TECHNOLOGY UPDATE Bob Willis NTC Chair Modified by Howard Riggert TCS – NY3

1. TECHNOLOGY UPDATE Bob Willis NTC Chair Modified by Howard Riggert TCS – NY3

2. Tax-Year 2011 in Review • Successes • TWO conversions continue • New computer Images gaining usage • Improved Tech Communications • Introduced multi-level Tech Bulletin distribution • Introduced ShareNet on Portal • Revised Equipment Inventory procedure • Inventory Data Collection Tool – To Database • Why every year? New Computers, Upgrades to Win 7, Keys in Database used for future reimages

3. Tax-Year 2011 in Review • TaxWiseOnLine – National Totals • TW2008 – 3% of sites • TW2009 – 12% of sites • TW2010 – 20% of sites • TW2011 – 34% of sites • TW2012 – 50% of sites is goal After first week issues, TWO was reliable during the 2011 tax season

4. Tax-Year 2011 in Review • Equipment Issues – • Depot Laptops • Few problems this year with these computers • Imaging gains as method to simplify updating of AARP computers • Both “XP” and “Windows 7” non-model specific images were available – Newest versions available 10/31/12 • More of our recent AARP computers upgraded to Windows 7

5. Tax-Year 2011 in Review • Data Retention • IRS eliminated requirement to keep and send them copies of Form 8879 and income documents. • AARP Tax-Aide prohibited keeping these documents too. • EIN checking website made available to resolve rejects, success mixed. • AARP Rejects Reduced by 56%

6. Tax-Year 2011 in Review • TaxWise Software • Issues – • Fewer Desktop updates & issues this year. • Validation errors with both TWD & TWO better, but still an issue. • Enhancement list – • Compiled and Prioritized list to CCH in Mid-March • Initial review with IRS & CCH in mid-April

7. Tax-Year 2011 in Review • Communication– • Very successful with multi-level Tech Bulletins • Most to ERO level • Introduced ShareNet on portal • Some initial portal connection issues • Still needs better Organization and Indexing

8. Tax-Year 2012-13 Planning • New Objectives for 2012-13 • Release and promotion of Imaging • Will begin upgrade of AARP computers using the donated Win 7 license. • TaxWise Software Testing before season to include TWO capacity (Stress Test) – Still need volunteers by 11/10 for this effort • Promote TaxWise-OnLine (TWO) • Including specific site internet and Equipment needs

9. 2011 TCS Survey TWO Growth for 2012 • The Survey said that 40% of our TaxWise Desktop sites have Internet available at the site, but either don’t or are not allowed to use it. • You are encouraged to pursue using this existing Internet at these sites

10. 2011 TCS Survey Printer Configurations

11. 2011 TCS Survey Printer Configurations – Non-Networked • Almost 50% of sites do not network or use an electronic switch for printing. • Over 50% of sites using non-networked printers have a printer connected to each computer and another 20% physically move the printer (or printer cable) between computers. This not an efficient use. • A waste of resources.

12. 2011 TCS Survey New Computer Images – Huge Success • From the preliminary sample over 1000 computers were updated using the Image instead of downloading and installing Windows updates. • 800 with Windows XP • Nearly 200 to Windows 7 • With the 10/31/12 release of the Images and more field experience this should expand substantially this next year.

13. 2011 TCS Survey • Networks Networks can be wired, wireless or a combination of wired and wireless. More details will be discussed with TCs

14. What’s New for 2012-13 Season • Encryption • AARP is eliminating the required use of “TrueCrypt” for TaxWise Desktop computers. • TaxWise Software is fully Encrypted • If moved to C: Must run Setup.exe • New App for unencrypted P: Drive • IRS Depot Laptops are still encrypted per US Gov’t Rules.

15. What’s New for 2012-13 Season • EFIN Administration • Paper Form 8633 no longer accepted • All revisions and new applications will need to use e-Services. • New and existing EFINs should be assigned two Responsible Officials. RO is not the same as ERO. • Local IRS SPEC offices can also assist in making EFIN changes

16. What’s New for 2012-13 Season • IRS E-Filing Publications • Pub 1345 – Handbook for e-File Providers, updated this year. • Only available as electronic edition • Pub 3189 – Volunteer e-File Administration Guide, will become electronic only after this year.

17. What’s New for 2012-13 Season • TaxWise Changes • No More Legacy processing – all Modernized eFile (MeF) • TWO Safety-Net (Off-line) Option will be introduced • Uses Desktop that transfers efiles to TWO when back on-line • Use when internet down or CCH unavailable. At site or elsewhere.

18. What’s New for 2012-13 Season • TaxWise Changes • “Linked” State Returns can not be sent until Federal Return is accepted. • No more State Reject 901 and 902. • TWO Training Templates can be “Published” to Production version • Production Templates can not be used in TWO Training

19. What’s New for 2012-13 Season • TaxWise Template • AARP has a Template for TWO to reduce the effort in adding defaults – Subscriber No. 684025 – NY3 sites will have this Template.

20. What’s New for 2012-13 Season • 1040 Line 21 Other Income • New Worksheet for reporting Miscellaneous Income • Includes 16 additional income lines • New diagnostics will be added • Income from another form auto-populates the worksheet with amount and type • 1099-Misc income • link to worksheet then to 1099M.

21. What’s New for 2012-13 Season • TaxWise Changes • Form 8949 (Capital Gains and Losses) now a six page form instead of two pages so that copies don’t have to be added to the forms tree – short term and long term. • A – 1099 includes basis to IRS • B – 1099 does not include basis to IRS – Broker statement may include basis, but not 1099 • C – No 1099 form

22. What’s New for 2012-13 • Continue transition to Windows 7 on AARP Tax-Aide computers. • New computers have Windows 7 • Begin to upgrade AARP Foundation & Donated computers to Windows 7 that were in the May 2010 Inventory • Requires a minimum of 1GB of RAM • Begin distribution of additional Memory for AARP purchased computers • Use Enterprise grant licenses from Microsoft.

23. What’s New for 2012-13 • Printers • Our Consumables contract with GraceWorkz includes a Printer Repair Service at no cost to Tax-Aide. • Barbara Kaiser and Kaye Curry are contacts. • Cartridge complaints were sent to National. • Tax-Aide encouraged our volunteers to use the repair service last season. • Still, the 2012 Inventory reported 139 NW (Not Working) printers, 89 were eligible for free repair by GraceWorkz

24. What’s New for 2012-13 • Printers (Continued) • We need to efficiently use the printers we currently have, and believe some states have more printers than they need. • This year we will not automatically replace all of the printers reported as NW. • Each state will be asked to determine their need for replacement printers. • Next year printers eligible for GraceWorkz repair but not sent to them will not be replaced.

25. TaxWise OnLine • Promote conversion to TWO • Use TWO Training and Practice Lab websites to Practice Online • Prior year TWO Training website has State software for practicing

26. Advantages of TaxWise Online • Reduced Tax Preparation Burden • No installation on individual computers program maintained on CCH server • No updates required for TWO – updated by CCH. TWO Safety Backup on Desktop may require updating. • No need to backup, restore or transmit returns – data already at CCH

27. Advantages of TaxWise Online • Improved Security • No data stored locally on individual computers - secured facility stores all data • Intrusion detection – CCH uses software to reduce threat of hackers • Access from any computer with proper identification and Broadband Internet • Immediate availability – nothing to install • Ideal for Using Site Provided Equipment

28. Advantages of Networking • Every Desktop site with two or more computers should be networked • Reduced Tax Preparation Burden • Fewer copies of TW to setup and maintain • Eliminates need to copy returns from multiple computers for transmission • Provides easy method to print from all computers • Improved Security • Fewer computers with taxpayer data

29. TECHNOLOGY UPDATE Questions ???