VTA 2021-01 Certification Testing and Using Practice Lab

Purpose

Volunteers should use caution when completing their certification tests using the Practice Lab.

Identified Issues
The Practice Lab has not incorporated all 2020 tax law changes. Additionally, it does not include the 2020 draft versions of all the forms or schedules. This may cause users to make inadvertent errors when taking their certification tests.

Please note that certain calculations could change as the IRS continues to finalize instructions for tax year 2020. TaxSlayer is working diligently with the IRS and state agencies to incorporate updates as they receive them.

The 1040 View in the Practice Lab still reflects 2019 Form 1040. It is recommended that volunteers generate the tax return PDF from the Client List or Summary/Print menu to see the return on a tax year 2020 draft Form 1040.

Message to Volunteers

Unless you have an immediate training need to certify for tax year 2020, volunteers should wait to take the 2020 VITA/TCE certification tests when the final forms are available in the Practice Lab.

The identified issue in the Practice Lab may affect your answers for any certification or practice return preparation scenarios that include:
■ Form 1099-NEC
■ The deduction for charitable contributions
■ The recovery rebate credit
■ Credits for sick and family leave for certain self-employed individuals
■ The deferred payment of 50% of Social Security tax for certain individuals
■ The inclusion of coronavirus-related distributions in income ratably over a 3-year period, and repayments of those distributions
Other tax provisions may also be affected.

The IRS anticipates that Form 1040 will be finalized in mid-December. TaxSlayer will then begin to update the Practice Lab with the final 2020 form at that time. Again, volunteers not having an immediate need to certify should wait until the Practice Lab is updated. Volunteers who have a need to certify early may discuss the impact and possible workarounds with their SPEC relationship manager.

Use caution when completing the following test scenarios
■ Basic Scenario 6
■ Name of charitable organization and date of contribution not provided. Enter the name of any charitable organization and date in tax year 2020.
■ The screen to input direct deposit information is not available.
■ Basic Scenario 7
■ Name of charitable organization and date of contribution not provided. Enter the name of any charitable organization and date in tax year 2020.
■ The EIN on Form W-2 auto-populates with a different name and address. Type over the data with information shown on Form W-2.
■ Basic Scenario 8
■ The form used to request a split of refund is not in the first TaxSlayer software release in the Practice Lab.
■ The EIN for the daycare provider auto-populates with a different name and address. Type over the data with the information shown on the statement.
■ Advanced Scenario 6
■ In the Interview Notes, between the first and second sentence of the seventh bullet, add “He received a scholarship and the terms require that it be used to pay tuition.”
■ The recovery rebate credit does not calculate in the first TaxSlayer software release in the Practice Lab. Completion of the tax return is not needed to respond correctly. Refer to the information in Publication             4491 and/or Publication 4012.
■ The screen to input direct deposit information is not available in the Practice Lab.
■ Advanced Scenario 7
■ The sale date of stock is indicated as 12/1/2020 on Form 1099-B. If you are taking the test prior to 12/1/2020, enter a date in tax year 2020 prior to this date.
■ Advanced Scenario 8
■ In the Interview Notes, third sub-bullet of the seventh bullet, replace 3/15/2020 with 4/15/2020.
■ Form 1099-NEC is not in the first TaxSlayer software release in the Practice Lab. Enter the information in Box 7 on the Form 1099-MISC screen.
■ The new Part III of Schedule SE does not calculate the deferral of self-employment tax payments. Completion of the tax return is not needed to respond correctly. Refer to the information in Publication 4491             and/or Publication 4012.
■ Military Scenario 5
■ In the Interview Notes, on the Social Security card for Joseph Stevens, replace 959 with 659.
■ Federal Income Tax Updates for Circular 230 Professionals Return Preparation Scenario 5
■ Name of charitable organization and date of contribution not provided. Enter the name of any charitable organization and date in tax year 2020.
■ The screen to claim a recovery rebate credit is not available in the first TaxSlayer software release in the Practice Lab. This does not affect the answer to any test question.

Resources
For specific information refer to the following resources:
■ TaxSlayer VITA/TCE Blog
■ Draft 2020 Form 1040
■ Draft 2020 Instructions for Form 1040 and 1040-SR

For additional questions, please talk to your site coordinator, partner or IRS SPEC relationship manager.

Thank you for volunteering and for your dedication to top QUALITY service!

There are several ways you can offer support to your taxpayers.

• Communicate your site’s support information when you send the taxpayer the URL.  DO NOT rely on them being able to navigate your site and find it.  This should include all ways that the taxpayer can communicate with a certified volunteer at your site such as:
  • Support number, along with hours or operation
  • Email address, along with expectations of when they can receive an answer
• There are several ways you can support your taxpayers which include, but are not limited to
  • Utilizing screen share applications
  • Following along with a support account you have created (you can have up to 5 usernames per email address)
  • Being available to answer tax related questions
  • Being available to help them work through any IRS or state rejects
• If there are questions you (as the site) cannot answer, you should email VITA/TCE with detailed information.  They will need to know the following at a minimum:
  • Account Username
  • Account email address
  • Detailed information on what you need assistance with
• At no time should you recommend or advise a taxpayer to reach out to TaxSlayer for support.  The agents will not be able to assist your VITA/TCE Kiosk taxpayers directly.

Where can I find the taxpayer’s 2019 Earned Income?

Preferred Method

Look at a copy of the taxpayers 2019 tax return.

• Look for Form 8812. Earned income is shown on line 6a.
• If there is no Form 8812, look for the EITC worksheets, which are usually included at the end of your return. Earned income is listed on Worksheet A, Line 1 and Worksheet B, Line 4b.

Alternative Method

If the taxpayer does not have a copy of the 2019 return, the taxpayer can obtain a transcript from the IRS.

Scenario: I have a client that is separated so she is filing Married Filling Separate. They system is asking for her Spouse’s information. Is there a way to bypass this?

Solution:  In order to electronically file the return, the spouse SSN must be entered.  If the taxpayer cannot obtain the information, then you can enter 111-00-1111 to by pass the entry screen, but the return will have to be filed via paper.  The IRS does a SSN/Name match for the spouse SSN during the electronic filing process

Scenario:  The preparer loaded Form 8867 to ensure the taxpayer qualified for EITC, but they do not want it to print with the return

Solution:  Use the assigned QUALTIY REVIEW print set or any print set that you created that does not have a print copy for the 8867.

Scenario:  I have loaded the 8867 in the return, can I remove it

Solution:  No, once the form is loaded and completed it cannot be removed.  Form 8867 is for Paid Preparer’s

Reject Code R0000-905-01
Message Electronic Filing Identification Number (EFIN) in the Return Header must be listed in the e-File database and in accepted status.

(1) This means that e-services does not have your EFIN as an active account

(2) The EFIN holder (Responsible official) should reach out to e-services to inquire why the EFIN is no longer active

(3) You should reach out to your SPEC Relationship Manager

(4) If a new EFIN is issued or has been issued, you must notify your SPEC RM and notify TaxSlayer VITA Support via email.  We have to get the EFIN change approved.

Many states require print approvals, as well as approval for electronic filing.  Due to the significant changes in tax law changes due to the COVID19/Cares Act, many of these approvals are coming in a bit slower this year.  As we receive approvals from the state for the forms, we will remove the DO NOT MAIL banners.  This does NOT prevent you from electronically filing any applicable state return and giving the taxpayer a copy.  The banner warning alerts the state if the taxpayer happens to mail their return to them.

Many of you may be waiting to resend your state e-files until we turn on “State Only” e-file.  The fix is currently in development and will be released as soon as possible.