1. SCOPE 2016 2016 CA2 Instructor Workshop
Each table write down all the words you can think that contain the word “scope”.
Explain Scope and what happens if you go out of scope.
Scope posted in TaxAide posters and in But the real full explanation is in OSHC.
What do we mean by Scope?
2016
2016 CA2 Instructor Workshop

2. 2016 CA-2 Instructors Training
Why is Scope Important?
Training
Volunteer Protection Act
Comfort of the Tax Counselor
Ask the participants why scope is important. Answers should include: that is what training is provided, the volunteers are covered under the VPA if they stay in scope, and it makes counselors more comfortable when dealing with a difficult situation.
2016 CA-2 Instructors Training

3. Determining Scope at the Site
How?
When?
Who?
Ask participants how to determine Scope. Answers may include the Scope Manual found in the OSHC, Scope poster, Intake and Interview sheet
Ask participants when to determine Scope. Answer is BEFORE they start the tax return!
Ask participants who should determine Scope. The answers will vary based on the site.
2016 CA-2 Instructors Training

4. Minimal Changes in Scope
Cancellation of non-business credit card debt with interest now allowed
Rental of personal residence for less than 15 days is not a rental
Others to respond to software change
Schedule E: Rental of a personal residence for less than 15 days for the year is not considered a rental activity by the IRS and is not reportable income. If a Form 1099-MISC is received, then add the income on Schedule and an equal amount as expenses.
Form 1099-INT: Removed NAOB reference and added nominee reference; clarified out of scope boxes.
Form 1099-C: Cancellation of non-business credit card debt that includes interest in Box 3 on Form 1099-C is now in scope.
• Form 1099-R: A distribution from an Employee Stock Option Plan (ESOP) reported on Form 1099-R with Code U is now in scope.
• Schedule C-EZ: Now listed and continues out of scope as no training is provided.
TS doesn’t support 2106-EZ so 2106 in scope but with same limitations as 2106-EZ
2016 CA-2 Instructors Training

5. 2016 CA-2 Instructors Training
Start at: OSHC > Tax Training > Scope
The Tax-Aide Scope “Bible”:
Tax-Aide Scope Manual TY16 Updated 11/28/2016
Expanded Tax-Aide scope (beyond VITA):
Tax-Aide Scope Summary TY /29/2016
Explain how to find the Scope manual on OSHC.
Organized by 1040 line number. Then Schedules alphabetically. Then form numbers numerically.
2016 CA-2 Instructors Training

6. Tax-Aide version of Pub. 4012 will address expanded scope
Get counselors used to electronic formats!
Searchable
Always at your fingertips
More likely to be current
Can print selected pages for taxpayer
Anything else?
Explain how to find the Scope manual on OSHC.
Organized by 1040 line number. Then Schedules alphabetically. Then form numbers numerically.
NTTC – Dallas 2014

7. An Issue for Californians
Requires income-splitting
thus OOS in CA
Sep 2015 Regional Meetings

8. Identity Theft and $1 AGI Returns
Tax-Aide recommends including $1 of “Other Income” on federal return so it can be e-filed
Detects or prevents ID theft
Tax-Aide: “We will continue the practice of preparing $1 AGI returns and include this in training materials”
Sep 2015 Regional Meetings

9. 2016 CA-2 Instructors Training
Taxpayer Scenario…
You are almost done with a very complicated return.
The taxpayer says the dreaded words: “Oh, and I have a condo that I rent but I don’t make any money after I pay the bills, right?”
What to do?
Ask participants to discuss how to handle the above situation.. Have each table discuss for one minute and then share their approach.
2016 CA-2 Instructors Training

10. Questions?
NTTC – Dallas 2014