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Facilitated Self Assistance Model for Tax Prep

Facilitated Self Assistance Model for Tax Prep. September 2011 Ron Smith SPEC/SPD. Why should I create facilitated tax prep model?. The Market for Free Volunteer Tax Services is Substantial. 19 million low-income taxpayers (<$36K) indicated an awareness and desire for volunteer tax services

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Facilitated Self Assistance Model for Tax Prep

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  1. Facilitated Self Assistance Modelfor Tax Prep September 2011 Ron Smith SPEC/SPD

  2. Why should I create facilitated tax prep model?

  3. The Market for Free Volunteer Tax Services is Substantial • 19 million low-income taxpayers (<$36K) indicated an awareness and desire for volunteer tax services • According to IRS Research (Benchmark Survey) • VITA/TCE programs have served just over 3 million taxpayers annually since 2007 • Based on the above, more than 16 million taxpayers must find alternatives to free volunteer tax prep • 60% of VITA/TCE clients file SIMPLE (i.e. single) returns

  4. Partners are Challenged to Grow With Limited Resources • There are 12,000 VITA and TCE sites nationwide • Over 88,000 volunteers prepared more than 3.1 million returns in 2011 • Many partners are at capacity with long lines of taxpayers awaiting for services • Limited resources and available volunteers can impact a partner’s ability to increase return totals

  5. Filing Taxes is a Crucial Component of Financial Education • Teaching taxpayers to file their own return builds knowledge about their taxes and how they are calculated • Empowering taxpayers is the first step towards filing future returns independently

  6. SPEC Business Model Tax Preparation Services Tax Education Financial Education & Asset Building Facilitated Self Assistance Virtual VITA/TCE VITA/TCE

  7. How does it work? • Similar to other forms of assisted self-service (e.g. gas station, grocery store) • Taxpayers input their own return data • Taxpayers use interview-based software • Certified volunteers are available at all times • VITA Basic is minimum volunteer certification • Computers can be set up: • As a stand-alone model; or • At an existing VITA site to increase capacity at peak times

  8. What are the benefits of using a facilitated model? • For sites: • Prepare more returns • Target more taxpayers with complex returns for direct help • Reduce wait times during peak • Provide taxpayers with a choice of service • Returns counted towards site total • Federal and state returns are free • For taxpayers: • Leverage current computer skills • Access to brand-name tax software • Ability to consult with a certified VITA volunteer for questions • Increased knowledge about their return • Increased confidence upon completion of return • First step towards self-sufficiency in return filing

  9. What is FAST? • Free Assisted Self-Service Tax Preparation • Taxpayers utilize online software provided by members of the Free File Alliance (FFA) • H&R Block • Intuit (TurboTax) • TaxSlayer • Provider links are customized with the embedded SIDN to allow for return counts

  10. Current FAST Footprint (TY2010)

  11. Other non-FAST Models • Beehive • The Benefit Bank • I-CAN • Let me know if you are in a non-FAST state; we will work with you

  12. FSA Filing Season Stats and Findings • Filing Season Statistics: • Total Sites: 106 • Total Returns: 4204 • Filing Season Findings: • Many VITA sites were in the operational stage of the filing season and did not want to take on the added burden of implementing a new model • Most sites that took on the model this year were smaller appointment-only type of locations that offered the kiosk as an additional filing option for taxpayers • Partners who participated saw the potential for empowering taxpayers and providing another avenue for completing simpler returns at volunteer sites • Overcoming the expectation of volunteer preparation of the taxpayer’s return has been a barrier to greater success (at both the partner and taxpayer level) • Generally, taxpayers who input their own return data thought it was a positive experience and enhanced their understanding of their return • Time needed to complete the return varied anywhere from 30 minutes for taxpayers with prior experience to over an hour for first-timers who required additional validation from the volunteer

  13. How do sites get started FAST? • Make a plan for FAST at your site: • Kiosk location • Hours of operation • Number of computers and volunteers • Marketing initiatives (marketed as Free File to taxpayers) • Let your SPEC Relationship Manager know you’d like to participate • SPEC—HQ will email your FAST coordinator with instructions, links and icons • Follow the instructions to set up the icons on each FAST computer

  14. Questions? • Ron Smith • Chief, SPEC/SPD • 404-338-8512 • Dan Maier • Tax Analyst, SPEC/SPD • 404-338-9021

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