National Tax Training Committee - PowerPoint Presentation

National Tax Training Committee Steve Conary, Chair

2017 Regional Meeting National Tax Training Committee Training Resources Scope State Tax Assistance Program Other Items TaxSlayer

Training Resources…

NTTC Workbook – TY 2017 17 practice returns in three sections Core – seven returnsComprehensive – seven returnsSpecialty – three returns Quizzes and exercises NTTC – 2017 Regional Meeting 4

NTTC Workbook – TY 2017 Printed version available to order On OHSC (including errata) Answers using 2016 Practice Lab to TRSs in August Answers using 2017 Practice Lab tbd Tax-Aide use only – do not post on publicly accessible websites or provide to non-Tax-Aide personnel NTTC – 2017 Regional Meeting 5

Other Materials Qualifying Child/Qualifying Relative laminate Available to order from fulfillment ~October 1All volunteersDependency rule and filing status changes NTTC – 2017 Regional Meeting 6

Other Materials Training Guide – revised and on OSHC NTTC Training Slides – first release mid-OctoberUpdated Scope Manual – October NTTC – 2017 Regional Meeting 7

Continued to Work with IRS Print version in Pub 4480 kit Electronic only In Pub 4480 kit Electronic versions available in October Electronic/order from IRS Print versions available in November This year’s paper color is white NTTC – 2017 Regional Meeting 8

Other NTTC Materials NTTC additions to Pub 4012 – end of year Immersion lesson plans – September Self-study lesson plans – NovemberNTTC – 2017 Regional Meeting 9

Immersion Approach Encouraged Nominal reliance on lecture – homework and classroom discussion instead Reinforce use of Resource Materials MentorsAdult Learning Principles Focus on hands-on with TaxSlayerRevised Immersion Toolkit on OSHC NTTC – 2017 Regional Meeting 10

Self-Study For volunteers who Do not have time for extensive classroom work or geographic challenges for classroom setting Have discipline to complete work Are some classroom requirementsTax-Aide Policies and Procedures Intake/Interview and Quality ReviewLesson plans – November NTTC – 2017 Regional Meeting 11

Instructor Workshop Recommend two 9 to 5 days Instructors, DCs, SMT members, IRS SPEC RM and State Tax Department representative One workshop if geography and budget allowTrain the trainers – help Instructors improve their how-to-train skills NTTC – 2017 Regional Meeting 12

Instructor Workshop Typical topics Effective Instruction techniques including Immersion How to create individualized lesson plans Tax law changesFederal (minimal at this point – expired provisions) StateTraining topics du jourNTTC – 2017 Regional Meeting 13

Training Questions… Comments… NTTC – 2017 Regional Meeting 14

Scope and Policies

Scope Tax-Aide scope is national Set by IRS Scope Manual on OneSupport Help Center Includes most forms and schedules that Counselor might see as either in or out of scope If a form or schedule or part of either is not explicitly listed as in scope, it is out of scope NTTC – 2017 Regional Meeting 16

Consequences for Going Out of Scope Personal liability for any taxpayer action Program liability for any taxpayer action Counselors removed from programSite shut downProgram grant in jeopardy NTTC – 2017 Regional Meeting 17

Policy Counselors may prepare returns that: Are in Tax-Aide scope ANDAre tax topics included in their trainingAND They feel comfortable to prepare NTTC – 2017 Regional Meeting18

Scope Change Process… Perceived need at any level Request for proposed change submitted up the chain – can be vetoed at any point NTTC submits requests to VP and then to NLT once a year at end of April NTTC – 2017 Regional Meeting 19

Process for Requesting Change in Scope Change proposed State Coordinator reviews Regional Coordinator reviews NTTC reviews VP AARP Foundation Tax-Aide reviews National Leadership Team approves IRS SPEC reviews approves/denies Changes incorporated into training documentation as necessary NTTC – 2017 Regional Meeting 20

TY 2017 Change approved by IRS Allow Form 8606 Part II for IRA to Roth conversion Minimum additional training Taxpayer must provide basis NTTC – 2017 Regional Meeting 21

Change Not Approved by IRS Gas and Oil Royalties Expense Deduction Allow expenses if provided and 15% depletion percentage Expand existing SPEC-provided training to all states at SC discretionIRS will revisit for TY2018 NTTC – 2017 Regional Meeting 22

Scope Change – Expired Provision Income exclusion for discharge of debt on principal residence expired at end of 2016 Taxpayer with mortgage debt forgiveness in 2017 is out of scope Only cancellation of non-business credit card debt remains in scope NTTC – 2017 Regional Meeting 23

Rental Reminders Rental income from land only is in scope – expenses (typically property tax) reported on Schedule A – not Schedule E Rental of main home for less than 15 days in the year considered in-scope in that it does not need to be reported to IRS All other rental income is out of scope unless Counselor is Military certified -AND- Taxpayer is active-duty militaryNTTC – 2017 Regional Meeting 24

Other Reminders… Counselors must pass the Advanced Test to be certified IRS Circular 230 Federal Tax Law Update Test (certification on new tax law and tax law updates only) for Attorneys, CPAs and Enrolled Agents does not apply NTTC – 2017 Regional Meeting 25

Other Reminders… Scope Manual supersedes IRS pubs Tax-Aide Policy and Procedure Manual supersedes IRS policies NTTC – 2017 Regional Meeting 26

Tax-Aide Policies Retention of taxpayer information or documents (other than activity/ appointment log) not permitted Income limits for in-scope returns not permitted NTTC – 2017 Regional Meeting 27

Hurricanes Casualty losses continue to be out of scope Puerto Rico residents in Mainland US Currently out of scopeReviewing options NTTC – 2017 Regional Meeting 28

Scope and Policies

State Tax Assistance Program

State Tax Returns Situation: Taxpayer requires return from another state which the counselor has not been trained to prepare Options: Turn taxpayer awayIgnore other state returnRely on TaxSlayer to get it rightGet help to complete other state return NTTC – 2017 Regional Meeting 31

State Tax Assistance Program Formalized system to obtain assistance from counselors in another state Triggered through OneSupport Help Center Ticket System Counselors use phone and TaxSlayer NTTC – 2017 Regional Meeting 32

State Tax Assistance Program Experienced volunteers provide assistance on their home state tax returns Not “instantaneous” – second visit for taxpayer necessary to complete returns NTTC – 2017 Regional Meeting 33

Asking for Help… Submit a Request through OneSupport Counselor contact infoBrief description of taxpayer situation Out-of-State “Assisting” Volunteer contacts “Requesting” CounselorConversation to answer questions Log in to local TaxSlayer account to review returnNTTC – 2017 Regional Meeting 34

TY 2016 States Versus 131 in 2015 Tickets per state Requesting State # Assisting States # Florida 43 New York 28 Georgia 19 Michigan 13 Michigan 7 Pennsylvania 11 Kentucky 4 Georgia 8 Ohio 4 Illinois 7 Arizona 3 Indiana 5 Indiana 2 Ohio 4 New York 2 South Carolina 4 Oregon 2 Kentucky 3 Illinois 1 Missouri 2 New Hampshire 1 Wisconsin 2 Wisconsin 1 Oregon 1 Grand Total 89 Rhode Island 1 Grand Total 89 NTTC – 2017 Regional Meeting 35

Plans for TY 2017 Continue to offer program Encourage more states to participate RCs – discuss with SCsWill ask for opt ins as Assisting State and/or Requesting StatesImprove awareness by sites/volunteers NTTC – 2017 Regional Meeting 36

State Tax Assistance Program Questions… Comments… NTTC – 2017 Regional Meeting 37

Other Items

ITINs ITINs not used on federal tax return in last three years or with middle digits of 70, 71, 72 or 80 no longer valid When presented an ITIN, Counselor should process return in normal manner If ITIN current – no problems If not currentE-file still accepted Taxpayer will receive notice from IRS to renewNTTC – 2017 Regional Meeting 39

Equifax® Hack Advice by many experts is to file tax returns early as possible in effort to thwart fraudulant returnsIRS issues Identity Protection Personal Identification Number after the fact to those who have been victims of identity theft Reminder: we do not provide financial advice or recommend products or services – there is ID Theft letter on OSHC NTTC – 2017 Regional Meeting 40

Continuing Education Credits Enrolled Agents, Certified Financial Planners, Attorneys, Certified Public Accountants may qualify for CE credits Must register, complete fields on My Account page and take exams on Link & Learn Local leader must validate and submit to local SPEC RM – not Tax-Aide national office – by April 30More information including IRS Fact Sheet on OneSupport – SMT Roundup topic later this year NTTC – 2017 Regional Meeting 41

Internal Site Reviews Are we following policies and procedures that enhance quality of work, confidentiality of data and Standards of Conduct/QSRs Reviews provide A measureImmediate feedback from reviewersData to establish goals for next tax season NTTC – 2017 Regional Meeting42

IRS Reviews – QSR Issues Did not review Intake Sheet with taxpayer before return preparation started Quality Review: Did not review Intake Sheet with taxpayer as part of processReturns had errorsIncorrect SIDN (worked at multiple sites) NTTC – 2017 Regional Meeting 43

Tax-Aide Reviews – Issues Issue Sites* % Taxpayers advised they are responsible for their return before signing Form 8879 23 7.2 Taxpayer asked "did you have any other income this year?” 28 8.8 Workstations set up to protect taxpayer’s privacy and keep information confidential 24 7.6 “Taxpayer Information and Responsibility” document available for review 27 8.4 * Needs Improvement (318 sites reported) NTTC – 2017 Regional Meeting 44

TY17 Internal Site Reviews Continue reviews Modified form – still two pages, additional questions, not all required States (with RCs) determine Number of sites to reviewStart date Submit reviews electronically by Apr 30: https://www.surveymonkey.com/r/TY17SiteReview NTTC – 2017 Regional Meeting 45

In OSHC Form Section NTTC – 2017 Regional Meeting 46

Other Items Questions… Comments… NTTC – 2017 Regional Meeting 47

TaxSlayer Status Where are we…

Enhancements In preparation for 2018 tax season, TaxSlayer: Fixing many calculation/awkward workaround issues Changing user interface to improve navigation Adding tools to manage returnsEnhancing customer support Increasing server capacity to improve stabilityNTTC – 2017 Regional Meeting 49

Enhancements Overhauling states’ infrastructure Pulling more data from federal entries Selecting Continue will save data on each pageField level validations on each page NTTC – 2017 Regional Meeting 50

Enhancements Some federal changes implemented in current software and more due with TY2017 version Federal and state change status as reported by TaxSlayer in TaxSlayer Issues Dropbox folder NTTC – 2017 Regional Meeting 51

Enhancements NTTC – 2017 Regional Meeting 52 TaxSlayer does not have resources to address every issue Tax calculation errors are most critical Training materials must address all othersWork continues – do not have additional information on other requested changes

Enhancements Practice Lab 2017 due mid-NovemberProduction version at sites laterStates typically released in December – have asked for earlier visibilityExpect much less “software agility” after November NTTC – 2017 Regional Meeting 53

TaxSlayer Practice Lab is the training platform for TaxSlayer D o not use production sitesPractice Lab is same as production when preparing a return Encourage Instructors to browse Practice Lab(s) to become familiar with changes Practice Lab 2016 available until mid-November 2018NTTC – 2017 Regional Meeting 54

Carryforward Normal carryforward of data from return prepared at site for previous tax year Extended carryforward of data from return prepared at any Tax-Aide site the previous tax year Possibly option for taxpayer to agree for cross-VITA/TCE carryforward for TY2018NTTC – 2017 Regional Meeting 55

Account Update First login to site ( except Practice Lab ) with a given usernameVerify cell phone number and email associated with usernamePreparation for Multi-factor Authentication process NTTC – 2017 Regional Meeting 56

Account Update (cont ) NTTC – 2017 Regional Meeting 57 Same email address and cell phone number can be used with multiple usernames Requires intervention by site administrator for multiple use

Account Update ( cont ) Still evolving – suggest waiting to complete user set-ups and Account Updates (but not until end of January) Detailed instructions coming NTTC – 2017 Regional Meeting58

Multi-Factor Authentication (MFA) Adds layer of protection to mitigate risk of identity theft IRS requirements for increased security of taxpayer data Uses something other than what you know to authenticate yourself NTTC – 2017 Regional Meeting 59

Multi-factor Authentication NTTC – 2017 Regional Meeting 60 Six-digit authentication code either by text to smartphone or by email Authentication required: First use of username on a given computerEvery 1 to 30 days – set by site administratorThree failed login attempts Forgot password requestComputer reimagedChange browser on same computer

National Tax Training Committee NTTC – 2017 Regional Meeting 61