax-Aide approved
firewall software program installed
● Passwords required to control access to
taxpayer data
● No Windows XP computers
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
20
Loss of Equipment/Financial Data
● Store equipment in secure environment when not in
use (ask: who has access to this storage room?)
● Immediately notify your volunteer leader if:


A computer is stolen or lost
Forms with taxpayer data are stolen or lost, or a
taxpayer has unauthorized access to another
taxpayer’s documents. Be careful not to mix up
printed tax returns.
● Volunteer leader must immediately call police to
report loss and number on back of volunteer badge
● Incident Review must be completed and sent to
volunteer supervisor and National Office
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
21
Summary: All Volunteers Must
● Complete Volunteer Site Policies and
Procedures Training (these slides)
● Receive Training to understand
 Intake and Interview Process
 Quality Review Process
● Pass the IRS Volunteer Standards of
Conduct test
● Wear name tag with first name and first
initial only of last name
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
22
Summary: All Counselors Must
● Pass Advanced level of IRS Test
● Not prepare returns that are “out of scope”
for Tax-Aide
● Not prepare a return which they do not have
the sufficient knowledge to prepare, even if it
is “in-scope” (refer to another counselor)
● Not prepare a return if they believe that the
taxpayer is not truthful about the information
provided (advise return can’t be completed)
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
23
Tax-Aide Policy re: Shut-Ins
Requirements:
● Only for disabled who are unable to
leave their home for any reason and are
age 60 or older
● They need federal tax assistance
● Mileage limited to 30 miles round-trip
● Completed no later than April 20th
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
24
Shut-Ins
● Requires presence of two counselors to
reduce liability issues
● Need computer, printer and internet access
● Extremely rare
● Is there an alternative?

Power of Attorney provided by taxpayer
to friend/relative who can come to site
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
25
Reduce Errors on Bank Deposit
Information
● Bank routing number and account
number should be entered directly from
check—must not be taken verbally or
from handwritten note
● If taxpayer does not have check use
optional method below only if approved
by Local Coordinator
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
26
Reduce Errors on Bank Deposit
Information for Direct Deposit
● Optional Method:

Counselor advises taxpayer that they are
responsible for accuracy of information, and
the money will most likely be gone for good if
incorrect numbers are given

Taxpayer initials next to routing and account
numbers on printed return to confirm they
accept responsibility for accuracy

Source of information recorded in TaxWise
Main Information Sheet
 Taxpayer Diary

TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
27
Volunteer/Site Policies and
Procedures
Questions?
Comments…
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
28
Screening and Interviewing
● Preparation of tax return does not begin
until a thorough screening and interview
has taken place!

Form 13614-C – Intake Sheet

Ensuring return is in scope

Probing to resolve tax issues

Exercising due diligence
TAX-AIDE
NTTC Training – 2014
29
Screening and Interviewing
● Proper use of 13614-C will help ensure a
correct return
● More than half of all errors on returns
are due to inadequate screening and
interviewing!
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
30
TAX-AIDE
NTTC Training – 2014
31
TAX-AIDE
NTTC Training – 2014
32
TAX-AIDE
NTTC Training – 2014
33
First Step – Screen for Eligibility
● Confirm identity of taxpayers with photo
ID

LC approval required for exemptions,
should be very rare

Personal verification of ID by counselor
● Confirm Social Security or other
taxpayer identification number
TAX-AIDE
NTTC Training – 2014
34
Taxpayer Identification Number
● Best – Social Security card or ITIN (Individual
Taxpayer Identification Number) letter
● Alternatives

Other documents issued by Social Security
Administration such as SSA-1099 or Social
Security Administration letter -OR-

All docs with matching name and SSN plus
TaxWise carry-forward of last year’s return all
match
TAX-AIDE
NTTC Training – 2014
35
Begin the Interview Process
● Update Intake Sheet with all missing or
corrected information
● Add notes on Intake Sheet during
interview to help Quality Reviewer
determine if return is accurate
TAX-AIDE
NTTC Training – 2014
36
Probing Interview Techniques
● Engage taxpayers in a conversation to
clarify their answers and identify other tax
issues that may affect tax return
● Verify any issue that is not clear, ask more
questions until you are satisfied you have
all the facts
● Verify and clarify information which
appears to have changed from last year’s
tax return
TAX-AIDE
NTTC Training – 2014
37
Probing Interview Technique
● Verify that taxpayer has all needed
documents
● Verify accuracy of documents and receipts
● Verify documents are for 2014
● Make sure return is IN SCOPE
● Use due diligence
TAX-AIDE
NTTC Training – 2014
38
Due Diligence Is…
● Asking sufficient and thorough questions to
ensure accuracy and completeness of tax
return -AND● Verifying accuracy of documents presented
OR determining when to rely on, in good
faith and without verification of,
taxpayer’s oral/handwritten testimony
TAX-AIDE
NTTC Training – 2014
39
Due Diligence (cont)
● Tax Preparer must ask questions if
information furnished appears to be
incorrect, inconsistent, or incomplete
● Tax Preparer may not ignore
information furnished to, or actually
known, by him/her
● Counselors must not KNOWINGLY
prepare false returns!
TAX-AIDE
NTTC Training – 2014
40
Relying on Good Faith
● Good Faith is relying on oral/
handwritten testimony from taxpayer
that is ordinary, necessary and
reasonable

Taxpayer has established credibility – a
returning customer who has forgotten to
bring a receipt

The dollar amount is insignificant
TAX-AIDE
NTTC Training – 2014
41
After the Interview: Four Options
1. Begin to prepare taxpayer’s return
2. Advise taxpayer to bring missing documents
another day; help set up an appointment
3. Hand off to another Counselor if not in your
“comfort zone”
4. Advise taxpayer that return is out of scope and
why


TAX-AIDE
Discuss situation with Local Coordinator/other Tax
Preparers first
Return intake form and all other documents to
taxpayers
NTTC Training – 2014
42
Screening and Interviewing
Questions…
Comments…
TAX-AIDE
NTTC Training – 2014
43
Quality Review is Required
● ALL returns must receive Quality Review
by 2nd certified preparer
● QR must be completed with Taxpayer or
representative present
TAX-AIDE
NTTC Training – 2014
44
Quality Review Methods
● Designated Reviewer – preferred method

Designated Quality Reviewer

Dedicated to reviewing completed returns
● Peer Review – volunteers exchange
returns with each other
● Self-Review – not acceptable
TAX-AIDE
NTTC Training – 2014
45
Who Conducts The Quality Review?
● Second Certified Tax Counselor must
Quality Review EVERY return
● QR on computer rather than printed
return



Incomplete forms or red fields are
apparent
Ease of updating errors
Saves paper and ink/toner
TAX-AIDE
NTTC Training – 2014
46
What does the Reviewer look for?
● Has the information on the Intake sheet
been properly reflected on the return?
● Has something been omitted?
● Is the data entered correctly?
● A good quality review is nearly a second
tax preparation – but without the data
entry.
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
47
Intake/Interview Sheet
● Explain Quality Review Process to
taxpayer
● Review 1040 entries line-by-line
● Any other ‘issues’ that came up during
preparation
● Highlight any carryovers
● Respond to any questions
TAX-AIDE
NTTC Training – 2014
48
Intake/Interview and QR Sheet
● Form 13614-C, Pg 4
Confirm
In-scope
Confirm
Confirm
TAX-AIDE
NTTC Training – 2014
49
Quality Review Process
● Review Intake/Interview Sheet for possible
dependents; compare with return
● Verify most advantageous filing status is
selected
● Verify dependent coding on Main Info Sheet,
e.g., EIC
TAX-AIDE
NTTC Training – 2014
50
Quality Review Process
● Look for typos, transposed digits,
missing information, misspellings, etc.
● Compare Intake/Interview Sheet and
supporting documents to return
● Ask taxpayer probing questions
● Ask: “Is there any other income?”
TAX-AIDE
NTTC Training – 2014
51
Quality Review Process
● Verify adjustments
● Verify deductions (Schedule A)
● Verify credits – including required forms
● Verify correct entry of withholding and any
estimated payments
● Verify direct deposit information

Bank routing number and account number
TAX-AIDE
NTTC Training – 2014
52
Quality Review Process
● If returning taxpayer, review Summary
Form in TaxWise to compare year-overyear changes
● Otherwise, compare 2014 return to 2013
return if available
● Verify differences are reasonable and
taxpayer understands reasons for any
“significant” changes
TAX-AIDE
NTTC Training – 2014
53
TaxWise Quality Tools
● No red fields
● No incomplete forms
● Diagnostics

NO unnecessary overrides

NO e-file restrictions

No missing information
● Create “e-File”

Clear any error messages
TAX-AIDE
NTTC Training – 2014
54
Quality Review Process
● Verify data entered for state returns, if
any
● Verify counselor entered initials in
Preparer Field in Preparer Use Form in
TaxWise
● QR person enters initials in QR Field
TAX-AIDE
NTTC Training – 2014
55
Quality Review Process
● Review return with taxpayer(s)
● Remind taxpayer(s) that accuracy and
completeness of return is their
responsibility
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
56
Common Errors
● Improper SSN
● Entry of 1099-OID as tax
exempt
● Incorrect name
● Improper completion of
● Errors in entry: W-2,
EIC Worksheet
1099R, EIN, name
● Improper entry of 1099
information
● Transposed
characters/numbers
● Return prepared with
● Improper use of
Simplified Method 1099-R
out-of-scope issues
● Improper entry of RRB-
1099R
TAX-AIDE
NTTC Training – 2014
57
A good quality review
takes time.
Do not short-change the
taxpayer by rushing through it.
TAX-AIDE
NTTC Training – 2014
58
Quality Review
Questions?
Comments?
TAX-AIDE
NTTC Training – 2014
59
Identity Theft
● Someone uses another's information,
such as name, identifying number, or
credit card number, without permission,
to commit fraud or other crimes.
TAX-AIDE
NTTC Training – TY 2014
60
Identity Theft
● We see two main kinds

e-filed return rejected due to prior use of
a SSN or ITIN (most common)

Taxpayer who is a known or suspected
identity theft victim has a letter from the
IRS with an Identity Protection PIN to use
when filing their 2014 tax return
TAX-AIDE
Volunteer/Site Policies and Procedures –
2014
61
Identity Theft
● If e-file rejected, give taxpayer:
1.
Paper copy of return to mail
2.
Letter with instructions
3.
Form 14039 – Identity Theft Affidavit
● Usually handled by ERO (Electronic
Returns Originator, not preparer)
TAX-AIDE
NTTC Training – TY 2014
62
Identity Theft
● For taxpayers who know they are victims
of identity theft
● Ask taxpayer if s/he contacted IRS
regarding identity theft or if IRS sent
notice of potential identity theft
TAX-AIDE
NTTC Training – TY 2014
63
Identity Theft (cont)
● Enter IP PIN in the software in Identity
Protection PIN section
Note: e-file return will be rejected if IRS
issued PIN is not included
TAX-AIDE
NTTC Training – TY 2014
64
Identity Theft (cont)
● If taxpayer received IP PIN but lost it,
have taxpayer call ID Theft Toll-free
Hotline: 800-908-4490
● If hotline provides new IP PIN – e-file
● If not – create paper return and advise
taxpayer to follow hotline instructions
TAX-AIDE
NTTC Training – TY 2014
65
Recommendation…
In light of increasing identity theft, we now recommend
E-filing for all clients, even if they are not otherwise
required to file a return.
●From taxpayer’s perspective:
 Identify identity theft
 Potentially prevent identity theft
 Provide documentation of tax status
●From IRS perspective:
 Incremental “cost” of e-file is low
 Cost of dealing with identity theft is high
●From AARP perspective:
 Better tracks activity
 Creates IRS record of return if questions arise later
TAX-AIDE
NTTC Training – TY 2014
66
Identity Theft
Questions?
Comments?
TAX-AIDE
NTTC Training – TY 2014
67