Transcript Tax Preparation Course Introduction

Tax Preparation
Course Introduction
Pub 4491 – Part 1
TAX-AIDE
Welcome
● AARP Tax-Aide education is all about:

Interaction with taxpayer

Forms

Data

Calculations
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AARP Foundation Tax-Aide
● Nationwide non-profit program administered
by AARP Foundation
● Helps low-to-moderate income taxpayers
with special attention to age 60+
● Free confidential service
● Committed to high-quality service
● Answers tax questions/prepares returns
● Funding from AARP Foundation and IRS
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Objectives
● Course levels and training approach
● Certification process
● Volunteer responsibilities
● Critical components of return preparation
process
● Resources available
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Course Levels
● Two Levels

Basic – for Volunteer Income Tax Assistance
(VITA) sites (not Tax-Aide)

Advanced – all Tax-Aide Counselors
● Optional Courses

Health Savings Accounts

Military

International
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Training Approach
● Process Based Training (PBT)
Structured process combining interview,
application of law, and tax software to
complete return followed by full Quality
Review of the return
● Learn to use IRS reference manuals
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Training Approach
● Income tax training

Start with basics

Continue through complete return

It becomes a process

Course follows progression through Form
1040
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Tax Return Preparation is a
Process
Greet taxpayer and
verify identity with
photo ID and SSN
Complete
State/Local returns if
applicable
Quality Review by
second Counselor
with taxpayer
Review I&I form and
discuss all answers
with taxpayer
Review Forms Tree
– clear any warnings
Create e-file
Start return, fill out
Main Info Sheet
Run Diagnostics –
correct any errors –
re-run Diagnostics
Complete Federal
return – follow Form
1040 line by line
Create e-file if
applicable – correct
any errors
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Print return(s) for
taxpayer
Taxpayer
signature(s)
Collate copies –
review w/taxpayer
8
Federal Return (1040)
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Filing Returns
● All returns completed on computer

TaxWise software supplied by IRS
Resides
on server at vendor (TWO)
● All returns must have quality review

2nd pair of eyes
● All returns filed electronically
● Each taxpayer gets printed copy
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Certification Process
● Complete two tests to meet IRS/AARP Tax-Aide
certification requirements

Volunteer Standards of Conduct (VSC) Test

Advanced Test
● Minimum score of 80% required on each
● May take one retest if necessary
● Show competency in use of TaxWise®
● New volunteers generally do not complete optional
courses
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Volunteer Responsibilities
● Stay within scope of program
● Stay within training completed
● Become familiar with and use resources
 IRS Pubs
 IRS help facilities
 State Pubs and help facilities
 Fellow counselors
 AARP Tax-Aide Cybertax Alerts
● Understand return is client’s responsibility
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Volunteer Responsibilities
● Protect confidentiality and security
● Do not retain any data at site

Exception – Form 8453 and attachments
● Record ALL activity at site every shift
● Follow site’s e-file process
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Volunteer Protection Act of 1997
● Certified volunteers not liable if:

Received IRS/AARP Foundation Tax-Aide
Training

Harm not wilful

Act within scope of program and training

AARP Foundation Tax-Aide policies and
procedures are followed
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Expectations for Volunteers
● Be positive (not disruptive) in a learning
environment
● Follow directions (don’t jump ahead)
● Ask questions
● Timely completion of assignments
● Successful certification
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Process Components
Each will be
covered in a later
slide

Form 13614-C

Form 1040

Form 1095-A

Form 1099 (various)
● IRS Publications
 Pub 4491
 Pub 4012
 Pub 17
 1040 Instructions
 Pub 5157

Form 8962
● TaxWise Software

Form 8965
● State reference
● IRS Forms
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material as
applicable
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The
Text
Book
evergreen
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Pub 4491
Follows Form
1040 order
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Pub 4491
(cont)
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Workbook
evergree
n
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The
Golden
Book
Primary
Reference
Tool
Contains
new ACA
Tab
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Text Book
for
Affordable
Care Act
New
Resource
for 2014
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The Test
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The Test
Basic Test
not required
for AARP
Tax-Aide
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Tax
Law
Details
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Details
Line-by
Line
3
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Laminated Tri-Fold
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Qualifying Child Tri-Fold
● Simplifies

Determining Filing Status

Identifying qualifying persons
● To eliminate mistakes that otherwise
might not ever be caught or corrected
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Read the Introductory Page
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1.
2.
3.
4.
5.
6.
Citizenship?
Relationship?
Age?
Younger than you?
Residency?
Child of more than
one taxpayer?
7. Child filing MFJ?
8. Can you be claimed as a
dependent?
9. Parent separated and
filing separate returns?
10.Did the child provide
more than ½ of his own
support?
Then, person is qualifying
child for all possible benefits
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It looks very complicated, but...
● If your child’s situation is straight-
forward, the chart will take you straight
down the left-hand side to Box 29.
● These are the same 10 questions you
would answer from Page C-3 of the
Resource Guide
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Training Reference Icons
Definition
s
TaxWise
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Interview
Quality
Review
Tax Law
Exit
Interview
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Practice
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Course Introduction
Questions?
Comments…
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