1. Course Introduction

2. Where to find the training materials www.calstatela.edu/vita/vitavol IRS’ Link and Learn Certification Paths Intermediate Course/Student

3. Link and Learn Taxes Link & Learn Taxes is a self-paced training program based on the VITA/TCE tax return preparation process. This training will introduce you to the major components of the VITA/TCE return preparation process and demonstrate how they contribute to your ultimate goal— preparing a complete and accurate return. A tax return is accurate when the tax law is applied correctly and it is free from error based on the taxpayer's interview and supporting documentation, and a completed Form 13614-C, Intake/Interview & Quality Review Sheet.

4. Course Objectives Pass the required Volunteer Standards of Conduct training and test and digitally sign Form 13615, prior to working at the site Pass the required test to be certified as a volunteer tax return preparer Conduct an interview and screen the taxpayer for eligibility verifying information gathered using Form 13614-C Use reference materials, such as Publication 4012, Volunteer Resource Guide; Publication 17, Your Federal Income Tax for Individuals; and tax software help features, to prepare an accurate return Use Form 13614-C, Section C, to conduct a quality review of all returns Conclude the interview and assemble the return Prepare the return for electronic filing using software provided

5. Five Critical Training Components Volunteer Standards of Conduct training Screening and interviewing taxpayers using Form 13614-C, Intake/Interview & Quality Review Sheet Understanding and applying tax law Using references, resources, and tools including return preparation software Conducting quality reviews on all returns

6. Certification Path: Basic Covers the foundation of tax law & addresses most issues that apply to most taxpayers. Course Introduction Screening and Interviewing Filing Basics and Filing Status Personal and Dependency Exemptions Income, including Unemployment Compensation and Social Security income Adjustments to income, including Penalties for early withdrawal Standard Deduction and Tax Computation Credit for Child and Dependent Care Child Tax Credit Miscellaneous Credits Other Taxes Payments Earned Income Credit Completing the Return

7. Certification Path: Intermediate Covers tax law that applies to individuals and couples with more complex income issues. It includes all the Basic lessons, with additional lessons that address a wider range of tax law issues Income, including Unemployment Compensation, Business Income, Social Security Income, and Other Income Adjustments to Income Standard Deduction, Tax Computation, and Itemized Deductions Credit for Child and Dependent Care Education Credits Foreign Tax Credit Child Tax Credit Miscellaneous Credits Other Taxes Payments Earned Income Credit Completing the Return

8. Certification Path Basic covers the completion of wage earner type returns. Intermediate covers completion of returns for wage earners who receive pension income, and more complex Forms 1040. Advanced covers the completion of the full scope of VITA/TCE returns. Military covers the full scope of VITA/TCE returns presented by members of the Armed Forces, Reserves, and National Guard. International covers the completion of returns for military and nonmilitary taxpayers living outside the United States.

9. Scope Out of scope areas are covered in each topic

10. Volunteer Standards of Conduct Training Prior to working at a VITA/TCE site, you must complete the Volunteer Standards of Conduct training and test and sign Form 13615. Follow the Quality Site Requirements (QSR) Never accept payment or solicit donations for tax return preparation Never solicit business from a taxpayer you assist or use the knowledge gained about a taxpayer for any direct or indirect personal benefit Never knowingly prepare false returns Never engage in criminal, infamous, dishonest, notoriously disgraceful conduct, or any other conduct deemed to have a negative effect on the VITA/TCE programs Treat all taxpayers in a professional, courteous, and respectful manner

11. Volunteer Standards of Conduct

12. Identity theft: Identity theft is the fastest growing crime in the US. Identity theft can be tax related or non-tax related. Two types of tax related identity theft are when a thief uses a taxpayer’s social security number (SSN) and other personally identifiable information for: Employment purposes Fraudulent filing purposes If the taxpayer does have a tax related identity theft problem, the Identity Protection Specialized Unit (IPSU) will research the account, verify the taxpayer's identity, and issue a special Identity Protection PIN (IP PIN) to the taxpayer. You may prepare returns for taxpayers who have received an IP PIN.

13. If…Then… IP PIN was issued to primary taxpayer…Ensure the IP PIN is input correctly on the tax return. Taxpayer received an IP PIN but did not bring it… 1.Complete a paper tax return for the taxpayer. 2.Provide taxpayer with a complete copy of the tax return. (Provide two copies if the taxpayer will mail the tax return.) 3.If taxpayer wants to e-file, arrange for the taxpayer to provide the IP PIN by returning to the site or via telephone. Taxpayer received an IP PIN but misplaced or lost it… 1.Complete a paper tax return for the taxpayer. 2.Provide taxpayer with a complete copy of the tax return. (Provide two copies if the taxpayer will mail the tax return.) 3.Advise the taxpayer to call the IPSU dedicated toll-free number (800-908-4490). Taxpayer did not receive an IP PIN, but IRS rejected the e-filed tax return because the IP PIN was not entered… 1.Advise the taxpayer to call the IPSU (800-908-4490). 2.Provide taxpayer with two complete copies of the tax return. 3.If the IPSU provides the taxpayer the IP PIN and taxpayer wants to e-file, ask the taxpayer to provide the IP PIN by returning to the site or via telephone. 4.If IPSU does not provide the IP PIN, advise taxpayer to follow IPSU instructions in mailing the tax return. There may be processing delays as IRS verifies the taxpayer's identity.

14. Identity Theft

15. Maintaining Taxpayers’ Trust Privacy Policy Taxpayers will trust that all information you receive from them is protected from disclosure. To maintain this trust: Do not disclose any personal tax information gained as a result of the service provided. Do not openly discuss taxpayers by name in the presence of other volunteers or taxpayers. You may discuss tax situations with other taxpayers and volunteers. For example, a volunteer may refer to a situation (not a taxpayer) and ask or give advice about the appropriate tax treatment for that specific situation. Do not retain taxpayers' documents for a follow-up visit. If you cannot fully complete the taxpayer's return at the time of service, return all documents to the taxpayer. Do not take taxpayers' information for preparation of the return outside the presence of the taxpayer. Do not prepare a tax return when you suspect an individual is not providing truthful information. Do not exclude any of the taxpayer's relevant income or expenses, regardless of whether it increases or decreases the amount of tax due or refund. If you feel uncomfortable about the validity of the information being presented by the tax payer or uncomfortable with the a taxpayer’s situation, discuss it with your Site Coordinator.

16. Maintaining Taxpayers’ Trust Taxpayer Civil Rights Under no circumstances will the Internal Revenue Service tolerate discriminatory treatment of taxpayers by its employees, or individuals who volunteer at Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites. No taxpayer shall be subject to discrimination on the basis of sex, race, color, national origin, reprisal, disability, or age in educational programs or activities supported by the Department of the Treasury – Internal Revenue Service.

17. Website and Publications Taxwise Online Publication 4012 – Volunteer Resource Guide Publication 17

18. Section 2 Screening and Interviewing

19. Lesson Objectives Explain how Form 13614-C, Intake/Interview & Quality Review Sheet should be completed Conduct an effective interview with the taxpayer to confirm and correct information on Form 13614-C Locate tools that will assist you in Publication 4012, Volunteer Resource Guide Use various communication techniques to probe and secure information you need to prepare a complete and accurate return, such as: Building rapport Asking effective questions Using active listening Overcoming communication barriers

20. Resources Publication 4012 – Volunteer Resource Guide Form 13614-C

21. Form 13614-C, Intake/Interview & Quality Review Sheet Determines the taxpayer’s program eligibility and the level of certification required to prepare the return http://www.irs.gov/pub/irs-pdf/f13614c.pdf Taxpayer completes Section A which covers the taxpayers and other individuals they would like to claim on the return income the taxpayer received expenses paid life events

22. Form 13614-C After the taxpayer completes the intake and interview sheet, you will need to review it to ensure all the questions were answered correctly. Use probing questions to confirm the accuracy of the taxpayers' responses. Correct or update the intake and interview sheet if missing information or an error is identified. The suggested method of correction is to circle the error and make the correction. You may put additional notes on Page 4. Provide clarification and assist the taxpayers with all questions that have been marked "Unsure." Questions marked "Unsure" must be changed to a "Yes" or "No" response. Assist the taxpayers with completing the intake and interview sheet if needed. A line-by- line job aid is available to assist you with completing Form 13614-C. If you need to make any corrections to the taxpayer’s responses, clearly correct them. If anything seems unclear, question the taxpayer and write notes!!!

23. Required Documentation Proof of Identity Social Security Cards or Prior year tax return Tax Information/Forms Voided Check (If the taxpayer would like their refund direct deposited, or their tax due electronically withdrawn) Both spouses present

24. Supporting Documentation Always verify identity and compare the taxpayers' personal information to the supporting documents (e.g., social security cards, ITIN letters, driver's license, other picture ID) to ensure that the names and addresses are all correct, especially when carrying forward taxpayer information Verify Employer Identification Numbers (EIN) Match Social Security Number with other documentation, i.e. W2, 1099, Previous year tax return

25. Marital Status and Dependents If the taxpayer is married or has dependents, the decision trees in VSR can assist you in determining verification of filing status and qualifying dependents. Complete Form 13614-C, Section B, only if persons are listed on page 1, Part II, Marital Status and Household Information.

26. Eligibility Screening A completed Form 13614-C, along with the taxpayer's supporting documents, will assist you in determining if the taxpayer falls within the scope of the VITA/TCE program and your level of certification. If the return does not fall within the scope of the program or within your certification level, you should: Advise the taxpayers that their return is outside the scope of your training and seek assistance from your Site Coordinator. If there is another volunteer available who has the appropriate certification, that volunteer may resume the interview, or Explain courteously that volunteer services are limited to those who fall within the scope of the program. Encourage the taxpayers to use the information they recorded on the intake and interview sheet when working with a professional tax preparer. Thank the taxpayers for coming and express regret that you cannot assist them.

27. Interview Techniques Step 1: Cultivate a comfortable environment and put the taxpayer at ease Step 2: Use active listening skills: nodding, smiling appropriately, and making eye contact Step 3: Review the taxpayer’s response to the intake questions Step 4: Work with the taxpayer to complete the critical intake questions on page 4 regarding: Marital status (filing status) Number of qualifying exemptions Eligibility for child tax credit Eligibility for the earned income credit Step 5: Advise taxpayer of next steps

28. Build Rapport Make small talk while being friendly and respectful Speak clearly and simply Have materials organized Explain the process so the taxpayer understands what will happen next Encourage the taxpayer to ask questions

29. Effective Questions When asking the first tax-related question in an interview, a good approach is to explain why the tax information is needed. Follow these steps: Use open-ended questions that require more than a simple yes or no response. Do not make assumptions about taxpayers—let them speak for themselves Avoid "leading" questions that make the taxpayer feel you have a specific answer in mind Follow up with questions about answers that require more detail or were ambiguous

30. Communication Barriers Do not become upset Reassure the taxpayer. Say "I hear you" or "I understand" and repeat the question Stay on track by asking the tax question Provide a motivator ("I know this is difficult, but I need this information to determine the benefits available to you.") Allow adequate response time Avoid making assumptions Deal with the taxpayer's emotional state: If silent ("Tell me more about...") Upset (paraphrase)

31. Completing the Interview If tax preparation cannot be provided: Return Form 13614-C to the taxpayer, consult the Site Coordinator on proper procedures used at the site, or Provide guidance for obtaining missing documentation if the taxpayer qualifies for VITA/TCE services but did not bring all necessary documents If tax preparation will be provided: Prepare the return and conduct a quality review using Form 13614-C, Section C once it is completed Refer to Lesson 31, Quality Review of a Tax Return, for more details

32. Section 3 Filing Basics

33. Information needed to prepare a return Age Gross income Filing status Also determine if: The person can be claimed as a dependent on another’s tax return The person is blind Special taxes might be owed on different types of income Some of the income is excludable or exempt

34. Chart A Use when individuals cannot be claimed as dependents on another taxpayer’s return

35. Chart B For children and other dependents

36. Chart C Other situations for filing

37. Gross Income Is all the income the taxpayer received during the tax year in the form of money, goods, property, and services that are not exempt from tax. (earned and unearned) Examples: Wages, tips, salaries, bonuses, commissions Alimony received Dividends Refer to 4012 section D for a comprehensive list of taxable and non-taxable income

38. Filing Status Determine filing status based on Marital status Whether the taxpayer can be claimed as a dependent on someone else’s tax return The taxpayer’s potential dependents Refer to the decision tree in 4012 for help in determining the correct status

40. Who should file?

41. Who should file, cont. If not required to file one should file a return to claim: A refund of withheld taxes The earned income tax credit The additional child tax credit The American opportunity credit

42. Substitutes No SSN card SSA letter or a form SSA-1099 statement ITIN card or letter Taxpayers who need ITINs must apply for a card through the IRS.

43. Recordkeeping Advise taxpayers to keep copies of tax returns, worksheets used and records of all items appearing on the returns. Three years from the date the return was due or filled, or two year form the date the tax was paid, whichever is later. Property records Closing statements for a home Brokerage statements 1099s IRA contributions Pension income calculations

44. Out of Scope Taxpayers who may qualify for the health coverage tax credit Taxpayers who cannot substantiate their identity