New Jersey Tax-Aide E-file

Gary Broughton

Technology Specialist

What went well?

• New Jersey electronic returns up 23%– North Atlantic region up 2%– National down 8%

• Productivity up for all districts– All districts >40% e-file– Eight districts >80% e-file

• Data retention (100% of EROs participate)

What could be done better?

• Efficient use of equipment

• Counting returns– AARP and IRS differences– TaxWise and IRS differences

• Use of Standard Site Model

• Use of TaxWise clone

Standard Site Model

• Returns are prepared only at active sites• Each e-file site has an EFIN• An EFIN is used to prepare returns only for

the site where it is registered• EFCs provide returns to the ERO

transmitting for the site where they were prepared

• Computers used at more than 1 site change Setup Options to match site EFIN

Standard Site Model Exceptions

• An EFIN may be used to prepare returns at a secondary site– Open not more than a week a year

• The practice of e-filing at low volume sites is discouraged. EFINs are not normally obtained and software is not purchased for sites expected to produce fewer than 35 accepted e-files.

Challenges & Opportunities

• Equipment to support expansion

• Equipment aging

• Computer software updates

• Network printing using printer sharing

• Vista & Windows 7 transition and support

• TaxWise Online

Tax year 2009 changes

• IRS: All returns may be retained without individual authorization• TaxWise: EFIN Authentication• AARP –

– New vendor for printer cartridges, printer repairs & flash drives– Revised TrueCrypt installer– Revised TPClear [later]– Technology Management Guide: electronic distribution only

• New Jersey Tax-Aide– Equipment

• Additional laptops [10] and printers [5] from AARP• Additional laptops [2] and network printers [3] from Bergen donation• Additional network printers [5] from NJ donated funds

– TaxWise Online– One Supersite

EFIN Authentication

• Concept: Carry forward will be limited to returns prepared with an EFIN which is also active in 2009

• Impact: Unknown until we learn the details of how this is implemented

Consumables

• Replacement cartridges for specified printers

• Repair/replacement of specified printers

• Flash drives [probably above discount]

• TC email request to TCS [ADS alternate]

• Can be shipped directly to end user

• Volunteers will not be reimbursed for cartridges available through the contract

2008 Program Laptops

Equipment Allocation to NJ

• Category 1: replace inoperable equipment– 6 laptops [for 5 desktops & 1 laptop]– 3 printers

• Category 2: discretionary– 4 laptops– 2 printers [network]

Equipment Allocation within NJ

• Goal: 80% e-file in each district

• District requests

• Considerations– Begin e-file at large sites– Increase e-files at large sites– Laptop efficiency– Discretionary funds

TaxWise Online

• Tax returns prepared on encrypted web site• All taxpayer data stored on TaxWise server• Computers require no encryption or tax

preparation software• Wired connection between computer and

broadband internet• https://twonline.taxwise.com/training

Efficiency

Looking ahead -

• E-file clients with paper returns [23%]

• E-file the growth from additional clients [11% per year]

• Assume AARP replaces defective equipment

• Opportunities– Loans and donations – More productivity from existing equipment and

volunteers

Places to look

• Site operations– Hours/shifts per day & days per week– Consolidate sites => more counselors per site– Eliminate dead time and distractions– Scheduling and matching clients to counselors

• Equipment– Assign to individual or site?

• Metrics

Efficiency Exercise

• What can be done in your district to produce at least 10% more e-files than last season?– Same number of volunteers– Same equipment

• Discuss for ~30 minutes

• After break, share your plans

Quality Review of E-files

Accurate returns and minimizing rejects

What’s Important?

• Anything and everything that affects the accuracy of the return

• The same things that are important if the return were prepared on paper

• A few extra things unique to e-filing

What’s Different?

• TaxWise diagnostic

• IRS Acknowledgement [Accept/Reject]

TaxWise Diagnostic

• Diagnostic must be passed to e-file Federal and state

• Verifies entries needed to e-file are complete

• Does not verify that all data required for the taxpayer is entered

• Does not verify that any data entered is correct

IRS Accept/Reject

• Checks accuracy of some entries

• Checks if taxpayers and dependents are listed on tax returns already filed

• Does not verify that all data required for the taxpayer is entered

• Does not verify that any amounts entered are correct

What does the QR need to check?

• All data required for the taxpayer is entered

• Data entered is correct

• A few extras for e-filing– EIN– Direct deposit

Options for QR of e-files

Using Intake Sheet & taxpayer documents, with access to taxpayer and preparer

• At the preparer’s computer

• Print the return and review paper copy– Include summaries of W-2, 1099-R, . . . .

• At a different computer

All of the above are acceptable.

Who does the QR?

• Required: Counselor certified to complete the return [tax year, amended, other states]

• Recommended:– Dedicated QR– Additional QR training

• For non-EFC to do QR on e-file

Summary

• Continued good e-file progress last year

• Narrowing spectrum of e-file implementation among districts

• Equipment– Efficiency improvements– Partnerships/donations