1 NTTC Training 2011 WHAT'S NEW IN 2011 Highlights  Certification Process – Link & Learn  Ordering Training Products  New and Extended Tax Provisions  Other Items – 2011 and beyond

2 NTTC Training 2011 TRAINING & CERTIFICATION  Counselors – six (6) steps  Noncounselors – four (4) steps  All must pass IRS Standards of Conduct test with 80% accuracy  All must sign Volunteer Standards of Conduct  All Counselors must pass IRS test at 80%, Basic, Intermediate & Advanced levels, using Pub 6744 or IRS Link & Learn test system

3 NTTC Training 2011 ORDERING TRAINING PACKETS  Two types of training packets  Pub 4491 Kit – hard copies of Pubs 4491, 4012, 4491-W and 6744  Pub 4480 Kit – CD of Pub 4491 with hard copies of Pubs 4012, 4491-W and 6744 Goal is to reduce printing costs and encourage more people to use Pub 4480 Kit and access digital Pub 4491

4 NTTC Training 2011 TRAINING PACKETS, cont’d  CAPS has been modified for orders for standalone product (Form 6744, VITA/TCE Volunteer Test/Retest; Publication 4012, VITA/TCE Volunteer Resource Guide; and Publication 4961 Standards of Conduct (Ethics))  Submit request for the standalone products on Form 2333-X  Any additional request for products using Form 2333-X should be on a separate form  Standalone products will be tracked in CAPS.  If stock is depleted - electronic versions should be used.

5 NTTC Training 2011 TRAINING PACKETS, cont’d  Link & Learn Training has been redeveloped  More people use online for tax law training and learning TaxWise  IRS - SPEC's ultimate goal is to have all partners transitioned to e-learning products and training by 2014  What can we do to increase e-learning and make better use of on-line products? (discussion at end of presentation)

6 NTTC Training 2011 Link & Learn Training Enhancements  Will be repackaged and grouped by topic and accessed from a lesson "landing" page  “Training Toolkit” on the landing page for each lesson  Toolkit includes an icon for media (video, audio, web casts, pod casts, and any media information that is available on concerning the applicable lesson will be accessible)  Training Toolkit will include links to Tax Facts, Assessments, TaxWise Tutorials, Job Aids, and the Practice Lab  Teacher e-learning component - new content on teacher pages lesson plans, power point presentations

7 NTTC Training 2011 SCH D & FORM 8949  Schedule D for 2011 – has new reporting lines using Form 8949 NEW  Form 8949 has codes and three boxes that need to be completed for each taxpayer  Box A – Cost basis shown on 1099-B  Box B – Cost basis not shown on 1099-B  Box C – No 1099-B received

8 NTTC Training 2011 SCH D & FORM 8949, cont’d  For each asset sold, the 1099 will have an A/B/C designator  Assets can no longer be entered on Schedule D  All assets information goes on Forms 8949  Page 1 is for short term; Page 2 is for long term

9 NTTC Training 2011 SCH D & FORM 8949, cont’d Tab 2  In TaxWise, Capital Gain or Loss Transactions Worksheet (Cap Gain Wkt) will load 8949s and put assets on appropriate pages  Long Term/Short Term Capital Gains/Losses Wkts will no longer be in Forms list  A/B/C designators will be located on Cap Gain Wkt under 1099 column  Column (b) is code for adjustments to gain/loss, wash sales, exclusion of gain on main home, etc  Column (g) is the amount of the adjustment

10 NTTC Training 2011 SCH D & FORM 8949, cont’d  Column (b) is for gain/loss adjustment codes; see F1 help and Form 8949 instructions  Column (g) is for amount of adjustment

11 NTTC Training 2011 NEW PREPARER USE FORM  Dedicated to Preparer’s Use Fields  Prep Use Fields no longer on Main Info Sheet  Prep Use Fields increase from 15 to 25  Standardized to 15-character alphanumeric  Enter up to 25 questions in column A

12 NTTC Training 2011  All Preparer Use Field entries will be stored for reporting purposes (not the question)  Accessible via the report server  Taxpayer Reminder Field will be added  Enter information you need to convey to preparer for following year  Will automatically display when return is started in TY 2012 (January 2013) PREPARER USE FORM, cont’d

13 NTTC Training 2011 NON-BUSINESS ENERGY PROPERTY CREDIT  Combined limits of $500, $200 for windows, for all tax years after 2005 (Form 5695, Pt I)  MUST ask about prior year energy credits  Maximum 2011 for residential energy property  $50 for advanced main air circulating fan  $150 for qualified natural gas, propane, or oil furnace, or hot water boiler  $300 for energy-efficient building property

14 NTTC Training 2011 IRS STANDARDS FOR VITA-TCE  Standard of Conduct (Ethics) training and testing for all VITA-TCE volunteers  All must sign Volunteer Standards of Conduct Agreement, Form  Must comply with all Stds of Conduct, incl ethical handling/preparation of returns  Must successfully pass Standards of Conduct (Ethics) Test

15 NTTC Training 2011 AARP FOUNDATION STANDARDS PACKAGE  Volunteer Standards of Professionalism  Taxpayer Information and Responsibilities (available at the site)  Incident Review Protocol (To be handled by local site leadership)

16 NTTC Training 2011 IRS CHANGES FOR VITA-TCE  Lump-sum social security payments are included as Basic competency  Last year, only current year taxability in scope, but use of numbers from previous year returns in scope this year  Only one Form 8879 printed (SPEC no longer requires copy); client signs prior to e-file submission but keeps with their records  No copies of W-2s or 1099s kept at site

17 NTTC Training 2011 WHAT’S NEW IN 2011 QUESTIONS? COMMENTS?