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ERO Document Retention & Paper Flow October 2011 - TCS C onference Call. 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.
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ERO Document Retention & Paper Flow October 2011 - TCS Conference Call
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
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…
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.
Document Tracking Recommendation • Recommend Using Return Stage in TaxWise to track return status.
Document Tracking Recommendation • Recommend also using Activity Reporting, QR & ERO Tracking Log to track returns.
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
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?
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.
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
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
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
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