Quality Review
● IRS site reviews consistently observe that quality review process has been a significant weak area. Deficiencies include: − Failure to refer to Intake Sheet (Form 13614-C)
− Little or no engagement with taxpayer
− Checking only to see if data are properly entered but not evaluating overall return
− Failure to inform the taxpayer that return is their responsibility
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Requirements
● ALL returns must receive Quality Review by 2nd certified preparer
● Quality Review must be completed with taxpayer(s) present
● The Quality Review takes place after return is prepared, but before taxpayer signs return
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Quality Review Methods
● Designated Review – preferred method − Designated Quality Reviewer − Dedicated to reviewing completed
returns
● Peer Review – volunteers exchange returns with each other
● Self-Review – never acceptable
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Who Conducts The Quality Review?
● Second Certified Tax Counselor must Quality Review EVERY return
● QR on computer rather than printed return − Incomplete/missing forms are
apparent − Ease of updating errors − Saves paper and ink/toner
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Quality Review Process
● The process must include these elements:
− All issues on tax return are within Tax-Aide scope and within certification level and training of both volunteers
− Verification that all required entries on Form 13614-C were completed
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Intake/Interview Sheet
● Explain Quality Review Process to taxpayer
● Review Intake Sheet with taxpayer
● Review any ‘issues’ that came up during preparation
● Highlight any carryovers (e.g. capital loss)
● Respond to any questions NTTC Training – TY2017 7
Quality Review Process
● Look for typos, transposed digits, missing information, misspellings, etc.
● Compare Intake/Interview Sheet and supporting documents to return
● Ask taxpayer probing questions
● Ask: “Is there any other income?”
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Quality Review Techniques
● Techniques include: − Retracing preparer’s steps − Reviewing 1040 view and linking to
input screens − Reviewing forms in print review − Review the new view/print screens
● QR may use one or a combination of these depending on nature of return
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Quality Review Techniques
● 3rd page of the print PDF shows basic info. Verify the info for: − ALL names − ALL birthdays & ages − ALL SSNs − ALL relationships − ALL “months” − Address and Phone − Filing status (MFJ = 2, etc) − Direct Deposit or Mailed & bank information
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Quality Review Techniques
●Compare 2017 return to 2016 paper return if available
●Verify differences are reasonable and taxpayer understands reasons for any significant changes
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QR – Personal Information
● Review all personal information in Parts I and II to ensure Filing Status and dependency determinations are correct
● Verify data for each dependent is correct including answering the questions
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QR – Income
● Review all income reported in Part III to ensure: − All tax documents were accounted for
and entered − Income is consistent with prior year
return, if available − Ensure all income was reported,
especially self-employment and all cash income
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QR – Expenses/Deductions
● Review all expenses reported in Part IV − Only qualifying expenses were entered on
return − All available adjustments to income were
included − Appropriate deduction (standard or
itemized) was used to compute taxable income
− All available credits were applied to reduce total tax
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QR – Life Events
● Review life events in Part V − All events affecting return were confirmed
and correctly entered
− This area is often least understood by taxpayers and overlooked by Counselors
− It is the area that contains some of the less seldom seen items and items that are out-of-scope
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QR – ACA
● Review taxpayer’s responses to ACA questions in Part VI − Minimum Essential Coverage for each
month of the year was properly reflected for each person
− Any appropriate exemptions were identified and recorded on Form 8965
− Any Shared Responsibility Payments are accurate and appropriate
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QR – ACA (Con’t)
● Review taxpayer’s responses to ACA questions in Part VI − Form 1095-A is present for marketplace coverage − Data from any Forms 1095-A were properly
entered − Premium Tax Credits were correctly reconciled, if
applicable, on Form 8962
● ACA requires a comprehensive and in-depth interview
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QR – EIC
●Ensuring taxpayer receives correct amount of EIC requires reviewing several elements of return
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QR – EIC (Con’t)
● Careful review and interview with taxpayer key − Has the EIC Checklist been properly completed? − Is Filing Status correct? − Are birthdates correct? − Have all questions in personal information been
properly answered to ensure dependents qualified?
− Were disability pensions entered as wages? − Was self-employment income accurately
entered?
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QR – Refund/Payment Options
● Review Part VII to confirm taxpayer’s preferences for receiving refund or making payment for balance due
● Validate bank account information was entered correctly on return
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QR – Completion
● Complete Quality Review − Reviewing tax return notes − Verifying that questions have been
answered in e-file section of return − Updating Intake Sheet with notes − Updating the questions section in
TaxSlayer pertaining to QR − Prior year comparison tool NOT
available for 2017 tax year
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QR – Completion (con’t)
●Complete Quality Review −Answering any taxpayer questions
−Advising taxpayers of their responsibility for the accuracy of information on the tax return
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Feedback to Preparer
●Any discrepancies or errors noted should be discussed with tax preparer as appropriate
●This is best done privately after taxpayer has left
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Bottom Line
● Quality review is not just a proofreading exercise
● Purpose of quality review is to ensure that we file an accurate return for taxpayer which provides the highest refund (or lowest amount due) to which they are entitled
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● Improper SSN
● Incorrect name
● Errors in entry: W-2, 1099R, EIN name
● Improper entry of 1099 information
● Improper use of 1099-R Simplified Method
● Entry of 1099-OID as tax exempt
● Improper calculation of EIC
● Transposed characters/numbers
● Return prepared with out-of-scope issues
Common Errors
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A good quality review
takes time.
Do not short-change the
taxpayer by rushing through it.
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