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

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

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

4. 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”

5. 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

6. 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

7. 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

8. TRANSMISSION OF E-FILE RETURNS

9. 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.

10. ACKNOWLEDGEMENTS Get Acknowledgements
Federal and State ACKs
TaxWise s
Print (or save)Acknowledgement Report
Check for rejects

11. 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

12. ACKNOWLEDGEMENTS

13. 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

14. 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.

15. 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

16. 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 (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

17. 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

18. 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)

19. 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

20. 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

21. 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

22. 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

23. 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

24. Modified TaxAide Site Sign-In Sheet

25. 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

26. 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

27. 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

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

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

30. 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

31. 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

32. 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

33. 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.

34. 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

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

36. ERO TRAINING
QUESTIONS?
COMMENTS?