IRS Begging for Volunteers for VITA, etc

[jainen]

>>That doesn't make it right to put an entry on the wrong line.<<

Yes, and I had a similar objection, also on mortgage interest, in another thread [home office standard deduction]. So it's not necessarily a problem with VITA volunteers. And really it's not even a problem of bad preparers. We all make mistakes all the time. In my opinion that is acceptable. What I don't like is a weak or missing review process. That goes to how the organization is structured, not the quality of the workers.

[Guest Taxed]

This is from the VITA Site Coordinator Hand Book. If done correctly it should catch those common mistakes.

QSR #3 Quality Review Process

Allreturns prepared by an IRS certified volunteer preparer must be quality reviewed and discussed with

the taxpayerprior tothe taxpayer leaving the site.

Allsites must have a quality review process in placeensuring all entries on the tax return are correct. The quality review takes place after the return is prepared,but beforethe taxpayer signs the return.

NEW for 2013

– The Quality Review Process will include both designated reviewers and peer-to-peer

reviewers. Self review is no longer an approved option.

Designated quality review should be the most experienced IRS certified volunteers at the site. Their

responsibility should only involve reviewing completed volunteer prepared returns. Having a designated

quality reviewer(s) offers the best opportunity to correct errors.

The designated/peer-to-peer quality reviewer must verify the return is within the certification level of the IRS

certified volunteer preparer. The Scope of Service and Certification Chart in Publication 4012 (Exhibit 2)

can be used for this purpose. If the return is not within the certification level of the preparer, a conversation

must be held with the preparer emphasizing the requirement to only prepare returns within their certification

level.

To conduct a quality review, you will need all of the following:

•

Designated/peer-to-peer quality reviewer(s)

• Photo identification and Social Security cards/ITIN letter

• Completed tax return, including schedules, forms and, if applicable, worksheets

• Completed Form 13614-C, Section A and, if applicable, Section B

• All source documents

• Tax law reference materials

The designated/peer-to-peer quality reviewer must:

1. Engage the taxpayer in the review process.

2. Use Form 13614-C, Section C as a guide.

3. Verify that Form 13614-C and source documents support the tax return entries.

4. Use reference materials to confirm tax law determinations.

5. Discuss the final return with the taxpayer.

6. Advise the taxpayer they are ultimately responsible for the information on their return.

7.Inform the taxpayer that by signing the return, the taxpayer guarantees, under penalty of perjury, they

have examined the return and its accompanying forms and schedules for accuracy.

[SaraEA]

The IRS quality review rules sound ideal--the volunteer who prepares the return makes a few judgement calls re filing status etc and enters the data. Then a person more knowledgeable goes over everything before the taxpayer leaves the office and the return is filed. EXCEPT THAT the knowledgeable person isn't there every minute the site is open. And when there's a line out the door, those checklists aren't always followed to the T. IRS's own audits have shown that.

The situation reminds me of my days at HRB. The computer locked certain returns for quality review, either because they had something unusual (even a K-1) or the client bought the peace of mind guarantee. At the end of the day, those returns were checked and the checker's code entered so they could be released to efile. Problem was that the client and his/her original documents were long gone. There was no way to verify that the client really qualified for HOH status or was entitled to claim that dependent. All you could do at that late date was check that the W-2s etc that we retained were entered correctly. And often when the original preparer was a respected colleague, you just signed off on it without questioning anything. Out of the hundreds I reviewed, I can only think of a dozen that I continued on hold because something seemed out of whack. What a waste of time and false sense of security. And that's exactly what I think of the IRS rules for its VITA sites. Sound good on paper but....

I too know many really good preparers who pride themselves on volunteering for VITA. Several EAs, others with 20+ years tax prep experience, even a former IRS agent. I'm sure they do a really good job with those clients who are lucky enough to see them. That said, a very experienced pro I know left VITA because she was the one who checked returns and said that 90% of them were wrong. She thought they were harming rather than helping their clients.

The problem reflects the fact that so many people think they know how to do taxes. (How many returns have you corrected that were done by someone's coworker or brother in law?) The IRS reinforces the idea by giving people a brief training session and a rulebook, and then certifying them as "trained" volunteers. Yet filing status and EITC are among the most complicated parts of the tax code. at times stumping even those of us with extensive training. As much as they'd like to make it seem that anyone can quickly learn how to do a "simple" return, I don't think there is such a thing as a simple return anymore.

We do few EITC returns where I work, but I confess that I have referred to VITA a couple of them where I suspect unreported income. The unpaid volunteers don't have to answer the due diligence questions on Form 8867, nor are they subject to the huge fines.

[Guest Taxed]

I wonder how many hours of actual training by a qualified instructor IRS provides to a new volunteer without any tax prep experience.

As you mention many tax prep qualified people also volunteer, but that group is probably spread very thin.

I would imagine most of the taxpayers who go to VITA probably qualify for EITC so concentrated training in that area of the law is very crucial.

[kcjenkins]

Sara nailed the major problem ! EITC and dependancy rules have gotten so complex, and are the main reason many people file, and biggest catagory of VITA 'customers', I expect.

[Guest Taxed]

I think if they improved the EITC training and better supervison of new volunteers they can reduce the error rate.

[SaraEA]

In addition to those who claim EITC, many elderly clients use VITA services. I believe that AARP runs many free sites and might have its own training sessions. I've seen two major problems with those returns. One is that Box 2 of the 1099R is blank (and the "taxable amount not determined" box is checked), so the preparer leaves it blank. The software reads a "zero" when the entire amount is actually taxable. Second is gov't employees who paid into their retirement with after-tax dollars. The amount in Box 1 is not fully taxable, but unless you see their retirement letter containing the data, you can't tell what the ratio is and most of the VITA volunteers don't know enough to ask for the letter.

Both Congress and the IRS know that the tax code is indecipherable. And they both want to assist low-income and elderly taxpayers so they don't have to fork over some of their sparse dollars for professional tax prep. The VITA sites are a "feel good" solution, but the TIGTA audit results show that they aren't much of a solution. The real fix will be to simplify the tax code so more people with relatively simple financial lives can actually figure out how to do their own returns correctly.

[Guest Taxed]

I will not see any meaningful simplification of the code in my lifetime! I doubt if my grand kids would even see that.

[clay]

And I am guessing VITA does not use ATX or whatever software you are using and so now you have to learn a new tax software!

Wonderful..

[Guest Taxed]

VITA folks use a modified version of Taxwise software for their tax prep. The IRS had a contract with them before CCH owned them.