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AARP Tax-Aide Regional Meetings

October 2010

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Presentation Overview

Content FS 2010 AccomplishmentsFS 2011 Volunteer Burden ReductionFS 2011 Enhancements/Improvements

TaxWiseQualityTrainingProducts

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2010 Accomplishments

Thank you for your service to the American taxpayers!!

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VITA/TCE Successes

Returns prepared 2,985,481(up 0.9%)

E-filed returns 2,811,259 (up 2.0%)

E-file rate is 94.2% (up 1.1%)

Total Refunds $3.5 Billion (up 14.6%)

Direct Deposit returns up 5.1%

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VITA/TCE Successes

2010 2009

% Change

Returns Prepared

2,985,481 2,958,656

0.9%

E-Filed Returns

2,811,259 2,756,989 2.0%

E-File Rate

94.2 93.2% 1.1%

Direct Deposit

1,313,744 1,250,261 5.1%

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Partners, Volunteers & Coalitions

81,426 - (est.) Volunteers worldwide

12,753 - Volunteer Sites

4,511 - National & Local Partners

373 - Community Coalitions

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AARP Accomplishments

2010/2009 Comparison FY 2010 FY 2009

% Growth

Total Paper 70,414 83,808 -16.0%

e-file “returns accepted” 1,422,677 1,390,594 2.3%

e-file rate 95.2 94.3% 1.0%

Total Returns 1,493,091 1,474,402 1.3%

E-file Reject Rate 8.5% 6.8% 25%

Total PIN Usage 1,422,344 1,390,518 2.2%

Direct Deposit Requested 537,746 or 41% 500,490 or 36% 7.4%

Primary/Secondary 60+ 939,736 or 76% 899,614 or 65% 4.4%

Total EITC Dollars $232,956,552 $200,138,473 16.4%

State Returns 1,141,499 1,076,248 6.0%

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2010 QSS Review Results(F6729R)

VITA(F6729R)

AARP(F6729R) TOTALS

Number of Return Reviews 400 345 745

Number of Intake and interview sheets used 322 241 563

Correct Intake and Interview Process Used 80% 70% 76%

Number of Quality Review Sheets Used 314 240 554

Correct Quality Review Process Used 79% 70% 74%

No Quality Review Sheet used (Approved or Un-approved) 36 58 94

Number of Correct Returns 346 281 627

Accuracy Rate 87% 81% 84%

2010 VITA/TCE Quality Statistical Sample (QSS) Review Comparisons

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FS 2011 Enhancements and Improvements

Volunteer Burden Reduction

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FS 2011 Volunteer Burden Reduction

Based on AARP Feedback, the Following Enhancements are Being Worked to Reduce Volunteer Burden:

Introduce no new processes, procedures, etc. after filing season has begun

Complete no Site Reviews during the first week of site operation

Make Publication 4491-W answers available earlier in tax season

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FS 2011 Volunteer Burden Reduction

Based on AARP Feedback, the Following Enhancements are Being Worked to Reduce Volunteer Burden:

Allow use of wireless access to the internet at tax sites

Allow for the filing of state only returns Modifying requirements to allow for multi-

site licensing when one individual is an ERO for multiple sites

Postpone planned reduction of IRS loaned computers

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FS 2011 Volunteer Burden Reduction

Based on AARP Feedback, the Following Enhancements are Being Worked to Reduce Volunteer Burden:

TaxWise Related Earlier and improved access to TaxWise

software for testing purposes Provide access to computer image

earlier in process

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FS 2011 Volunteer Burden Reduction

Based on AARP Feedback, the Following Enhancements are Being Worked to Reduce Volunteer Burden:

TaxWise Related Strive to reduce number of updates Improve quality and efficiency of TW

Customer Support Improve and increase communication

between TW and partners Expand and enhance training modules

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FS 2011 Filing Season

Watch List

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FS 2011 Filing Season

Hot Topics for SPEC Financial Education and Asset Building

Savings Bonds Prepaid Cards

Removal of Debt Indicator Capacity Impact Impact on Clients

Return Preparer Strategy Impact on TCE and VITA Increased Scrutiny

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FS 2011 Filing Season

Hot Topics for SPEC Schedule C Pilot

Selected Sites Expense Limitation to $25,000 No Employees, Inventory No Net Operating Losses

Modernized E-file Health Care Pending Tax Law Changes

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FS 2011 Enhancements and Improvements

TaxWise

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FS 2011 TaxWise

Improved Customer Service

Enhanced Communications

Improved Business Continuity

New Interactive Training

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FS 2011 TaxWiseSoftware Enhancements

Beginning with FS 2011, users have the ability to: Switch between interview and form mode in TWO

similar to Desktop Allow Administrators to mandate use of interview

mode Setup up staging groups in TWO similar to

Desktop. Restrict preparers use of override delete rows on worksheets and statements Move the “efile” button to the top of screen

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FS 2011 TaxWiseSoftware Enhancements

Added:New Reviewer roleThree new Prep Use FieldsTime out reminder

Fixed “zero”Activated “Control E” functionalityForm 13614C will be populated through

the interview

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FS 2011 Modernized e-File (MeF)

Faster acknowledgements

Electronic signature process

Attachments

Amended returns

Prior year returns

Year-round filing

Specific explanation of errors

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FS 2011 Modernized e-File (MeF)

The 1040 MeF Program will be implemented in a three-phase strategy over three years

Phase I – Piloted February 2010 23 forms and schedules

Phase II – Rolls out January 2011 Prior year 2009 tax return

23 forms and schedules

Phase III – January 2012 Current tax year 2011

Approximately 151 forms and schedules Original 23 plus 128 new forms/schedules Prior tax years 2010 and 2009

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FS 2011 Modernized e-File (MeF)

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FS 2011 Modernized e-File (MeF)

2010: AL, AR, CO, CT, DE, HI, GA, ID, IA, IL, IN, KS, KY, LA, MA, MD, MI, MO, MT, NE, NC, ND, NJ,OH, OK, OR, PA, RI, SC, UT, VT, WV AND WI (33)

2011: AZ, DC, MN, NM and VA (5)

2012: MS and NY (2)

No State Income Tax – AK, FL, NV, NH, SD, TN, TX, WA, WY (9)

CA will launch own program (1)

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FS 2011 Enhancements and Improvements

Quality

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FS 2011 Quality

Form 13614-C Intake/Interview and Review Sheet Updated

Added an IRS email address and toll free number if problems are identified at the site.

Volunteers will check only one box on the Quality Review Checklist (Section C).

Section B is not required if Part II, Question 2 is blank

A column for taxpayers to check “unsure” in Parts III, IV, and V

Form numbers added where applicable

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FS 2011 Quality

Quality Enhancements:Minor wording changes to Quality Site

Requirements

Will not conduct QSS and Criteria Reviews during the first week sites are open

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FS 2011 Enhancements and Improvements

Training

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FS 2011 Training

Tax Year 2010 Training Products updated by SPEC/Partner Teams:

Testing Materials - Printed and Link & Learn Taxes version - Publication 4189 & Form 6744

Student Workbook - Comprehensive Problems & Exercises Workbook - Publication 4491-W (Development and Review Team)

e-file Administrator & the Volunteer Resource Guides - Publications 3189 and 4012 (TaxWise Yellow & Blue Tabs)

Training Products Quality Review – Publications 4491 and 4012 (Tax Law White Tabs)

“Optional” Online Module Training and Certification Test – Health Savings Accounts (HSAs) and Cancellation of Debt (COD)

AARP Tax-Aide played a significant role on the above Teams.

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FS 2011 Training

Changes - Tax Year 2010 Training Products:

VITA/TCE Forms 1040, 1040A, 1040EZ overprints orderable - Plan to discontinue overprints in Filing Season 2012

Combining student and instructor guides - Publications 4491 and 4555 Instructor guidance on IRS.gov - Publication 4555-e Revising 'Vanessa Franklin' (Appendix A) and discontinuing Appendix B Instructor and student evaluation forms (Form 13222 and 13232) will be

a web-based product Testing materials (Form 6744 and Pub. 4189) will be printed on a the

same or similar stock as Pub 17 Only one set of blank forms will be in printed training products

(Pub 4491-W and Form 6744) . Considering discontinuing publishing blank forms in Filing Season 2012.

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FS 2011 Training

New In-Scope VITA/TCE Topics for Year 2010:

Schedule C (with limitations) Form 5329, Additional Tax on Early Distributions, Part I

(exceptions) Schedule K-1 – Royalty Income Cancellation of Debt (COD) – Credit Cards * Health Savings Accounts (All aspects of HSAs will not be

included) *

* COD and HSA topics: “Optional” online training module and certification test. Volunteer must have Advanced, Military, or International Certification to take COD or HSA test.

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FS 2011 Training

Many Key Individual ARRA Tax Benefits are still available in 2010:

Making Work Pay Credit Homebuyer Credit Temporary increase in Earned Income Credit Temporary increase in refundable portion of Child Tax Credit American Opportunity Tax Credit Residential Energy Credits

Visit www.irs.gov for the most up to date information on ARRA and other tax law changes.

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FS 2011 Enhancements and Improvements

Products

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FS 2011 Products

Training Products Available:

Advance copies of the printed training products (late October) (no paper copies; CD-ROMs)

Volunteer Training Kits: Pubs 4491 & 4480 – Late November (Before Thanksgiving)

Online e-learning: Link & Learn Taxes & Practice Lab – Early November

Workbook Problems & Exercises: Pub 4491-W (Tax Year 2010 Answers) – Late November (Posted on IRS.gov - Partner/volunteer Resource page)

Training Supplement: Pub 4491-X - Mid December

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FS 2011 Products

Product Ordering – CAPS Records/Account Review

Electronically based process. Designed to decrease the paper load. Currently verifying e-mail and physical addresses,

closing inactive accounts, etc. SPEC and National AARP Tax-Aide are working

together to eliminate duplicate accounts. Updating CAPS database to ensure the correct

person receives the 2010 e-order form.

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FS 2011 Products

Product Ordering - Benefits of Electronic Ordering Process for SPEC Partners include:

Less transcription errors. No lost or misplaced paper orders. No faxing from partner to SPEC, and then to NDC. Electronic proof of all orders received. An electronic acknowledgement of order receipt. A second electronic receipt when the order is approved by SPEC. An e-mail notification is sent each time a shipment is sent from

the NDC.

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Thank you. You make a difference!