1. Concluding the Interview
Pub 4491 – Part 8 – Lesson 32 Pub 4012 – Pages K – 6 to K – 10 1

2. Tasks Assemble copy of tax return(s)
Ask the taxpayer(s) if there is any other income to report.
Review return with taxpayer(s) and make sure they understand it
Make sure taxpayer(s) understand that they are ultimately responsible for the accuracy of their federal and state filings
NTTC Training – TY2015

3. Tasks (cont) Obtain taxpayer signatures
Explain to taxpayers which records to maintain
Explain to taxpayers what else they may need to do
Mail check
Adjust withholding
Estimated payments
End the interview
See Pub 17 page 16 for a description of required taxpayer recordkeeping.
NTTC Training – TY2015

4. Assemble Taxpayer’s Copy of Return
Client letter if used by your site
E-file Signature Authorization Form 8879
Payment voucher/estimated payment forms, if any --- do not staple to rest of package
Tax return in Attachment Sequence order (see top-right corner of form)
Form 8453 plus additional statements or schedules at end if any
State and local returns
TaxWise has a Client Letter template
NTTC Training – TY2015

5. E-file Electronic Signatures
Practitioner PIN is the only Electronic Signature Option (see Pub 4012 page K-6)
Enter any five digit number for Taxpayer’s PIN
Check Authorize box, enter today’s date
Do same for spouse if applicable
See Pub 4012, page K-6 for description of Practitioner PIN Guidelines.
Hopefully the TaxWise template for the site checks the boxes and enters the PIN.
NTTC Training – TY2015

6. Form 8453 – Transmittal for e-file Return
Transmittal for certain forms required for some e-file returns
Form 8332 – Release of Claim to Exemption for Child of Divorced or Separated Parents
Form 2848 – Power of Attorney (“POA”)
Form 8949 substitute (brokerage list of transaction details rather than transcribing all to TaxWise)
Note – adding any one of these forms adds Form 8453 to Forms Tree
NTTC Training – TY2015

7. Form 8453 Distribution – Three Copies
One as part of taxpayer’s copy of their return
One mailed by ERO to Austin Submission Processing Center within 3 days of acceptance of return
One mailed by ERO to local SPEC office at same time
Local SPEC may provide self addressed – postage paid mailing labels for both. IRS-Austin and local SPEC office
NTTC Training – TY2015

8. PDF Alternative to Form 8453
If site uses a scanner, pdf documents can be attached to electronic efile instead of mailing with Form 8453
Scan document to create pdf
Click on appropriate pdf box
Select file to upload
Find AARP Tax-Aide source on how to create and use pdf files.
NTTC Training – TY2015

9. Security of Taxpayer Data
Must follow procedure to ensure security of scanned taxpayer data
Scan to encrypted Windows folder
Delete document once e-file complete
See guidance on OneSupport Help Center
Must be done at site (not a volunteer’s home)
NTTC Training – TY2015

10. Form 8453 Attachments Form 8332 – Release of Claim of Exemption
Check appropriate box on Main Info Sheet
Attach form to Form 8453 or scan and upload PDF
NTTC Training – TY2015

11. Power of Attorney Required if other than taxpayer signing return
Pub 4012, pg K-9
Required if other than taxpayer signing return
POA must include authority regarding tax returns
POA generally does not survive death of taxpayer
Follow Pub 4012 page K-9
NTTC Training – TY2015 11

12. Power of Attorney Click on Add Forms; select 2848 (POA)
Pub 4012, pg K-9
Click on Add Forms; select 2848 (POA)
Check box at top, “using this form”
NTTC Training – TY2015 12

13. Power of Attorney Complete Box 2 (if no CAF number, enter “None”)
Pub 4012, pg K-9
Complete Box 2 (if no CAF number, enter “None”)
Complete Box 3 – Matters
Description: Income tax
Tax Form Number: Form 1040
Year(s) or period(s): As applicable
Check line 6 box on Page 2 to NOT revoke taxpayer’s prior POA
Fill in red lines in Part II, Declaration
Do not normally use Form 2848
Instead, client brings in their own POA – see next slide
NTTC Training – TY2015 13

14. Power of Attorney
Follow site process for transmitting required documents to IRS (e.g., Form or PDF)
Attach taxpayer’s own POA if available
Spouse unable to sign – may not require POA – see Pub 17 – pg 21 an d Pub 501
Spouse may be able to sign for incapacitated spouse without formal POA.
See Pub 4012 pages C-11 and K-8 for guidance on signatures of deceased taxpayer or spouse.
NTTC Training – TY2015

15. Form 8949 Substitute Check appropriate box at top of Schedule D
NTTC Training – TY2015

16. Form 8453 Other unchecked attachments are out of scope
All other options out of scope
NTTC Training – TY2015

17. Estimated Payments for 2016
Taxpayer owes more taxes for 2015 than amount withheld or paid via credits
AND
Taxpayer expects to owe more than $1,000 for next year after subtracting tax withheld and credits
Taxpayer expects 2016 tax withholding and credits to be less than 90% of the tax on return
Restated from Lesson 35 Refund-Amount Due (slide 26):
If taxpayer expects to under or over withheld for TY2016, might want to consider:
Revise withholding – Forms W-4
Estimated taxes (see:
NTTC Training – TY2015

18. Estimated Taxes Estimated tax payments are submitted with Form 1040-ES
Checks payable to US Treasury with Form 1040-V
Can pay by EFT (see ACH form or go to irs.gov/Payments)
Estimated tax payments for 2016 due on 4/15/16, 6/15/16, 9/15/16 and 1/15/17
Calculated on Form 1040-ES worksheet
If taxpayer reported payment of Estimated Taxes in 2015, they may need to setup payments for Check TaxWise - Form F/S Tax Paid Federal Estimate/State Payment for the current tax year.
NTTC Training – TY2015

19. 1040 ES
Fill out line-by-line if expect significant change in income or deductions
Fill out if expect significant change in income
NTTC Training – TY2015

20. Estimated Tax – 1040-ES in TaxWise
OR skip and enter desired amount on line 16
OK to bypass lines 1 through 15 and enter a desired amount on line 16
Taxpayer might want to use the estimated taxes necessary to avoid penalty or an amount to minimize the payment when filing next years Form 1040.
Using Lines 1 through 15 as the basis for the estimated taxes will help estimate the tax impact of expected changes in For example a reported Form 1009-R taxable proceed in TY2014 may not be expected in TY2015.
NTTC Training – TY2015

21. Estimated Tax – 1040-ES in TaxWise
Print four vouchers for taxpayer to mail -OR-
Submit four TaxWise: ACH 1040/ES Forms
Taxpayers may consider paying their Estimated Taxes online, by phone, or by mail.
Link to: irs.gov/Payments
Taxpayers can forgo paying Estimated Taxes if they adjust tax withholding on an updated Form W-4 with their employer or financial institution
NTTC Training – TY2015

22. Final Steps – Once Return is Final:
Set Return Stage
Again run Diagnostics and click on e-file
Print return(s)
Assemble return(s) for taxpayer
Follow site procedures for setting the Return Stage and printing the return.
NTTC Training – TY2015

23. Final Steps (cont)
Obtain appropriate signatures – if joint return, both taxpayers must sign
Form 8879 for e-file
Form 1040, Pg 2 for paper returns
Note: Volunteers do not sign taxpayer returns, nor does ERO sign Form 8879
Place all documents in AARP Tax Records Envelop to hand to taxpayer
Assemble the packet:
– Start with Form 1040 on top
– Place each form, schedule, and attachment in the proper sequence, based on the sequence number shown in the upper right corner of the form
Show the taxpayers the printed copy of the tax return, verifying once more the name, SSN, ITIN, address, filing status, dependents, income, expenses, deductions, credits, payments, and finally, tax refund or balance due.
NTTC Training – TY2015 23

24. Form 8879 Signature Section
Under penalties of perjury, I declare that I have examined a copy of my electronic individual income tax return…and to the best of my knowledge and belief, it is true, correct, and complete.
I consent to allow my intermediate service provider to send my return to the IRS…
Signature(s)
Be sure to review the declaration with taxpayer(s) and remind them once again that this is their return and they are responsible for it.
NTTC Training – TY2015

25. Signature – Pub 4012 Page K-8 Signed by the taxpayer(s) except:
If child cannot sign
If spouse died since beginning of tax year
If spouse cannot sign because of disease of injury
A power of attorney exists
NTTC Training – TY2015

26. The Last Word Explain what will happen next
Site responsibilities
Taxpayer’s responsibilities
Ask taxpayer if there are any questions
Remind them to bring entire envelope next year
Point out checklist on envelope
Put next year’s source docs in envelope as received
Ask taxpayer to thank the site that provided space for the volunteers and taxpayers.
Tell friends
Thank taxpayer for coming
Site: e-file return(s); notify taxpayer if any issues arise
Taxpayer: mail any checks or returns; estimated payments
NTTC Training – TY2015 26

27. Final Steps (cont)
Complete site log or use other means, as directed by your Coordinator, to report your activity
File copy of Form 8453 and attachments per site policy if applicable
NTTC Training – TY2015 27

28. Concluding the Interview
Questions…
Comments…
NTTC Training – TY2015