ERO TRAINING

1. ERO TRAINING ELECTRONIC RETURN ORIGINATOR (ERO) (Transmitter in Tax-Wise)

2. ERO QUALIFICATIONS • EROs must: • Be certifiedAARPTax-Aide volunteers • Be (or become) proficient with IRS- supplied tax preparation software.

3. ERO RESPONSIBILITIES • Security of taxpayer data • Transmission of e-file returns • Record keeping • Communications

4. SECURITY OF TAXPAYER DATA IRS Pub 3189 requires all volunteers: • To be vigilant • To physically protect • Printed data • Electronic data • Equipment See IRS Pub 4299 “Privacy and Confidentiality”

5. 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

6. 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

7. 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

8. TRANSMISSION OF E-FILE RETURNS

9. 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.

10. ACKNOWLEDGEMENTS • Get Acknowledgements • Federal and State ACKs • TaxWise e-mails • Print (or save)Acknowledgement Report • Check for rejects

11. 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

12. ACKNOWLEDGEMENTS

13. 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

14. 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.

15. 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

16. 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

17. 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

18. 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)

19. 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

20. 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

21. 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

22. 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

23. 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

24. Modified TaxAide Site Sign-In Sheet

25. 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

26. 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

27. ERO TRAINING • Lessons offered for TaxWise are grouped by task for both TWO & Desktop • Administrative • Return Preparation • Other topics include • Customer Support Site • University • Differences between TWO\TWD • Tax Law Changes • Contact Information

28. ERO TRAINING • The TaxWise Desktop Classes for Admin included lessons such as • System requirements • Security Manager • Electronic Filing • Reports

29. TaxWise Online ADMIN Training • The TaxWise Online Classes for Administrators included lessons such as • System requirements • Security Manager • Electronic Filing • Reports

30. 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

31. 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

32. 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

33. 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 attachments Check with your local IRS SPEC office to see if they want any additional items or reports.

34. 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

35. COMMUNICATIONS VERY IMPORTANT! ERO must communicate with: • Counselors • Quality Reviewers • Other EROs • District and Local Coordinators • Technology Coordinators

36. ERO TRAINING QUESTIONS? COMMENTS?