1 NTTC/NTC ERO Training 2011 Tax Year 2007 ERO TRAINING ELECTRONIC RETURN ORIGINATOR (ERO)...
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Transcript of 1 NTTC/NTC ERO Training 2011 Tax Year 2007 ERO TRAINING ELECTRONIC RETURN ORIGINATOR (ERO)...
1NTTC/NTC ERO Training 2011
ERO TRAINING
ELECTRONIC RETURN ORIGINATOR
(ERO)
(Transmitter in Tax-Wise)
2NTTC/NTC ERO Training 2011
ERO QUALIFICATIONS
EROs must: Be certified AARP Tax-Aide
volunteers
Be (or become) proficient with IRS- supplied tax preparation software.
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ERO RESPONSIBILITIES
Security of taxpayer data
Transmission of e-file
returns
Record keeping
Communications
4NTTC/NTC ERO Training 2011
SECURITY OF TAXPAYER DATA
IRS Pub 3189 requires all volunteers: To be vigilant To physically protect
Printed data
Electronic data
EquipmentSee IRS Pub 4299 “Privacy and
Confidentiality”
5NTTC/NTC ERO Training 2011
SECURITY OF TAXPAYER DATA
This means: Taxpayer data must be encrypted
Computers must be physically secured
Operating System and TW must be password protected
Taxpayer documents must be secured
See Pub 3189
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TRANSMISSION OF E-FILE RETURNS
Restore returns to transmitting computer, if using different computers with TW Desktop
Check for errors (i.e. “red” indicators are cleared on forms and tree)
Run diagnostics and re-create e-
files, if necessary
7NTTC/NTC ERO Training 2011
TRANSMISSION OF E-FILE RETURNS
Print (or save) and review E-file Submission Report
Transmit returns and get Acknowledgments
Update Filing Status Logs, if used
See PUB 3189
8NTTC/NTC ERO Training 2011
TRANSMISSION OF E-FILE RETURNS
9NTTC/NTC ERO Training 2011
TRANSMISSION OF E-FILE RETURNS
If Transmitting State Returns: New for TaxWise 2011
You can transmit state returns “LINKED” to your Federal Return.
This means that State Return is not forwarded to the state until after the federal return is accepted.
State Returns can still be sent “UNLINKED” and without a Federal Return.
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ACKNOWLEDGEMENTS
Get Acknowledgements Federal and State ACKs TaxWise e-mails
Print (or save)Acknowledgement Report
Check for rejects
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ACKNOWLEDGEMENTS
Match to transmitting document or other tracking document
Update Return Status logs (if used) If no acknowledgement within 3 days:
Contact CCH and investigate Ensure problem is corrected
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ACKNOWLEDGEMENTS
13NTTC/NTC ERO Training 2011
HANDLING REJECTS
Correcting Rejects: ERO – i.e. generally simple fixes,
some may require contacting the taxpayer
Site Volunteers when issue is more complex - LC, QR or Counselors
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HANDLING REJECTS(cont’d)
Look for the reject code TaxWise describes and shows error in
return
The first step is to clearly identify what caused the reject
The most common rejects involve SSN and EIN mismatches
Look at return or contact site or taxpayer to correct.
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HANDLING REJECTS(cont’d)
Correct error, if possible If name or SSN is unchanged,
rejected returns can be re-transmitted without new Form 8879 signatures if : Change in total income or AGI is less
than $50 and…. Change in total tax, federal tax
withheld, refund or amount due is less than $14
16NTTC/NTC ERO Training 2011
HANDLING REJECTS(cont’d)
The taxpayer should be advised of the change and typically should be provided a corrected copy of the return, even if it does not require a resigned Form 8879. (unless it is just an EIN correction)
If cannot be e-filed, convert to paper and have the taxpayer mail the return
Provide feedback to counselor and quality reviewer to prevent similar errors
17NTTC/NTC ERO Training 2011
RECORD KEEPING Beginning 2011 tax year, we no longer will
retain and send to the IRS: A signed copy of Form 8879 and income
statements (W2, W2G and 1099s’)
AARP will no longer permit retaining a paper copy or supporting documents at the site except for use with Form 8453 mailing
This will require sites to revise their e-filing procedures
18NTTC/NTC ERO Training 2011
Form 8453 - New Option(Not supported by AARP 2011)
New option for both TWO & Desktop with MeF to allow (“scanned “.pdf) attachments with returns
Eliminates mailing the Form 8453 and with supporting documents to the IRS
AARP Tax-Aide will not use this option for 2011 (i.e. also AARP will not provide scanners for this purpose)
19NTTC/NTC ERO Training 2011
Tracking of Returnsfor E-filing
Each site will track returns to make sure the ERO knows which returns are ready for e-filing
Returns must be transmitted and accepted in a timely manner.
Each site must adopt a method to protect TP data and privacy
20NTTC/NTC ERO Training 2011
Taxpayer Data and PrivacyPolicy
The Site or ERO will not keep any forms or documents with a taxpayer identity and/or SSN that is not mandated by the IRS or a State. ie. Form 8453 if used for mailing
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Tracking Returns for e-filing
Use Return Stage in TaxWise to track return status
Use the site activity sign-in or log to track the returns for communication to the ERO for transmitting both federal and state returns
22NTTC/NTC ERO Training 2011
Return Stage This feature in TaxWise is used to
communicate to ERO status of return e-file - Ready to File e-file - Needs QR e-file - Needs signed 8879 e-file – Incomplete Paper – Complete Paper – Incomplete Do not file
23NTTC/NTC ERO Training 2011
Site sign-in/log sheet In addition to using Return Stage in
TaxWise; The site will record on the site sign-
in/log sheet the status of the return: Ready to e-file; Waiting for signature of Form 8879; Return will be paper filed; Waiting for Taxpayer documents Question only – no return prepared
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Modified TaxAide Site Sign-In Sheet
25NTTC/NTC ERO Training 2011
Other Recommendations for Communications to ERO
Use of a client letter for communication to the ERO – must not contain taxpayer SSN
Separate logs for each counselor tracking their completed returns
26NTTC/NTC ERO Training 2011
ERO TRAINING TaxWise Training is currently
available from www.IRS.gov Accessed through Link and
Learn Will also be on the Extranet Scenarios specifically
designed to cover the types of tax returns that volunteers encounter
Click the starburst to begin the login process for the Practice Lab
27NTTC/NTC ERO Training 2011
ERO TRAININGLessons offered for TaxWise are grouped by task for both TWO & Desktop
AdministrativeReturn Preparation
Other topics includeCustomer Support SiteUniversityDifferences between
TWO\TWDTax Law ChangesContact Information
28NTTC/NTC ERO Training 2011
ERO TRAINING
The TaxWise Desktop Classes for Admin included lessons such as
System requirementsSecurity ManagerElectronic FilingReports
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TaxWise Online ADMIN Training
The TaxWise Online Classes for Administrators included lessons such as
System requirements
Security Manager
Electronic Filing Reports
29
30NTTC/NTC ERO Training 2011
END-OF-SEASON CLOSEOUT for TWO
SOFTWARE Items to be sent to Local IRS
SPEC Office Copy of any Form 8453’s with
attachments
Verify with your local IRS SPEC office if they want any additional items or reports
See Pub 3189
31NTTC/NTC ERO Training 2011
END-OF-SEASON CLOSEOUT for TWO
SOFTWARE Deactivate Users except for a very limited number
of Supervisors OR
Move returns to Administrator and change Users to Return Preparer, if you want them to be able to access the training website during the off-season
See Pub 3189
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END-OF-SEASON CLOSEOUT for DESKTOP
SOFTWARE Backup all returns Create any final reports Create files on removable media
for: IRS SPEC AARP (retention for carry-forward)
All returns may be kept for data retention, following required procedures, as detailed in the Policy Manual
33NTTC/NTC ERO Training 2011
END-OF-SEASON CLOSEOUT for DESKTOP
SOFTWARE Items to be sent to Local IRS SPEC
Office Electronic copy of e-filed returns
TaxWise backup IRS Acknowledgement reports
Can be electronic copies Copy of any Form 8453’s with
attachmentsCheck with your local IRS SPEC office to see if
they want any additional items or reports.
34NTTC/NTC ERO Training 2011
END-OF-SEASON CLOSEOUT for DESKTOP
SOFTWARE Delete returns from all computers Clear taxpayer data – AARP & other
computers Be sure to use current version
Run “Wipe Disk”on IRS Computers Return IRS laptops to depot
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COMMUNICATIONS
VERY IMPORTANT!ERO must communicate with:
Counselors Quality Reviewers Other EROs District and Local Coordinators Technology Coordinators
36NTTC/NTC ERO Training 2011
ERO TRAINING
QUESTIONS?
COMMENTS?