Summary and Overview TY 2010 / 2011

1. Summary and OverviewTY 2010 / 2011 Gary Blauth

2. Objectives for this Meeting • To provide the latest information, policies and tools available so that you are in a position to pass on this information to everyone in your District • To provide an opportunity for you to network with other leadership personnel • For you to ask questions and seek clarifications

3. Presentations • All presentation materials will be available on the NJ website: www.njtaxaide.org/tavolunteers

4. Mission Statement Our primary mission is to provide the most accurate, free, tax return preparation and other tax related assistance possible for the greatest number of low to mid income clients which will produce the most beneficial result for the taxpayers we serve • Returns can only be prepared if they conform to the NJ Can Do/Cannot Do List • There are no age or income limitations • Send the taxpayer to a paid professional if: • There is an issue for which we have not been trained • Situation is too complex or time consuming • We do not feel that taxpayer is being honest • Maintain client confidentiality and all other requirements of the AARP Tax-Aide Policy Manual • Quality review every document prepared including PTR’s, Homestead Rebates etc is required by a second certified counselor

5. How Did We Do This Year ? We Did Very Well, Thanks to You!!!

6. National Results • Prepared 1.5 M federal returns • Assisted 2.5 M people • 95% of federal returns were e-filed

7. New Jersey Statistics • > 51,000Taxpayers Helped • Prepared > 30,000 Federal returns • 947 volunteers • 790 Counselors • 133 Client Facilitators • 161 Sites (down from 235 in last 3 years) • e-file ratio = 96% (up from 46% in 2005) • 14 districts > 95% e-file • 2 districts > 85% e-file

8. TY 2010 Goals • Highest quality returns • Security of Taxpayer Data • Growth

9. TY2010 Accomplishments vs GoalsHighest Quality Returns • Quality Review • Eliminated 1-person sites • Policy for 2-person homebound visits • 100% QR goal (local results not available) • Increased e-filing • Achieved 96% efile • More accurate returns

10. TY2010 Accomplishments vs GoalsSecurity of Taxpayer Data • Tax Wise Online • Goal: 90% TWO by TY 2011 • Increased from 20 to 93 TWO sites in TY 2010 • Highest number of TWO sites for any split-state • 3rd highest percentage of TWO sites • Site configuration • Policy: No off-site preparation of returns • Encouraged sites to provide privacy

11. TY2010 Accomplishments vs GoalsGrowth • Growth has been limited by number of volunteers and productivity • 1% increase in volunteers • Recruitment maintains current staffing, but falls short of expectations • Larger sites increase productivity

12. What’s New For TY2011 (1) • Further improvements to NJ training resources • Line-by-line answers to problems • Video tutorials • Web-based Recruiting Process continues to improve • NJ AARP office helps with recruiting emails • Improved Expense Reimbursement process • Faster reimbursement • Less paperwork • Budget issues • Significant cuts in program funding by IRS

13. What’s New For TY2011 (2) • No retention of taxpayer data • Form 8879 must be signed, but is given back to Taxpayer • No retention of W-2, 1099 forms (AARP policy, but a QR concern) • Can retain papers needed for Form 8453 submission • New form for Schedule D capital gains • Main Information sheet • Preparer use fields (preparer & QR initials) on separate form

14. TY 2011 Goals • Highest Quality Returns • Continue training improvements • Increase efiles (2 districts are still below 95%) • Security of Taxpayer Data • Continue TWO growth • Eliminate data retention • Cost Reduction • Web-based training • Conference calls & webinars • Search for new partners, grants and donations • Succession Planning

15. Policy, Guidelines, Best Practices

16. NJ Site Policy • No one-counselor sites are permitted – Period • If there are two person sites and one counselor is absent, the site must either: • Close • Locate another counselor to allow Quality Review • No new sites with less than 3 volunteers should be opened • All paper-only sites have been eliminated • 3 paper-only sites have been closed for TY2010 • 2 paper-only sites will convert to efile

17. Advantages of Larger SitesOpen multiple days, shifts and counselors • More volunteers, more experience, more correct answers to more questions, more coaching, less dead time, more flexible scheduling, less overhead • Greater ability to accommodate • Client “no-shows” & “walk-ins” • Counselor last minute unavailability • Complex/lengthy client returns • Computers are used for multiple shifts & counselors

18. Achieving Quality Recruit and retain quality counselors Not everyone is capable of preparing a quality tax return Provide appropriate training for counselors Instructors need knowledge, tools, presentation skills, and appropriate temperament Confirm volunteer knowledge before the tax season Pass the IRS approved test (80% each segment) Utilize additional problems in training to provide more experience prior to working with clients

19. Achieving Quality(continued) It is recommend that each counselor complete at least four additional problems and submit the problems for evaluation by a leader in the program Mentor new volunteers until they demonstrate the ability to consistently produce a quality return Monitor return preparation to ensure adherence to procedures

20. Program Policies (1) Volunteers may not accept compensation in any form or amount for services provided in the TaxAide program Volunteers may not recommend a specific paid preparer and should not provide information about any specific paid preparer Volunteers may not use the volunteer position to solicit business for themselves or others

21. Program Policies (2) Volunteers must avoid conflicts of interest, or the appearance of a conflict of interest, and advise a supervisor if either exists AARP and IRS provided materials, including computer hardware and software, may not be used for personal gain

22. Common Threads • Prepare the most accurate returns possible for the greatest number of clients • Increase efficiency to increase clients served • 100% Quality Review of every form prepared • Use Intake and Interview Sheet • Training – Re-think your training process • Lots of tools available & is highest contributor to a better quality return • NJ Training Guidelines • Technology – Re-think e-filing and Tax Wise Online • Reduce the number of manually prepared returns • Improve protection and confidentiality of client data • Figure out how to productively use expertise of paper preparers • Appointments vs Walk-Ins – Re-think your policy • Are long waits fair to the client or the counselor?