quality review is mandatory
DESCRIPTION
Module NJ 1.32. Quality Review Is Mandatory. What? Why? How? Who?. Quality Review Summary. A MUST for ALL tax returns including PTRs NO EXCEPTIONS Need 3 or more counselors at each site Requires verification Filing status and eligibility as a dependent - PowerPoint PPT PresentationTRANSCRIPT
Final 11-15-2008 NJ Training TY 2008 1
Quality Review IsMandatory
What?Why?How?Who?
Module NJ 1.32
Quality Review Summary
A MUST for ALL tax returns including PTRs NO EXCEPTIONS
Need 3 or more counselors at each site Requires verification
Filing status and eligibility as a dependent Input data from all source documents Key information is not overlooked
Compare with prior year return (if available) QR must be by a 2nd Certified counselor For paper returns, effectively re-do the return
Significant Issues and Problems Strict adherence to “NJ Can Do/Cannot Do List” Proper handling of tax exempt interest and dividends Failure to include taxable NJ Property Tax Refunds (Homestead
Rebate and PTR) on Federal Return Accurate completion of Schedule C-EZ, Business Income Accurate completion of questions on EIC Worksheet Failure to complete of NJ IRA Worksheet(s) to ensure inclusion of all
IRA Distributions in NJ1040 Reporting rent and/or property tax on
NJ Property Tax deduction or credit worksheet and/or NJ1040 Rebate application for tenants
Accurate preparation of NJ and NY Returns for NJ Residents with NY W-2s Carry forward of proper amounts of Taxable NY Income & NY Tax Liability
to the appropriate NJ form
Final 11-15-2008 NJ Training TY 2008 4
Common Errors
Incorrect data entry of : Names Addresses DOB SSN
Filing status and dependency determination Entry errors from W-2 and/or 1099 information
Either in income & tax withholdings Missing or incorrect EIN and Payer ID
Improper completion of EIC Worksheet Improper entry of RRB-1099R Entry of 1099-OID as tax exempt
TOP TEN PROBLEMSUSING TAXWISE
1. Improper OVERRIDES!2. Improper use of punctuation3. Incorrect entry of last name –
spouse/dependents4. Not linking to 1099MISC from Sch C-EZ5. Use of scratch pad when existing worksheet
or schedule
TOP TEN PROBLEMSUSING TAXWISE
6. Adding new form when already existing form7. Not recreating e-file as last item before exiting
return – thus creating an invalid e-file8. No or incorrect state adjustment for interest and
dividends9. Improper completion of Sch EIC worksheet10. Zero cost basis for capital gains11. Failure to input medical expense and real estate
taxes on Federal Schedule A (Need for NJ return)
Final 11-15-2008 NJ Training TY 2008 7
1st Steps In QR Process
Run Diagnostics e-file errors Identify overrides – Why/Impact On Return
Review Forms Tree Any RED exclamation points(!!!) If so, determine if there is any significant
missing data and/or potential impact on accuracy of return
Final 11-15-2008 NJ Training TY 2008 8
Taxpayer Information Verification
Name: taxpayer, spouse and dependents
Address
SSN
Date of Birth Must Match IRS Master File
Final 11-15-2008 NJ Training TY 2008 9
Source Documents Compare all source documents with data input
This can be done different ways Review of data on monitor Use print out of input documents
Review completed return
Manual Returns – Add total income and withholdings on W-2s, 1099s and compare to tax return
Final 11-15-2008 NJ Training TY 2008 10
Paper Returns In effect, redo the return! Check all footings and calculations Calculations on Schedules & Worksheets if
applicable Schedule D Capital Gains and Losses Simplified Method for determining taxable pension
amount Social Security Worksheet for determining amount
taxable Tax Liability check amount to
Tax table, or Qualified Dividend and Capital Gain Tax Worksheet
Tax Credit forms
Final 11-15-2008 NJ Training TY 2008 11
Who?
Quality Review requires a “second set of eyes.” It cannot be done by the counselor who prepared the return Must be a certified counselor The taxpayer CAN NOT be the “second set of
eyes”
Final 11-15-2008 NJ Training TY 2008 12
How? Locations with several tax preparers (Larger Sites)
One person is designated to do QR Same person may also be responsible for helping TP
prepare Intake Sheet Can rotate this position periodically
Locations with fewer tax preparers (Smaller Sites) Designate one person to do QR, if practical, rotate
periodicallyOR
Preparers exchange returns with other preparers Requires at least 2 preparers at every site & for
Shut-In Returns