WHAT'S NEW IN 2011 Highlights

1. WHAT'S NEW IN 2011Highlights Certification Process – Link & Learn Ordering Training Products New and Extended Tax Provisions Other Items – 2011 and beyond

2. TRAINING & CERTIFICATION Counselors – six (6) steps Noncounselors – four (4) steps All must pass IRS Standards of Conduct test with 80% accuracy All must sign Volunteer Standards of Conduct All Counselors mustpass IRS test at 80%, Basic, Intermediate & Advanced levels, using Pub 6744 or IRS Link & Learn test system

3. ORDERING TRAINING PACKETS • Two types of training packets • Pub 4491 Kit– hard copies of Pubs 4491, 4012, 4491-W and 6744 • Pub 4480 Kit– CD of Pub 4491 with hard copies of Pubs 4012, 4491-W and 6744 Goal is to reduce printing costs and encourage more people to use Pub 4480 Kit and access digital Pub 4491

4. TRAINING PACKETS, cont’d CAPS has been modified for orders for standalone product (Form 6744, VITA/TCE Volunteer Test/Retest; Publication 4012, VITA/TCE Volunteer Resource Guide; and Publication 4961 Standards of Conduct (Ethics)) Submit request for the standalone products on Form 2333-X Any additional request for products using Form 2333-X should be on a separate form Standalone products will be tracked in CAPS. If stock is depleted - electronic versions should be used.

5. TRAINING PACKETS, cont’d Link & Learn Training has been redeveloped More people use online for tax law training and learning TaxWise IRS - SPEC's ultimate goal is to have all partners transitioned to e-learning products and training by 2014 What can we do to increase e-learning and make better use of on-line products? (discussion at end of presentation)

6. Link & Learn TrainingEnhancements • Will be repackaged and grouped by topic and accessed from a lesson "landing"page • “Training Toolkit” on the landing page for each lesson • Toolkit includes an icon for media (video, audio, web casts, pod casts, and any media information that is available on www.irs.gov concerning the applicable lesson will be accessible) • Training Toolkit will include links to Tax Facts, Assessments, TaxWise Tutorials, Job Aids, and the Practice Lab • Teacher e-learning component  - new content on teacher pages lesson plans, power point presentations

7. SCH D & FORM 8949 • Schedule D for 2011 – has new reporting lines using Form 8949NEW • Form 8949 has codes and three boxes that need to be completed for each taxpayer • Box A – Cost basis shown on 1099-B • Box B – Cost basis not shown on 1099-B • Box C – No 1099-B received

8. SCH D & FORM 8949, cont’d For each asset sold, the 1099 will have an A/B/C designator Assets can no longer be entered on Schedule D All assets information goes on Forms 8949 Page 1 is for short term; Page 2 is for long term

9. SCH D & FORM 8949, cont’dTab 2 In TaxWise, Capital Gain or Loss Transactions Worksheet (Cap Gain Wkt) will load 8949s and put assets on appropriate pages Long Term/Short Term Capital Gains/Losses Wkts will no longer be in Forms list A/B/C designators will be located on Cap Gain Wkt under 1099 column Column (b) is code for adjustments to gain/loss, wash sales, exclusion of gain on main home, etc Column (g) is the amount of the adjustment

10. SCH D & FORM 8949, cont’d • Column (b) is for gain/loss adjustment codes; see F1 help and Form 8949 instructions • Column (g) is for amount of adjustment

11. NEW PREPARER USE FORM • Dedicated to Preparer’s Use Fields • Prep Use Fields no longer on Main Info Sheet • Prep Use Fields increase from 15 to 25 • Standardized to 15-character alphanumeric • Enter up to 25 questions in column A

12. PREPARER USE FORM, cont’d • All Preparer Use Field entries will be stored for reporting purposes (not the question) • Accessible via the report server • Taxpayer Reminder Field will be added • Enter information you need to convey to preparer for following year • Will automatically display when return is started in TY 2012 (January 2013)

13. NON-BUSINESS ENERGY PROPERTY CREDIT • Combined limits of $500, $200 for windows, for all tax years after 2005 (Form 5695, Pt I) • MUST ask about prior year energy credits • Maximum 2011 for residential energy property • $50 for advanced main air circulating fan • $150 for qualified natural gas, propane, or oil furnace, or hot water boiler • $300 for energy-efficient building property

14. IRS STANDARDS FOR VITA-TCE Standard of Conduct (Ethics) training and testing for all VITA-TCE volunteers All must sign Volunteer Standards of Conduct Agreement, Form 13615 Must comply with all Stds of Conduct, incl ethical handling/preparation of returns Must successfully pass Standards of Conduct (Ethics) Test

15. AARP FOUNDATION STANDARDS PACKAGE • Volunteer Standards of Professionalism • Taxpayer Information and Responsibilities (available at the site) • Incident Review Protocol (To be handled by local site leadership)

16. IRS CHANGESFOR VITA-TCE • Lump-sum social security payments are included as Basic competency • Last year, only current year taxability in scope, but use of numbers from previous year returns in scope this year • Only one Form 8879 printed (SPEC no longer requires copy); client signs prior to e-file submission but keeps with their records • No copies of W-2s or 1099s kept at site

17. WHAT’S NEW IN 2011 QUESTIONS? COMMENTS?