Facilitated Self Assistance Model for Tax Prep September 2011 Ron Smith SPEC/SPD

Why should I create facilitated tax prep model?

The Market for Free Volunteer Tax Services is Substantial 19 million low-income taxpayers (<$36K) indicated an awareness and desire for volunteer tax services – According to IRS Research (Benchmark Survey) VITA/TCE programs have served just over 3 million taxpayers annually since 2007 Based on the above, more than 16 million taxpayers must find alternatives to free volunteer tax prep SIMPLE60% of VITA/TCE clients file SIMPLE (i.e. single) returns

Partners are Challenged to Grow With Limited Resources There are 12,000 VITA and TCE sites nationwide Over 88,000 volunteers prepared more than 3.1 million returns in 2011 Many partners are at capacity with long lines of taxpayers awaiting for services Limited resources and available volunteers can impact a partner’s ability to increase return totals

Filing Taxes is a Crucial Component of Financial Education Teaching taxpayers to file their own return builds knowledge about their taxes and how they are calculated Empowering taxpayers is the first step towards filing future returns independently

Financial Education & Asset Building Tax Education Virtual VITA/TCE Facilitated Self Assistance VITA/TCE SPEC Business Model Tax Preparation Services

How does it work? Similar to other forms of assisted self-service (e.g. gas station, grocery store) Taxpayers input their own return data –Taxpayers use interview-based software –Certified volunteers are available at all times –VITA Basic is minimum volunteer certification Computers can be set up: –As a stand-alone model; or –At an existing VITA site to increase capacity at peak times

What are the benefits of using a facilitated model? For sites: –Prepare more returns –Target more taxpayers with complex returns for direct help –Reduce wait times during peak –Provide taxpayers with a choice of service –Returns counted towards site total –Federal and state returns are free For taxpayers: –Leverage current computer skills –Access to brand-name tax software –Ability to consult with a certified VITA volunteer for questions –Increased knowledge about their return –Increased confidence upon completion of return –First step towards self-sufficiency in return filing

What is FAST? Free Assisted Self-Service Tax Preparation Taxpayers utilize online software provided by members of the Free File Alliance (FFA) –H&R Block –Intuit (TurboTax) –TaxSlayer Provider links are customized with the embedded SIDN to allow for return counts

Current FAST Footprint (TY2010)

Other non-FAST Models Beehive The Benefit Bank I-CAN Let me know if you are in a non- FAST state; we will work with you

FSA Filing Season Stats and Findings Filing Season Statistics: –Total Sites: 106 –Total Returns: 4204 Filing Season Findings: –Many VITA sites were in the operational stage of the filing season and did not want to take on the added burden of implementing a new model –Most sites that took on the model this year were smaller appointment- only type of locations that offered the kiosk as an additional filing option for taxpayers –Partners who participated saw the potential for empowering taxpayers and providing another avenue for completing simpler returns at volunteer sites –Overcoming the expectation of volunteer preparation of the taxpayer’s return has been a barrier to greater success (at both the partner and taxpayer level) –Generally, taxpayers who input their own return data thought it was a positive experience and enhanced their understanding of their return –Time needed to complete the return varied anywhere from 30 minutes for taxpayers with prior experience to over an hour for first-timers who required additional validation from the volunteer

How do sites get started FAST? Make a plan for FAST at your site: –Kiosk location –Hours of operation –Number of computers and volunteers –Marketing initiatives (marketed as Free File to taxpayers) Let your SPEC Relationship Manager know you’d like to participate SPEC—HQ will your FAST coordinator with instructions, links and icons Follow the instructions to set up the icons on each FAST computer

Questions? Ron Smith –Chief, SPEC/SPD – Dan Maier –Tax Analyst, SPEC/SPD –