Volunteer Income Tax Assistance (VITA) Advance Scenarios 1-4.

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Volunteer Income Tax Assistance (VITA) Advance Scenarios 1-4 www.cwfphilly.org

The Campaign for Working Families, Inc. (CWFI) is a non-profit organization committed to helping working families and individuals achieve economic empowerment by providing free tax preparation, resource building and asset development. In 2017, we had over 850 volunteers prepare over 56,000 tax returns (both federal and state), which brought in over $46.5 million in refunds to low-to-moderate income familiesin the region.

Next Steps Sign in Sign into VITA/TCE Central www.linklearncertification.com

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Tax Preparation Resources Basic Scenario 1

Six Volunteer Standards of Conduct (Front Cover of 4012) 1. Follow the Ten Quality Site Requirements (QSR) The purpose of the Quality Site Requirements (QSR) is to ensure quality and accuracy of tax return preparation and consistent operation of sites. The QSR are required to be communicated to all volunteers and partners to ensure IRS and partner-mutual objectives are met Ø Certification-(all VITA/TCE volunteers must pass certifications with 80%) Ø Intake/Interview & Quality Review Process (Must use 13614-C) Ø Confirming Photo Identification and Taxpayer Identification Numbers Ø Reference Materials (Pub 4012, Pub 17, Site Director) Ø Volunteer Agreement (Must complete at least VSC) Ø Timely Filing (process in place at sites) Ø Civil Rights (Title IV Civil Rights Act of 1964) Ø Site Identification Number (SIDN) Ø Electronic Filing Identification Number (EFIN) Ø Security (Privacy, Confidentiality, Public Trust)

Six Volunteer Standards of Conduct 2. Do not accept payment, solicit donations, or accept refund payments for federal or state tax return preparation. Free means we do not accept compensation for our services. Therefore, we do not want to confuse the taxpayer by asking for donations. Donation or tip jars located in the return preparation or taxpayer waiting area are a violation of this standard.

Six Volunteer Standards of Conduct 3. Do not solicit business from taxpayers you assist or use the knowledge gained about them (their information) for any direct or indirect personal benefit for yourself or any other specific individual. As a volunteer, you must properly use and safeguard taxpayers personal information. Furthermore, do not use confidential or nonpublic information to engage in financial transactions, and do not allow its improper use to further your own or another person s private interests.

Six Volunteer Standards of Conduct 4. Do not knowingly prepare false returns. It is imperative that volunteers correctly apply tax law to the taxpayer s situation. While a volunteer may be tempted to bend the law to help taxpayers, this will cause problems down the road (i.e. Hardship, Identity Theft).

Six Volunteer Standards of Conduct 5. Do not engage in criminal, infamous, dishonest, notoriously disgraceful conduct, or any other conduct deemed to have a negative effect on the VITA/TCE Programs. Volunteers may be prohibited from participating in VITA/TCE Programs if they engage (past and future) in criminal, infamous, dishonest, or notoriously disgraceful conduct, or any other conduct prejudicial to the government.

Six Volunteer Standards of Conduct 6. Treat all taxpayers in a professional, courteous, and respectful manner. To protect the public interest, the IRS and its employees, partners, and volunteers must maintain the confidence and esteem of the people we serve. All volunteers are expected to conduct themselves professionally in a courteous, businesslike, and diplomatic manner.

How to Report Unethical Behavior at Site If volunteers, site coordinators, or taxpayers identify potential problems at the partner, site, or volunteer level that they feel may require additional, independent scrutiny, they can report these issues using the external referral process (VolTax) by emailing WI.Voltax@irs.gov.

Failure to Comply with the Standards of Conduct Impact on VITA/TCE Programs: Terminating the partnership between the IRS and the sponsoring organization Discontinuing IRS support Revoking or retrieving the sponsoring organization s grant funds Deactivating IRS Electronic Filing Identification Number (EFIN) Removing all IRS products, supplies, and loaned equipment from the site Removing all taxpayer information Disallowing use of IRS logos Impact on Volunteer: Removal from program Added to IRS Volunteer Registry Civil and Criminal Penalties

Volunteer Protection Act (VPA) The VPA protects volunteers from liabilities if they were acting within the scope of the program and harm was not caused by willful or criminal misconduct, gross negligence, reckless misconduct, conscious, flagrant indifference to the rights or safety of the individual harmed by the volunteer. The VPA does not protect conduct Standards of Conduct that is willful or criminal, grossly negligent, reckless, or conduct that constitutes a conscious, flagrant indifference to the rights or safety of the individual harmed by the volunteer. Volunteers should only prepare returns that are within their tax law certification level, their site s certification level, and the level of certification under the VITA/TCE Programs.

Intake/Interview & Quality Review Processes 1. The Intake Process: a) Greeting the taxpayer b) Ensuring the taxpayer and spouse, if applicable, have photo identification c) Verifying the taxpayer has SSN or ITIN required documentation d) Explaining the return preparation process e) Providing Form 13614-C to the taxpayer for completion, explaining documents required f) Determining the return certification level, and g) Assigning the taxpayer to a qualified tax preparer

Intake/Interview & Quality Review Process 2. The Interview Process a) Interviewing the taxpayer b) Checking photo identification for the taxpayer and spouse, if applicable, and verifying SSN or ITIN for everyone on the return c) Preparing the tax return 3. The Quality Review Process a) Inviting the taxpayer to participate b) Reviewing the return for accuracy (The steps for performing the quality review are listed on Form13614-C, Part VII.) c) Informing taxpayers they are responsible for the information on their tax return

Tax Preparation Resources Basic Scenario 1 Pub 4012 B-3

Tax Preparation Resources Basic Scenario 1 Pub 4012 B-4

Tax Preparation Resources Basic Scenario 1 Pub 4012 B-4

Summary of Intake/Interview Verify the identity (photo ID) and address of the taxpayer(s) and request verification of SSN or ITIN for everyone listed on the tax return. Explain the tax preparation process and encourage taxpayers to ask questions throughout the interview. Complete Form 13614-C, Intake/Interview & Quality Review Sheet. o Verify all items in the taxpayer section have been answered o Note changes and clarifications provided by the taxpayer on the form Interview the taxpayer using probing questions to confirm the information provided on Form 13614-C is complete and accurate. Review all supporting documentation provided by the taxpayer (Forms W-2, 1099, payment receipts, etc.). If the taxpayer has income or expenses listed on the return that do not require a source document and none were provided, the intake sheet should be notated to show a verbal response was provided.

Tax Preparation Resources Advance Scenario 1

Advance Scenario 1 Resources (Filing Status) Pub 4012 Page B-8 Tax Preparation Resources

Advance Scenario 1 Resources (Dependency) Tax Preparation Resources Pub 4012 Page C-3

Tax Preparation Resources Advance Scenario 1 Resources (Exemptions) Pub 4012 Page C-1

Advance Scenario 1 Resources (Earned Income Credit) Pub 4012 Page I-2 Tax Preparation Resources Note: To meet the joint return test, the child cannot file a joint return for the year unless it s to only claim a refund of income tax withheld or estimated tax paid.

Tax Preparation Resources Advance Scenario 1 Resources (Earned Income Credit-Con t) Pub 4012 Page I-2

Advance Scenario 1 Resources (Education Credit) Pub 4012 Page J-4 Tax Preparation Resources

Tax Preparation Advance Resources Scenario 1 Test Questions Who can claim Chris personal or dependency exemption? Darcy can claim the expenses Chris paid as qualifying expenses for the American opportunity credit if Darcy claims Chris as a dependent on her return. Chris can claim his own personal exemption if his mother decides not to claim him as a dependent If Darcy claims Chris as a dependent on her return, Darcy cannot claim the American opportunity credit because Chris paid his own tuition.

Tax Preparation Resources Advance Scenario 2

Advance Scenario 2 Resources (Filing Status) Pub 4012 Page B-8 Tax Preparation Resources

Advance Scenario 2 Resources (Dependency) Tax Preparation Resources Pub 4012 Page C-3

Tax Preparation Resources Advance Scenario 2 Resources (Exemptions) Pub 4012 Page C-1

Advance Scenario 2 Resources (Earned Income Credit) Pub 4012 Page I-2 Tax Preparation Resources Note: To meet the joint return test, the child cannot file a joint return for the year unless it s to only claim a refund of income tax withheld or estimated tax paid.

Tax Preparation Resources Advance Scenario 2 Resources (Earned Income Credit-Con t) Pub 4012 Page I-2

Tax Preparation Advance Resources Scenario 2 Test Questions Who can claim Hayden as a dependent? Who can Mike claim as a qualifying child(ren) for the earned income credit? Mike s most advantageous filing status is Single. Can Brittany claim Hayden as a dependent? How many qualifying children does Mike have for the earned income credit? Mike s most advantageous filing status is Head of Household.

Tax Preparation Resources Advance Scenario 3

Advance Scenario 3 Resources (Filing Status) Pub 4012 Page B-8 Tax Preparation Resources

Advance Scenario 3 Resources (Dependency) Tax Preparation Resources Pub 4012 Page C-3

Tax Preparation Resources Advance Scenario 3 Resources (Exemptions) Pub 4012 Page C-1

Advance Scenario 3 Resources (Earned Income Credit) Pub 4012 Page I-2 Tax Preparation Resources Note: To meet the joint return test, the child cannot file a joint return for the year unless it s to only claim a refund of income tax withheld or estimated tax paid.

Tax Preparation Resources Advance Scenario 3 Resources (Earned Income Credit-Con t) Pub 4012 Page I-2

Advance Scenario 3 Resources (Child & Dependent Care Credit) Tax Preparation ResourcesPub 4012 Page G-5

Advance Scenario 3 Resources (Child Tax Credit) Tax Preparation Resources Pub 4012 Page G-8

Tax Preparation Advance Resources Scenario 3 Test Questions Henry and Claudia are eligible to claim the earned income credit Henry and Claudia can claim Alyssa as a dependent, but not for the child tax credit. Are Henry and Claudia eligible to claim the earned income credit? Henry and Claudia can claim Alyssa for which tax benefit(s)?

Tax Preparation Resources Advance Scenario 4

Advance Scenario 4 Resources (Filing Status) Pub 4012 Page B-8 Tax Preparation Resources

Advance Scenario 4 Resources (Education Credit) Pub 4012 Page J-4 Tax Preparation Resources

Tax Preparation Advance Resources Scenario 4 Test Questions What is Martin s most advantageous allowable filing status? Considering Martin s filing status and using Publication 4012, Tab J, Education Benefits, which education benefit is Martin eligible to claim? Martin s most advantageous allowable filing status is Single. Considering Martin s filing status and using Publication 4012, Tab J, Education Credits, Martin is eligible to claim the lifetime learning credit.

Tax Preparation Resources Advance Scenario 8

Types of Minimum Essential Coverage Tax Preparation Resources Pub 4012 Page H-5

Types of Minimum Essential Coverage Tax Preparation Resources Pub 4012 Page H-5

Types of Coverage Exemptions Tax Preparation Resources Pub 4012 Page H-14

Balance Due & Refunds Page K-14 thru K-17 Tax Preparation Resources Balance Due Returns General Info Payment due by filing due date Penalties and Interest File on time! Payment Methods Electronic Funds Withdrawal IRS Direct Pay Check or Money Order Credit Card Payments NO CASH! EFTPS Pay Near Me Cash at a 7-11 Refunds Checks Direct Deposit 8888 Split Accounts Savings Bonds Can t Pay? Installment Agreement Offer in Compromise How to Avoid Balance Due? Adjust Withholdings Revised W-4 with employer Estimated Taxes

Tax Preparation Advance Resources Scenario 8 Test Questions What form must be used to split Robert s refund? Which health coverage exemption does Robert quality for? Refer to Publication 4012, Tab H. Which of the following qualify as minimum essential coverage? Robert must use Form 8888 to split his refund between his two bank accounts. Robert does not qualify for a coverage exemption, and will need to make a shared responsibility payment (SRP) when filing his tax return. Refer to Publication 4012, Tab H. Which of the following coverages do not qualify as minimum essential coverage?

Next Steps Next Steps Sign into TaxSlayer s Practice Lab https://vita.taxslayerpro.com/irstraining Password TRAINPROWEB Start in Pub-6744, Page 71 Refer to page B-1 of 4012

Next Steps 1040 Review Pub 4012 B-1

Next Steps 1040 Review Pub 4012 B-1

Next Steps 1040 Review Pub 4012 B-1

Next Steps 1040 Adjustments Section Pub 4012 B-1

Next Steps 1040 Review Pub 4012 B-2

Next Steps 1040 Review Pub 4012 B-2

Next Steps Missing Page 92 From 6744

Next Steps EMAIL Once you certify, please email your Volunteer Agreement to: taxvolunteer@cwfphilly.org

Next Steps EMAIL taxvolunteer@cwfphilly.org

Next Steps THANK YOU! Once you certify, please email your Volunteer Agreement to: taxvolunteer@cwfphilly.org