ELECTRONIC RETURN ORIGINATOR (ERO) (Transmitter in Tax-Wise) ERO TRAINING ELECTRONIC RETURN ORIGINATOR (ERO) (Transmitter in Tax-Wise) Tax Year 2007

ERO QUALIFICATIONS EROs must: Be certified AARP Tax-Aide volunteers Be (or become) proficient with IRS- supplied tax preparation software. Tax Year 2007

ERO RESPONSIBILITIES Security of taxpayer data Transmission of e-file returns Record keeping Communications

SECURITY OF TAXPAYER DATA IRS Pub 3189 requires all volunteers: To be vigilant To physically protect Printed data Electronic data Equipment See IRS Pub 4299 “Privacy and Confidentiality”

SECURITY OF TAXPAYER DATA This means: Taxpayer data must be encrypted Computers must be physically secured Operating System and TW must be password protected Taxpayer documents must be secured See Pub 3189

TRANSMISSION OF E-FILE RETURNS Restore returns to transmitting computer, if using different computers with TW Desktop Check for errors (i.e. “red” indicators are cleared on forms and tree) Run diagnostics and re-create e-files, if necessary

TRANSMISSION OF E-FILE RETURNS Print (or save) and review E-file Submission Report Transmit returns and get Acknowledgments Update Filing Status Logs, if used See PUB 3189

TRANSMISSION OF E-FILE RETURNS

TRANSMISSION OF E-FILE RETURNS If Transmitting State Returns: New for TaxWise 2011 You can transmit state returns “LINKED” to your Federal Return. This means that State Return is not forwarded to the state until after the federal return is accepted. State Returns can still be sent “UNLINKED” and without a Federal Return.

ACKNOWLEDGEMENTS Get Acknowledgements Federal and State ACKs TaxWise e-mails Print (or save)Acknowledgement Report Check for rejects

ACKNOWLEDGEMENTS Match to transmitting document or other tracking document Update Return Status logs (if used) If no acknowledgement within 3 days: Contact CCH and investigate Ensure problem is corrected

ACKNOWLEDGEMENTS

HANDLING REJECTS Correcting Rejects: ERO – i.e. generally simple fixes, some may require contacting the taxpayer Site Volunteers when issue is more complex - LC, QR or Counselors

HANDLING REJECTS (cont’d) Look for the reject code TaxWise describes and shows error in return The first step is to clearly identify what caused the reject The most common rejects involve SSN and EIN mismatches Look at return or contact site or taxpayer to correct.

HANDLING REJECTS (cont’d) Correct error, if possible If name or SSN is unchanged, rejected returns can be re-transmitted without new Form 8879 signatures if : Change in total income or AGI is less than $50 and…. Change in total tax, federal tax withheld, refund or amount due is less than $14

HANDLING REJECTS (cont’d) The taxpayer should be advised of the change and typically should be provided a corrected copy of the return, even if it does not require a resigned Form 8879. (unless it is just an EIN correction) If cannot be e-filed, convert to paper and have the taxpayer mail the return Provide feedback to counselor and quality reviewer to prevent similar errors

RECORD KEEPING Beginning 2011 tax year, we no longer will retain and send to the IRS: A signed copy of Form 8879 and income statements (W2, W2G and 1099s’) AARP will no longer permit retaining a paper copy or supporting documents at the site except for use with Form 8453 mailing This will require sites to revise their e-filing procedures

Form 8453 - New Option (Not supported by AARP 2011) New option for both TWO & Desktop with MeF to allow (“scanned “.pdf) attachments with returns Eliminates mailing the Form 8453 and with supporting documents to the IRS AARP Tax-Aide will not use this option for 2011 (i.e. also AARP will not provide scanners for this purpose)

Tracking of Returns for E-filing Each site will track returns to make sure the ERO knows which returns are ready for e-filing Returns must be transmitted and accepted in a timely manner. Each site must adopt a method to protect TP data and privacy

Taxpayer Data and Privacy Policy The Site or ERO will not keep any forms or documents with a taxpayer identity and/or SSN that is not mandated by the IRS or a State. ie. Form 8453 if used for mailing

Tracking Returns for e-filing Use Return Stage in TaxWise to track return status Use the site activity sign-in or log to track the returns for communication to the ERO for transmitting both federal and state returns

Return Stage This feature in TaxWise is used to communicate to ERO status of return e-file - Ready to File e-file - Needs QR e-file - Needs signed 8879 e-file – Incomplete Paper – Complete Paper – Incomplete Do not file

Site sign-in/log sheet In addition to using Return Stage in TaxWise; The site will record on the site sign-in/log sheet the status of the return: Ready to e-file; Waiting for signature of Form 8879; Return will be paper filed; Waiting for Taxpayer documents Question only – no return prepared

Modified TaxAide Site Sign-In Sheet

Other Recommendations for Communications to ERO Use of a client letter for communication to the ERO – must not contain taxpayer SSN Separate logs for each counselor tracking their completed returns

ERO TRAINING TaxWise Training is currently available from www.IRS.gov Accessed through Link and Learn Will also be on the Extranet Scenarios specifically designed to cover the types of tax returns that volunteers encounter Click the starburst to begin the login process for the Practice Lab

ERO TRAINING Other topics include Lessons offered for TaxWise are grouped by task for both TWO & Desktop Administrative Return Preparation Other topics include Customer Support Site University Differences between TWO\TWD Tax Law Changes Contact Information

ERO TRAINING The TaxWise Desktop Classes for Admin included lessons such as System requirements Security Manager Electronic Filing Reports

TaxWise Online ADMIN Training The TaxWise Online Classes for Administrators included lessons such as System requirements Security Manager Electronic Filing Reports May 6, 2018 - USA

END-OF-SEASON CLOSEOUT for TWO SOFTWARE Items to be sent to Local IRS SPEC Office Copy of any Form 8453’s with attachments Verify with your local IRS SPEC office if they want any additional items or reports See Pub 3189

END-OF-SEASON CLOSEOUT for TWO SOFTWARE Deactivate Users except for a very limited number of Supervisors OR Move returns to Administrator and change Users to Return Preparer, if you want them to be able to access the training website during the off-season See Pub 3189

END-OF-SEASON CLOSEOUT for DESKTOP SOFTWARE Backup all returns Create any final reports Create files on removable media for: IRS SPEC AARP (retention for carry-forward) All returns may be kept for data retention, following required procedures, as detailed in the Policy Manual

END-OF-SEASON CLOSEOUT for DESKTOP SOFTWARE Items to be sent to Local IRS SPEC Office Electronic copy of e-filed returns TaxWise backup IRS Acknowledgement reports Can be electronic copies Copy of any Form 8453’s with attachments Check with your local IRS SPEC office to see if they want any additional items or reports.

END-OF-SEASON CLOSEOUT for DESKTOP SOFTWARE Delete returns from all computers Clear taxpayer data – AARP & other computers Be sure to use current version Run “Wipe Disk”on IRS Computers Return IRS laptops to depot

COMMUNICATIONS VERY IMPORTANT! ERO must communicate with: Counselors Quality Reviewers Other EROs District and Local Coordinators Technology Coordinators

ERO TRAINING QUESTIONS? COMMENTS?