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1
AARP Tax-Aide Regional Meeting
October 2009
2
Presentation Overview
Agenda Topics 2010 Filing Season Overview Key 2010 Filing Season Enhancements
New Tax Law Training & Tools Quality Improvement Process
Technology Updates TaxWise Software Computers for Volunteers
3
AARP Accomplishments
2009/2008 Comparison FY 2009(Data through 4/30/09)
FY 2008*(Includes ESP Returns)
% Growth
Total Paper 83,808 206,767 -146.7%
e-file “returns accepted” 1,390,594 1,513,960 - 8.8%
e-file rate 93.4% 88% 6.1%
Total Returns 1,474,402 1,720,727 -16.7%
E-file Reject Rate 6.8% 7.5% -10.2%
SS Pin Usage 132,640 or 12% 20,761 or 1.4% -84%
Practitioner PIN Usage 791,456 or 72% 1,489,077 or 98.6% 47%
Total PIN Usage 83.6% 99% 15%
Direct Deposit Usage 500,490 or 36% 394,285 or 26% 21.2%
Primary/Secondary 60+ 899,614 or 65% 1,024,617 or 68% -13.9%
Total EITC Dollars $200,138,473 $185,789,739 7.2%
State Returns 1,076,248 1,028,864 4.4%
4
2010 Filing Season Overview
5
2010 Filing Season Key Issues
SPEC Is Aware of and Planning For: Impact Continued Economic Turmoil Will Cause
at Sites Increased Taxpayer Demand Decreasing Partner Capacity
Angst and Frustration generated by Political or Public Policy Debates among Volunteers and Taxpayers
6
2010 Filing Season Key Issues
IRC Section 7216 SPEC and All Partners Agree Safeguarding
Taxpayer Data is Paramount SPEC is keenly aware of the Impact IRC
7216 has on Site Operations Changes to IRC 7216 Requirements are
Responsibility of Treasury Department Status of Updated Regulations
- Under Review
7
2010 Filing Season Key Issues
Financial Education & Asset Building (FEAB)
SPEC will be searching for Viable Financial Options to provide Taxpayers an Opportunity to increase Financial Stability
Key Aspects for 2010 Assist Partners to Fill Gaps Gather Best Practices Educate Internal Workforce
8
2010 Filing Season Key Issues
Financial Education & Asset Building (FEAB) (con’t)
US Savings Bond Initiative US Savings Bonds can purchased direct via
Form 8888, Using Split Refund 2010 Filing Season Limited Options
Purchase through 1040 only for Taxpayer Must Have Bank Account for Refund Balance
Will Collaborate on Efforts to Promote
9
2010 Filing Season Key Issues
American Recovery & Reinvestment Act (ARRA)
Major Effort throughout IRS to Educate Taxpayers on the Beneficial Provisions of ARRA through all of 2010 Making Work Pay Credit Sales Tax Deduction for New Vehicles Residential Energy Tax Credits First Time Homebuyer’s Credit
10
2010 Filing Season Key Issues
Tax Law Changes High Probability of Late Breaking Tax Law
Changes Look to November or even December
Timeline for Changes Will Work Diligently to get Augmented
Training Materials to Field Timely E-Learning will be Key for Last Minute
Updates
11
2010 Filing Season New Tax Law
12
2010 Enhancements – New Tax Law
Filing Season 2010 Training Products American Recovery and Reinvestment Act
of 2009 (ARRA) impacted Individuals and Families
Volunteer Training Materials Updated with ARRA provisions
Other Tax Law Changes for TY2009 incorporated into Volunteer Training Materials
13
2010 Enhancements – New Tax Law
Scope Changes for 2010 Filing Season
American Recovery & Reinvestment Act (ARRA) Topics
Making Work Pay Credit Economic Recovery Payment Special Credit for Certain Government
Retirees First-time Homebuyer Credit
14
2010 Enhancements – New Tax Law
Scope Changes for 2010 Filing Season
American Recovery & Reinvestment Act (ARRA) Topics (con’t)
Sales Tax Deduction for New Vehicle Purchase
Temporary Increase in Earned Income Credit
Temporary increase in refundable portion of Child Tax Credit
American Opportunity Tax Credit (Expanded Hope Education Credit)
15
2010 Enhancements – New Tax Law
Scope Changes for 2010 Filing SeasonARRA Topics (con’t)
Portion of Unemployment Compensation Tax-Free
Residential Energy CreditsOther New Topics
Revised Definition of a Qualifying Child New Rules for Children of Divorced or
Separated Parents
16
2010 Enhancements – New Tax Law
Scope Changes for 2010 Filing Season
Other New Topics IRAs and Other Retirement Plans - Temp
Waiver of Required Minimum Distributions Decreased Estimated Tax Payments for
Qualified Individuals With Small Businesses TY 2009 Indexing Changes Limited flow through income items from
Schedule K-1s (Form 1041, 1065, & 1120S) in-scope as Advanced Topic
17
2010 Enhancements – New Tax Law
Scope Changes for 2010 Filing SeasonNew Forms and Schedules
Schedule L (Form 1040A or 1040), Standard Deduction for Certain Filers
Schedule M (Form 1040A or 1040), Making Work Pay and Government Retiree Credits
18
2010 Enhancements – New Tax Law
Scope Changes for 2010 Filing Season
For more information on ARRA and other Tax Law Changes for Tax Year 2009 visit IRS.gov. The following are links for quick access:
www.irs.gov – ARRA Information Center (on irs.gov)Publication 553 - Highlights of Tax Changes –
Includes 2008 and 2009 changes
19
2010 Filing Season New Products
20
2010 Enhancements – Training Products
Filing Season 2010 Training Products Interview and Quality Processes are still Central Focus Practicing Return Preparation (paper or electronic) is still
critical Link & Learn Taxes
Enhanced with more PBT methods and improved navigation features
Translated into Spanish and Chinese Includes Updated Version of Electronic Tax Software
Practice Lab
21
2010 Enhancements – Training Products
Access to the Practice Lab Lessons Learned Upgrades
Delivery only after IRS has confirmed all calculations
Print capabilityWindows platform required – not compatible
with Macs Users can augment classroom training by creating
tax returns based on the Workbook Problems and Exercises in Pub 4491-W
22
2010 Enhancements – Training Products
Product Ordering – CAPS Electronic Ordering Process ContinuesCurrently verifying e-mail and physical
addresses, closing inactive accounts, etc.SPEC & AARP Tax-Aide working together to
update CAPS database to ensure correct person receives the 2009 E-Order forms E-mail addresses will not be re-purposed
23
2010 Enhancements – Training Products
Advance Copy of Training Materials Shipped in October to addresses furnished by
National AARP Tax-Aide Advance copy will include the following products:
Pub 4555 – Instructor Guide - Student Text Embedded Pub 4491-W, Comprehensive Problems & Exercises Pub 4012 – Volunteer Resource Guide Form 6744 – Student Test/Retest (Booklet)
24
American Recovery and Reinvestment Act (ARRA)
ARRA Marketing and Outreach Products
ARRA Marketing Flyers and Posters – ARRA topics covered to date include Pubs 4772/4768 - Education, Pubs 4773/4777 - Energy, Pubs 4771/4775 - First-time Homebuyer, Pubs 4767/4776 - Making Work Pay, and Pubs 4770/4774 - Vehicle Deduction
Pub 4751 & 4751SP, $250 Economic Recovery Payment
Pub 4766, Making Work Pay and Form W-4
Pub 4780, Making Work Pay Tax Credit
Pub 4787, Overview of Key Individual ARRA Provisions
25
2010 Filing Season Quality Changes
26
FY 2010 Quality Changes
Worked with AARP to Update IRS Intake/Interview & Quality Review Sheet (Form 13614C)
Developed Electronic Training Course for Form 13614C in Link & Learn Taxes
Created Form 13614C Site Poster for volunteers and taxpayers
Use of IRS Form 13614C required for VITA or TCE Grant Agreements
27
FY 2010 Quality Changes
Enhanced Quality Site Requirements QSR #1 requires Volunteer Certification &
Volunteer Agreement Signature QSR #3 includes Volunteer Alerts & AARP
Cyber Tax MessagesIncreased number of QSS Reviews
State Coordinators to Get ResultsDiscontinuance of SPEC Shopping Visits
28
Software Updates
29
TaxWise Software2010 Orders
Requests for TaxWise will be accepted
Oct 13, 2009 through Jan 29, 2010First Order to the Vendor - Nov 2, 2009TaxWise Desktop orders placed by Oct 28
will begin shipping Thanksgiving week TaxWise Online orders will be available
early December
30
TaxWise SoftwareTraining
All TaxWise Training will be delivered by recorded web sessions – located on the Practice Lab of Link & Learn TaxesTaxWise Desktop Admin/trouble-shootingTaxWise Online Admin/trouble-shootingTaxWise Desktop/PBT for PreparersTaxWise Online/PBT for PreparersReports/Refresher/New Tax Law
31
TaxWise SoftwarePlanned Changes for FS 2010
AARP will be participating in beta testing again this year.
No longer supports Windows 200032-Bit & 64-Bit CompatibleNew enforcement for Desktop
passwordsImproved Client/Return List Functionality
32
TaxWise SoftwarePlanned Changes for FS 2010
Sorting Return ExplorerAutomatic processing of
AcknowledgementsAddition of a new User GroupWatermarks added to Print PacketsImproved Release Notes
33
Hardware Updates
34
Computers for Volunteers
Special Thanks to AARP for all of the Technical Assistance
Improvements to IRS loaned equipment programInstituted equipment quality check
processComputer Upgrades/Increased CapacityIncreased communications between
SPEC and the IRS Computer Depot
35
Computers for Volunteers
5,500 Computers Allotted to AARP in Filing Season 2010
Distribution began August 3 and runs through January 8
Tax-Aide’s portion is 250 per weekDelivered computers will have Internet
Explorer 6.5 loaded. TaxWise disk will include IE 7.0 and upgrading will take less then 10 minutes
36
Computers for Volunteers
Where YOU can make a difference… Provide accurate contact information Open and test equipment early Know where the equipment is and who is using
the equipment Safeguard equipment/data and protect
passwords Encourage volunteers to backup data daily to
avoid loss of data Notify IRS if equipment is broken, lost or stolen
37
Thank you. You are the difference!