Concluding the Interview Pub 4491 – Part 8 – Lesson 32 Pub 4012 – Pages K – 6 to K – 10 1

Tasks Assemble copy of tax return(s) Ask the taxpayer(s) if there is any other income to report. Review return with taxpayer(s) and make sure they understand it Make sure taxpayer(s) understand that they are ultimately responsible for the accuracy of their federal and state filings NTTC Training – TY2015

Tasks (cont) Obtain taxpayer signatures Explain to taxpayers which records to maintain Explain to taxpayers what else they may need to do Mail check Adjust withholding Estimated payments End the interview See Pub 17 page 16 for a description of required taxpayer recordkeeping. NTTC Training – TY2015

Assemble Taxpayer’s Copy of Return Client letter if used by your site E-file Signature Authorization Form 8879 Payment voucher/estimated payment forms, if any --- do not staple to rest of package Tax return in Attachment Sequence order (see top-right corner of form) Form 8453 plus additional statements or schedules at end if any State and local returns TaxWise has a Client Letter template NTTC Training – TY2015

E-file Electronic Signatures Practitioner PIN is the only Electronic Signature Option (see Pub 4012 page K-6) Enter any five digit number for Taxpayer’s PIN Check Authorize box, enter today’s date Do same for spouse if applicable See Pub 4012, page K-6 for description of Practitioner PIN Guidelines. Hopefully the TaxWise template for the site checks the boxes and enters the PIN. NTTC Training – TY2015

Form 8453 – Transmittal for e-file Return Transmittal for certain forms required for some e-file returns Form 8332 – Release of Claim to Exemption for Child of Divorced or Separated Parents Form 2848 – Power of Attorney (“POA”) Form 8949 substitute (brokerage list of transaction details rather than transcribing all to TaxWise) Note – adding any one of these forms adds Form 8453 to Forms Tree NTTC Training – TY2015

Form 8453 Distribution – Three Copies One as part of taxpayer’s copy of their return One mailed by ERO to Austin Submission Processing Center within 3 days of acceptance of return One mailed by ERO to local SPEC office at same time Local SPEC may provide self addressed – postage paid mailing labels for both. IRS-Austin and local SPEC office NTTC Training – TY2015

PDF Alternative to Form 8453 If site uses a scanner, pdf documents can be attached to electronic efile instead of mailing with Form 8453 Scan document to create pdf Click on appropriate pdf box Select file to upload Find AARP Tax-Aide source on how to create and use pdf files. NTTC Training – TY2015

Security of Taxpayer Data Must follow procedure to ensure security of scanned taxpayer data Scan to encrypted Windows folder Delete document once e-file complete See guidance on OneSupport Help Center Must be done at site (not a volunteer’s home) NTTC Training – TY2015

Form 8453 Attachments Form 8332 – Release of Claim of Exemption Check appropriate box on Main Info Sheet Attach form to Form 8453 or scan and upload PDF NTTC Training – TY2015

Power of Attorney Required if other than taxpayer signing return Pub 4012, pg K-9 Required if other than taxpayer signing return POA must include authority regarding tax returns POA generally does not survive death of taxpayer Follow Pub 4012 page K-9 NTTC Training – TY2015 11

Power of Attorney Click on Add Forms; select 2848 (POA) Pub 4012, pg K-9 Click on Add Forms; select 2848 (POA) Check box at top, “using this form” NTTC Training – TY2015 12

Power of Attorney Complete Box 2 (if no CAF number, enter “None”) Pub 4012, pg K-9 Complete Box 2 (if no CAF number, enter “None”) Complete Box 3 – Matters Description: Income tax Tax Form Number: Form 1040 Year(s) or period(s): As applicable Check line 6 box on Page 2 to NOT revoke taxpayer’s prior POA Fill in red lines in Part II, Declaration Do not normally use Form 2848 Instead, client brings in their own POA – see next slide NTTC Training – TY2015 13

Power of Attorney Follow site process for transmitting required documents to IRS (e.g., Form 8453 or PDF) Attach taxpayer’s own POA if available Spouse unable to sign – may not require POA – see Pub 17 – pg 21 an d Pub 501 Spouse may be able to sign for incapacitated spouse without formal POA. See Pub 4012 pages C-11 and K-8 for guidance on signatures of deceased taxpayer or spouse. NTTC Training – TY2015

Form 8949 Substitute Check appropriate box at top of Schedule D NTTC Training – TY2015

Form 8453 Other unchecked attachments are out of scope All other options out of scope NTTC Training – TY2015

Estimated Payments for 2016 Taxpayer owes more taxes for 2015 than amount withheld or paid via credits AND Taxpayer expects to owe more than $1,000 for next year after subtracting tax withheld and credits Taxpayer expects 2016 tax withholding and credits to be less than 90% of the tax on 2015 return Restated from Lesson 35 Refund-Amount Due (slide 26): If taxpayer expects to under or over withheld for TY2016, might want to consider: Revise withholding – Forms W-4 Estimated taxes (see: www.irs.gov/Payments) NTTC Training – TY2015

Estimated Taxes Estimated tax payments are submitted with Form 1040-ES Checks payable to US Treasury with Form 1040-V Can pay by EFT (see ACH form or go to irs.gov/Payments) Estimated tax payments for 2016 due on 4/15/16, 6/15/16, 9/15/16 and 1/15/17 Calculated on Form 1040-ES worksheet If taxpayer reported payment of Estimated Taxes in 2015, they may need to setup payments for 2016. Check TaxWise - Form F/S Tax Paid Federal Estimate/State Payment for the current tax year. NTTC Training – TY2015

1040 ES Fill out line-by-line if expect significant change in income or deductions Fill out if expect significant change in income NTTC Training – TY2015

Estimated Tax – 1040-ES in TaxWise OR skip 1 -15 and enter desired amount on line 16 OK to bypass lines 1 through 15 and enter a desired amount on line 16 Taxpayer might want to use the estimated taxes necessary to avoid penalty or an amount to minimize the payment when filing next years Form 1040. Using Lines 1 through 15 as the basis for the estimated taxes will help estimate the tax impact of expected changes in 2015. For example a reported Form 1009-R taxable proceed in TY2014 may not be expected in TY2015. NTTC Training – TY2015

Estimated Tax – 1040-ES in TaxWise Print four vouchers for taxpayer to mail -OR- Submit four TaxWise: ACH 1040/ES Forms Taxpayers may consider paying their Estimated Taxes online, by phone, or by mail. Link to: irs.gov/Payments Taxpayers can forgo paying Estimated Taxes if they adjust tax withholding on an updated Form W-4 with their employer or financial institution NTTC Training – TY2015

Final Steps – Once Return is Final: Set Return Stage Again run Diagnostics and click on e-file Print return(s) Assemble return(s) for taxpayer Follow site procedures for setting the Return Stage and printing the return. NTTC Training – TY2015

Final Steps (cont) Obtain appropriate signatures – if joint return, both taxpayers must sign Form 8879 for e-file Form 1040, Pg 2 for paper returns Note: Volunteers do not sign taxpayer returns, nor does ERO sign Form 8879 Place all documents in AARP Tax Records Envelop to hand to taxpayer Assemble the packet: – Start with Form 1040 on top – Place each form, schedule, and attachment in the proper sequence, based on the sequence number shown in the upper right corner of the form Show the taxpayers the printed copy of the tax return, verifying once more the name, SSN, ITIN, address, filing status, dependents, income, expenses, deductions, credits, payments, and finally, tax refund or balance due. NTTC Training – TY2015 23

Form 8879 Signature Section Under penalties of perjury, I declare that I have examined a copy of my electronic individual income tax return…and to the best of my knowledge and belief, it is true, correct, and complete. I consent to allow my intermediate service provider to send my return to the IRS… Signature(s) Be sure to review the declaration with taxpayer(s) and remind them once again that this is their return and they are responsible for it. NTTC Training – TY2015

Signature – Pub 4012 Page K-8 Signed by the taxpayer(s) except: If child cannot sign If spouse died since beginning of tax year If spouse cannot sign because of disease of injury A power of attorney exists NTTC Training – TY2015

The Last Word Explain what will happen next Site responsibilities Taxpayer’s responsibilities Ask taxpayer if there are any questions Remind them to bring entire envelope next year Point out checklist on envelope Put next year’s source docs in envelope as received Ask taxpayer to thank the site that provided space for the volunteers and taxpayers. Tell friends Thank taxpayer for coming Site: e-file return(s); notify taxpayer if any issues arise Taxpayer: mail any checks or returns; estimated payments NTTC Training – TY2015 26

Final Steps (cont) Complete site log or use other means, as directed by your Coordinator, to report your activity File copy of Form 8453 and attachments per site policy if applicable NTTC Training – TY2015 27

Concluding the Interview Questions… Comments… NTTC Training – TY2015