WHAT’S HAPPENING PAST & FUTURE September 2013 Regional Meeting – Kansas City 1

Regional Meeting August 2013 Inputs from National Meeting TY 2012 RESULTS NationalMA Federal Returns 1.57 M 28,000 People Helped 2.60M 41,149 Number of Sites IRS Focus for Coming Year Intake SheetsAudits found problems! Quality ReviewAudits found problems! Fraud Reduction No more One Person Sites Anywhere Will cause site closures in about half of our Districts Computers/Software No use of XP after April 15, 2014 Limited use of hot-spots allowed to facilitate TWO conversion Some computers/printers available for new sites/diversity sites 2 September 2013 Regional Meeting – Kansas City

Regional Meeting August 2013 Inputs from National Meeting - 2 Training DOMA Changes to Intake Sheets, Tests Several changes to Scope New detailed Scope Document Attrition National average last year: approx 15% MA about average – 98 total; 55 were first year. Could better mentoring reduce this number? Discussion! 3 September 2013 Regional Meeting – Kansas City

Regional Meeting August 2013 Inputs from National Meeting - 3 Tax-Aide Diversity Numbers Hispanic5% AA/Black7% Asian/Pacific Is2% Other Minorities4% White82% WE NEED TO FIND WAYS TO BETTER REACH MINORITIES AARP WILL PROVIDE GRANTS OF HARDWARE & DOLLARS TO GROUPS WILLING TO UNDERTAKE START-UP OF A NEW MINORITY SITE MORE INFO COMING! 4 September 2013 Regional Meeting – Kansas City

Tax-Aide Strategy Setting 2014 Tax-Aide National Goals Growth Increase Federal Returns Prepared by 4 percent (IRS counts via CCH and self reported paper returns) Quality (SPEC QSS and other reviews/observations) Maintain a 90% or higher accuracy rate of tax returns, through percent Quality Review of tax returns 2. Thorough client interview and utilization of Intake form by all counselors and for QR Multicultural/Diversity (MME) Outreach Multicultural (MME) Taxpayers to 19% (CSS), through 1. Mini MME grants received from TA volunteers for opening new TA sites; Multicultural Outreach to TPs and Vols Volunteers/Volunteer Workload/Security TaxWise Online usage to 80% Tax Season 2014 (Software Orders and EFIN use - CCH) Goal for MA – 90% On Line Counselor Reimbursement Submission 100% TS 2014 (Portage Usage/Paper submissions) Reduce number of 1st and 2nd year Counselor drop outs by 5 percent Funding At least one new or significantly increased funding source (focus on donations pilot). MA will not participate

Regional Meeting August 2013 NEW SPEAKERS DEAN STRACK - TECHNOLOGY SUBJECTS FOLLOWED BY BREAK 6 September 2013 Regional Meeting – Kansas City

Regional Meeting August 2013 ONE PERSON SITES In spite of extra efforts, recruiting results have been disappointing. At current time about half of our Districts will be closing sites—about 15 site closures anticipated. Hopefully, most volunteers at one person sites will stay with program. Districts need to start informing high risk sites that we don’t think we’ll be able to staff their site for the coming and advising them of nearest site that will be open. Reason to be given: AARP and the IRS have determined that in order to provide acceptable accuracy, all returns need to be reviewed by a second volunteer while the Client is present. 7 September 2013 Regional Meeting – Kansas City

Regional Meeting August 2013 ONE PERSON SITES -2 TRADITIONAL SOURCE OF NEW VOLUNTEERS Another AARP Volunteer29% Local Paper or Poster25% AARP Website/Magazine30% AARP /Snail Mail8% CONSIDER SPECIAL HANDLING OF TRAINING FOR LATE VOLUNTEERS WHO WOULD NORMALLY BE DEFERRED UNTIL FOLLOWING YEAR 8 September 2013 Regional Meeting – Kansas City

TAX-AIDE IRS & AARP Site Reviews ● TIGDA Secret Shopper Reviews not covered – will be discontinued for TY 2013) ● IRS did Shopping Reviews in TY2012 and will continue 52% of returns reviewed were correct ● IRS also did QSS Reviews and informal Site Visits in TY % of returns reviewed were correct ● AARP did 4 MA Site visits on TY2012 Regional Meetings– 20139

TAX-AIDE IRS Shopping Reviews* ● 25 shopping reviews – 9 regions (not Plains Region ) ● Results: 13 of 25 correct – 52% C included interest income not supported by 1099-INT. 8 returns did not ask about the interest and include on the return R pension income indicated that taxable amt not determined. 2 returns did not use simplified general rule R disability income incorrectly reported Incorrect filing status (failed to determine HoH) Mileage expense incorrectly reported on Sch C *IRS employees pose as taxpayers at sites with false name/documents. Once return is completed and given QR, employee reveals ID. Review is done on correctness of return done as well as adherence to all IRS Quality Site Requirements. Return is not e-filed. Regional Meetings–

TAX-AIDE IRS QSR Reviews* (Tax Law) ● QSR Site Reviews – 10 regions (87 sites, 184 returns) ● 170 returns correct – 92% ● Areas that caused most errors: Interest, stock income, self employment income reported on line 21 Missed information or transposed data not picked up by QR Regional Meetings– *IRS employees present ID when arrive at site; observe 2-3 returns as prepared then correct any mistakes made in front of taxpayer. Review consists of accuracy score for returns as well as rating score on all ten Quality Site Requirements (new).

TAX-AIDE IRS QSR Reviews ( Quality Site Requirements) 71 of 87 sites (82%) met all 10 QSRs 15 of 87 sites either didn’t use the intake form or used it incorrectly 10 sites did not have sufficient QR to catch errors 7 sites didn't ask for photo ID or verify SSN 7 sites didn’t have poster adequately displayed 2 sites prepared OOS return 2 sites had non-certified Client Facilitator assist in QR Regional Meetings–

TAX-AIDE IRS Reviews by Mass SPEC ● 2 QSR Reviews ● 11 Field Site Visits ● Visited 9 of 12 MA Districts ● Significant Findings No QR – 4 sites No Poster – 6 sites Inadequate use of Intake Sheet – 1 Out of scope return - 1 Minor Findings Didn’t ask for ID, no 3189, no intake sheet, Regional Meetings–

TAX-AIDE QSR Background ● Quality Site Requirements (QSR) are used by SPEC to evaluate if a site meets all Grant requirements ● SPEC reviews in 2013 observed volunteers preparing returns without having a discussion with the taxpayer or reviewing Form C. Shopping Reviews: 56% used; 49% accurate QSS Reviews: 84% used; 91% accurate Quality Review often was not sufficient to catch errors made on return! Regional Meetings –

TAX-AIDE QSR Background - 2 ● 10 QSR elements: prior year reviews determined “met or “not met” for each site reviewed ● Starting in 2014 a site will be given up to 10 points for each correctly followed QSR ● QSR’s need to be included in training – 6 have updates from last year! Regional Meetings –

TAX-AIDE What You Need to Know QSR #2 Intake and Interview All volunteers must take annual awareness training on the Intake/Interview & Quality Review Process Mandatory Training module and test embedded in IRS Ethics test. All Volunteers, including Greeters and Client Facilitators, will train and test on this information. Regional Meetings –

TAX-AIDE What You Need to Know QSR #3 Quality Review Process Quality Reviewers must be certified to the same level required to complete the return being reviewed. QR should be in front of taxpayer with full review of Client Intake Form QR should ask “probing questions” not just verify name and numbers Regional Meetings –

TAX-AIDE What You Need to Know QSR #7 Title VI Sites must provide information to taxpayers regarding their Civil Rights. New Language on AARP Poster *trash or re-cycle old posters! Must display at “first point of contact between volunteer and taxpayer.” Regional Meetings –

TAX-AIDE What You Need to Know QSR #10 Security, Privacy and Confidentiality Volunteers must identify themselves to the Taxpayer All Volunteers must wear name badge with first name/last initial (not full last name Remind LC’s to order enough Name Tags from AARP Regional Meetings –

TAX-AIDE What You Need to Know QSR #10 Security, Privacy and Confidentiality Taxpayers must identify themselves to the Volunteers All taxpayers must present photo ID *Deters Identify theft *eliminates perception of preferential treatment Exceptions by LC only under “extreme conditions” Regional Meetings –

TAX-AIDE What You Need to Know QSR #10 Security, Privacy and Confidentiality Social Security Numbers must be verified for everyone listed on return All taxpayers must present SS cards or tax ID numbers for all Exception: Validations permitted through approved documents SS cards, letters, income statements and “other documents issued by SS” Regional Meetings –

Regional Meeting August 2013 NEW SPEAKER OR LUNCH 22 September 2013 Regional Meeting – Kansas City

Regional Meeting August 2013 CORI 1.The Problem 2.Sites Role & Constraints 3.MA Tax-Aide Role & Constraints 4.What MA Tax-Aide proposes to do 5.Summary of the MA Tax-Aide CORI Policy 6.Appendices Actions for MA Tax-Aide Leaders 23 September 2013 Regional Meeting – Kansas City

Regional Meeting August 2013 CORI – Actions for Tax-Aide Leaders A.If your host site requires CORI or is proposing to CORI our AARP volunteers, review the supplied material with them and request that they consider accepting the Tax-Aide CORI B.If they accept our CORI, there’s no problem and you can proceed to plan for the coming year. C.If they do not accept our CORI, notify Tax-Aide State Coordinator and we will review with national A.I do not expect that National will approve continuing our relationship with locations that insist on their own CORI B.There a greater likelihood that National will agree to a one year extension of our relationship with sites with a long term history of CORI on our volunteers 24 September 2013 Regional Meeting – Kansas City