1. Filing Basics
Pub 4012 Tab A, B, D Pub 4491 Part 1

2. Need to Know… Age Gross Income and Social Security received
Intake Sheet
Confirm date of birth
Gross Income and Social Security received
Pub 4012 D-1
Filing Status
Pub 4012 B-1, B-2, B-3
NTTC Training – 2014

3. Intake & Interview Sheet
Confirm with picture ID
NTTC Training – 2014

4. Who Must/Should File U.S. citizens Residents of the United States
Pub 4012 A-1, A-2, A-3
charts that identify persons required to file tax returns and those who should file
Must file – A-1, 2 and 3; Should file-A-3
NTTC Training – 2014

5. Chart A Footnotes
Pub 4012 pg. A-1
If born before January 2, 1950, considered 65 for 2014
Gross income is all income not exempt from tax – may include Social Security
Married Filing Separately (MFS) or not living with spouse at end of year with gross income of $3,950 or more must file
NTTC Training – 2014

6. Are You or Could You Be a Dependent?
Intake Sheet Part I, Q. 11
NTTC Training – 2014

7. Dependents Who Must File
Pub 4012 pg. A-2
Single or married?
65 or older?
Blind?
Income – earned and unearned?
The income threshold for dependents may be much less
Review 4012 chart B at pg. A-2 with participants
NTTC Training – 2014

8. Must File Owe additional taxes $400 or more net self-employment income
Pub 4012 pg. A-3, Chart C
Owe additional taxes
Form 5329 – IRAs
Unreported tips – social security/ Medicare taxFirst Time Home Buyer Credit repayment
$400 or more net self-employment income
Over $ of wages from church
Received APTC from Health Insurance Market Place
Note some church employees are subject to special tax rules and are out of scope
NTTC Training – 2014

9. Who Should File
Pub 4012 pg. A-3, Chart D
Claiming refund of withheld taxes or estimated tax payments
Claiming any refundable credit (credit independent of taxes owed)
Earned Income Credit
Additional Child Tax Credit
Education Credits
State return required
NTTC Training – 2014

10. Verify Taxpayer Identity
Valid Taxpayer Identification Numbers
Social Security Number (SSN)
Individual Taxpayer Identification Number (ITIN)
Adoption Taxpayer Identification Number (ATIN)
NTTC Training – 2014
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11. Taxpayer Identification Number
Best – Social Security card or ITIN (Individual Taxpayer Identification Number) letter
Alternatives
Other documents issued by Social Security Administration such as SSA OR-
Government-issued ID plus TaxWise carry- forward of last year’s return
Must have photo ID – Exceptions by LC in “Extreme Conditions”.
Alternates for SS Verify – Income Statements (1099-SSA), Letters from SS or other SS documents. Medicare card with suffix A
NTTC Training – 2014

12. Decedent Tax Returns Surviving spouse filing? Someone else filing?
Verify survivor’s identity
Someone else filing?
Ask to see authorizing document
Verify representative’s name and identity
Advise them to file Form 56 with IRS, if applicable and not yet done
If representative does not have the documentation with them, they should be invited to return when they do
Form 56 is available from the IRS and at IRS.gov
It is to advise the IRS that the person is acting as the fiduciary for the taxpayer, or that they are not longer the fiduciary
This is not required when the representative is acting under a power of attorney
It is not required of a surviving spouse acting for deceased spouse
NTTC Training – 2014

13. Filing a Return Use only Form 1040 in TaxWise®
Electronic filing (e-file) only unless IRS requires a paper return
Electronic filing site!
NTTC Training – 2014
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14. Record Keeping Basic record keeping requirements
Taxpayer should keep copy of all records used to file tax return
Three years from date return was filed
Two years from date tax was paid
See Pub 17 for additional requirements
Caution – state statute may be longer than 3 years
Taxpayers should keep a copy of their tax return for forever
NTTC Training – 2014

15. Additional Information
Pub 4012, Tab P
Publications and Forms
Frequently Asked Questions
Taxpayer Civil Rights
NTTC Training – 2014

16. Must/Should File Quiz #1
Miranda, 17, claimed on her parents’ return
W-2 shows $2,000 in wages and federal tax withheld of $155
Grandparents gave her a $3,000 CD as a gift
She has no other income
Must or should Miranda file?
Should: to get back her withholding CD is a gift – not counted in income (Lesson 8)
NTTC Training – 2014
00Admin 2010x

17. Must/Should File Quiz #2
Kathy, 22, attends college full time
Earned $850 babysitting (not an employee)
$3,000 reported on a W-2; no tax was withheld
Must or should Kathy file?
Must: had >$400 in self-employment
If only W-2, would not have needed to file
NTTC Training – 2014
00Admin 2010x

18. Notes… This lesson covers who must/should file Federal return
State requirements (if applicable) may differ
Federal return must be completed to prepare state return in TaxWise
NTTC Training – 2014

19. Filing Basics Quality Review
Verify name with social security document
Verify ID with picture identification
Verify representative’s authority
Any changes from prior year?
NTTC Training – 2014

20. Who Must/Should File
Questions?
Comments…
NTTC Training – 2014

21. IRS Issued Identification Numbers
Pub 4012 Tab L Pub 4491 Part 1
NTTC Training – 2014

22. IRS Issued Identification Numbers
ITIN – Individual Taxpayer Identification Number
ATIN – Adoption Taxpayer Identification Number
Used in place of social security number
NTTC Training – 2014

23. ITIN
IRS issues ITIN to individual who must have U.S. taxpayer identification number
Do not have, and are not eligible to get, Social Security Number (SSN)
ITINs are issued regardless of immigration status
ITIN is tax identification number for IRS only
ITIN is not a form of identification
Emphasize
ITIN does not “legalize” an illegal immigrant
It does not confer a right to work
It merely provides an avenue for them to comply with the income tax laws
NTTC Training – 2014

24. To Obtain an ITIN
Taxpayer completes W-7 application (W-7S for Spanish language preference)
Attaches required documents proving identity
Files with tax return
Tax return cannot be e-filed
Taxpayer can also walk documents into IRS Taxpayer Assistance Center or authorized Acceptance Agent
To have future communication with IRS in Spanish, use W-7S
Limited exception to filing when no tax return is required
Effective 1/1/13, only acceptable documents are:
Passport (stand alone document)
National identification card (must show photo, name, current address, date of birth, and expiration date)
U.S. driver's license
Civil birth certificate (required for dependents under 18 years of age)
Foreign driver's license
U.S. state identification card
Foreign voter's registration card
U.S. military identification card
Foreign military identification card
Visa
U.S. Citizenship and Immigration Services (USCIS) photo identification
Medical records (dependents only – under 6, under 18 if a student)
School records (dependents only – under 14, under 18 if a student)
NTTC Training – 2014
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25. ITIN IRS processing time 6 weeks (or more)
Newly issued ITINs expire if not used within five years
Once gets SSN
Taxpayer should notify IRS
Will combine tax records under new SSN
If continued need for an ITIN after 5 years, need to reapply
NTTC Training – 2014
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26. ITIN
Starts with a 9
Middle 2 digits are within certain numeric range set by IRS
TaxWise identifies an ITIN when it is entered
NTTC Training – 2014

27. Taxpayer with ITIN Verify ITIN ITIN returns can be e-filed
IRS ITIN letter or
ITIN card
ITIN returns can be e-filed
Taxpayer and/or spouse ITIN
NTTC Training – 2014
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28. With ITIN Can claim dependency exemption for dependents
Can claim child tax credit/additional child tax credit
Can claim child/dependent care credit
Cannot claim earned income credit
If obtain SSN within 3 years, can amend
NTTC Training – 2014
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29. ITIN Taxpayer may be using a SSN that is not their own
W-2 may reflect that bad SSN
Do not change any info on W-2
On W-2 input, enter SSN as on W-2
NTTC Training – 2014

30. ITIN TaxWise recognizes ITIN
Checks W-2 ITIN box and makes required input field red
NTTC Training – 2014

31. ITIN If no SSN nor ITIN for Taxpayer Use “Apply for ITIN” option
Complete return
Cannot be e-filed
In TWD, use File>Apply for ITIN
NTTC Training – 2014

32. ATIN Taxpayers need ATIN for their adoptive child if
In process of adopting child
Unable to get SSN for any reason
Able to claim child as dependent, or
Able to claim child and dependent care credit
The child is legally placed in your home for adoption by an authorized placement agency.
The adoption is a domestic adoption OR the adoption is a foreign adoption and the child/children have a permanent resident alien card or certification of citizenship.
You cannot obtain the child's existing SSN even though you have made a reasonable attempt to obtain it from the birth parents, the placement agency, and other persons.
You cannot obtain an SSN for the child from the SSA for any reason. (For example, the adoption is not final).
NTTC Training – 2014

33. ATIN
Taxpayer submits Form W-7A with copies of required documents to IRS
IRS issues ATIN for child if
Final domestic adoption is pending, and
Adopting taxpayers do not have child’s SSN
Mailed to IRS, 4 – 8 weeks to process
Copies (not originals) of the placement documents are required:
A placement agreement entered into between you and a public or private adoption agency.
A document signed by a hospital official authorizing the release of a newborn child to you for legal adoption.
A court order or other court document ordering or approving the placement of a child with you for legal adoption.
An affidavit signed by an attorney, a government official, etc., placing the child with you pursuant to the states' legal adoption laws.
The placement documentation is sometimes referred to as "Placement Agreement"; "Surrender Papers"; "Temporary Placement Paperwork"; "Placement Order" etc. This documentation termed differently from state to state must clearly establish that the child was placed in your home for purposes of adoption by an authorized adoption agency (or agent), and must include the following information:
Adoptive Parent(s) full name
Child's full name
Name of the Placement Agency or Agent
The date the child was placed in the adoptive parents home.
The signature of the parent or parents (the adopting taxpayers) and that of an official representative of the authorized placing agency or agent.
NTTC Training – 2014

34. ATIN When the adoption becomes final IRS will deactivate ATIN
Adopting parents obtain SSN for child AND
Notify IRS of new SSN
IRS will deactivate ATIN
IRS will deactivate ATIN automatically after two years
Extension can be requested if adoption not yet final
NTTC Training – 2014

35. Child with ATIN Can claim dependency exemption
Can claim child or dependent care credit
Can claim child tax credit/additional child tax credit
Can claim adoption credit – out of scope
Assumes all other requirements are met
NTTC Training – 2014

36. Child with ATIN Cannot claim Earned Income Credit with ATIN
Can claim EIC with other qualifying children who have SSNs
Can amend when get SSN for adopted child
NTTC Training – 2014

37. ATIN Like an ITIN, nine-digit ATIN begins with number 9
Use ATIN on return wherever child’s social security number is requested
NTTC Training – 2014

38. Taxpayer Summary – ITIN/ATIN
Provide taxpayer copy of W-7 form and instructions if they have to complete
Remind taxpayer of expiration date
Need to reapply or extend?
Remind taxpayer of ability to amend when they get SSNs
NTTC Training – 2014

39. IRS Issued Identification Numbers
Questions?
Comments…
NTTC Training – 2014