Transcript Course Introduction

STANDARDS OF CONDUCT
Pub 4012
Pub 6744
Intro Pages
VITA/TCE Test Intro
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VOLUNTEER
Standards of Conduct
6744 Intro
 Preparers required to exercise due diligence
in preparation of tax returns
 IRS has responsibility for oversight to
protect tax program integrity and maintain
taxpayer confidence
 Volunteers can be removed, sites closed,
IRS support & funds discontinued by IRS
 Clients may be subject to examination,
litigation or criminal penalties if false return
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UNETHICAL DEFINED
6744 Intro
 IRS-SPEC defines unethical as not conforming
to agreed standards of moral conduct,
especially within a particular profession
 In most cases, unethical behavior is acted
upon with the intent to disregard the
established laws, procedures, or set policies
 An error or omission that was unknowing is
not considered an unethical action
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STANDARDS OF CONDUCT
6744 Intro
 Form 13615, Volunteer Standards of
Conduct Agreement, applies to all conduct
and ethical behavior in VITA/TCE Program
 ALL volunteers must agree to Standards of
Conduct, pass a test, & sign Volunteer
Agreement prior to working at a VITA or
TCE site
 Responsibility of all volunteers is to provide
highest quality, best service to clients
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QUALITY SITE REQUIREMENTS
4012 Intro
 Volunteers required to adhere to QSRs (see
Pub 4012) re:
#1, Certification
#2, Intake/Interview Process
#3, Quality Review Process
#4, Reference Materials
#5, Volunteer Agreement
#6, Timely Filing
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QSRs, cont’d
4012 Intro
# 7, Title VI – AARPs D143, Free Tax Help
Poster displayed at all AARP/TCE sites
# 8, Accurate Site ID Number on all returns
# 9, Correct E-File ID Number on all returns
#10, Security, Privacy and Confidentiality
 Equipment and tax data secured
 Passwords never posted near computer
 TaxWise/encryption exited if not in area
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SIX STANDARDS OF CONDUCT
6744 Intro
1. Must follow Quality Site Requirements
2. Must not accept payment or solicit donations
for federal or state tax return preparation
3. Must not solicit business from clients or use
knowledge gained about them for direct or
indirect benefit for self or others
May use aggregate data for promotion (e.g.,
# returns, schedules) but use of $$ amounts
prohibited except aggregate for fund-raising
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SIX STANDARDS OF CONDUCT
6744 Intro
4. Must not knowingly prepare false returns
5. Must not engage in criminal, infamous,
dishonest, notoriously disgraceful conduct,
or any other conduct deemed to have a
negative effect on the VITA/TCE Program
6. Must treat all taxpayers in a professional,
courteous, and respectful manner
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Volunteer Protection Act
 Protects volunteers from liability for
negligent acts they perform within the
scope of their responsibilities.
 Only if they were acting within the scope of
the program
 Does NOT protect conduct that is willful or
criminal, grossly negligent, reckless,
conscious, or flagrant indifference to the
rights of the individual harmed by the
volunteer.
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VIOLATION OF STANDARDS
 Client says has “cash income” not reported
on 1099-MISC; volunteer replies does not
need to report since IRS may not catch it
 Volunteer includes child listed by client as
dependent who was not a “qualified child or
relative” since no-one else is claiming child
 Volunteer offers to list own bank account
for client without an account in order to
provide client with faster refund
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VIOLATION OF STANDARDS
cont’d
 Volunteer asks client (who is single) if s/he
would consider meeting for a date
 Client does not want to report a stock sale
because cost basis equal to or higher than
sales price; volunteer agrees not to but tells
client that, if audited, amounts would need
to be supported by documentation
 Volunteer commits criminal act (not at site)
 Volunteer argues/becomes angry with client
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AARP FOUNDATION
STANDARDS PACKAGE
 Volunteer Standards of Professionalism
 Taxpayer Information and Responsibilities
(available at the site)
 Incident Review Protocol
(To be handled by local site leadership)
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Example :
Not Reporting Cash Income
 Self-employed taxpayer has a 1099-MISC
with income reported in Box 7;
 Taxpayer tells volunteer they also have “cash
income” not reported on a 1099-MISC;
 Volunteer tells taxpayer he does not need to
report the cash income because the IRS may
not catch it;
 Volunteer completes Schedule C without the
cash income.
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Example:
What Should You Do?
 What Standard of Conduct was violated?
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Example:
What Should You Do?
 What Standard of Conduct was violated?
#4 (should not knowingly prepare a false
return)
 The local Coordinator should discuss the
incident with immediate supervisor
 AARP Foundation Incident Review Protocol
should be followed
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Example:
Claiming a Person as a Dependent
 Taxpayer lists a person who was “not related” but
a child of a personal friend who was not claiming
this child as a dependent;
 Volunteer stated that, although the child was not
a “qualified child or relative”, since no one else is
claiming the child it would be OK to put this
person on the return;
 Volunteer completes Form 1040 claiming the
dependent.
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Example:
What Should You Do?
 What Standard of Conduct was violated?
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Example:
What Should You Do?
 What Standard of Conduct was violated?
#4 (should not knowingly prepare a false
return)
 The local Coordinator should discuss the
incident with immediate supervisor
 AARP Foundation Incident Review Protocol
should be followed
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Example:
Using Volunteer’s Account #
 Taxpayers indicate on Part V of intake sheet that
they have no bank account for direct deposit;
 Taxpayer is entitled to refund of $1200;
 Volunteer says direct deposit of refunds to bank
account are available within 7-10 business days;
 Volunteer says he could have refund deposited
to his bank account and, when received, would
contact taxpayer to give them their money;
 Return completed with volunteer’s account #.
You are the Local Coordinator, what do you do?
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Example:
What Should You Do?
 What Standard of Conduct was violated?
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Example:
What Should You Do?
 What Standard of Conduct was violated?
#3 (should not solicit business from
taxpayers I assist or use the knowledge I
gained about them for any direct or indirect
personal benefit for me or any other specific
individual)
 The local Coordinator should discuss the
incident with immediate supervisor
 AARP Foundation Incident Review Protocol
should be followed
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Example:
Volunteer Commits Criminal Act
 Local Coordinator learns from other volunteers
that volunteer has been arrested for a crime;
 Volunteer comes to site and Local Coordinator
speaks to him privately;
 Local Coordinator learns volunteer got into an
altercation at a bar and is out on bail;
 Local Coordinator asks if it is true he had prior
arrests and altercations with the law; the
volunteer says it is true.
You are the Local Coordinator, what do you do?
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Example:
What Should You Do?
 What Standard of Conduct was violated?
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Example:
What Should You Do?
 What Standard of Conduct was violated?
#5 (should not engage in criminal,
infamous, dishonest, notoriously disgraceful
conduct, or any other conduct deemed to
have a negative effect on the VITA/TCE
Program)
 The local Coordinator should discuss the
incident with immediate supervisor
 AARP Foundation Incident Review Protocol
should be followed
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STANDARDS OF CONDUCT
Questions
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