Perceptions Poll

This is an accuracy rate of 93.4% Q1: Of 20,155 accepted Federal efile returns in Colorado, how many were incorrect? 13 133 1,336 This is an accuracy rate of 93.4%

What the Error Rate Means The return was submitted (and accepted) and was wrong Not a reject rate Based on statistical sampling The actual number for Colorado is unknown (why?) What does 93.4% accuracy rate mean? We did well? One perspective: About 1,336 of our clients could get a letter Another perspective

What the Error Rate REALLY Means End Result Return is right QR reviews a correct return Return is right Return is right These two paths result in an accuracy rate of 93.4% Counselor prepares a return Return is right Return is right QR reviews an incorrect return Return is wrong This path results in an error rate of 6.6% Return is wrong Return is wrong

What the Error Rate REALLY Means End Result Probability QR reviews a correct return p = 1.0 Return is right p = 1 – Pe p = (1 – Pe)(1 + Pe) Counselor prepares a return = 0.934 p = 1 – Pe Return is right QR reviews an incorrect return p = Pe p = Pe p = (Pe)2 Return is wrong = 0.066 Pe is the probability that the Counselor makes an error or the QR review misses an error

What the Error Rate REALLY Means Pe = 0.257 This is a 1 in 4 error rate! If the QR has a lower error rate, then the error rate for the Counselor must go up! Suppose the QR error rate is half that of the Counselor Then Pe = 0.363, or 1 in 3! Why is our error rate so bad?

One in three LC/SCO was new to their job Q2: Of 68 LCs and SCOs in Colorado in 2017, how many were new to their position? 13 23 33 One in three LC/SCO was new to their job

What the Numbers Mean Turnover of LCs and SCOs is high 1 in 3 is new in any given year Take care of your people – train them in their job LCs and SCOs are candidates for your district management team Or to become the DC when the time comes!

Q3: Which error is observed most often during IRS Quality Statistical Sample (QSS) reviews? Not all volunteers have completed the SOC training and signed Form 13615 D143 is not posted at the site Tax returns are not filed in a timely manner

What this Result Means Not always the case that the D143 is not posted D143 is out of date Posted in an inconspicuous place Posted incorrectly The simplest requirements are the ones most often missed Simple wrongs are still wrong

Conclusions