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WHAT'S NEW IN 2011 Highlights

WHAT'S NEW IN 2011 Highlights. Certification Process Ordering Training Products New and Extended Tax Provisions Other Items – 2011 and beyond. TRAINING & CERTIFICATION. All Volunteers need to be certified. New! All must pass IRS Standards of Conduct test with 80% accuracy

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WHAT'S NEW IN 2011 Highlights

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  1. WHAT'S NEW IN 2011Highlights Certification Process Ordering Training Products New and Extended Tax Provisions Other Items – 2011 and beyond

  2. TRAINING & CERTIFICATION All Volunteers need to be certified. New! All must pass IRS Standards of Conduct test with 80% accuracy All must sign new Volunteer Standards of Conduct All Counselors mustpass IRS test at 80%, Basic, Intermediate & Advanced levels, using Pub 6744 or IRS Link & Learn test system

  3. ORDERING TRAINING PACKETS • Two types of training packets • Pub 4491 Kit– hard copies of: • Pub 4491 - Training Guide • Pub 4012 - Resource Guide (Spiral Book) • Pub 4491-W - Problem Workbook • Pub 6744 - Test & Retest • Pub 4480 Kit– CD of Pub 4491 with hard copies of Pubs 4012, 4491-W and 6744 • Instructors will receive 4491 Kit; Counselors will receive 4480 Kit.

  4. TRAINING PACKETS, cont’d • Link & Learn Training has been redeveloped • All Counselors can now use L & L Test. • More people use online for tax law training and learning TaxWise . • IRS - SPEC's ultimate goal is to have all partners transitioned to e-learning products and training by 2014. • Goal of changes is to encourge migration to more e-learning and decrease printing costs. • How do we move sensibly in this direction?

  5. SCH D & FORM 8949 • Schedule D for 2011 – has new reporting lines using Form 8949NEW • Form 8949 has codes and three check boxes to be completed for each line entry • For each asset sold, the 1099 will have an A/B/C designator: • Box A – Cost basis shown on 1099-B • Box B – Cost basis not shown on 1099-B • Box C – No 1099-B received

  6. SCH D & FORM 8949, pg 2 Assets can no longer be entered on Schedule D. All assets information goes on Forms 8949 Page 1 is for short term; Page 2 is for long term. In TaxWise, Capital Gain or Loss Transactions Worksheet will load 8949’s and put assets on apprpriate pages.

  7. SCH D & FORM 8949, pg 3 Long Term/Short Term Capital Gains/Losses Wkts will no longer be in Forms list A/B/C designators will be located on Cap Gain Wkt under 1099 column Column (b) is code for adjustments to gain/loss, wash sales, exclusion of gain on main home, etc Column (g) is the amount of the adjustment See MA TaxAide website (www.matax-aide.com) for more detail.

  8. SCH D & FORM 8949, pg 4 • Column (b) is for gain/loss adjustment codes; see F1 help and Form 8949 instructions • Column (g) is for amount of adjustment

  9. NEW PREPARER USE FORMboth TaxWise Desktop and Online • Dedicated to Preparer’s Use Fields • Prep Use Fields no longer on Main Info Sheet • Prep Use Fields increase from 15 to 25 • Standardized to 15-character alphanumeric • Enter up to 25 questions in column A • All Preparer Use Field entries will be stored for reporting purposes.

  10. PREPARER USE FORM, cont’d • Taxpayer Reminder Field will be added • Enter information you need to convey to preparer for following year • Will automatically display when return is started in TY 2012 (January 2013) • Mandatory Fields for TaxWise (see MA HB) • Field 13 - Initials of Preparing Counselor • Field 14 - Initials of Quality Reviewer • Field 15 - Site Identification Number (SIDN) • Field 16 - Type of Quality Review

  11. STANDARD MILEAGE RATES IN 2011 51¢/mile for business miles (55.5¢/mile effective 07/01/2011) 19¢/mile for medical or moving (23.5¢/mile effective 07/01/2011) 14¢/mile for charitable service Use of car, vans, pickups or panel trucks included

  12. EXTENDERS THRU 2011 Qualified Charitable Distributions from certain individual retirement plans Deduction for educator expenses Tuition and fees deduction Itemized deduction for sales taxes Private mortgage insurance deduction Non-business energy property credit (with significant limitations)

  13. EXTENDERS THRU 2012 American Opportunity Tax Credit Child tax credit of $1,000 and the earned income threshold of $3,000 for the child tax credit EITC increased credit for three or more qualifying children (thru 2012)

  14. NON-BUSINESS ENERGY PROPERTY CREDIT • Combined limits of $500, $200 for windows, for all tax years after 2005 (Form 5695, Pt I) • MUST ask about prior year energy credits • Maximum 2011 for residential energy property • $50 for advanced main air circulating fan • $150 for qualified natural gas, propane, or oil furnace, or hot water boiler • $300 for energy-efficient building property

  15. IRS CHANGESFOR VITA-TCE • No second copy of Form 8879 and income attachments, i.e. W2s’, 1099s’, etc retained at the site or by the ERO • SPEC no longer requires (or allows) copy for storage; taxpayer still signs single copy prior to efile submission and retains the copy with their tax records • See MA Tax-Aide website for sample ERO log. • Consider using ‘Return stage’ or ‘Client Letter’ to track status. • Lump-sum social security payments are included as Basic competency • Use of numbers from previous year returns in scope this year

  16. WHAT’S NEW IN 2011 QUESTIONS? COMMENTS?

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