NY3 Tax Training Committee Update Ed Hogarty Welcome Introductions Guests / Partners NY3 Instructor Workshop - November 2015

NY3 Instructor Workshop – November 2015 Committee Members Lucy Anich Sheryl Campbell Joe Ciccarino Frank Machung Karen Martino Joanne Passineau Thanks you for the teams support Ginni Goggins - New Volunteer Portal Howard Riggert – Tech Update NY3 Instructor Workshop – November 2015

Training Highlights Training Scope Affordable Care Act Education Benefits State Tax Assistance Program Certification Requirements Training emphasis for this year Discussion about the Scope Process Brief update on ACA New Approach to Education Benefits Benefits of State Tax Assistance Program NY3 Certification Requirements Sep 2015 Regional Meetings

NY3 Instructor Workshop – November 2015 Training Training emphasis includes: Classroom Training (TWO Immersion) Online Training (Blended Approach) At the District level I am sure you have used both approaches at one time or another and some in between NY3 Instructor Workshop – November 2015

TWO Immersion Webinar October 2015 Training Approach # 1 Method TWO Immersion Adult Learning Principles Focus on “Hands ON” TWO Training New Instructor Guide Tailored Training Use of Mentors Potential Use of Webinars Sharing of Ideas and Plans Tools Lesson Plans NTTC Slides Training Templates Pubs 4012 / 4491 / TP300 Problems & Exercises Link & Learn CCH Tutorials Method TWO Immersion (aka Interactive Training or “Learning by Doing”) Training Approach is described in Instructors Guide Emphasis on Tailored Training and Use of Mentors Potential use of Webinars for Training Opportunity to share plans at the District level While the NTTC plans are good you may find the local ones more applicable. Tools We will cover these tools in more depth tomorrow Would like to Highlight: Lesson Plans – They are examples or illustrations, not plug & play Templates – Site vs. Return TWO Immersion Webinar October 2015

NY3 Instructor Workshop – November 2015 Training Approach #2 Blended Learning Volunteers who can self-study Do not have time for extensive classroom work Geographic challenges for classroom setting Classroom Requirements Course Introduction TaxWise Introduction Tax-Aide Policies and Procedures Those topics are discussed in a classroom environment, so we would have an opportunity to observe and evaluate all new volunteers prior to certification and placing at a site. Concern about having to do background checks on volunteers and this was a means to keep that out of the program.  Over time this approach will also become interactive. This is currently being played out at colleges and universities that are using courseware (eg Coursera, edX) Standards of Conduct Interview Techniques Quality Review NY3 Instructor Workshop – November 2015

NY3 Instructor Workshop – November 2015 Other Training COD for residence (if extended) and HSA will be self-train and certify via IRS Link & Learn New IRS Intake/Quality Review test for Counselors Client Facilitators do not need to take test, but should have awareness training on both processes Not Required (May vary at sites within a district, Need 2 at a site) COD – Cancellation of Debt Health Savings Accounts NY3 Instructor Workshop – November 2015

Training Requirements? Question for each Instructor team – what do your volunteers need to know to service your taxpayers Fundamentals Other applicable in-scope Changes – year-over-year Everything Else The first step in the development of a Training Plan Question for each Instructor Team in a District - May vary by District Fundamentals – what new volunteers need to know to service “typical” taxpayers and pass the test Not applicable – In-scope tax law your local volunteers won’t see (state tax refund in no-tax state; RRB) Everything else – the remainder of in-scope tax law that volunteers will occasionally see Not Applicable Fundamentals In-scope Tax Law NY3 Instructor Workshop – November 2015

NY3 Instructor Workshop – November 2015 Scope Update NY3 Instructor Workshop – November 2015

In-scope tax law for Tax-Aide Tax-Aide scope is national No local scope for slivers of the country If a form or schedule or part of either is not explicitly in scope, it is out of scope Tax-Aide scope is fixed at the beginning of each tax season Scope Manual trumps 4491 & 4012 This slide addresses comments and suggestions received over past few months: Requests for scope change for taxpayers in our neck of the woods because they are different. Scope creep is an issue for some. Training, certification, Volunteer Protection Act, etc. all become issues We’re trying to help the majority of those taxpayers who need us – not every taxpayer Scope Manual started as list of in-scope forms and schedules. Now includes most all forms and schedules counselor might see Districts/states may decide that an in scope topic doesn’t apply or is more than they want to do – that’s okay But flip side is that if not trained, then not in scope Sep 2015 Regional Meetings

NY3 Instructor Workshop – November 2015 Scope (cont.) There is no requirement that every counselor must be taught all in-scope tax law If a counselor was not trained on an in- scope tax law topic, that topic is out-of- scope for that counselor Counselors must still pass the Advance test to be certified This slide addresses comments and suggestions received over past few months: Requests for scope change for taxpayers in our neck of the woods because they are different. Scope creep is an issue for some. Training, certification, Volunteer Protection Act, etc. all become issues We’re trying to help the majority of those taxpayers who need us – not every taxpayer Scope Manual started as list of in-scope forms and schedules. Now includes most all forms and schedules counselor might see Districts/states may decide that an in scope topic doesn’t apply or is more than they want to do – that’s okay But flip side is that if not trained, then not in scope NY3 Instructor Workshop – November 2015

Volunteer Protection Act of 1997 Dec 8, 2010 Volunteer Protection Act of 1997 Volunteer not liable for harm caused by his/her act or omission if: Received IRS/AARP training Harm not wilful Acting within scope of training Following AARP policies and procedures Do as trained and within scope to be protected from non willful harm that may occur. NTTC Training – Tax Year 2015

Potential Consequences for Going Out of Scope Personal liability for any taxpayer action Program liability for any taxpayer action Counselors removed from program Site shut down Program grant in jeopardy If return is out of scope and contains errors, counselor and program are potentially liable for any damages taxpayer may seek. Don’t put your fellow counselors in a bad position What to do if another Counselor in your location goes out of scope? “No good deed deserves to go unpunished” NTTC Training – Tax Year 2015

Scope Change Process… Perceived need at any level Request for proposed change submitted up the chain – can be vetoed at any point NTTC submits requests to VP and then to NLT once a year at end of April Sep 2015 Regional Meetings

Process for Requesting Change in Scope Counselors propose change to DC – DC reviews State Coordinator reviews Regional Coordinator reviews NTTC reviews and refines proposal VP AARP Foundation Tax-Aide reviews National Leadership Team approves IRS/SPEC reviews approves/denies Changes incorporated into training documentation as necessary NY3 Instructor Workshop – November 2015

NY3 Instructor Workshop - November 2015 ACA Update NY3 Instructor Workshop - November 2015

NY3 Instructor Workshop – November 2015 ACA Update ACA continues in scope for Tax-Aide except for Shared Policy Allocation (Form 8962, Part 4) Need to determine early in interview Question on Intake Sheet Alternative Calculation for Year of Marriage (Form 8962, Part 5) No easy way to determine options Shared Policy – couple that divorced during year but one spouse is on other’s policy; someone who was expected to be a dependent but isn’t. There is a question on draft Intake Sheet that will help couselors quickly identify this situation Alternative Calculation – both had policies. Could be better to file MFS, could be not a big impact, could mean alternate calculation should be used. Will be working on options for these situations. NY3 Instructor Workshop – November 2015

ACA Update (cont.) Several first year exemptions no longer apply Increases to SRP amounts: $95  $325 per person Revisions to Pubs 4491 and 4012 to improve ACA content Expect changes to TaxWise ACA Worksheet based on early look, but do not have details Exemptions that no longer apply (eg Transitional) Acronyms SRP Shared Responsibility Payment Sep 2015 Regional Meetings

ACA (cont) ACA topics included in 15 NTTC Workbook problem returns plus 35 ACA training exercises Taxpayers do not need to provide proof of insurance (unless due diligence raises questions) Taxpayers who received APTC in 2014 and did not file a 2014 tax return will not receive APTC in 2016 Top section of worksheet changed – do not know if anything else is changing or if there are affordability calculators SRP went from $95 to $325 per person; limit from $285 to $975 If taxpayer needs 2014 return and unlikely has $0 AGI and it won’t efile, add $1 Acronym APTC Advanced Premium Tax Credit Sep 2015 Regional Meetings

Education Benefits Education Benefits NTTC Webinar – Oct 2015 NTTC Oct. 23 2015

New Approach Dept of Treasury interpretation Therefore: Takes a more time to train Some sites see VERY few students Therefore: Train so that counselors understand the issue. Have resources available Increased focus on 1098T Student Statements (Account Activity Summary) Typically not well understood by the parent and subject to loose interpretation NTTC Webinar – Oct 2015

Resources Pub 4012 Tab J (especially J-2 and J-3) Education Cookbook Education Calculator Education Spreadsheet (if you can’t use the Calculator) Good Summary on 4012 Tab J Spreadsheet on Appendix B (at least in 2014) Interaction of Benefits (May reduce AGI and affect other credits) NTTC Webinar – Oct 2015

State Tax Assistance Program Sep 2015 Regional MeetiNY3 Instructor Workshop – November 2015 ngs

Sep 2015 Regional MeNY3 Instructor Workshop – November 2015 State Training State Tax Returns Situation: Taxpayer requires return from another state which the counselor has not been trained to prepare Options: Turn taxpayer away Ignore other state return Rely on TaxWise to get it right Get help to complete other state return Not trained – out of scope Sep 2015 Regional MeNY3 Instructor Workshop – November 2015 etings NYYC – Dallas 2013

State Tax Assistance Program State Training State Tax Assistance Program Experienced volunteers provide assistance on their home state tax returns Excludes federal tax assistance Phone and TaxWise Online Not “instantaneous” – second visit for taxpayer necessary to complete returns Use TWO to connect from a remote location and actually complete the subject state return and to do the QR of that return NY3 Instructor Workshop – November 2015 NYYC – Dallas 2013

State Tax Assistance Program (cont) Pilot for tax year 2014 Limited number of states that could request assistance Limited number of states that provided assistance Requests submitted through OneSupport Activity in 2014 TY 33 Returns (Mostly from Fl) Participants Pete Sheryl Bill Tuel – Ulster Blossom Nicinski & Mark Wovsaniker = NY1 NY3 Instructor Workshop – November 2015

NY3 Instructor Workshop – November 2015 Conclusions Generally positive – assisting counselors provided the help needed to properly complete their state returns Doesn’t necessarily fit all sites capabilities/needs Must keep security of taxpayer data in mind, i.e., don’t provide Client ID and User Name for new TWO user in same email If you get many out of state returns this is a good way to handle it, NY3 Instructor Workshop – November 2015

Certification Requirements NY3 Instructor Workshop – November 2015

Certification Tests All Volunteers – IRS Standards of Conduct test Note: Initially the test questions in Pub 4961 and Form 6744 did not match – Form 6744 revised on 10/19/15 to match Pub 4961 Local Coordinators, Shift Coordinators and Counselors Intake/Interview and Quality Review training and test –10 questions – New See Pub 5101 (electronic only) Counselors Advanced test 35 instead of 40 questions 2014 test – 3 ACA questions 2015 test – 6 ACA questions Training materials in Pub 4961 are good to use. The revision of Form 6744 on 10/19/15 will probably result in a difference between the electronic version of Form 6744 and the hardcopy version since the hardcopy version has already gone to press. NTTC – Oct 2015

Certification Tests (Continued) ACA Questions now cover: How does lack of MEC affect the return Two exemption questions (one new for 2015) Two Advance Premium Tax Credit – Form 1095-A questions – New Calculation of Shared Responsibility Payment question – New Eliminated scenario regarding calculating basis of stock (three questions) Made minor changes to scenario containing simplified method calculation. 13614-C shown in 6744 is draft form. Note that the order of questions in Part VI – Health Care Coverage – in final form are slightly different than in draft form. NTTC – Oct 2015

Certification Tests (continued) Optional for Counselors HSA Military International Cancellation of mortgage debt (if extended) Recommend Link & Learn rather than paper Again, assess the training needs of your district and plan for how best to address it NTTC – Oct 2015

Certification Process Training Specialist Pass SOC, Intake & QR and Advanced tests on Link & Learn Submit signed Volunteer Agreement showing that tests were passed to the local SPEC Relationship Manager for approval Then authorized to certify the state Instructors Instructors Pass same tests Complete requisite number of problem returns as determined by State Coordinator Then authorized to certify other volunteers in their district Once certified at Advanced level, TRS and Instructors are authorized to certify other volunteers who pass Link & Learn tests on optional modules TRS and Instructors encouraged but not required to pass tests on optional modules NTTC – Oct 2015

NY3 Requirements Summary Attend session on policy and Procedures and standards of conduct Pass Ethics and Advanced Tests Complete four practice problems Submit Completed and signed volunteer agreement form Instructors complete certification no later than Dec 31, 2015 Counselors should complete certification no later than Jan 25, 2016 Each district must send List of certified volunteers to TRS and ADS Each district gets to pick the four practice problems NY3 Instructor Workshop – November 2015

NY3 Tax Training Committee Questions… Comments… NY3 Instructor Workshop – November 2015

NY3 Instructor Workshop – November 2015 Miscellaneous Charts NY3 Instructor Workshop – November 2015

NYS Department of Taxation & Finance Training Support NY3 Instructor Workshop - November 2015

NYS Department of Taxation & Finance http://www.tax.ny.gov/volunteer/ NY3 Instructor Workshop – November 2015

NYS Department of Taxation & Finance http://www.tax.ny.gov/volunteer/ NY3 Instructor Workshop – November 2015

Common Responses Requiring Additional Inputs NY3 Instructor Workshop – November 2015

TWO Immersion Webinar October 2015 Tidbits… NVP scheduled for Oct 12 Interim access to OneSupport: URL: https://aarpfoundationtaxaide.zendesk.com/access/normal Login Email: taxaideenduser@gmail.com Password: taxaideenduser1 TWO Immersion Webinar October 2015