Standards of Conduct
(Ethics) Training
A Guide for AARP Foundation
Tax-Aide Volunteers
NTTC TRAINING 2011
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Agenda Overview
 Volunteer Agreement (Form 13615)
 Understanding the six (6) Volunteer Standards
of Conduct (Form 13615);
 Applying tax law ethically and accurately;
 Reporting possible violations;
 Consequences of failure to adhere to the
program requirements; and
 Examples of situations that raise ethical
questions.
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Unethical Defined
 According to IRS-SPEC:
“not conforming to agreed standards of
moral conduct, especially within a
particular profession”.
 Intent to disregard established laws,
procedures, or set policies.
 Not to be confused with a lack of knowledge
or a simple mistake.
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Volunteer Standards of Conduct
 Form 13615, Volunteer Standards of Conduct
Agreement, applies to all conduct and ethical
behavior in the AARP Foundation Tax-Aide
Program.
 All Volunteers must agree to the standards of
conduct prior to working at a Tax-Aide site
(i.e. leadership, preparers, greeters, and
client facilitators)
 Responsibility of all volunteers is to provide
the highest quality and the best service to
taxpayers
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IRS Six Standards of Conduct
1. Follow the Quality Site Requirements (QSR) –
(i.e. 10 QSR – PowerPoint presentation sent to
each LC in November, same as IRS Site
(Local) Coordinator Training)
2. Not accept payment or solicit donations for
federal or state tax return preparation
3. Not solicit business from taxpayers I assist or
use the knowledge I gained (their
information) about them for any direct or
indirect personal benefit for me or any other
specific individual
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IRS Six Standards of Conduct
(continued)
4. Not knowingly prepare false returns
5. Not engage in criminal, infamous,
dishonest, notoriously disgraceful conduct,
or any other conduct deemed to have a
negative effect on the VITA/TCE Program
6. Treat all taxpayers in a professional,
courteous, and respectful manner
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IRS Quality Site Requirements
(QSR)
 QSR#1, Certification;
 In order to answer tax law questions,
instruct tax law classes, prepare or correct
tax returns, and/or conduct quality
reviews of completed tax returns, must be
certified.
 As part of certification, volunteers must
pass a Basic, Intermediate and Advanced
test developed by the IRS.
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Quality Site Requirements
(QSR) - continued
 QSR#2, Intake/Interview Process;
 All sites must use the IRS Form 13614-C,
Intake/Interview & Quality Review Sheet,
for every return prepared.
 The electronic Form 13614-C, available in
TaxWise interview mode, may be used in
lieu of the paper Form 13614-C.
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Quality Site Requirements
(QSR) - continued
 QSR#3, Quality Review Process;
 All returns must be quality reviewed and
discussed with the taxpayer;
 Complete Section C of the intake form
(Form 13614-C)
 QSR#4, Reference Materials;
 All sites must have the following on-site:
 Pub 4012, Volunteer Resource Guide
 Pub 17, Your Federal Income Tax for
Individuals
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Quality Site Requirements
(QSR) - continued
 QSR#5, Volunteer Agreement;
 All volunteers (preparers, quality reviewers,
greeters, etc) must complete the Volunteer
Standards of Conduct Training; and
 Certify to their adherence by signing Form
13615 prior to working at a site.
 QSR#6, Timely Filing;
 All sites must have a process in place to
ensure every return is electronically filed or
delivered to taxpayer in a timely manner
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Quality Site Requirements
(QSR) - continued
 QSR#7, Title VI - Civil Rights Act of 1964
 Title VI of the Civil Rights Act of 1964
information, AARP Foundation Tax-Aide
poster D143 must be displayed
 QSR#8, Site Identification Number
 Site Identification Number (SIDN) must
be included on ALL returns prepared by
VITA/TCE sites.
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Quality Site Requirements
(QSR) - continued
 QSR#9, Elect Filing Identification Number;
 The correct Electronic Filing Identification
Number (EFIN) must be used on every
return e-filed
 EFIN is found on Form 8879
 QSR#10, Security, Privacy & Confidentiality
 All guidelines discussed in Publication
4299, Privacy, Confidentiality, and
Standards of Conduct – A Public Trust
must be followed
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Failure to Comply
 By law, tax return preparers are required to
exercise due diligence in preparing or
assisting in the preparation of tax returns
 At times taxpayers and preparers have
evaded the system by filing fraudulent
returns
 IRS and the AARP Foundation have the
responsibility for providing oversight to
protect the programs’ integrity and
maintain taxpayer confidence
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Impact on the Program if
Standards are not followed
Any or all of the following actions may occur if
standards are not followed:
 Volunteer(s) are removed from the program;
 Tax sites are closed due to unethical
behavior or not following Quality Site
Requirements;
 Partnership between the IRS and the
sponsoring organization is terminated;
 IRS support is discontinued;
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Impact on Program
(continued)
 Sponsoring organization’s grant funds are
revoked or retrieved;
 IRS EFIN is deactivated;
 All IRS products, supplies, and loaned
equipment are removed from the site;
 All taxpayer information is removed;
 Use of IRS-SPEC and AARP Foundation logos
is disallowed.
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Taxpayer Impact if Standards
are not followed
 Taxpayer is responsible for paying the correct
amount of tax due under the law
 Volunteers correctly apply the tax laws to the
taxpayer’s situation but may be tempted to
bend the law to help taxpayers:
 Taxpayer may be subject to the
examination process including appeals,
litigation, and collection
 Could cause problems with service when
taxpayer returns to the site the next year
and refused same type of service
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Criminal Investigation
 Taxpayers and return preparers who violate
the tax law are subject to various civil and
criminal penalties;
 Preparation of a knowingly false or
fraudulent return is subject to criminal
punishment;
 IRS-SPEC will refer violations to the IRS
Criminal Investigation Division or the
Treasury Inspector General for Tax
Administration.
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Volunteer Protection Act
 Public Law 105-19, Volunteer Protection Act
of 1997 (VPA)
 Protects volunteers from liability for
negligent acts they perform within the
scope of their responsibilities in the
organization for whom they volunteer
 Volunteers must be following policies and
procedures, including required training
 Harm must not be willful
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Who is a Volunteer?
(Volunteer Protection Act)
 “volunteer” is an individual performing services
for a nonprofit organization or a governmental
entity who does not receive:
(a) Compensation (other than reasonable
reimbursement or allowance for expenses
actually incurred), or
(b) Any other thing of value in lieu of
compensation in excess of $500 per year,
and such term includes a volunteer serving
as a director, officer, trustee, or direct
service volunteer
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Contacts for Referring
Problems
 Local Coordinator is the first point of
contact for resolving any problems you
encounter; or
 AARP Foundation Tax-Aide incident report
should be completed
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Contacts for Referring
Problems (continued)
IRS Contact Information:
 E-mail IRS at WI.VolTax@irs.gov, call toll
free 1-877-330-1205, and/or contact your
local IRS-SPEC relationship manager;
 Refer taxpayers who are victims of identity
theft and that theft has affected their
current federal income tax return (Identity
Protection Specialized Unit at 1-800-9084490)
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Contacts for Referring
Problems (continued)
 Refer taxpayers with balance due notices or
installment agreement requests to local
Taxpayer Assistance Center or call IRS toll free
at 1-800-829-1040.
 Refer federal refund inquiries to www.irs.gov
and click on “Where’s My Refund” or call 1800-829-1954 or 1-800-829-4477.
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Taxpayer Advocate Service
(TAS)
 Taxpayer Advocate Service (TAS) might be
able to help:
 If taxpayers come to a VITA/TCE site with a
tax problem and have been unsuccessful in
resolving their issue with the IRS, or
 If taxpayer is experiencing a significant
hardship as the result of a tax problem.
 For more information, taxpayers can call toll
free, 1–877–777–4778 (1–800–829–4059 for
TTY/TDD).
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Example #1
Not Reporting Cash Income
 Self-employed taxpayer has a 1099-MISC
with income reported in Box 7;
 Taxpayer tells volunteer they also have “cash
income” not reported on a 1099-MISC;
 Volunteer tells taxpayer he does not need to
report the cash income because the IRS may
not catch it;
 Volunteer completes Schedule C without the
cash income.
You are the Local Coordinator, what do you do?
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Example #1
What Should You Do?
 What Standard of Conduct was violated?
#4 (should not knowingly prepare a false
return)
 The local Coordinator should discuss the
incident with immediate supervisor
 AARP Foundation Incident Review Protocol
should be followed
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Example #2
Claiming a Person as a Dependent
 Taxpayer lists a person who was “not related” but
a child of a personal friend who was not claiming
this child as a dependent;
 Volunteer stated that, although the child was not
a “qualified child or relative”, since no one else is
claiming the child it would be OK to put this
person on the return;
 Volunteer completes Form 1040 claiming the
dependent.
You are the Local Coordinator, what do you do?
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Example #2
What Should You Do?
 What Standard of Conduct was violated?
#4 (should not knowingly prepare a false
return)
 The local Coordinator should discuss the
incident with immediate supervisor
 AARP Foundation Incident Review Protocol
should be followed
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Example #3
Using Volunteer’s Account #
 Taxpayers indicate on Part V of intake sheet that
they have no bank account for direct deposit;
 Taxpayer is entitled to refund of $1200;
 Volunteer says direct deposit of refunds to bank
account are available within 7-10 business days;
 Volunteer says he could have refund deposited
to his bank account and, when received, would
contact taxpayer to give them their money;
 Return completed with volunteer’s account #.
You are the Local Coordinator, what do you do?
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Example #3
What Should You Do?
 What Standard of Conduct was violated?
#3 (should not solicit business from
taxpayers I assist or use the knowledge I
gained about them for any direct or indirect
personal benefit for me or any other specific
individual)
 The local Coordinator should discuss the
incident with immediate supervisor
 AARP Foundation Incident Review Protocol
should be followed
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Example #4
Making a Personal Advance
 Volunteer noted the taxpayer was single and
asked if she would like to meet some evening
at a local bar;
 Taxpayer stated she was uncomfortable with
meeting him and would prefer he not call her;
 Taxpayer reported the conversation she had
with the volunteer to the Local Coordinator
before she left the site.
You are the Local Coordinator, what do you do?
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Example #4
What Should You Do?
 What Standard of Conduct was violated?
#6 (should treat all taxpayers in a
professional, courteous, and respectful
manner)
 The local Coordinator should discuss the
incident with immediate supervisor
 AARP Foundation Incident Review Protocol
should be followed
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Example #5
TP Files a Fraudulent Return
 Taxpayer stated they did not want to report
capital gains because their sales price was
equivalent to or higher than the cost basis;
 Volunteer told taxpayer that, if audited or
received a letter from the IRS, amounts would
have to be supported by written statements or
other documents of the purchases;
 Taxpayer understood, but did not care and
wanted return completed as was.
You are the Local Coordinator, what do you do?
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Example #5
What Should You Do?
 What Standard of Conduct was violated?
#4 (should not knowingly prepare a false
return)
 The local Coordinator should discuss the
incident with immediate supervisor
 AARP Foundation Incident Review Protocol
should be followed
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Example #6
Volunteer Commits Criminal Act
 Local Coordinator learns from other
volunteers that volunteer has been arrested
for a crime;
 Volunteer comes to site and Local
Coordinator speaks to him privately;
 Local Coordinator learns volunteer got into an
altercation at a bar and is out on bail;
 Local Coordinator asks if it is true he had
prior arrests and altercations with the law;
the volunteer says it is true.
You are the Local Coordinator, what do you do? 34
NTTC TRAINING 2011
Example #6
What Should You Do?
 What Standard of Conduct was violated?
#5 (should not engage in criminal,
infamous, dishonest, notoriously disgraceful
conduct, or any other conduct deemed to
have a negative effect on the VITA/TCE
Program)
 The local Coordinator should discuss the
incident with immediate supervisor
 AARP Foundation Incident Review Protocol
should be followed
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Example #7
Volunteer Argues with Taxpayer
 Local Coordinator is called by center stating
volunteer had an argument with taxpayer
causing major disruptions at the site;
 Many taxpayers were upset and left;
 Coordinator talked to volunteer; volunteer said
taxpayer was upset because he did not believe
what could be claimed or not on his return;
 Volunteer admitted he got angry because he
did not like what taxpayer said to him.
You are the Local Coordinator, what do you do?
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Example #7
What Should You Do?
 What Standard of Conduct was violated?
#6 (should treat all taxpayers in a
professional, courteous, and respectful
manner)
 The local Coordinator should discuss the
incident with immediate supervisor
 AARP Foundation Incident Review Protocol
should be followed
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Ethics Training
QUESTIONS?
COMMENTS?
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