1. 1 NY3 INSTRUCTOR WORKSHOP 2011 TRAINING FOR 2011 WHAT’S NEW? WHAT’S CHANGING

2. NY 3 INSTRUCTOR WORKSHOP 2011 2 OBJECTIVES  WHAT’S NEW  STDS OF CONDUCT  TAX LAW – FEDERAL & NEW YORK  WHAT’S CHANGING  SCOPE  CERTIFICATION  ALTERNATE TRAINING  NY3 TRAINING PLAN

3. NY 3 INSTRUCTOR WORKSHOP 2011 3 WHAT’S NEW  ETHICS/STANDARDS OF CONDUCT TRAINING  TAX LAW  ENERGY CREDITS EXIST-NEW RULES  NEW RULES FOR SALE OF ASSETS  FORM 8949 - NEW  CREATED TO ENABLE TRACKING OF COST BASIS–SALE OF CAPITAL ASSETS  SCHED D – SIGNIFICANT CHANGES  LOCALLY – NEW LC TRAINING

4. 4 NY3 INSTRUCTOR WORKSHOP 2011 STANDARDS OF CONDUCT FOUND IN PUB 6744, Pages S-1 thru S-17 THIS FILE ADAPTED FROM NTTC TRAINING FILE

5. NY 3 INSTRUCTOR WORKSHOP 2011 5 VOLUNTEER ETHICS  By law, preparers are required to exercise due diligence in preparation of tax returns  IRS has responsibility for oversight to protect tax program integrity and maintain taxpayer confidence

6. NY 3 INSTRUCTOR WORKSHOP 2011 6 VOLUNTEER ETHICS  Volunteers can be removed, sites closed, IRS support & funds discontinued by IRS  Clients may be subject to examination, litigation or criminal penalties if false return

7. NY 3 INSTRUCTOR WORKSHOP 2011 7 UNETHICAL DEFINED  IRS-SPEC defines unethical as not conforming to agreed standards of moral conduct, especially within a particular profession  In most cases, unethical behavior is acted upon with the intent to disregard the established laws, procedures, or set policies  An error or omission that was unknowing is not considered an unethical action

8. NY 3 INSTRUCTOR WORKSHOP 2011 8 STANDARDS OF CONDUCT  Form 13615, Volunteer Standards of Conduct Agreement, applies to all conduct and ethical behavior in VITA/TCE Program  ALL volunteers must agree to Standards of Conduct, pass a test & sign Agreement prior to working at a VITA or TCE site

9. NY 3 INSTRUCTOR WORKSHOP 2011 9 STANDARDS OF CONDUCT Responsibility of all volunteers is to provide highest quality, best service to clients

10. NY 3 INSTRUCTOR WORKSHOP 2011 10 QUALITY SITE REQUIREMENTS  Volunteers required to adhere to QSRs (see Pub 4012, Pg 12) #1, Certification #2, Intake/Interview Process #3, Quality Review Process #4, Reference Materials #5, Volunteer Agreement #6, Timely Filing

11. NY 3 INSTRUCTOR WORKSHOP 2011 11 QSRs # 7, Title VI – AARPs D143, Free Tax Help Poster displayed at all AARP/TCE sites # 8, Accurate Site ID Number on all returns # 9, Correct E-File ID Number on all returns

12. NY 3 INSTRUCTOR WORKSHOP 2011 12 QSRs #10, Security, Privacy and Confidentiality  Equipment and tax data secured  Passwords never posted near computer  TaxWise/encryption exited if not in area

13. NY 3 INSTRUCTOR WORKSHOP 2011 13 SIX STANDARDS OF CONDUCT 6744 Intro 1.Must follow Quality Site Requirements 2.Must not accept payment or solicit donations for federal or state tax return preparation 3.Must not solicit business from clients or use knowledge gained about them for direct or indirect benefit for self or others May use aggregate data for promotion (e.g., # returns, schedules) but use of $$ amounts prohibited except aggregate for fund-raising

14. NY 3 INSTRUCTOR WORKSHOP 2011 14 SIX STANDARDS OF CONDUCT 6744 Intro 4.Must not knowingly prepare false returns 5.Must not engage in criminal, infamous, dishonest, notoriously disgraceful conduct, or any other conduct deemed to have a negative effect on the VITA/TCE Program 6.Must treat all taxpayers in a professional, courteous, and respectful manner

15. NY 3 INSTRUCTOR WORKSHOP 2011 15 VIOLATION OF STANDARDS  Client says has “cash income” not reported on 1099-MISC; volunteer replies does not need to report since IRS may not catch it.  Volunteer includes child listed by client as dependent who was not a “qualified child or relative” since no-one else is claiming child.  Volunteer offers to list own bank account for client without an account in order to provide client with faster refund

16. NY 3 INSTRUCTOR WORKSHOP 2011 16 VIOLATION OF STANDARDS  Client does not want to report a stock sale because cost basis equal to or higher than sales price; volunteer agrees not to but tells client that, if audited, amounts would need to be supported by documentation

17. NY 3 INSTRUCTOR WORKSHOP 2011 17 VIOLATION OF STANDARDS  Volunteer argues/becomes angry with client  Volunteer asks client (who is single) if she/he would consider meeting for a date  Volunteer commits criminal act (not at site)

18. NY 3 INSTRUCTOR WORKSHOP 2011 18 FROM FORM 13615

19. 19 NY3 INSTRUCTOR WORKSHOP 2011 RESIDENTIAL ENERGY CREDITS CHANGES RESTRICTIONS

20. NY 3 INSTRUCTOR WORKSHOP 2011 20 RESIDENTIAL ENERGY CREDITS  FORMERLY, 30% OF COST, UP TO $1500 FOR 2009 & 2010  MODIFIED TO BE RETROACTIVE TO 2006  MUST INCLUDE ANY CREDITS FROM ‘06 & ‘07  LIFETIME LIMIT $500.  $200 MAXIMUM FOR WINDOWS

21. NY 3 INSTRUCTOR WORKSHOP 2011 21 NON-BUSINESS ENERGY PROPERTY CREDIT  MAXIMUM FOR RESIDENTIAL ENERGY PROPERTY PLACED IN SERVICE IN 2011.  10% OF COST UP TO:  $50 FOR MAIN AIR CIRCULATING FAN  $150 FOR QUALIFIED NATURAL GAS, PROPANE, OR OIL FURNACE, OR HOT WATER BOILER  $300 FOR ENERGY-EFFICIENT BUILDING PROPERTY

22. NY 3 INSTRUCTOR WORKSHOP 2011 22 SCH D & FORM 8949  FORM 8949 INTRODUCED TO TRACK COST BASIS DETAIL  DETAILS FOR SALE OF ASSETS HERE  SCHEDULE D: SUMMARY OF DATA FROM FORM 8949  INPUT DATA IN TAXWISE VIA CAPITAL GAINS INPUT WORKSHEET

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24. NY 3 INSTRUCTOR WORKSHOP 2011 24

25. NY 3 INSTRUCTOR WORKSHOP 2011 25 EXTENDERS – 2011  QUALIFIED CHARITABLE DISTRIBUTIONS (THRU 2011)  EDUCATOR EXPENSES DEDUCTION (THRU 2011)  TUITION AND FEES DEDUCTION (THRU 2011)

26. NY 3 INSTRUCTOR WORKSHOP 2011 26 EXTENDERS - 2011  ITEMIZED DEDUCTION FOR GENERAL SALES TAXES (THRU 2011)  NON-BUSINESS ENERGY PROPERTY CREDIT (WITH SOME LIMITATIONS) (THRU 2011)  PRIVATE MORTGAGE INSURANCE DEDUCTION (THROUGH 2011)

27. NY 3 INSTRUCTOR WORKSHOP 2011 27 EXTENDERS - 2012  AMERICAN OPPORTUNITIES TAX CREDIT (THRU 2012)  CHILD TAX CREDIT  EARNED INCOME THRESHOLD OF $3,000 (THRU 2012)  EITC FOR THREE OR MORE QUALIFYING CHILDREN (THRU 2012)

28. NY 3 INSTRUCTOR WORKSHOP 2011 28 NEW YORK  WHAT’S NEW?  TOOLS AVAILABLE

29. NY 3 INSTRUCTOR WORKSHOP 2011 29 NEW YORK STATE  DISABILITY INCOME EXCLUSION  LITTLE KNOWN  LITTLE USED  UP TO $5200 CAN BE EXCLUDED IF AGI LESS THAN $15,000.  VERY LIMITED ELIGIBILITY  NEED TO ENSURE PEOPLE AWARE

30. NY 3 INSTRUCTOR WORKSHOP 2011 30  SAME SEX MARRIAGE IMPACT  RULES GOVERNING MARRIED COUPLES APPLY  FED GOVERNMENT DOES NOT RECOGNIZE SAME SEX MARRIAGE

31. NY 3 INSTRUCTOR WORKSHOP 2011 31 NEW YORK STATE  MUST FILE TWO FEDERAL RETURNS (SGL or HH):  NYS RETURNS –(MFJ, MFS)  NO CAPABILITY IN TAXWISE  BOTTOM LINE: OUT-OF-SCOPE FOR NEW YORK STATE

32. NY 3 INSTRUCTOR WORKSHOP 2011 32 NEW YORK STATE  4491-W: RETURNS COMPLETED FOR FED & NYS USING TW 2010  POSTED ON NY3 WEBSITE  EXCEL SPREADSHEET  LINE BY LINE RESULTS

33. NY 3 INSTRUCTOR WORKSHOP 2011 33 HUGE THANK YOU  THE TEAM THAT WORKED ON THE RETURNS FOR NEW YORK STATE DAVE AIKENS KAYE CURRY MARCIA LAPIERRE BOB PARSONS

34. NY 3 INSTRUCTOR WORKSHOP 2011 34 NEW LC TRAINING  CENTRALIZED TRAINING FOR NEW LC’S  SMT MEMBERS PROVIDE TRAINING  ADMINISTRATIVE, NOT TECHNICAL  TWO LOCATIONS  EAST GREENBUSH LIBRARY – 11/28  POUGHKEEPSIE –CATHOLIC CHARITIES OFFICE – 11/30

35. NY 3 INSTRUCTOR WORKSHOP 2011 35 NEW LC TRAINING  COURSE INCLUDES  QUALITY SITE REQUIREMENTS  ETHICS  USE OF PORTAL SYSTEM  OFFICE PLANNING  SITE SET UP AND OPERATION  END OF SEASON PROCEDURES

36. NY 3 INSTRUCTOR WORKSHOP 2011 36 WHAT’S CHANGING  SS LUMP SUM DISTRIBUTIONS  PRIOR YEAR CALCULATION NOW IN-SCOPE  CERTIFICATION PROCESS  ALTERNATIVE TRAINING OPTION  LOCALLY – COUNSELORS COMPLETE SIX PRACTICE PROBLEMS

37. NY 3 INSTRUCTOR WORKSHOP 2011 37 LUMP SUM SS PAYMENTS  Lump-sum social security payments included as Basic competency  Last year, only current year taxability in scope, but use of numbers from previous year returns in scope this year.  Requires prior year data.  Handled by Worksheets in TW

38. NY 3 INSTRUCTOR WORKSHOP 2011 38 2011 Form 1099-SSA With Lump Sum Payment Total from Box 5 = $33,996 Amount for 2010 = $12,948 Amount for 2009 = $5,190 Therefore, the amount for 2011 would be $15,858 ($33,996 - $12,948 - $5,190) *Includes: $12,948.00 Paid in 2011 for 2010 $5,190.00 Paid in 2011 for 2009

39. 39 NY3 INSTRUCTOR WORKSHOP 2011 CERTIFICATION PROCESS COUNSELORS NON-COUNSELORS

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41. NY 3 INSTRUCTOR WORKSHOP 2011 41 NOTIFY TRS, ALSO.

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43. NY 3 INSTRUCTOR WORKSHOP 2011 43 NOTIFY TRS, ALSO.

44. NY 3 INSTRUCTOR WORKSHOP 2011 44 FROM FORM 13615

45. NY 3 INSTRUCTOR WORKSHOP 2011 45 REPORTING PROCESS  INSTRUCTORS WILL REPORT TO TRS  I WILL MAINTAIN COMPLETE LIST  I WILL FORWARD TO ADS & IRS  ADS WILL UPDATE VMIS  INSTRUCTORS WILL NOTIFY DC/LC

46. NY 3 INSTRUCTOR WORKSHOP 2011 46  GO TO FORM 13615

47. 47 NY3 INSTRUCTOR WORKSHOP 2011 ALTERNATIVE TRAINING OPTION APPROACH FOR THE FUTURE STARTING NOW

48. NY 3 INSTRUCTOR WORKSHOP 2011 48 RECOMMENDATION  ALLOW VOLUNTEERS OPTION TO SELF-STUDY  NOT ABLE TO ATTEND CLASS  USE LINK & LEARN ONLINE TRAINING  TRAINING MANUALS AVAILABLE NY3 WEBSITE  CAN BE DOWNLOADED

49. NY 3 INSTRUCTOR WORKSHOP 2011 49 RECOMMENDATIONS  TAXWISE ONLINE OR DESKTOP  WORKBOOK PROBLEM RESULTS AVAILABLE FOR FEDERAL AND STATE  PRACTICE LAB  TWO 2011 – READY BY 11/21  TWO 2010 TRAINING – UNTIL 1/31/12  PRACTICE LAB – NO STATE SOFTWARE

50. NY 3 INSTRUCTOR WORKSHOP 2011 50 GUIDELINES  PERMISSION FROM DISTRICT COORDINATOR.  REQUIRES SPECIAL SCHEDULING OF CLASSES  MUST ATTEND FOLLOWING CLASSES  POLICY & PROCEDURES  IRS STANDARDS OF CONDUCT  NOT MORE THAN ½ TRAINING TIME – SELF STUDY

51. NY 3 INSTRUCTOR WORKSHOP 2011 51 WHY DO THIS?  ALLOW VIABLE PROGRAM FOR THOSE WHO CANNOT ATTEND CLASS  SUPPORT NEEDS OF VOLUNTEERS FOR DIFFERENT TRAINING OPTIONS  SUPPORT SITES OPEN WKENDS & EVENINGS

52. NY 3 INSTRUCTOR WORKSHOP 2011 52 WHY DO THIS?  CHANGE IN SOCIETY  INDIVIDUALS MORE MOBILE  INVOLVED IN MULTIPLE ACTIVITIES  MORE COMPUTER LITERATE  USED TO LEARNING VIA COMPUTER

53. NY 3 INSTRUCTOR WORKSHOP 2011 53 WHY DO THIS?  IRS CONSIDERATIONS  TIME  FLEXIBILITY  EMERGING TECHNOLOGY  COST REDUCTION

54. 54 NY3 INSTRUCTOR WORKSHOP 2011 NY 3 TRAINING PLAN NEW VOLUNTEERS RETURNING VOLUNTEERS

55. NY 3 INSTRUCTOR WORKSHOP 2011 55 OBJECTIVES  USE PROCESS BASED TRAINING METHODS  PROMOTE USE OF TAXWISE ONLINE  TRAINING  CERTIFICATION  INTRODUCE ETHICS TRAINING

56. NY 3 INSTRUCTOR WORKSHOP 2011 56 OBJECTIVES  TIME FOR PRACTICE  SIX PROBLEMS FROM WORKBOOK  INSTRUCTORS AND ALL COUNSELORS TAKE TEST ONLINE  LINK & LEARN  TWO or PRACTICE LAB  CENTRALIZED NEW LOCAL COORDINATOR TRAINING

57. NY 3 INSTRUCTOR WORKSHOP 2011 57 REQUIREMENTS  INSTRUCTORS PROFICIENT WITH TAXWISE  USE OF TAXWISE FOR PRACTICE  CLASSROOM  HOME, IF FEASIBLE  REVIEW ALL COMPLETED PRACTICE PROBLEMS  ACCURACY  COMPLETENESS

58. NY 3 INSTRUCTOR WORKSHOP 2011 58 REQUIREMENTS  ALL COUNSELORS FAMILIAR WITH USING  PUB 4012  PUB 17  1040 & IT-201 INSTRUCTIONS  ALL VOLUNTEERS MUST PASS STANDARDS OF CONDUCT TEST  INSTRUCTORS AND COUNSELORS CERTIFIED PRIOR TO JAN 25 th

59. NY 3 INSTRUCTOR WORKSHOP 2011 59 QUALITY  FOCUS ON QUALITY REVIEW CONTINUES  QUALITY IS CRITICAL  100% QUALITY REVIEW  2 ND CERTIFIED PERSON REVIEW  ALL SITES “STRONGLY ENCOURAGED” TO PERFORM QR ON COMPUTER

60. NY 3 INSTRUCTOR WORKSHOP 2011 60 QUALITY  CONNECTION BETWEEN INTERVIEW AND QUALITY  QR PERSON NEEDS TO TALK TO CLIENT  SECTION C, FORM 13614 COMPLETE AND THREE BOXES CHECKED

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62. NY 3 INSTRUCTOR WORKSHOP 2011 62 QUALITY  PRACTICE RETURNS  DEMO QUALITY REVIEW PROCESS  EACH VOLUNTEER SHOULD DO AT LEAST TWO QUALITY REVIEWS  FOCUS ON SSN & EIN ACCURACY  QR COMPLETED ON COMPUTER  DO NOT PRINT FOR QR

63. NY 3 INSTRUCTOR WORKSHOP 2011 63 NEW VOLUNTEERS  36 HOURS CLASSROOM TRAINING  PROCESS BASED TRAINING  TAX LAW  INTERVIEW SKILLS  TAXWISE SOFTWARE  RETURN PREPARATION  QUALITY REVIEW  CLIENT REVIEW

64. NY 3 INSTRUCTOR WORKSHOP 2011 64 NEW VOLUNTEERS  REFERENCE MANUALS  PRACTICE RETURNS – SIX MINIMUM  CLASSROOM  HOME  POLICY and PROCEDURES  ETHICS/STANDARDS OF CONDUCT

65. NY 3 INSTRUCTOR WORKSHOP 2011 65 RETURNING VOLUNTEERS  18 HOURS CLASSROOM TRAINING  WHAT’S NEW  TAX LAW  SOFTWARE  PROCESS CHANGES  SCOPE  CERTIFICATION  TECHNICAL REVIEWS

66. NY 3 INSTRUCTOR WORKSHOP 2011 66 RETURNING VOLUNTEERS  PRACTICE RETURNS – SIX MINIMUM  CLASSROOM  HOME  POLICY and PROCEDURES  ETHICS/STANDARDS OF CONDUCT

67. NY 3 INSTRUCTOR WORKSHOP 2011 67 SUMMARY QUESTIONS?? COMMENTS??