ERO Document Retention & Paper Flow October 2011 - TCS C onference Call

1. ERO Document Retention & Paper Flow October 2011 - TCS Conference Call

2. Document Retention Policy • The IRS no longer requires retention of a signed Form 8879 or W-2s, W2Gs, or 1099Rs • Taxpayer(s) still signs the Form 8879 but keeps it with their records. • IRS ask States to also eliminate their retention requirements, as of Sep 30th, only Georgia has not yet agreed

3. Document Retention Policy • To take advantage of the reduced IRS document retention requirements and further reduce the potential for the loss of taxpayer identity, the NLT has approved the following policy…

4. Document Retention Policy • Sites or EROs will not keep any forms or documents with taxpayer identity and/or SSN number on the document. • W-2s’, 1099s’, Form 8879, etc. will no longer be retained at the site or by the ERO, Unless it is mandated by the IRS or a State. i.e. Form 8453 if used for mailing documents to support a return, may still be retained until mailed to IRS.

5. Document Tracking Recommendation • Recommend Using Return Stage in TaxWise to track return status.

6. Document Tracking Recommendation • Recommend also using Activity Reporting, QR & ERO Tracking Log to track returns.

7. Document Tracking Recommendation • The Client Letter is available as an option. It does not need a SS# and other pertinent information can be selected by default before printing. Some limitations with TWO that will not provide State Return information

8. ERO Recommendation • TWO sites should consider transmitting ‘Suspect’ returns from the site to get ACKs before the Taxpayer leaves. Example: Taxpayer who is unsure if dependents have been claimed by someone else – a former spouse?

9. ERO Procedures & Document Retention Recommendation • We are pursuing other tools to minimize and fix rejects. • More thorough Quality Review of SSNs and EINs • We are also seeking and testing on-line or phone methods to verify Company name/EIN number matching with the IRS and third-party companies to more easily resolve rejects.

10. 2011 Paper Flow • Far fewer documents to keep for the IRS this year • Form 8453 – Transmittal Document for mailing other forms to support a return – Keep two copies • Mail one copy within 3 business days to IRS Austin Processing Center Use Labels with pre-paid postage available from your local IRS SPEC office

11. 2011 Paper Flow • By the end of the tax season, these documents go to your state IRS SPEC office • Second copy of Form 8453s • Form 2120 – Multiple Support Agreements Mail frequently to minimize potential for loss or theft using postage paid labels provided by your local IRS SPEC Office

12. 2011 Paper Flow • Additional requirements for users of the Desktop software • By the end of the tax season, these documents go to your state IRS SPEC office • All TaxWise Acknowledgement Reports • ACK reports can be electronic or paper • A complete backup of all transmitted returns (on CD or flash Drive) Use postage paid labels provided by your local IRS SPEC Office

13. 2011 Paper Flow • Additional requirements for users of the Desktop software • If you plan to use Carry Forward for the next season, a second electronic backup of all tax returns needs to be sent to the individual identified as your State’s Repository. • Backup files are encrypted, but you must insure they were received by the Repository. The Repository is a Tax-Aide volunteer indentified by your TCS or SC

14. Questions?