1. New Jersey Tax-Aide E-file Gary Broughton Technology Specialist

2. What went well? New Jersey electronic returns up 23% –North Atlantic region up 2% –National down 8% Productivity up for all districts –All districts >40% e-file –Eight districts >80% e-file Data retention (100% of EROs participate)

3. What could be done better? Efficient use of equipment Counting returns –AARP and IRS differences –TaxWise and IRS differences Use of Standard Site Model Use of TaxWise clone

4. Standard Site Model Returns are prepared only at active sites Each e-file site has an EFIN An EFIN is used to prepare returns only for the site where it is registered EFCs provide returns to the ERO transmitting for the site where they were prepared Computers used at more than 1 site change Setup Options to match site EFIN

5. Standard Site Model Exceptions An EFIN may be used to prepare returns at a secondary site –Open not more than a week a year The practice of e-filing at low volume sites is discouraged. EFINs are not normally obtained and software is not purchased for sites expected to produce fewer than 35 accepted e-files.

6. Challenges & Opportunities Equipment to support expansion Equipment aging Computer software updates Network printing using printer sharing Vista & Windows 7 transition and support TaxWise Online

7. Tax year 2009 changes IRS: All returns may be retained without individual authorization TaxWise: EFIN Authentication AARP – –New vendor for printer cartridges, printer repairs & flash drives –Revised TrueCrypt installer –Revised TPClear [later] –Technology Management Guide: electronic distribution only New Jersey Tax-Aide –Equipment Additional laptops [10] and printers [5] from AARP Additional laptops [2] and network printers [3] from Bergen donation Additional network printers [5] from NJ donated funds –TaxWise Online –One Supersite

8. EFIN Authentication Concept: Carry forward will be limited to returns prepared with an EFIN which is also active in 2009 Impact: Unknown until we learn the details of how this is implemented

9. Consumables Replacement cartridges for specified printers Repair/replacement of specified printers Flash drives [probably above discount] TC email request to TCS [ADS alternate] Can be shipped directly to end user Volunteers will not be reimbursed for cartridges available through the contract

10. 2008 Program Laptops

11. Equipment Allocation to NJ Category 1: replace inoperable equipment –6 laptops [for 5 desktops & 1 laptop] –3 printers Category 2: discretionary –4 laptops –2 printers [network]

12. Equipment Allocation within NJ Goal: 80% e-file in each district District requests Considerations –Begin e-file at large sites –Increase e-files at large sites –Laptop efficiency –Discretionary funds

13. TaxWise Online Tax returns prepared on encrypted web site All taxpayer data stored on TaxWise server Computers require no encryption or tax preparation software Wired connection between computer and broadband internet https://twonline.taxwise.com/training

14. Efficiency

15. Looking ahead - E-file clients with paper returns [23%] E-file the growth from additional clients [11% per year] Assume AARP replaces defective equipment Opportunities –Loans and donations –More productivity from existing equipment and volunteers

16. Places to look Site operations –Hours/shifts per day & days per week –Consolidate sites => more counselors per site –Eliminate dead time and distractions –Scheduling and matching clients to counselors Equipment –Assign to individual or site? Metrics

17. Some questions to ask Are counselors or computers idle when they could be preparing e-files? [Data; Scheduling] Are EFCs doing things that could be done by others? Is the wait for a quality review excessive? How are clients assigned to counselors? Are computers assigned to counselors or sites? [Unavailability of counselor; subs] How many returns does one of your AARP/IRS laptops produce? If you are busy, does that mean you are productive? [Data]

18. Efficiency Exercise What can be done in your district to produce at least 10% more e-files than last season? –Same number of volunteers –Same equipment Discuss for ~30 minutes After break, share your plans

19. Quality Review of E-files Accurate returns and minimizing rejects

20. What’s Important? Anything and everything that affects the accuracy of the return The same things that are important if the return were prepared on paper A few extra things unique to e-filing

21. What’s Different? TaxWise diagnostic IRS Acknowledgement [Accept/Reject]

22. TaxWise Diagnostic Diagnostic must be passed to e-file Federal and state Verifies entries needed to e-file are complete Does not verify that all data required for the taxpayer is entered Does not verify that any data entered is correct

23. IRS Accept/Reject Checks accuracy of some entries Checks if taxpayers and dependents are listed on tax returns already filed Does not verify that all data required for the taxpayer is entered Does not verify that any amounts entered are correct

24. What does the QR need to check? All data required for the taxpayer is entered Data entered is correct A few extras for e-filing –EIN –Direct deposit

25. Options for QR of e-files Using Intake Sheet & taxpayer documents, with access to taxpayer and preparer At the preparer’s computer Print the return and review paper copy –Include summaries of W-2, 1099-R,.... At a different computer All of the above are acceptable.

26. Who does the QR? Required: Counselor certified to complete the return [tax year, amended, other states] Recommended: –Dedicated QR –Additional QR training For non-EFC to do QR on e-file

27. Summary Continued good e-file progress last year Narrowing spectrum of e-file implementation among districts Equipment –Efficiency improvements –Partnerships/donations