1 NY3 Instructor Training 2010 IRS Quality Review 2010 Quality Statistical Sample QSS

2 NY3 Instructor Training 2010 What is QSS VITA/TCE Review of Returns Conducted by IRS To Determine Accuracy Adherence to QSR On Site Reviews

3 NY3 Instructor Training 2010 Results 745 Returns Reviewed 84.66% Accuracy 182 Incorrectly Prepared Returns Incorrect Names – 13 Returns Income/Adjustments to Income – 56 Returns Standard Deduction – 15 Returns

4 NY3 Instructor Training 2010 Results - continued Although errors exist, the accuracy rates on most of these questions are extremely high. Volunteers did a phenomenal job with preparing tax returns and they must continue to be appreciated and applauded for their commitment in preparing accurate returns.

5 NY3 Instructor Training vs 2010 Comparison

6 NY3 Instructor Training 2010 VITA vs AARP

7 NY3 Instructor Training 2010 Intake/Interview Sheet Usage

8 NY3 Instructor Training 2010 Intake/Interview Sheet Usage Of 182 “errors” 7 did not use intake sheet 163 did not complete form 12 used unapproved form

9 NY3 Instructor Training 2010 Not using correct Intake Process 8 Standard Deduction Errors 7 Income Errors 6 Adjustments to Income 6 Additional Child Tax Credit Errors

10 NY3 Instructor Training 2010 IRS Theory Correct use of Intake Sheet Process will result in positive impact to accuracy of returns

11 NY3 Instructor Training 2010 Error Rate by Filing Status

12 NY3 Instructor Training 2010 Filing Status Results Single Filing Status (S) – 64% Married Filing Status (MFJ) – 23% Head of Household (HH) – 11% Married Filing Separately (MFS) <1%

13 NY3 Instructor Training 2010 Top Reject Problem Name and/or Social Security Number 13 Returns – Incorrectly Spelled Name ASK TO SEE Social Security Card Quality Review – look at SS card again

14 NY3 Instructor Training 2010 Standard Deduction 7 Returns – Wrong Standard Deduction Missing Real Estate Taxes

15 NY3 Instructor Training 2010 Income Errors 56 Returns with incorrect income This includes 29 “Other Income” errors 13 Adjustments to income errors

16 NY3 Instructor Training 2010 Out of Scope Returns 13 Returns included Out of Scope items Sch E Oil & Gas Lease (1099-Misc Box 2) Form 4972 Tax on lump sum distribution Schedule C Schedule K-1 with Rental Income Cancellation of debt from credit card

17 NY3 Instructor Training 2010 IRS Recommendation Strengthen and clarify corrent process for using intake/interview and quality review tools