1 nttc/ntc ero training 2011 tax year 2007 ero training electronic return originator (ero)...

1NTTC/NTC ERO Training 2011

ERO TRAINING

ELECTRONIC RETURN ORIGINATOR

(ERO)

(Transmitter in Tax-Wise)

2NTTC/NTC ERO Training 2011

ERO QUALIFICATIONS

EROs must: Be certified AARP Tax-Aide

volunteers

Be (or become) proficient with IRS- supplied tax preparation software.

3NTTC/NTC ERO Training 2011

ERO RESPONSIBILITIES

Security of taxpayer data

Transmission of e-file

returns

Record keeping

Communications

4NTTC/NTC ERO Training 2011

SECURITY OF TAXPAYER DATA

IRS Pub 3189 requires all volunteers: To be vigilant To physically protect

Printed data

Electronic data

EquipmentSee IRS Pub 4299 “Privacy and

Confidentiality”

5NTTC/NTC ERO Training 2011

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

6NTTC/NTC ERO Training 2011

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

7NTTC/NTC ERO Training 2011

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

8NTTC/NTC ERO Training 2011

TRANSMISSION OF E-FILE RETURNS

9NTTC/NTC ERO Training 2011

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.

10NTTC/NTC ERO Training 2011

ACKNOWLEDGEMENTS

Get Acknowledgements Federal and State ACKs TaxWise e-mails

Print (or save)Acknowledgement Report

Check for rejects

11NTTC/NTC ERO Training 2011

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

12NTTC/NTC ERO Training 2011

ACKNOWLEDGEMENTS

13NTTC/NTC ERO Training 2011

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

14NTTC/NTC ERO Training 2011

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.

15NTTC/NTC ERO Training 2011

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

16NTTC/NTC ERO Training 2011

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

17NTTC/NTC ERO Training 2011

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

18NTTC/NTC ERO Training 2011

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)

19NTTC/NTC ERO Training 2011

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

20NTTC/NTC ERO Training 2011

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

21NTTC/NTC ERO Training 2011

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

22NTTC/NTC ERO Training 2011

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

23NTTC/NTC ERO Training 2011

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

24NTTC/NTC ERO Training 2011

Modified TaxAide Site Sign-In Sheet

25NTTC/NTC ERO Training 2011

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

26NTTC/NTC ERO Training 2011

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

27NTTC/NTC ERO Training 2011

ERO TRAININGLessons offered for TaxWise are grouped by task for both TWO & Desktop

AdministrativeReturn Preparation

Other topics includeCustomer Support SiteUniversityDifferences between

TWO\TWDTax Law ChangesContact Information

28NTTC/NTC ERO Training 2011

ERO TRAINING

The TaxWise Desktop Classes for Admin included lessons such as

System requirementsSecurity ManagerElectronic FilingReports

29NTTC/NTC ERO Training 2011

TaxWise Online ADMIN Training

The TaxWise Online Classes for Administrators included lessons such as

System requirements

Security Manager

Electronic Filing Reports

29

30NTTC/NTC ERO Training 2011

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

31NTTC/NTC ERO Training 2011

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

32NTTC/NTC ERO Training 2011

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

33NTTC/NTC ERO Training 2011

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

attachmentsCheck with your local IRS SPEC office to see if

they want any additional items or reports.

34NTTC/NTC ERO Training 2011

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

35NTTC/NTC ERO Training 2011

COMMUNICATIONS

VERY IMPORTANT!ERO must communicate with:

Counselors Quality Reviewers Other EROs District and Local Coordinators Technology Coordinators

36NTTC/NTC ERO Training 2011

ERO TRAINING

QUESTIONS?

COMMENTS?