- 22.30.1.4 Volunteer Programs Overview
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Volunteers should be encouraged to certify online wherever possible. Volunteers can access volunteer certification in Link & Learn Taxes through IRS.gov. The online test questions are randomized from a pool of test and retest questions. Test takers have a different test for the test and retest attempts.
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Volunteers who do not pass the paper test (Form 6744) may take the retest that is included in the paper test booklet. The format of the retest is similar to the test and graded in the same manner. The retest should only be offered to volunteers one time.
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Instructors and partners should consider additional training for volunteers who do not pass the test on the first attempt.
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The partner may provide instructors with a letter for volunteers who do not pass the test. The letter should invite the volunteer to receive additional training and take the retest, or to participate in another aspect of the VITA/TCE activity such as: publicity, scheduling volunteers, clerical duties, receptionist, etc.
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Territories should encourage partners or site managers to contact state and local tax officials to conduct training on the preparation of state or local tax returns. This training may be conducted after or in conjunction with the federal tax training.
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At the end of each volunteer training course, students should complete the student evaluation form regardless of delivery method. All student training materials, online, electronic or hard copy contain an evaluation tool. Online evaluations will be automatically forwarded to HQ SPEC, E&PD. Printed copies of the evaluation forms should be collected and forwarded to the SPEC territory office. Territory managers should review the forms for instructor feedback and barriers to the training process (i.e., class hours, class location). After the territory review, forward the evaluation forms E&PD. The timely completion and receipt of the evaluation forms enables SPEC staff to make necessary and/or recommended changes to the course material.
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Territory managers are responsible for ensuring each instructor completes the instructor evaluation form included with the instructor training materials. Territories will forward the completed forms to E&PD.
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To help enrolled agents maintain their qualifications the Director, Office of Professional Responsibility has set continuing professional education (CPE) requirements. One means that enrolled agents can earn CPE credit is by serving SPEC programs.
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Enrolled agents can be helpful in providing professional tax related services. Offering CPE credit, therefore, can be a way to encourage enrolled agents to participate in SPEC programs such as VITA, Community Outreach, and other efforts. Enrolled agents can meet the objectives of CPE by the knowledge they gain preparing for the volunteer service.
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SPEC territory managers determine which programs have needs that can be met by enrolled agents wishing to serve as volunteers.
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For the period of February 1, 1999 through January 31, 2002 and each three year period following, enrolled agents may earn a maximum of 36 hours of CPE credit for course instruction and preparation time. This is 50% of the continuing education requirement. The 36 hours may be accrued during any 12- month period within the three-year enrollment cycle or spread across the cycle. No credits may be carried over from one cycle to the next.
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The Director, Office of Professional Responsibility and Treasury Department Circular No. 230 provide information on continuing professional education for enrolled agents. Any questions on enrolled agent CPE credit requirements should be directed to:
Director, Office of Professional Responsibility ATTN: N:C:SC:DOP
1111 Constitution Avenue, NW
Washington, DC 20224 -
Enrolled agents may earn one hour of CPE credit for each contact hour they instruct or make a presentation. The agents may also earn two hours of CPE credit for actual subject preparation time for each contact hour they instruct or make a presentation. Presentation of the same subject matter in an instructor, discussion leader, or speaker capacity more than one time will not qualify for continuing education credit.
Example:
An enrolled agent presenting a one-hour tax information seminar or a one-hour VITA class segment that involves two hours of preparation, would be entitled to three hours of CPE credit.
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IRS instructor training provided to an enrolled agent will be counted as credit toward their CPE requirement in the same manner as if they attended a privately sponsored course on changes in tax law.
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The SPEC territory manager is responsible for certifying the service performed by an enrolled agent for CPE credit. SPEC territory managers will perform the certification by providing the following information on IRS letterhead to the agent:
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The name of the SPEC program(s)
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Complete description of the volunteer services performed
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Date(s) of the program activities
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Location(s) of the program activities
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Credit hours earned
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Include the following statement "retain the above certification for a period of three years following the date of renewal or enrollment" .
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SPEC Managers or their designees will individually sign each certification. Managers should retain file copies of certifications issued for three (3) years.
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For requests for reasonable accommodations go to http://serp.enterprise.irs.gov/databases/irm.dr/current/22.dr/22.30.dr/22.30.1.dr/22.30.1.4.6.1.htm.
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Reasonable accommodation for persons with disabilities is required under a variety of federal statutes. Both IRS and their sponsors must make reasonable accommodation for taxpayers and volunteers. Facts and circumstances will determine what level of accommodation is provided and who is responsible.
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There is not a distinction between a volunteer and a taxpayer for purposes of providing reasonable accommodation for disabilities.
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If a partner sponsors a VITA site, the IRS has no obligation to provide reasonable accommodation for either a volunteer or taxpayer. The sponsor has an obligation under Section 504 of the Rehabilitation Act of 1973.
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If a site is considered to be an IRS sponsored site, there is an obligation to provide reasonable accommodation for a volunteer as well as taxpayers. The determination will be made on what is considered reasonable on a case-by-case basis.
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An organization, either the IRS or the sponsor, can utilize the least expensive means to meet a person's accommodation request.
Example:
To provide instruction for students that are hearing-impaired, the SPEC territory manager may elect to provide an interpreter to sign, provide instructors that are hearing-impaired, use videotaped training sessions, or provide a written transcript.
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The territory manager should also consider whether, after this person is trained, the volunteer will be at a site where the volunteer will actually be able to deliver services to the taxpayers.
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If the sponsor/partner is conducting a training class for VITA volunteers, the sponsor has the obligation to provide reasonable accommodation upon request. The same analysis described above would apply to the sponsor or partner's obligation with respect to what is reasonable.
Example:
If AARP is sponsoring a site, AARP will be responsible for providing reasonable accommodation for the volunteer or taxpayer. If AARP volunteers are attending an IRS conducted training class, IRS would be responsible for providing reasonable accommodation for a volunteer if requested.
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A special allocation is available for the purchase of some items for VITA sites. These funds are designated as VITA 1.
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VITA 1 funds should only be used to purchase essential items necessary to ensure efficient site operation.
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The following items are authorized purchases that can be charged to the VITA 1 appropriation. Other items should be purchased through your general office funds. Territories need to refer to this list prior to submitting a RTS request for VITA 1 purchases.
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Office Supply Purchases: cartridges, ADP miscellaneous items, transportation (shipping boxes, packaging materials, foam peanuts, shipping tape).
Note:
Printer cartridges are purchased annually in bulk . Any other purchase must be for emergency only.
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ADP Components:video/graphic cards, compact disk (CD) drives, sound cards, computer cables (not telecom wiring), mice, laptop batteries, keyboards, printer sharing devices
Note:
All ADP components for computers will be purchased by the VITA/TCE Depot.
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Requisition Instructions:
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Action Type: Use PCI
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OCN Filed: VITA1
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Remarks/Purpose Box: Must include the 5 "W's" or it will be rejected
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WHO: Contact information including phone number of requester; source or sources of purchase. This is necessary if questions arise.
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WHAT: VITA1 - Office Supplies and/or ADP Components
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WHEN: Date needed
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WHERE: Detailed instructions on delivery. Multiple drop points can be provided within one requisition.
Note:
Do NOT use P.O. Boxes. You may attach a spreadsheet to the requisition if you prefer as long as you notate where the instructions can be found.
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WHY: Reason for purchase. Be specific.
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Routing Path - At least four individuals must be in the routing path. At a minimum, it should contain the following:
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Initiator
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Area level approver
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Headquarter budget analyst
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CARE Finance plan manager
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Comment Field: Add any additional information needed to assist procurement.
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Area offices are held responsible for timely input of all receipt and acceptance. Area offices will need to provide instructions to their territory offices on receipt of the printer toner cartridges. Acknowledgement should be done at the initiator's level within 5 business days of receipt of the printer toner cartridges to reduce the chance of incurring a finance charge. Partial acceptance must also be done if the full order is not received.
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Any problems with the order and/or delivery should be worked out locally at time of delivery and the RTS documented as to the resolution.
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VITA and TCE sites should be established where low-income taxpayers live, work or are likely to conduct other business. Territory offices should assist volunteers and partners with identifying preferred site locations to maximize the opportunity for free tax preparation assistance in the community.
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Potential sites should offer:
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Adequate parking
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Accessibility by public transportation
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Handicap accessibility
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Privacy during return preparation
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Secure storage if computers are to be left at the site
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Telephone line and/or Internet access
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Have no evident security risks
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VITA and TCE sites require on-site management by a site manager as well as behind the scenes management by the territory office. SPEC partners should ensure that each VITA site has a site manager and an alternate. The site manager or alternate should be present whenever the site is open. Responsibilities of the site manager and the territory office are listed below.
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Responsibilities are as follows:
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Adherence to minimal quality site requirements.
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Maintain a roster of all volunteers and their home phone numbers. Complete Form 13206, or equivalent, monthly and submit to the territory office.
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Submit completed Form 13715, Site Information Sheet(except from AARP) as soon as site operating hours has been decided or changed/updated.
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Submit completed Form 13206 Volunteer Summary Sheet(except from AARP) that includes each volunteer. (Note: Volunteers are only reported one time when they first report. All new Form 13206 should only include new volunteers).
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Maintain a schedule of volunteer work assignments.
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Ensure certified volunteers have signed the "Standards of Conduct" and that the certificates includes the certification level.
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Ensure non-certified volunteers have signed the "Standards of Conduct."
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Maintain the signed "Standards of Conduct" at their site or partner location.
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Inform volunteers of the scope of returns they are qualified to prepare or quality review based on their certification.
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Ensure only certified volunteers are preparing returns, conducting quality reviews and providing tax law assistance.
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Ensure volunteers are only preparing returns within their certification levels.
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Ensure volunteers are using the required reference materials.
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Ensure volunteers are using the required intake sheet and addressing the required questions with taxpayers.
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Ensure the correct SIDN at the site and listed on each return.
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Ensure the correct EFIN is used on each computer.
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Ensure a quality review process has been established and a quality checklist is being used.
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Ensure Title VI products are posted or distributed.
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Ensure the correct site information is provided to the territory office on Form 13715, SPEC Site Information Sheet.
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Ensure site operating updates are immediately provided to the territory office.
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Ensure taxpayers provided permission for the site to maintain personal data.
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Ensure all computers are protected with passwords.
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Ensure all maintained taxpayer information is safe guarded.
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Ensure sufficient tax forms and supplies are available.
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Provide technical assistance and encourage volunteers to use the preferential toll-free telephone system.
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Ensure taxpayers with more difficult tax questions are referred to the appropriate IRS publication or where to obtain assistance.
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Report any problems to the assigned SPEC employee.
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Order materials for the sites using Form 2333V, Volunteer Order Form.
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Display posters advertising free assistance.
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Ensure volunteers wear badges with their names displayed.
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If applicable, ensure customer survey cards are distributed and mailed.
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Timely transmit e-filed returns, retrieve files and correct rejected returns.
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Ensure Forms 8453 are mailed within 3 business days of receiving acknowledgement.
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Ensure volunteers do not keep copies of prepared returns with names of taxpayers unless the site offers electronic filing.
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Ensure computers containing taxpayer data on the hard drive are protected with passwords.
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Ensure data with taxpayer information is disposed of properly.
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Place product orders timely and follow-up as necessary utilizing CAPS system.
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Utilize available systems, i.e. Product Pro, to track and follow up on orders.
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Assign a SIDN (obtained from STARS database) for each VITA site and communicate the SIDN to the site manager and volunteers.
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Ensure all site operating information is accurately completed/updated on Form 13715 and entered in STARS so that when telephone assistors and field assistance representatives access the Servicewide Electronic Research Program (SERP), they can direct taxpayers to the nearest volunteer site. AARP tax Aide is responsible for the accuracy of their site information. AARP Tax Aide site information is sent to SPEC headquarters and transferred into STARS. If corrections are required to AARP sites, the relationship manager should notify the appropriate local AARP representative. This information should contain the site name, site code, site location, days/hours open, appointment only or walk-in, and services available at the VITA and TCE sites. This information should contain the site name, site code, site location, days/hours open, appointment only or walk-in, and services available at the VITA and TCE sites. This information should be updated whenever site locations, hours of service or type of service are changed.
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Conduct 10% or more phone call reviews on sites to ensure the accuracy of site operating data matches STARS/SERP.
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Review SERP to insure the existing and corrected data was uploaded to SERP.
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Report all STARS and SERP systemic problems to SPEC Strategic Planning & Development.
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Assist TIGTA with their reviews and provide corrective actions for sites operating outside of the minimum.
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Develop a program infrastructure that provides a method to track receipt of documents needed by the territory, i.e. site registration, loan agreements, certification documents, Forms 13206, and 13615.
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Develop local procedures for the input of Form 13206 data input into the STARS database.
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Purpose
The purpose for use of Form 13715 is to provide a consistent method for securing accurate site information for input in SPEC Taxpayer Assistance Reporting System (STARS). Site information from STARS transfers to the Servicewide Electronic Research Program (SERP) system. Customer Account Service (CAS) and Taxpayer Assistance Center (TAC) employees use the information to provide taxpayers with volunteer site locations within their community. It is imperative that all site operating information is timely and accurately input into STARS as soon as it becomes available. -
Responsibility Territory Managers
Territory managers are responsible for validating the accuracy of the information entered in STARS by signing (approving) the bottom of Form 13715. Suggested options for territory manager validations are:-
Comparing the printed STARS form to Form 13715 once the site information is entered and synchronized in STARS, or
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Accessing STARS and comparing the STARS site information against Form 13715.
After the territory manager validates the accuracy, they should return the approved Form 13715 to the relationship manager. The relationship manager should indicate the site is "open for 20XX" in STARS. If the territory manager identifies errors during the validation process, Form 13715 should be returned to the relationship manager for correction in STARS. Once corrected, territory manager validation is required.
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Relationship Managers
SPEC relationship managers are responsible for securing Forms 13715 and for input of accurate site information in STARS. After the territory manager validates the accuracy, they should return the approved Form 13715 to the relationship manager. The relationship manager should indicate the site is "open for 20XX" in STARS. If the territory manager identifies errors during the validation process, Form 13715 should be returned to the relationship manager for correction in STARS. Once corrected, territory manager validation is required. Relationship Managers should maintain a site file for each VITA and TCE non-AARP site where Forms 13715 and other information can be stored. Forms 13715 and attachments must be maintained through 12/31 of the relevant tax year. After 12/31 follow procedures for appropriate disposal of sensitive information. -
Policy
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VITA/TCE Non-AARP Policy: All Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) non-AARP sites must use Form 13715, SPEC Volunteer Site Information Sheet. Relationship managers must use Form 13715 to input site information in STARS. Territory manager approval must be received before the relationship manager indicates the site is active by checking the box "open for 20XX" in STARS. SPEC territory managers must validate all Forms 13715 against the information entered in STARS. The SPEC territory office must retain all Forms 13715 and any attachments (such as STARS site information prints) until December 31 of the relevant tax year.
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AARP Policy: AARP is not required to use Form 13715. AARP Tax Aide site information is sent to SPEC headquarters and transferred to STARS. AARP is responsible for the accuracy of their site information. If corrections are required to AARP sites, the relationship manager should notify the appropriate local AARP representative. Continuous discrepancies with AARP site information should be elevated through the area office to the SPEC headquarter AARP National Relationship Manager for resolution.
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Securing Form 13715
SPEC relationship managers are responsible for securing Forms 13715 and for input of accurate site information in STARS. Employees can secure Form 13715 by:-
Printing the form from STARS - For more information on printing forms refer to the STARS User Manual found on SPEC’s web page at http://win.web.irs.gov/spec/stars/stars.htm.
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Order from Forms/Pubs/Products Repository
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Order using Form 2333TE
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Territory offices should provide Form 13715 to all VITA/TCE non AARP sites
This can be accomplished by:-
Mail
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E-mail (Note: If site coordinators information is already present on the Form 13715 and is for a personal residence (not business information) the form may not be shared via e-mail since there are security risks. Use a different method for distribution of the form.)
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Fax
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Hand Delivered
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Phone Call (The relationship manager can complete Form 13715 through contact with the partner)
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How to Use Form 13715 for New Sites
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Partner, site or SPEC employee will complete a new Form 13715
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Input the new information into STARS and synchronize
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Print the form from STARS
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Provide form to territory manager to approve
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Check the box "Open for 20XX" in STARS
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Maintain copy of Form 13715 in site file
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How to Use Form 13715 for Existing Site-No Updates:
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Print out an existing Form 13715 from STARS
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Send form with existing site information to the partner or site
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Partner or site will review
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If there are no changes, mark "No Changes" on the printed form
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Provide form to territory manager to approve
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Check the box "Open for 20XX" in STARS
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Maintain copy of Form 13715 in site file
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Updates during the filing season
As site information is updated/changed:-
Update Form 13715 with new information and date
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Input the new information into STARS and synchronize
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Print the corrected form from STARS
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Provide corrected form to territory manager to approve
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Maintain copy of all Forms 13715 changes in site file
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Due Dates for Form 13715
STARS should be updated as Forms 13715 are completed. For sites that will be open on or before February 1, Form 13715 should be entered, updated, and marked open for current year in STARS no later than the first Friday in January. If the site days, hours and location of operation are not known by the first Friday in January, the site information should be secured as soon as it is finalized to ensure timely input. All corrections to site information should be made immediately but no later than 3 business days of receipt.
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SPEC has implemented policies to address specific circumstances.
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Due to the fact that federally appropriated funds are used to purchase computers, supplies, and the tax preparation software, state and local returns should only be prepared when a federal return is e-filed and there is minimal additional work to prepare the non-federal returns.
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If during the preparation of the federal tax return it is determined that there is no filing requirement for the federal return, a copy of the state return can be printed and provided to the taxpayer for state filing. These returns should not be transmitted with a dummy federal tax return.
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The integrity of the VITA program relies heavily on the belief by all program participants that taxpayer privacy is paramount. To instill confidence in this belief, SPEC implemented a policy requiring volunteers to prepare all tax returns at the site with the taxpayer present, whether the site is a paper site or an e-file site. Having the taxpayer present to answer questions will ensure that a complete and accurate return is filed. Form 13614 or partner created form containing the same critical questions must also be asked, at a minimum, to ensure all mandatory questions are addressed with the taxpayer. If there is insufficient information to complete the return, all documents should be returned to the taxpayer with a request that they be brought back with the missing information needed to complete the return.
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Due to special circumstances, military VITA sites are permitted to continue their practice of allowing taxpayers to leave their records for tax return preparation, as long as the VITA site is located on the military base and is operated by military volunteers. Adequate security and privacy is expected to ensure taxpayer records are properly safeguarded.
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During VITA site monitoring visits, the territory manager and/or staff should ensure the above procedures are in place. If it is discovered that a site is not following these guidelines, assist the sites with a process that will work for the site. Inform the site they must conform to the above procedures or risk being closed. If the site does not change its practice it should be discussed with the territory manager and as a last result, the site should be reviewed for closure. When monitoring military VITA sites, the territory office should ensure that if the site is allowing military taxpayers to leave their records for later preparation, the taxpayer’s records and privacy are properly safeguarded.
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All U.S. Tax returns filed after December 31,1996 require a valid Tax Identification Number (TIN) for each person listed on the return. A valid TIN is either a valid Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). An ITIN is a tax processing number that became available on July 1, 1996, for certain nonresident and resident aliens, their spouses, and dependents. The ITIN is only available to individuals who are not eligible for a SSN. ITINs are only for federal income tax purposes. The issuance of an ITIN does not:
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Entitle the recipient to Social Security benefits or the EITC:
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Create an inference regarding the individual’s immigration status; or
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Give the individual the right to work in the U.S.
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Although the ITIN was intended solely for use as a taxpayer identifying number it has become accepted as a federal identification number for non-tax purposes.
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Some state and local government agencies accept ITINs on good faith as a form of U.S. government identification. However, because IRS issues ITINs for tax filing purposes only, the agency accepts proof of identity documents at their face value and does not validate document authenticity or conduct background investigations of applicants.
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Some employers erroneously accept ITINs as authorization to work in the U.S. ITINs do not authorize individuals to work in the U.S. and are not valid for employment purposes.
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Since ITINs are not valid for employment some individuals are using erroneous SSNs when applying for employment, accruing income and additional tax to the legal SSN owner. In these cases, an ITIN is used to file a tax return with a Form W-2 attached, which reports the other person’s SSN. Due to the current limitation of the IRS document-matching program, these returns are processed and any overpayment refunded. Post processing matching of Forms W-2 results in IRS sending notices to taxpayers properly assigned the SSN. The innocent taxpayers are burdened with resolving the tax issue with IRS and correcting the FICA withholding issue with the Social Security Administration.
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Since the introduction of the ITIN the program has evolved into much more than originally envisioned. The volume of ITIN applications processed continues to increase.
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In order to ensure the ITIN is issued only for federal tax purposes, the IRSchanged the ITIN process, effective January 1, 2004.
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Individuals applying for an ITIN must have a filing requirement and file a valid federal tax return, (Form 1040, 1040A, or 1040EZ), with the Form W-7; Application for IRS Individual Taxpayer Identification Number. Refer to Form W-7 for a list of exceptions.
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Approved applicants will no longer receive an ITIN card, but will be issued a letter identifying the ITIN.
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The list of accepted identity documents used in applying for an ITIN has been reduced from 40 to 13.
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ITIN holders frequently file tax returns under their ITIN with attached Forms W-2 showing erroneous Social Security Numbers (SSNs). This creates an ITIN/SSN mismatch. A mismatch return causes the IRS’ document-matching program to erroneously attribute the income and resulting tax to the SSN owner rather than the ITIN holder. This creates inaccuracies in both the SSN owner’s tax account and Social Security Administration records.
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When an individual comes to a volunteer tax preparation site with a W-2 reflecting a SSN requesting return preparation and produces an ITIN, the volunteer should encourage the taxpayer to request a corrected Form W-2 from their employer or former employer. If the taxpayer is unable to do so, the volunteer may prepare the tax return with the documents provided.
Note:
Prior to completion of any tax return, the volunteer must request proof of identity. Two forms of identification are required. One must be photo identification such as:
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Passport
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National identity card
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Drivers license (U.S.)
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State identification card (U.S.)
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Military identification card
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School photo ID
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VISA
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The second form of identification must be the original or a copy of the ITIN Card or Letter.
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One or both of the forms of identification should reflect the taxpayer’s current mailing address. If the taxpayer cannot substantiate their identity, or if the volunteer is uncomfortable accepting the items presented as proof of identity, the taxpayer should be referred to seek professional tax assistance (IRS walk-in site or paid tax preparer).
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Returns prepared with an ITIN/SSN mismatch can be filed electronically. Do not change any information on the Form W-2. Refer to http://win.web.irs.gov/ITIN/e-file_ITIN-SSN_Mismatch.htm.
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The taxpayer is not eligible for the Earned Income Tax Credit (EITC). if the taxpayer becomes a permanent resident of the United States and secures a valid SSN at a later date, he/she can later file amended returns and claim the EITC for all years for which the statue of limitations has not expired.
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Effective immediately SPEC employees, partners and/or volunteers may:
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Conduct outreach sessions to help applicants with completion of Form W-7;
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Provide educational information to applicants regarding requirements in applying for an ITIN;
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If an authorized Acceptance Agent is participating in the outreach sessions, the Acceptance Agent may review the required documentation which may include a federal tax return, and accept the application for submission;
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If no acceptance agent is participating in the outreach sessions, applicants should be given Publication 4244, IRS Individual Taxpayer Identification Number (ITIN) Application Requirements Have Changed, and the completed Form W-7. The applicant is then responsible for either mailing the Form W-7 application with the required documentation to the IRS Austin Campus ITIN Unit, taking the completed Form W-7 and original identity documents to a local IRS Taxpayer Assistance Center (TAC), or applying through an authorized Acceptance Agent.
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SPEC employees, partners and/or volunteers may choose to offer return preparation in the outreach sessions as long as they are trained to do so.
Note:
Unless the SPEC employee, partner and/or volunteer are authorized Acceptance Agents they may not accept Form W-7 for submission to the Austin Campus ITIN Unit.
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Beginning with the 2008 filing season, EROs will no longer use Form 8453 as a signature document, but will continue to use a newly designed Form 8453 to transmit supporting documents that are required to be submitted to the IRS.
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Sites must forward Forms 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, to the designated Submission Processing Center. Territory offices will ensure sites are provided address labels to forward the Forms 8453 to the Submission Processing Center. The use of the labels is mandatory. Territory offices will caution the sites not to use other envelopes such as the Customer Satisfaction Survey envelope.
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EROs must retain, until the end of the calendar year in which a return was filed, the following material. There are two options for retention of the Form 8453. The local SPEC territory manager will determine which method is preferred:
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Option 1 – The sponsor is required to store a copy of any transmittal Form 8453 with copies of required forms or supporting documents, paper copies of Forms W-2, W-2G and 1099R along with supporting documents when applicable until the end of the calendar year in which the return was filed; maintain a complete copy of the electronic portion of the return (which may be maintained on electronic media) and can be readily and accurately converted into an electronic transmission that the IRS can process; and maintain the acknowledgement file showing the acceptance by the IRS of the electronic return. Appropriate disposal methods, such as shredding or burning of paper records and physical or magnetic destruction of disks, should be used to dispose of data at the end of the calendar year.
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Option 2 – The sponsor will provide the local SPEC office with the retained copy of any transmittal Form 8453 with copies of required forms or supporting documents, paper copies of Forms W-2, W-2G and 1099R along with any supporting documents; a complete copy of the electronic portion of the return (which may be maintained on magnetic media) and can be readily and accurately converted into an electronic transmission that the IRS can process; and the acknowledgement file showing the acceptance by the IRSof the electronic return.
Prior to committing to option 1, the SPEC office will evaluate the level of security afforded documents while in the sponsor’s possession. Sufficient security is required to prevent unauthorized access to the data. The territory manager will determine which option is approved after the security is evaluated.
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The SPEC use of practitioner Password Identification Number - Volunteer Return Preparation Program (PIN-VRPP) purpose, requirements and benefits are described below.
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The Practitioner PIN Method is an additional electronic signature option for taxpayers who use an Electronic Return Originator (ERO) to e-file. Taxpayers either sign their own return electronically using a five-digit PIN, or authorize the ERO to sign the return with the taxpayer’s five-digit PIN. The PIN can be any five numbers except all zeros. Taxpayers who are eligible to file Forms 1040, 1040A, or 1040 EZ are eligible to use the Practitioner PIN method. There is no age restriction on who can use the Practitioner PIN method.
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In recent years, an increasing number of State Taxing Agencies have mandated e-file. While their decisions assist IRS in meeting its RRA 98’ mandated e-file goal of 80% by 2007, it does provide a unique management challenge for SPEC. Some of the State Taxing Agencies have imposed restrictions on the use of the paper signature forms authorizing only the use of the electronic signature options; Self-Select or Practitioner PIN(s).
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Effective for FY 2006 (tax year 2005) – SPEC is amending the existing policy around the non-use of the Practitioner PIN to allow the use of the Practitioner PIN by the VITA (Volunteer Income Tax Assistance) and TCE (Tax Counseling for the Elderly) programs. The change in the Practitioner PIN policy enables SPEC to support the States in their e-file mandate efforts while maintaining our commitment to high quality customer service and electronic filing.
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Complete requirements for using the Practitioner PIN are listed in Publication 1345, Handbook for Authorized IRS e-file providers and Individual Income Tax Returns and contained in the instructions of Form 8879, IRS e-file Signature Authorization. Highlighted below are some of the requirements:
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EROs must verify the taxpayer’s identity. Taxpayer(s) must sign Form 8879 prior to the tax return being e-filed
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The Volunteer Electronic Return Originator (ERO) must complete Part III of Form 8879
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Form 8879 must be retained for 3 years from the due date of the return or the IRS received date, whichever is later
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Forms W-2, W-2G and 1099-R must be retained until December 31st of the current calendar year
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With use of the Practitioner PIN, taxpayers are not required to provide their prior year Adjusted Gross Income (AGI) amount or prior year PIN from last year’s tax return.
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Our preferred signature method for taxpayer’s use in e-filing continues to be the Self-Select PIN. The process includes the taxpayer using a five digit Personal Identification Number (PIN) and entering one piece of information from their prior year’s return. The requested information is the taxpayer’s original accepted Tax Year 2006 Adjusted Gross Income (AGI) or PIN. The AGI amount is from the taxpayer’s prior year originally filed tax return. This is not the amount from an amended tax return, a corrected amount from a math error notice, or a change made by IRS. Taxpayers may elect to use their prior year PIN for authentication in lieu of their prior year AGI. The prior year PIN is the five digit PIN they used to sign their tax year 2006 return. However, it eliminates the requirement to maintain any additional signed documentation. Considering all of the e-file signature methods, the Self-Select PIN applies the least amount of burden upon our volunteer partners.
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SPEC is interested in improving service to our taxpayers. Therefore, periodically customer survey cards will be provided to taxpayers who utilize VITA and TCE sites. For information on customer satisfaction surveys see IRM 22.30.1.12.
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SPEC, along with all other W&I functions, participates in the W&I strategic planning process. The W&I annual strategic planning process consists of four phases:
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Strategic Assessment
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Initiatives and Reinvestments
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Strategy and Program Plan
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Business Plan Template
At the conclusion of each phase, a W&I consolidated document is produced and published. Strategic Planning & Development (SPD) is responsible for oversight of all strategic planning deliverables for SPEC.
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Phases
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Strategic Assessment Phase
The annual Strategic Planning process begins with the Strategic Assessment Phase. Strategically analyzing our business should be an ongoing process. However, the W&I Strategic Assessment Phase occurs at the beginning of every fiscal year. During the Strategic Assessment Phase, W&I conducts research to identify issues that will affect its taxpayer segment. Research findings are shared with all W&I functions. Each function identifies and evaluates major Trends, Issues, and Problems (TIPS) that will impact operations during the next two fiscal years (e.g., In October 2007 (FY 2008), the Strategic Assessment period is FY 2009 - FY 2010). W&I Strategies and Operational Priorities (OP) are developed from IRS goals and objectives identified in the IRS Strategic Plan. Some W&I Strategies and Operational Priorities are carried over from year-to-year. Some are modified and/or new ones are introduced during the Strategic Assessment Phase. Also, each function (including SPEC), is required to provide narrative statements concerning actions they will take during the Strategic Assessment period in support of the Operational Priorities. End of the Strategic Assessment Phase: The W&I Comprehensive Strategic Assessment Report (SAR) is produced and published every April. It contains information on the TIPS, Operational Priorities, Improvement Projects, research findings, measures and measures impact statements. -
Initiatives and Reinvestments Phase
During the Initiatives and Reinvestments Phase, each function evaluates the outcome of their initiatives to identify increase or decrease in resource needs. At this time, requests to reprogram savings from initiatives can be made to fund other needs. It is very important to be able to demonstrate specific measurable results. Generally, this phase occurs at the beginning of the second quarter of the fiscal year. -
Strategy and Program Plan Phase
(3) The Strategy and Program Plan Phase begins in the third quarter (around June) of each year. At the end of this phase, the W&I Strategy and Program Plan (SPP) and SPP Addendum are produced and published in October. The SPP discusses all of the major W&I initiatives to be implemented in the current year and next fiscal year to support IRS Goals and Objectives, W&I Strategies and Operational Priorities. The W&I SPP Addendum is a compilation of all W&I external performance measures. External performance measures are reported to external stakeholders (i.e., W&I Commissioner, IRS Commissioner, Congress, etc.). The SPP Addendum contains actual performance for the past two fiscal years and targets for the current and subsequent fiscal years.Note:
The W&I SPP Addendum may not reflect the most current targets because changes may be made based on budget adjustments and current performance. If changes are made to the targets, they will be posted on the SPEC intranet site, The Point, under the Strategic Planning web page.
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Business Plan Template Phase
The final phase of the W&I Strategic Planning process is the Business Plan Template. The template is developed in November of each year. It is a consolidated list of the major actions/initiatives that will be accomplished in the next fiscal year (e.g., In November 2007, the FY 2008 Business Plan Template will be developed). The information from the template is entered into the W&I Management Controls Database. The database is updated quarterly to provide the current status of all SPEC actions/initiatives.
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Additional Requirements
SPEC has implemented three additional requirements to the Strategic Planning process:-
SPEC Business Plan
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SPEC Quarterl
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