AARP CA-2 State Meeting

October 29-30, 2015

Thank you!

You Make a Difference!

TY 2014 Production

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District e-file Paper TotalAlameda North 3,599 152 3,751Alameda South 1,659 22 1,681Alameda Tri Valley 907 15 922Contra Costa Central 5,545 158 5,703Contra Costa East 921 25 946Contra Costa West 1,364 35 1,399Humboldt/Del Norte 545 7 445Lake 391 8 399Marin 2,028 48 2,076Mendocino 439 10 449Napa 394 2 396San Francisco 2,848 74 2,922San Mateo 4,314 67 4,381Solano 2,512 42 2,554Sonoma 4,111 98 4,209

CA-2 31,577 763 32,233

TY 2009-2014 Production

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County 2009 2010 2011 2012 2013 2014Alameda 5,607 5,795 5,807 5,603 6,122 6,354Contra Costa 6,670 6,986 7,389 7,500 7,815 8,048Humboldt/Del Norte 492 491 550 548 550 445Lake 560 517 479 451 421 399Marin 2,245 2,128 2,086 2,071 2,055 2,076Mendocino 413 465 407 367 450 449Napa 454 532 535 542 460 396San Francisco 3,131 3,244 3,094 2,921 2,978 2,922San Mateo 4,002 4,010 4,073 3,987 4,097 4,381Solano 1,794 2,013 2,166 2,267 2,559 2,554Sonoma 4,581 4,652 4,471 4,034 4,162 4,209

CA-2 29,949 30,833 31,057 30,291 31,669 32,233

Quality Statistical Survey Results

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Expired Tax Law

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The following legislative provisions (“extenders”) expired on December 31, 2014, and will not apply to 2015 returns unless the laws are reinstated:

•Cancellation of Debt on Principal Residence•Qualified Charitable Distribution (QCD)•$250 Adjustment for Teacher Classroom Expenses•Deduction for Qualified Tuition and related expenses•Deduction for State and Local General Sales Tax•Deduction for Mortgage Insurance Premiums•Nonbusiness Energy Property Credit

Scope Changes/Updates

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• The due date for the U.S. Individual Income Tax Return for Tax Year 2015 is April 18, 2016.• Affordable Care Act – now included in Pub 4491 and Link and Learn Taxeso Form 8965, Shared Responsibility Payment (B)o Form 8962, Premium Tax Credit – Parts 1,2,3 (A)o Form 8962, Premium Tax Credit – Parts 4,5 (OOS)

• Form 1099R (Code L) – Code L is for loans treated as deemed distributions. •Form 1099K can be accepted

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Schedule C Returns

• All SPEC partners, with volunteers certified to the Advanced Level, are now allowed to prepare returns with business expenses up to $25,000 using the existing Schedule C criteria, as shown below, for all VITA/TCE sites.

Training and Site Materials

Training Materials

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• This is the last year the Pub 4491 will be printed. All instructors will receive one.

• Pub 4480, VITA/TCE Link & Learn Taxes Training Kit contains:

o Pub 4836, VolTax Poster

o Pub 4012, Volunteer Resource Guide

o Form 6744, VITA/TCE Volunteer Assistor’s Test/Retest

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•The Form 6744, VITA/TCE Volunteer Assistor’s Test/Retest contains certification tests and retests for Volunteer Standards of Conduct (Ethics), Intake/Interview and Quality Review, Basic, Advanced, Military, and International.

o All retests immediately follow each test.

o The Form 6744 is included in the Publication 4480 kit only. It is not available as a standalone document.

o It does not contain the Ethics or Intake/Interview and Quality Review training.

Training Materials

Training Materials

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• Publication 4961, VITA/TCE Volunteer Standards of Conduct - Ethics Training. Available on Link & Learn.

• Publication 5101, Intake/Interview and Quality Review Training. Available on Link & Learn.

• Publication 4942, Health Savings Accounts (electronic)

• Link and Learn Taxes and the Practice Lab will be available in early November.

• Shipments of printed materials may begin as early as the week of November 6.

• Publication 4491-X (electronic) will contain any corrections to the training publications or updates to expired tax law made after December.

Site Materials

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• Use Form 2333-V, electronic order form, to order site materials

• Do not order Pub. 730 (envelopes) or Pub. 4053 (Civil Rights poster) – substitute items ordered from AARP

• Review CAPS (electronic ordering system) accounts for your District

– Add or delete accounts as appropriate

– Provide name, address, phone, and e-mail

Continuing Education Credits for Volunteers

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What’s new in 2016?

• Other Tax Return Preparers (OTRPs) are now referred

to as Non-credentialed Tax Return Preparers

• All volunteers are now required to volunteer for a

minimum of 10 volunteer hours.

• Instructors can now receive CE credits for instructing

basic, advanced, or a specialty course.

• All volunteers can now receive 4 CE credits for

certifying in a specialty course.

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CE Credit Hours for Volunteers

Continuing Education Credits are provided as follows

to Quality Reviewers, Instructors and Tax Return

Preparers:

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Tax Law Certifications CE Credit hours

VSC (Ethics) 1

Federal Tax Law Updates 3

Federal Tax Law 10

Specialty Federal Tax Law Course 4Total Allowable CE Credits 18

Volunteer Requirements for CE Credits

Go to irs.govClick on “for Tax Pros”Click on “PTIN System”

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Additional Volunteer Requirements:• They must register in Link & Learn Taxes using their PTIN

number and complete the following certifications: o Volunteer Standards of Conduct (VSC) Training and

pass the VSC testo Intake/Interview & Quality Review Testo Certify to the Advanced level in tax law before

beginning volunteer service• Provide AARP management with a signed Form 13615,

printed from Link & Learn taxes, reflecting the volunteer certifications completed

• Volunteer as a quality reviewer, tax return preparer, and/or tax law instructor for a minimum of 10 hours.

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Form 13615, Volunteer Standards of ConductPage 2- Top

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Form 13615, Volunteer Standards of ConductPage 2- Bottom

Virtual VITA/TCE

Alternate Tax Preparation OptionsCan Help You Serve More Taxpayers

Stakeholder Partnerships, Education and

Communication (SPEC)

What is Virtual VITA/TCE

Virtual VITA/TCE offers an alternative to direct tax preparation for clients who can’t visit a site because it’s too far away, they’re not available during site open hours, or they have language or disability barriers or other issues that make it inconvenient or difficult.

• Two sites perform different steps in return preparation process at separate locations:

- Intake site - Preparation site

• Tax preparation does not take place face-to-face

- Can be done through video-conferencing (Skype) or other technology (phone, fax, or email)

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Intake Site

• Community location convenient to client - examples: library, school, non-profit or local agency

• Performs client intake, including verifying taxpayer identity, collecting taxpayer documents, and securing signed Virtual Model taxpayer consent form

• Securely stores and provides taxpayer documents to preparation site for return prep

• Tax Law certified volunteers can perform taxpayer interview and answer tax law questions

- all Volunteers must take Standards of Conduct Training

and sign Volunteer Agreement

• Sets return appointments for final prep steps

Preparation Site

• Provides tax law certified volunteers, EFIN/software, and equipment

• Preparation is done when volunteers are available- can help with site capacity/resource challenges

• Certified volunteers:

- conduct taxpayer interview before preparing return

- prepare return and submit for quality review

- perform quality review of return with taxpayer

• Provides final return packets to intake site for signature• E-files returns after receipt of signed Form 8879• Follows up with taxpayer directly regarding any

transmission issues

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Sites Collaborate to Complete Process

INTAKE SITE PREPARATION SITE

DURING INTAKE

● Explain process, secure Virtual Model taxpayer consent form● Help client to complete Intake Sheet*● Verify taxpayer identity● Obtain/copy taxpayer documents● Set client return appointment**● Provide/forward intake and taxpayer documents to tax preparation site

DURING RETURN APPOINTMENT

● Obtain taxpayer signature on 8879● Provide copy of return to taxpayer● Provide signature docs to prep site for electronic filing of return

● Certified Preparer: review taxpayer intake sheet and documents

● Contact TP to conduct Interview before beginning the return†

● Prepare tax return and assemble return packet for Quality Reviewer● Quality Reviewer: contact TP to conduct quality review†

● Final return packet sent back to intake site for signature

● Once taxpayer signature documents are received from intake site, e-file return and confirm acknowledgement● Follow up with taxpayer directly regarding any transmission issues

* Tax law Certified volunteers may conduct taxpayer interview and answer tax questions. Non-certified volunteers may provide general assistance only.**Taxpayer may return to intake site or prep site to sign/finalize return† Taxpayer interview and Quality review may be conducted by tax law Certified volunteer at intake site instead

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Modified Virtual Model: “Drop-Off”

VITA/TCE sites can also operate a modified virtual

model and offer “drop-off” services at their traditional

tax preparation site

• Can help with overflow or limited volunteer schedule

• Certified volunteer conducts Intake and Interview

• Taxpayer drops off documents and comes back for

quality review and signature after return prepared

• All volunteer certification, QSR’s, intake & interview

and quality review steps apply

• Similar to Virtual Model but taxpayer interaction is all

with same site

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Taxpayer Consent Form

Any site offering Virtual VITA/TCE or “drop off” return preparation must collect a signed Virtual VITA/TCE Site Model Taxpayer Consent Form from each client.

• Identifies and provides contact information for preparation site

• Provides detailed explanation of return preparation procedures followed by site and required of taxpayer

• Must be signed by both taxpayers if joint return

• IRS Form 14446

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Flexibility and Convenience

Virtual VITA/TCE provides flexibility and convenience

for both the VITA/TCE site and the taxpayer, and can

help sites reach taxpayers who are unable to access

regular VITA/TCE assistance.

• Virtual operations can optimize limited volunteers,

space, and equipment

• Virtual is ideal for organizations who want to provide

some kind of tax assistance but lack capacity to host

VITA/TCE site

• Allows one-person site to operate in rural areas, by

having a remote Quality Reviewer

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