REI Tour2011 Filing Season Webinar

January 27, 2011

2010 Accomplishments

Thank you for your service to the American taxpayers!!

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VITA/TCE Successes

2010 Tax Prep Results

• Returns prepared 3,085,512 (up 1.24%)

• E-filed returns 2,827,413 (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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Global Statistics for VITA/TCE

2010 Quality Results• QSS Return Reviews

• Planned 855 Completed 745 • SPEC Accuracy rate 84%

• QSS Site Reviews• Planned 285 Completed 263• Adherence to QSR 60%

• TIGTA Shopping Reviews • Planned 36 Completed 36• Correct Return rate 90%

FS 2011 Filing Season

SPEC Cornerstones

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• Cornerstones for 2011 Filing Season– Improve Taxpayer Experience

• Complete State Only Returns

• Provide Additional Filing Options

– Reduce Volunteer Burden• Limit Overall Administrative Burden

• Increase Interaction with TaxWise

– Increase Overall Accuracy of All Returns Completed

FS 2011 Filing Season

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FS 2011 Filing Season

• Cornerstones for Accurate Returns– Complete In-depth Intake and Interview

Process• Use Form 13614-C

• Interaction with Taxpayer Key

– Complete Thorough Quality Review• Use Form 13614-C

• Second Set of “Eyes” and “Ears”

– Be Diligent About Scope Issues• No Returns Beyond Training

FS 2011 Filing Season

Hot Topics for SPEC

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FS 2011 Filing Season

• Hot Topics for SPEC– Financial Education and Asset Building

• Savings Bonds

• Prepaid Cards

• Tax Time Account Pilot

– Removal of Debt Indicator• Capacity Impact

• Impact on Clients

– Return Preparer Strategy• No Impact on TCE and VITA

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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

– Schedule C Limit Expanded to $10,000 For All Sites• Use Schedule C Instead of Schedule C-EZ

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FS 2011 Filing Season

• Hot Topics for SPEC– Late Tax Law Changes

• Retroactive Tax Law Changes

– State and local sales tax deduction

– Higher education tuition deduction – Educator’s expense deduction

• Tax Law Extensions

– $1,000 Child Tax Credit (through 2012)

– American Opportunity Tax Credit (2012) Residential Energy Property Tax Credit through 2011 with Limitations

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FS 2011 Filing Season

• Hot Topics for SPEC– Late Tax Law Changes

• Processing Delay to Mid-February

– Schedule A

– Educator Expense Deductions

• Filing Alternatives

– Request Taxpayer’s With Impacted Items to Return in Mid-February

– Prepare Return, TP Sign 8879, Provide TP with Copy and Hold Return Until Processing Allowed

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• Hot Topics for SPEC– Modernized E-file

• IRS Improving Filing Platform

• Implemented In Stages

• Faster Acknowledgements

• Creation of Submission Processing ID Instead of DCN

– National EITC Awareness Day – Friday January 28th

FS 2011 Filing Season

Thank you. You make a difference!