New Jersey Tax-Aide E-file

1. New Jersey Tax-Aide E-file Gary Broughton Technology Specialist

2. What went well? • New Jersey electronic returns up 23% • North Atlantic region up 2% • National down 8% • Productivity up for all districts • All districts >40% e-file • Eight districts >80% e-file • Data retention (100% of EROs participate)

3. What could be done better? • Efficient use of equipment • Counting returns • AARP and IRS differences • TaxWise and IRS differences • Use of Standard Site Model • Use of TaxWise clone

4. Standard Site Model • Returns are prepared only at active sites • Each e-file site has an EFIN • An EFIN is used to prepare returns only for the site where it is registered • EFCs provide returns to the ERO transmitting for the site where they were prepared • Computers used at more than 1 site change Setup Options to match site EFIN

5. Standard Site Model Exceptions • An EFIN may be used to prepare returns at a secondary site • Open not more than a week a year • The practice of e-filing at low volume sites is discouraged. EFINs are not normally obtained and software is not purchased for sites expected to produce fewer than 35 accepted e-files.

6. Challenges & Opportunities • Equipment to support expansion • Equipment aging • Computer software updates • Network printing using printer sharing • Vista & Windows 7 transition and support • TaxWise Online

7. Tax year 2009 changes • IRS: All returns may be retained without individual authorization • TaxWise: EFIN Authentication • AARP – • New vendor for printer cartridges, printer repairs & flash drives • Revised TrueCrypt installer • Revised TPClear [later] • Technology Management Guide: electronic distribution only • New Jersey Tax-Aide • Equipment • Additional laptops [10] and printers [5] from AARP • Additional laptops [2] and network printers [3] from Bergen donation • Additional network printers [5] from NJ donated funds • TaxWise Online • One Supersite

8. EFIN Authentication • Concept: Carry forward will be limited to returns prepared with an EFIN which is also active in 2009 • Impact: Unknown until we learn the details of how this is implemented

9. Consumables • Replacement cartridges for specified printers • Repair/replacement of specified printers • Flash drives [probably above discount] • TC email request to TCS [ADS alternate] • Can be shipped directly to end user • Volunteers will not be reimbursed for cartridges available through the contract

10. 2008 Program Laptops

11. Equipment Allocation to NJ • Category 1: replace inoperable equipment • 6 laptops [for 5 desktops & 1 laptop] • 3 printers • Category 2: discretionary • 4 laptops • 2 printers [network]

12. Equipment Allocation within NJ • Goal: 80% e-file in each district • District requests • Considerations • Begin e-file at large sites • Increase e-files at large sites • Laptop efficiency • Discretionary funds

13. TaxWise Online • Tax returns prepared on encrypted web site • All taxpayer data stored on TaxWise server • Computers require no encryption or tax preparation software • Wired connection between computer and broadband internet • https://twonline.taxwise.com/training

14. Efficiency

15. Looking ahead - • E-file clients with paper returns [23%] • E-file the growth from additional clients [11% per year] • Assume AARP replaces defective equipment • Opportunities • Loans and donations • More productivity from existing equipment and volunteers

16. Places to look • Site operations • Hours/shifts per day & days per week • Consolidate sites => more counselors per site • Eliminate dead time and distractions • Scheduling and matching clients to counselors • Equipment • Assign to individual or site? • Metrics

17. Efficiency Exercise • What can be done in your district to produce at least 10% more e-files than last season? • Same number of volunteers • Same equipment • Discuss for ~30 minutes • After break, share your plans

18. Quality Review of E-files Accurate returns and minimizing rejects

19. What’s Important? • Anything and everything that affects the accuracy of the return • The same things that are important if the return were prepared on paper • A few extra things unique to e-filing

20. What’s Different? • TaxWise diagnostic • IRS Acknowledgement [Accept/Reject]

21. TaxWise Diagnostic • Diagnostic must be passed to e-file Federal and state • Verifies entries needed to e-file are complete • Does not verify that all data required for the taxpayer is entered • Does not verify that any data entered is correct

22. IRS Accept/Reject • Checks accuracy of some entries • Checks if taxpayers and dependents are listed on tax returns already filed • Does not verify that all data required for the taxpayer is entered • Does not verify that any amounts entered are correct

23. What does the QR need to check? • All data required for the taxpayer is entered • Data entered is correct • A few extras for e-filing • EIN • Direct deposit

24. Options for QR of e-files Using Intake Sheet & taxpayer documents, with access to taxpayer and preparer • At the preparer’s computer • Print the return and review paper copy • Include summaries of W-2, 1099-R, . . . . • At a different computer All of the above are acceptable.

25. Who does the QR? • Required: Counselor certified to complete the return [tax year, amended, other states] • Recommended: • Dedicated QR • Additional QR training • For non-EFC to do QR on e-file

26. Summary • Continued good e-file progress last year • Narrowing spectrum of e-file implementation among districts • Equipment • Efficiency improvements • Partnerships/donations