Using IRS Resources in the Verification Process

1. Using IRS Resources in the Verification Process December 10,2009 SWASFAA Conference Albuquerque, NM

2. Topics of Discussion • Who are we and why are we here? • Challenges faced by Financial Aid Administrators • Recommendations/Resources to overcome challenges

3. Outreach and education function of Internal Revenue Service’s Wage & Investment Division Our customers are individuals who have wage income and/or investment income Use a leverage approach to taxpayer assistance Work with organizations that share a commitment to provide education, benefits and services to underserved communities. Who Are We?

4. Who Are We? Our community based partnership model has three components: • Tax awareness and education • Free tax preparation assistance • Financial education and asset building

5. Identification of problems with student loan application process Provide Financial Aid Administrators with assistance and outline potential resources to overcome challenges Why are we here?

6. Challenges Do I have the training necessary? Is my interpretation of the tax law correct? (i.e. Am I reading this right?) What documents should be requested? Where do I go for information?

7. Recommendations

8. Volunteer Income Tax Assistance (VITA) • Originated with Tax Reform Act of 1969 • Increased emphasis on Taxpayer Education Programs • Offers free tax help • VITA volunteers prepare basic returns: • Low income taxpayers • Persons with disabilities • Limited English speaking persons • Elderly taxpayers

9. Link & Learn Link and Learn Taxes is an e-learning course designed specifically for volunteers. It provides uniform training and a consistent quality message to each volunteer.

10. Advanced Pension and advanced tax concerns Military Active members and Reserve Basic Common individual and family tax concerns Intermediate Other forms of income and deduction International Taxpayers living outside the U.S. Foreign Student Assist foreign students and scholars. Puerto Rico Bona fide residents of PR. Returning Student Tax laws that take effect this year A Training Course for Every Volunteer

11. Getting to Link & Learn Taxes: Go to www.irs.gov, type “Link & Learn” in the keyword field and click Search, then click on the “Link & Learn Taxes” link. Or you may be able to link directly using www.irs.gov/app/vita/index.jsp Either way you'll find a detailed overview and links to the program.

12. Volunteer Income Tax Assistance (VITA) • Set up a site within your school. • Train selected volunteer students/staff • Process tax forms for the community and students as well as assist with the preparation of FAFSA forms.

13. Why does your school need a VITA site? • Tax Filing Season – January 1-April 15, 2010 • Help students and/or families complete tax returns and FAFSA application • Ensure accuracy of the information on return. • Completed FAFSA Application submitted by deadline June 30, 2010

14. Examples of Successful Free Tax & FAFSA Form Preparation Strategies • Milwaukee, WI- VITA clients had FAFSA and tax returns prepared • Uvalde, TX – Held a FAFSA event to assist parents with tax return and electronic preparation of FAFSA • Oakland, CA – VITA clients had FAFSA and tax returns prepared

15. Resources • www.irs.gov • www.irs.gov/taxlaw • IRS Tax Help-800-829-1040 • IRS Forms & Publications – 800-829-3676 • Publication 17- Your Federal Income Tax • Publication 4012 – Volunteer Resource Guide

16. Q & A Carol Quiller, Senior Tax Analyst Carol.quiller@irs.gov (404) 338-8091