Course Introduction
Where to find the training materials
• www.calstatela.edu/vita/vitavol
• IRS’ Link and Learn
• Certification Paths
• Intermediate Course/Student
Link and Learn Taxes
• Link & Learn Taxes is a self-paced training program based on the
VITA/TCE tax return preparation process. This training will introduce
you to the major components of the VITA/TCE return preparation
process and demonstrate how they contribute to your ultimate goal—
preparing a complete and accurate return.
• A tax return is accurate when the tax law is applied correctly and it
is free from error based on the taxpayer's interview and supporting
documentation, and a completed Form 13614-C, Intake/Interview &
Quality Review Sheet.
Course Objectives
• Pass the required Volunteer Standards of Conduct training and test and
digitally sign Form 13615, prior to working at the site
• Pass the required test to be certified as a volunteer tax return preparer
• Conduct an interview and screen the taxpayer for eligibility verifying
information gathered using Form 13614-C
• Use reference materials, such as Publication 4012, Volunteer Resource
Guide; Publication 17, Your Federal Income Tax for Individuals; and tax
software help features, to prepare an accurate return
• Use Form 13614-C, Section C, to conduct a quality review of all returns
• Conclude the interview and assemble the return
• Prepare the return for electronic filing using software provided
Five Critical Training Components
• Volunteer Standards of Conduct training
• Screening and interviewing taxpayers using Form 13614-C,
Intake/Interview & Quality Review Sheet
• Understanding and applying tax law
• Using references, resources, and tools including return preparation
software
• Conducting quality reviews on all returns
Certification Path: Basic
• Covers the foundation of tax law &
addresses most issues that apply to
most taxpayers.
• Course Introduction
• Screening and Interviewing
• Filing Basics and Filing Status
• Personal and Dependency Exemptions
• Income, including Unemployment
Compensation and Social Security
income
• Adjustments to income, including
Penalties for early withdrawal
• Standard Deduction and Tax
•
•
•
•
•
•
•
Computation
Credit for Child and Dependent Care
Child Tax Credit
Miscellaneous Credits
Other Taxes
Payments
Earned Income Credit
Completing the Return
Certification Path: Intermediate
• Covers tax law that applies to
•
individuals and couples with more
•
complex income issues. It includes all
•
the Basic lessons, with additional
lessons that address a wider range of •
tax law issues
•
• Income, including Unemployment
Compensation, Business Income, Social •
Security Income, and Other Income
•
• Adjustments to Income
•
• Standard Deduction, Tax Computation, •
and Itemized Deductions
Credit for Child and Dependent Care
Education Credits
Foreign Tax Credit
Child Tax Credit
Miscellaneous Credits
Other Taxes
Payments
Earned Income Credit
Completing the Return
Certification Path
• Basic covers the completion of wage earner type returns.
• Intermediate covers completion of returns for wage earners who
receive pension income, and more complex Forms 1040.
• Advanced covers the completion of the full scope of VITA/TCE returns.
• Military covers the full scope of VITA/TCE returns presented by
members of the Armed Forces, Reserves, and National Guard.
• International covers the completion of returns for military and
nonmilitary taxpayers living outside the United States.
Scope
• Out of scope areas are covered in each topic
Volunteer Standards of Conduct Training
• Prior to working at a VITA/TCE site, you must complete the Volunteer
Standards of Conduct training and test and sign Form 13615.
• Follow the Quality Site Requirements (QSR)
• Never accept payment or solicit donations for tax return preparation
• Never solicit business from a taxpayer you assist or use the knowledge
gained about a taxpayer for any direct or indirect personal benefit
• Never knowingly prepare false returns
• Never engage in criminal, infamous, dishonest, notoriously disgraceful
conduct, or any other conduct deemed to have a negative effect on the
VITA/TCE programs
• Treat all taxpayers in a professional, courteous, and respectful manner
Volunteer Standards of Conduct
Identity theft:
• Identity theft is the fastest growing crime in the US.
• Identity theft can be tax related or non-tax related. Two types of tax
related identity theft are when a thief uses a taxpayer’s social security
number (SSN) and other personally identifiable information for:
• Employment purposes
• Fraudulent filing purposes
• If the taxpayer does have a tax related identity theft problem, the
Identity Protection Specialized Unit (IPSU) will research the account,
verify the taxpayer's identity, and issue a special Identity Protection
PIN (IP PIN) to the taxpayer. You may prepare returns for taxpayers
who have received an IP PIN.
If…
IP PIN was issued to primary taxpayer…
Then…
Ensure the IP PIN is input correctly on the tax return.
Taxpayer received an IP PIN but did not bring it…
1.
2.
3.
Taxpayer received an IP PIN but misplaced or lost it…
1.
2.
3.
Taxpayer did not receive an IP PIN, but IRS rejected the e-filed
tax return because the IP PIN was not entered…
1.
2.
3.
4.
Complete a paper tax return for the taxpayer.
Provide taxpayer with a complete copy of the tax return.
(Provide two copies if the taxpayer will mail the tax
return.)
If taxpayer wants to e-file, arrange for the taxpayer to
provide the IP PIN by returning to the site or via telephone.
Complete a paper tax return for the taxpayer.
Provide taxpayer with a complete copy of the tax return.
(Provide two copies if the taxpayer will mail the tax
return.)
Advise the taxpayer to call the IPSU dedicated toll-free
number (800-908-4490).
Advise the taxpayer to call the IPSU (800-908-4490).
Provide taxpayer with two complete copies of the tax
return.
If the IPSU provides the taxpayer the IP PIN and taxpayer
wants to e-file, ask the taxpayer to provide the IP PIN by
returning to the site or via telephone.
If IPSU does not provide the IP PIN, advise taxpayer to
follow IPSU instructions in mailing the tax return. There
may be processing delays as IRS verifies the taxpayer's
identity.
Identity Theft
Maintaining Taxpayers’ Trust
• Privacy Policy
• Taxpayers will trust that all information you receive from them is protected from disclosure. To maintain this
trust:
• Do not disclose any personal tax information gained as a result of the service provided.
• Do not openly discuss taxpayers by name in the presence of other volunteers or taxpayers. You may discuss
tax situations with other taxpayers and volunteers. For example, a volunteer may refer to a situation (not a
taxpayer) and ask or give advice about the appropriate tax treatment for that specific situation.
• Do not retain taxpayers' documents for a follow-up visit. If you cannot fully complete the taxpayer's return at
the time of service, return all documents to the taxpayer.
• Do not take taxpayers' information for preparation of the return outside the presence of the taxpayer.
• Do not prepare a tax return when you suspect an individual is not providing truthful information.
• Do not exclude any of the taxpayer's relevant income or expenses, regardless of whether it increases or
decreases the amount of tax due or refund.
• If you feel uncomfortable about the validity of the information being presented by the tax payer or
uncomfortable with the a taxpayer’s situation, discuss it with your Site Coordinator.
Maintaining Taxpayers’ Trust
• Taxpayer Civil Rights
• Under no circumstances will the Internal Revenue Service tolerate
discriminatory treatment of taxpayers by its employees, or individuals
who volunteer at Volunteer Income Tax Assistance (VITA) and Tax
Counseling for the Elderly (TCE) sites. No taxpayer shall be subject to
discrimination on the basis of sex, race, color, national origin, reprisal,
disability, or age in educational programs or activities supported by
the Department of the Treasury – Internal Revenue Service.
Website and Publications
• Taxwise Online
• Publication 4012 – Volunteer Resource Guide
• Publication 17
Section 2
Screening and Interviewing
Screening and Interviewing
• Lesson Objectives
• Explain how Form 13614-C, Intake/Interview & Quality Review Sheet
should be completed
• Conduct an effective interview with the taxpayer to confirm and correct
information on Form 13614-C
• Locate tools that will assist you in Publication 4012, Volunteer Resource
Guide
• Use various communication techniques to probe and secure information
you need to prepare a complete and accurate return, such as:
•
•
•
•
Building rapport
Asking effective questions
Using active listening
Overcoming communication barriers
Resources
• Publication 4012 – Volunteer Resource Guide
• Form 13614-C
Form 13614-C, Intake/Interview & Quality Review
Sheet
• Determines the taxpayer’s program eligibility and the level of
certification required to prepare the return
• http://www.irs.gov/pub/irs-pdf/f13614c.pdf
• Taxpayer completes Section A which covers
•
•
•
•
the taxpayers and other individuals they would like to claim on the return
income the taxpayer received
expenses paid
life events
Form 13614-C
• After the taxpayer completes the intake and interview sheet, you will need to review it to
ensure all the questions were answered correctly.
• Use probing questions to confirm the accuracy of the taxpayers' responses.
• Correct or update the intake and interview sheet if missing information or an error is
identified. The suggested method of correction is to circle the error and make the
correction. You may put additional notes on Page 4.
• Provide clarification and assist the taxpayers with all questions that have been marked
"Unsure." Questions marked "Unsure" must be changed to a "Yes" or "No" response.
• Assist the taxpayers with completing the intake and interview sheet if needed. A line-byline job aid is available to assist you with completing Form 13614-C.
• If you need to make any corrections to the taxpayer’s responses, clearly correct them.
• If anything seems unclear, question the taxpayer and write notes!!!
Required Documentation
• Proof of Identity
• Social Security Cards or Prior year tax return
• Tax Information/Forms
• Voided Check (If the taxpayer would like their refund direct deposited,
or their tax due electronically withdrawn)
• Both spouses present
Supporting Documentation
• Always verify identity and compare the taxpayers' personal
information to the supporting documents (e.g., social security cards,
ITIN letters, driver's license, other picture ID) to ensure that the
names and addresses are all correct, especially when carrying forward
taxpayer information
• Verify Employer Identification Numbers (EIN)
• Match Social Security Number with other documentation, i.e. W2,
1099, Previous year tax return
Marital Status and Dependents
• If the taxpayer is married or has dependents, the decision trees in
VSR can assist you in determining verification of filing status and
qualifying dependents.
• Complete Form 13614-C, Section B, only if persons are listed on page
1, Part II, Marital Status and Household Information.
Eligibility Screening
• A completed Form 13614-C, along with the taxpayer's supporting documents, will
assist you in determining if the taxpayer falls within the scope of the VITA/TCE
program and your level of certification. If the return does not fall within the scope
of the program or within your certification level, you should:
• Advise the taxpayers that their return is outside the scope of your training and
seek assistance from your Site Coordinator. If there is another volunteer available
who has the appropriate certification, that volunteer may resume the interview,
or
• Explain courteously that volunteer services are limited to those who fall within
the scope of the program.
• Encourage the taxpayers to use the information they recorded on the intake and
interview sheet when working with a professional tax preparer.
• Thank the taxpayers for coming and express regret that you cannot assist them.
Interview Techniques
• Step 1: Cultivate a comfortable environment and put the taxpayer at ease
• Step 2: Use active listening skills: nodding, smiling appropriately, and
making eye contact
• Step 3: Review the taxpayer’s response to the intake questions
• Step 4: Work with the taxpayer to complete the critical intake questions on
page 4 regarding:
Marital status (filing status)
Number of qualifying exemptions
Eligibility for child tax credit
Eligibility for the earned income credit
• Step 5: Advise taxpayer of next steps
Build Rapport
• Make small talk while being friendly and respectful
• Speak clearly and simply
• Have materials organized
• Explain the process so the taxpayer understands what will happen
next
• Encourage the taxpayer to ask questions
Effective Questions
• When asking the first tax-related question in an interview, a good approach
is to explain why the tax information is needed. Follow these steps:
• Use open-ended questions that require more than a simple yes or no
response.
• Do not make assumptions about taxpayers—let them speak for themselves
• Avoid "leading" questions that make the taxpayer feel you have a specific
answer in mind
• Follow up with questions about answers that require more detail or were
ambiguous
Communication Barriers
• Do not become upset
• Reassure the taxpayer. Say "I hear you" or "I understand" and repeat the
question
• Stay on track by asking the tax question
• Provide a motivator ("I know this is difficult, but I need this information to
determine the benefits available to you.")
• Allow adequate response time
• Avoid making assumptions
• Deal with the taxpayer's emotional state:
• If silent ("Tell me more about . . .")
• Upset (paraphrase)
Completing the Interview
• If tax preparation cannot be provided:
• Return Form 13614-C to the taxpayer, consult the Site Coordinator on proper
procedures used at the site, or
• Provide guidance for obtaining missing documentation if the taxpayer
qualifies for VITA/TCE services but did not bring all necessary documents
• If tax preparation will be provided:
• Prepare the return and conduct a quality review using Form 13614-C, Section
C once it is completed
• Refer to Lesson 31, Quality Review of a Tax Return, for more details
Section 3
Filing Basics
Filing Basics
Information needed to prepare a return
• Age
• Gross income
• Filing status
Also determine if:
• The person can be claimed as a dependent on
another’s tax return
• The person is blind
•
•
Special taxes might be owed on different
types of income
Some of the income is excludable or exempt
Chart A
• Use when individuals cannot be claimed as dependents on another
taxpayer’s return
Chart B
• For children and other dependents
Chart C
• Other situations for filing
Gross Income
• Is all the income the taxpayer received during the tax
year in the form of money, goods, property, and
services that are not exempt from tax. (earned and
unearned)
Examples:
• Wages, tips, salaries, bonuses, commissions
• Alimony received
• Dividends
Refer to 4012 section D for a comprehensive list of
taxable and non-taxable income
Filing Status
Determine filing status based on
• Marital status
• Whether the taxpayer can be claimed as a dependent on someone
else’s tax return
• The taxpayer’s potential dependents
Refer to the decision tree in 4012 for help in determining the correct
status
Who should file?
Who should file, cont.
If not required to file one should file a return to claim:
• A refund of withheld taxes
• The earned income tax credit
• The additional child tax credit
• The American opportunity credit
Substitutes
No SSN card
• SSA letter or a form SSA-1099 statement
• ITIN card or letter
Taxpayers who need ITINs must apply for a card through the IRS.
Recordkeeping
Advise taxpayers to keep copies of tax returns, worksheets used and records
of all items appearing on the returns. Three years from the date the return
was due or filled, or two year form the date the tax was paid, whichever is
later.
• Property records
• Closing statements for a home
• Brokerage statements
• 1099s
• IRA contributions
• Pension income calculations
Out of Scope
• Taxpayers who may qualify for the health coverage tax credit
• Taxpayers who cannot substantiate their identity