eTax Web Training”Taxes Made Easy”

Business RelationshipWhat eTax does in the partnership. Responsibilities of your store.Business RelationshipWhat eTax does in the partnership. Responsibilities of your store.

Services and ProductsProcessing tax returns. Rac Checks. Other filing options.

The Cycle of a Tax ReturnCreating a return. Submission to eTax and the IRS. Print the tax refund check.

Tax Terminology and Setting ExpectationThe differences between filing statuses. Common tax credits. Common issues you may encounter this tax season

Sales and MarketingHow to maximize your return production. Pricing information.

Outline of Today’s Training

What eTax Does eTax and your company have created a partnership that allows your store to submit your customers information to eTax to prepare the return. This partnership also allows you to print tax refund checks quickly and conveniently from your store.

eTax acts as the paid preparer by preparing the actual tax return, including all tax forms and tax schedules. We prepare the return with IRS licensed preparers who have completed the IRS PTIN program.

eTax is the party responsible for electronically processing and sending information to the IRS and Bank. eTax is the “messenger” for dealing with the IRS.

What eTax Does

eTax prepares and reviews every return. This means there is a level of security between your company and the IRS.

eTax helps answer the “Where’s my refund” questions your customers might have.

eTax supports your offices all year long with eTax’s FAQ and Live Chat.

Most importantly, eTax keeps you in your core business by keeping the tax process quick and simple.

What Your Store Does

You will act as eTax’s “Customer Service Rep” and the “messenger” for the customer. You are not expected to be a Tax Expert. Gather all tax related information from the customer.

Input all gathered information into eTax’s web site.

Answer the customers tax questions utilizing eTax’s FAQ and the support of Live Chat.

What Your Store Does Verify all identification and signatures of the taxpayer. Submit the tax return to eTax.

Check your submitted tax returns to see if they are accepted.

Print all tax refund checks (federal and state) in your store. Also print all tax related paper work, including signature pages and tax return.

Occasionally faxing paperwork to eTax’s filing department.

Customer Service for your Store eTax has several tools in place to ensure you have a smooth and successful tax season.

Live Chat is a feature we have that will put you directly in touch with one of our Tax Wizards through in instant message service. The button to activate Live Chat will be on every page in our tax program.

New this year is eTax’s FAQ.

The idea for the FAQ was suggested by our stores and we think it will be a great benefit for you this tax season.

Customer Service for your Store The FAQ will have a button like the Live Chat button that will take you into the answer database.

The FAQ is available 24/7 and is updated frequently during tax season to reflect new tax laws and code.

The FAQ is a great place to look up commonly ask questions or to get yourself more familiar with tax terms during slow times. Most questions have full answers with instructional video included.

It is also a great place to look up phone numbers and addresses for the IRS and states.

Services and Products

Services You Offer in Your Store

Your customers can have their federal and state tax return information sent to eTax to be prepared and filed to IRS.

Year round tax service and customer service.

Amended Tax Returns and Past Years Tax returns, also filed all year round.

Amended Tax Returns prepared at another office.

RAC Product

The RAC check is a bank product that will print in your office when the IRS releases the taxpayers refund from the Department of Treasury. It is most commonly done weekly on Fridays.

All fees are deducted from the taxpayers refund check.

Usually a 7-10 turnaround.

The RAC check, and the state check if RAC is selected, will be printed in your office.

RAC Product

An important thing to remember is the RAC check will not print until the IRS releases the actual refund to the bank.

Neither eTax nor your office has any control over when the IRS releases the tax payers refund.

The IRS does hold back some returns for further review. If this happens, eTax can contact the IRS and see if they will release any information on the status of the refund.

RAC Time Table

IRS accept Date Refund Dep. DateIRS accept Date Refund Dep. Date1- 19 by noon1- 19 by noon 1- 27 1- 271- 26 by noon 2- 031- 26 by noon 2- 032- 02 by noon 2- 102- 02 by noon 2- 102- 09 by noon 2- 172- 09 by noon 2- 172- 16 by noon 2- 242- 16 by noon 2- 24

The chart below is an example of the IRS refund release cycle.

This chart shows the deposit dates if the IRS has accepted and funded the actual refund without delays.

RAC Product

About 5% of RAC returns could have some kind of delays. Some of the reasons could be…

The Customer owes some kind of debt to the IRS or bank. This could include credit card or even student loan debt.

EIC is a large portion of the refund (usually 75% and above) and the IRS wants to further review the return.

The IRS feels the return may be fraudulent.

RAL and IRAL

The RAL and/or IRAL have been legislated out of the industry. Also, HR Block no longer has Rapid Refunds.

Some companies still claim to have a RAL but it is not the RAL as we knew it in the past. It is a partial RAL (usually $250) with a low approval rating.

Customers have not been happy with the product because of the low approval rating and the price mark up when they could have filed with you for less and received the refund in the same time frame.

Alternative Filing Options

eTax can also file tax returns using the e-file and paper file methods.

Both of these options, e-file and paper, do not involve the bank. These are not popular options because the customer will need to pay prep fees UP FRONT.

For these options the refund check will be mailed from the IRS to the customer directly. This will take between 3-6 weeks.

Alternative Filing Options

For paper returns, your office will submit the customers tax information to eTax and then print the completed return for the customer to mail to the IRS.

E-file returns have the direct deposit option.

Most important, for both e-file and paper returns the PREP FEE MUST BE COLLECTED BEFORE SUBMITTING TO ETAX!

Audit Defense

The benefits for electing to add Audit Defense to the taxpayers return include…

• eTax answers all letters from the IRS• eTax provides assistance in the event of an IRS audit• eTax pays penalty and interest up to $2000 if due to an eTax error• Gives your customer and yourself peace of mind• Protects the tax return for 3 years

Most importantly it means extra revenue for your office!

Steps and Procedures

How to prepare a return

This section will go over the steps of a tax return from A to Z.

The process starts with creating a return and ends with printing the taxpayers check.

The next slide is a graphical representation of the RAC process and will be referenced throughout this section.

eTax(Step 4)

RAC Life Cycle:

eTax(Step 2)

Bank(Step 3)

IRSFed & State

(Step 3)

Store ABC(Step 1)

Store ABC(Step 5)

Hurdle 1: Create Return Taxpayer enters your location with W-2 and any

other tax information that is to be filed.

Customer will fill out an eTax interview sheet.

Hurdle 1: Create Return Enter the taxpayers information into our

website. Taxpayer will decide what refund type they want

Hurdle 1: Create Return Quote the taxpayer their “Net Check” amount

eTax(Step 4)

RAC Life Cycle:

eTax(Step 2)

Bank(Step 3)

IRSFed & State

(Step 3)

Store ABC(Step 1)

Store ABC(Step 5)

Hurdle 2: Submit to eTax Your store will print out Signature Pages. This

will include the IRS 8879 and also Bank App when applicable.

These must be signed before submitting.

Hurdle 2: Submit to eTax Make sure you double check all the information

you have entered into the website.

Hurdle 2: Submit to eTax If you have any questions or concerns about the

return you created contact Live Chat for answers.

On the summary page check the box that says you have reviewed all the information being submitted to eTax. This will activate the submit button.

Submit the return to eTax.

Store ABC(Step 1)

eTax(Step 2)

IRSFed & State

(Step 3)

Bank(Step 3)

eTax(Step 4)

Store ABC(Step 5)

RAC Life Cycle:

Hurdle 3: Sent to IRS/Bank eTax prepares the tax return and submits to the

IRS and bank.

eTax will be considered the paid preparer for every return you submit.

Hurdle 3: Sent to IRS/Bank Most times the tax return will be accepted by

the IRS and the RAC check will print in 7-10 days.

However sometimes things can happen which might delay the return filing process.

Hurdle 3: Sent to IRS/Bank Occasionally the IRS will REJECT a tax return

and/or review the return further which could delay the refund.

Store ABC(Step 1)

eTax(Step 2)

IRSFed & State

(Step 3)

Bank(Step 3)

eTax(Step 4)

Store ABC(Step 5)

IRS Rejected Tax Return:

Hurdle 3: Sent to IRS/Bank If the return is rejected by the IRS it does not

mean that this is a dead deal!

When explaining the situation to the customer remember that you are simply passing along the decision of the IRS.

Hurdle 3: Sent to IRS/Bank On a rejected return you simply need to go back

into the return and fix the incorrect information.

The reject code can be found on the Status Screen inside the return.

The most common errors are misspelled last names, wrong social security numbers, or date of births.

Hurdle 3: Sent to IRS/Bank First verify that you did not input wrong info.

Second call the customer and make sure that they provided you with the correct information.

If after those steps no error is found, please come into Live Chat for additional help.

Hurdle 3: Sent to IRS/Bank Once a return is corrected resubmit the return.

No new paperwork needs to be printed or signed to resubmit.

*Don’t Shoot the Messenger* Remember that you are just relaying the information onto

your customer (the taxpayer) At the same time, eTax is relaying the information to your

store to provide your customer with the status of their return.

Let’s work as the same team to get the customer their refund as quick as possible!!!

Store ABC(Step 1)

eTax(Step 2)

IRSFed & State

(Step 3)

Bank(Step 3)

eTax(Step 4)

Store ABC(Step 5)

RAC Life Cycle:

Hurdle 4: Waiting on Result During this step in the RAC cycle eTax is in

communication with the Bank

eTax will relay any messages we get from them to your store to keep your customer informed.

Hurdle 4: Waiting on Result You and your store should check the status page

the day after the return was submitted to eTax to make sure it was accepted by the IRS.

Hurdle 4: Waiting on Result RAC checks drop every Friday, sometimes

earlier.

You and your store should look in the Check Printing screen throughout the day on Thursday and Friday (after you have accepted returns) to see if you have checks to print for customers.

Store ABC(Step 1)

eTax(Step 2)

IRSFed & State

(Step 3)

Bank(Step 3)

eTax(Step 4)

Store ABC(Step 5)

RAC Life Cycle:

Hurdle 5: Print Check When the RAC check shows up in your print

check queue its time to print the check!!!

Hurdle 5: Print Check Print the check and the tax return.

You will print the check before calling the customer because it will take the bank 30 minutes after printing to be able to verify the check.

Call the customer.

Hurdle 5: Print Check Give the check and the tax return to the

customer when they arrive at your store.

Its just that easy!!!

What to Keep on File

The Signature Pages Bank Application IRS Form 8879

The Check Stub

Copies of W-2 or 1099’s

All Completed Interview Sheets

Keep signature Pages on file for 3 years

Tax TerminologyAnd Setting Expectations

Filing Status

When preparing the tax return the web program has questions that will determine the customers filing status.

If a customer asks what filing status they should use, you can tell them information in this presentation or consult the FAQ or Live Chat.

A taxpayer is considered either married or not married.

Filing Status

There are two options if the customer is married.

• Married Filing Joint (MFJ) This is the most common way for married couples to file. In our industry all married couples should file this way, even if the spouse does not work.

• Married Filing Separate (MFS) This filing status is not recommended for your customers because of the penalties associated with the status. MFS will get no EIC, no educations credits, and the lowest standard decuction.

Filing Status

If the customer is not legally married they have two ways to file.

• Single. This is for people who are unmarried and have no dependents. Or unmarried with dependents who are not related to them.

• Head of Household (HOH) Head of Household has 3 requirements which are on the next slide. All three requirements must be met in order to file this status.

Filing Status

You must be unmarried or considered to be unmarried on the last day of the year. Also if the customer is separated the last 6 months of the year and will not be getting back with their spouse.

You must have paid for more than half the cost of maintaining a home for the year.

A qualifying dependent must have lived with you more than half the year. If the qualifying dependent is their parent , he or she need not have lived with you.

Filing Status

A qualifying dependent is considered for HOH

• Son or daughter• Grandchild or foster child• Brother or sister• Niece or nephew• Parent or Grandparent (need not live with you)

EIC – Earned Income Credit

EIC is a refundable tax credit for people who work and have earned income under $48,000.

EIC can be earned by families and individuals that qualify. The credit can be up to $5,600 depending on number of dependents, filing status, and other factors.

To claim the credit the taxpayer must have earned income. Basically they must have been employed at some part of the year. There is no EIC for people with only social security income or unemployment.

EIC – Earned Income Credit

To qualify for the EIC the taxpayer must meet some criteria. Some of them are

• Taxpayer must have a valid social security number.

• The qualifying dependent must be 18 or under or 23 or under if the dependent is a college student.

• If the dependent is permanently or totally disabled it doesn’t matter the age.

•ITINs and filing MFS will not qualify.

EIC – Earned Income Credit

Qualifying dependent for EIC

• Son or daughter• Grandchild or foster child• Brother or sister• Niece or nephew

The dependent must have lived with the taxpayer for over half of the year.

The taxpayer must provide for over half of the dependents living expenses.

EIC – Earned Income Credit

Graph for EIC when new charts released.

CTC – Child Tax Credit

The amount of this credit is based on taxable income and some other factors.

Everyone’s situation can be different and could receive different amounts

The taxpayer can receive up to $1,000 per child.

The taxpayers qualifying dependent must be 16 or younger to get this credit.

Additional Forms These are some additional forms you will see during tax season

• 1099 Misc – self employed income• 1099 R – retirement income• 1099 G – unemployment• 1099 Ssa – social security income• 1099 Div – dividends from stocks or bonds• 1099 Int – interest income• 1099 C – cancellation of debt• 1099 Sa – health and savings account withdrawal• w2 G – gambling income

Additional Forms

Remember all you need to do is locate the form number in our web site.

Enter the requested information into the eTax program and eTax will do the rest.

eTax prepares and files all the forms needed to complete the tax return.

Setting Expectations

These next two slides are things to remember that will help your tax season go more smoothly.

You can keep these things in mind when communicating with your customer about their refund.

The other thing to remember is due to changes in the industry there are no more IRALs and no more RALs as we knew them in the past.

Setting Expectations

The first weekend of tax season the IRS processes tax returns very slow to be sure everything is working correctly. Therefore, there will be no IRS acceptance until the first Monday. (tax season begins on a Friday)

Your store cannot print a RAC check until the IRS releases the taxpayers refund to the Bank.

Last year the IRS refund release date was every Friday, and they deposit refunds throughout the day.

Setting Expectations

If the taxpayer doesn’t receive their refund because they have debt, the CUSTOMER will have to call the IRS or FMS department to find out when the refund will be released.

If the state refund arrives before the federal refund your store will print the check with ALL the fees taken out of it. Then the store will print the entire federal refund check when it is released.

If the state refund arrives before the federal refund and it is not enough to cover fees, the checks will be combined

Sales and Marketing

Marketing to your Customers

90% of taxpayers file their return BEFORE February 20th so you need to make sure to promote and market before the tax season starts.

Use your existing customer base to market towards.

The tax estimator is a quick and easy way to talk about taxes with your customer and get them excited about their refund.

Marketing to your Customers

You can promote this product however you would like. Be creative!

Start answering your phone “ABC Store and TAX PREP”

The estimator has coupons and flyers that can be printed out and handed to customers.

Remind everyone who walks in your store that you offer etax tax return preparation now.

Marketing to your Customers

The point that eTax wants to stress is that the tax season is extremely short so utilize the window we have now to sell your tax service.

Tell all current and potential customers you can prepare their taxes and get them the largest and fastest refund possible.

Its never too early to talk taxes!!!

Tax Return related Scripts

During the tax season you will think of your self as a “Customer Service Rep” for eTax. You will be the bridge between the customer and eTax.

This means you will not need extensive tax knowledge.

You simply gather their information and answer their questions as the “Customer Service Rep”. Our website, FAQ, and Live Chat keeps this task quick and easy.

Tax Return Pricing

How much does it cost to do a tax return?

• Because of the unique relationship between eTax and your company there is no set amount for returns.

• Prices start at $69 for a federal return and can increase the more forms or schedules added to the return.

• Last year our prices were very competitive and in most cases much less than other tax offices.

Tax Return Pricing

H&R Block: $189 per return (average, 2010 data)

Jackson Hewitt: $208 per return (average, 2010 data)

etax: $165 per return (average, 2010 data)

The fees charged by the chains and as reported by the National Society of Accountants are fairly similar. So these average prices may represent a sort of range for average prices charged.

Tax Return Pricing

Remember that you are not only selling our competitive pricing.

• You can also promote that they will be getting their taxes done with a national tax provider.• They will have all tax questions answered quickly with the help of Live Chat.• And you can print their refund check right in your office instead of waiting for it to be mailed.• It’s all in the way you present it and sell it!

Sales and Marketing Summary

This partnership works because you have an existing customer base that already knows and trusts you and see you all year.

Almost everyone has to do a tax return.

There is no reason to NOT do business with you.

So instead of shying away and giving them reasons not to file with you, give them MANY reason TO file with you.

Live Demonstration

eTax Web TrainingIf you have any questions that were not answered please log into the FAQ or Live Chat and a Wizard will be happy to answer them

for you.