Introduction to VITA & Federal Tax Law Tax year 2018 CSUB VITA Introduction to VITA & Federal Tax Law Tax year 2018

Volunteer Income Tax Assistance (VITA) Program The Volunteer Income Tax Assistance (VITA) program offers free tax help to people who generally make $54,000 or less, persons with disabilities and limited English speaking taxpayers who need assistance in preparing their own tax returns. IRS-certified volunteers provide free basic income tax return preparation with electronic filing to qualified individuals. Course Introduction

CSUB VITA Free Tax Preparation free services to students, staff, faculty, and community members with W-2 income only to prepare individual income tax forms.    February 2, 2019- March 30, 2019 (Saturdays and by appointment only) 10:00 AM —2:00 PM Business Development Center (BDC) Room A218  

VITA Volunteer Roles There are 4 roles for VITA volunteers: Greeters must be complete Ethics and Intake certification tests Tax Return Preparers must be certified at least to the basic level, & preferably to the advanced level using IRS’s Link & Learn Certification program Tax Return Reviewers must be certified at least to the advanced level using IRS’s Link & Learn Certification program Site Coordinators need additional training & have VITA experience. All VITA volunteers must complete Volunteer Standards of Conduct Test and the Intake/Interview and Quality Review Test in addition to Income Tax Law Tests. Course Introduction

Volunteer Certification Pathway Course Introduction

Benefits and Costs of serving VITA Free to individuals and families that make up to $54,000 a year Language support IRS certified and supported Higher return accuracy than even paid preparers Tax Prep experiences for your career Service learning and community engagement Costs Your time and commitment Due diligence Rejected returns Course Introduction

What are my responsibilities as a VITA/TCE programs volunteer? As a VITA/TCE programs volunteer, you have a responsibility to provide quality service and to uphold the ethical standards of the program. When you begin as a volunteer, you will be asked to sign Form 13615, which states that you will adhere to these standards: –Follow the Quality Site Requirements (QSR) –Never accept payment or solicit donations for tax return preparation –Never solicit business from taxpayers 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 IRS –Treat all taxpayers in a professional, courteous, and respectful manner Course Introduction

Requirements to serve in VITA A. Individual Income Tax Law B. Tax Preparation Software, TaxSlayer IRS VITA required Test: Code of Conduct Intake/Interview sheet Quality Review Basic or Advanced level CSUB VITA: Advanced level required Course Introduction

Resources for VITA Volunteers I. Off-line Resources 1) IRS Publication Books: Pub. 4480 Training Kit: one copy per each volunteer Pub. 1290 (CD) L&L Taxes: one per each team 2) In-class Instructions: Orientation and Computer Lab Sessions ACCT 3250 Individual Income Tax Course in Winter 19 session (Jan 2 -Jan 18, 2019) II. Online Resources 1) Link & Learn e-learning 2) Practice Lab: TaxSlayer Course Introduction

For Self-Guided Training Online IRS Publication 4012 – the primary on-site consultation guide for VITA volunteers; includes interview tips, decision trees, instructions for data entry in TaxSlayer and more TaxSlayer Practice Lab – useful for practice in preparing sample returns and inputting data from various tax forms Link & Learn Online Training – IRS-provided learning modules covering various topics related to tax law and return preparation IRS Publication 4491 – IRS-provided textbook for learning tax law and the basics of return preparation IRS Publication 4491-W – IRS-provided workbook with full intake sheets, documents and interview notes of fictional taxpayer situations; returns may be prepared with this content in the TaxSlayer practice lab, but results will not necessarily match the answer key due to changes in the tax code year to year   Course Introduction

Does the Taxpayer Qualify? CSUB VITA offers free tax help to people whose gross income is $54,000 or less. The following requirements are subject to change for the 2017 tax return year, but can be a helpful guide determining eligibility. Basically, we will provide the tax return preparation services for taxpayers with W-2 income only. If one of the following is part of this year’s tax return, we will NOT be able to provide you with assistance: More than five (5) capital gains transactions (i.e. stock sales) Have rental income Have income from a partnership or trust Depreciation related to business income We DO NOT do returns for taxpayers “Married Filing Separate” Course Introduction

What to Bring: Each client using VITA’s services MUST bring the following items to the clinic in order to process tax returns. Photo ID (ex: Driver License) Original or copies of Social Security cards and birth dates for you, your spouse and dependents (if you do not have a social security card, please bring your Individual Taxpayer Identification Numbers or we can obtain one for you if you have not applied for one in prior years) Wage and earning statement(s): Form W-2, W-2G Interest and dividend statements from banks (All Form 1099’s) For Day Care: Provider’s identifying number, phone number, and amount paid for care Bank routing and account numbers for direct deposit (encouraged) A copy of last year’s federal and state returns if available Health insurance coverage information All other current tax documents/forms including relevant income/expense information It is extremely important that each person use the correct Social Security number. In addition, both spouses must be present to sign the required forms to electronically file a joint return. Course Introduction

Link & Learn Taxes e-Learning Course Introduction https://apps.irs.gov/app/vita/ Starting point for your online learning ! This lesson introduces major components of VITA/TCE Programs’ return preparation process Certification levels and process Volunteer Responsibilities Available resources

Course Introduction

What You Will Learn All volunteers must complete the VITA/TCE Volunteer Standards of Conduct – Ethics Training, available in: Publication 4961 Online on VITA/TCE Central certification test website All volunteers must complete the Intake/Interview and Quality Review Training Publication 5101 Form 6744 includes the Volunteer Standards of Conduct and Intake/Interview and Quality Review tests Form 13615 must be signed and dated Emphasize that all volunteers participating in the VITA/TCE programs must complete the VITA/TCE Volunteer Standards of Conduct – Ethics Training found in Publication 4961 and the Intake/Interview and Quality Review Training found in Publication 5101. Both courses are also available online on VITA/TCE central. Explain that the Volunteer Standards of Conduct – Ethics test and the Intake/Interview and Quality Review test can be found in Form 6744 and online on VITA/TCE central. Review Form 13615. Ask: The IRS mission, supported by VITA/TCE volunteers, is to provide taxpayers with top quality service by doing what? Answer: Helping taxpayers understand their tax responsibilities, and applying tax law with integrity and fairness to all. Lesson 1 – Course Introduction

Certification Steps to Certification: To be certified by 12/31/2018. Complete tax law courses --- Link & Learn Taxes Complete Volunteer Standards of Conduct (VSC) Training, pass the test, complete and sign and date Form 13615 Complete the Intake/ Interview and Quality Review Training (Pub 5101) and pass the test Pass Advanced certification test (80%) if preparing tax returns Complete and sign and date Form 13615. Review sequence of certification steps for volunteers. Remind Volunteers are not required to certify in Basic before taking the Advanced test. Course Introduction

Certification Levels ( scope of service at pages 8-10 Basic Can prepare returns with most typical kinds of earnings and most eligible adjustments and deductions Advanced Volunteer must be certified Advanced to prepare returns with Business Income, Capital Gain/Loss, Pension with taxable amount not determined, Royalties reported on K-1, IRA deductions, Unreported SS and Medicare tax on Form 4137, First time homebuyers credit, Residential Energy Credit, and excess APTC or net premium tax credit for ACA, and COD HSA  separate certification following Basic or Adv

Create an Account on the Test Site Go to Link & Learn: https://www.linklearncertification.com VITA/TCE Central – can also access the Practice Lab and resources from here Create an account

Volunteer Standards of Conduct Exam Review the Standards of Conduct course by clicking the link on the lower left side of the test site Complete test questions for both the test and retest questions in Pub 6744, pages 11-17 Once confident of your answers, take the test online at linklearncertification.com.

Intake/Interview and Quality Review Test Review the Intake/Interview Training by clicking on the link on the lower left hand side of the Test site Answer the test and retest questions in the 6744 pages 21-27 When confident of your answers, take the test online

Advanced Test Review the Advanced Course. When confident of your answers, take the test online

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Scope of Service Remember: Only assist with returns, supporting schedules, and forms for which you have been trained and certified. Taxpayers with situations outside the scope of VITA/TCE programs must be referred to the Site Coordinator and/or professional tax preparer Out of scope topics are identified in each lesson Review Scope of Service chart in Publication 4012 Emphasize that volunteers must only assist with returns, supporting schedules, and forms for which they have been certified. Ask: What is the SIDN and why is it important? Answer: The IRS uses the SIDN to identify which site prepared the return. Remind: Each return should be identified with the appropriate site identification number (SIDN) to ensure it is readily identifiable by the IRS. Your site’s SIDN is an 8-digit number preceded by the letter “S” that must appear in the Paid Preparer Use Only section on all returns you prepare, both paper and electronic. Course Introduction

Identity Theft Two types of tax related identity theft Employment Fraudulent filing Identity Protection PINs are issued to taxpayers who are victims of identity theft Identity Protection PIN (IP PIN) validates taxpayer as owner of the SSN The Form 1040 series includes boxes for the IP PIN Discuss 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 Discuss the steps to follow when working with a taxpayer who is a victim of identity theft Show the Identity Protection PIN boxes on Form 1040 Course Introduction

Volunteer Responsibilities Protection from personal liability applies if the volunteer: Acted within scope of responsibility Was trained and certified Committed no willful, criminal, reckless, grossly negligent, or conscious, flagrantly indifferent acts Volunteers may not accept payment of any kind! Follow the six Volunteer Standards of Conduct (VSC), listed on Form 13615 The Quality Site Requirements (QSR) can be found in Pub 5166 Identity Protection PIN (IP PIN) validates taxpayer as owner of the SSN Due Diligence - ensure the information on the return is correct and complete Ask: As a volunteer, are you legally liable for returns you prepare? Answer: No, only professional tax preparers may be considered legally liable. Discuss the Volunteer Protection Act. Refer students to Volunteer Protection Act of 1997 for more information. Emphasize the importance of not accepting payment of any kind from taxpayers for providing tax return preparation assistance. Refer students to Form 13615 and discuss the VSC. Review the QSR in Pub 5166. Refer to the article found on www.irs.gov on Strengthening the Volunteer Programs https://www.irs.gov/individuals/strengthening-the-volunteer-programs?_ga=1.9348593.516493254.1473702659 Discuss the IP PIN and how it works to authenticate a taxpayer’s TIN. Emphasize that if a taxpayer has an IP PIN, it must be entered on the return. Course Introduction

Volunteer Standard of Conduct Agreement Course Introduction

Course Introduction

TaxSlayer Practice Lab You do not need SIDN. Use the password “TRAINPROWEB” Create your username and password for TaxSlayer. Your username should be “first initial of firstname + last name + csubvita18”. For example: John Doe becomes jdoecsubvita18. https://vita.taxslayerpro.com/IRSTraining Course Introduction

TaxSlayer Practice Lab Course Introduction

Course Introduction

Course Introduction

Use a hypothetical social security number. i.e. 123-00-45 Course Introduction

Orientation Session 2 and Final Checkup December 2018:TBA TaxSlayer Practice Final Checkup At one of ACCT 3250 class in 2019 Winter Session. Certification Sheets Volunteer Agreement (Form 13615) signed Course Introduction