Date Issued: February 22, 2018
This alert supersedes the previous alerts issued on February 2 and February 16, 2018.
blog posted 02/26/2018
VTA-2018-04: To provide an update on the “extender” provisions
Note: Supersedes VITA-2018-02
VTA-2018-03: Taxpayers Receive Fraudulent Refunds in Preparer Data Breach Scheme
Reason issued: To alert VITA/TCE volunteers about a tax refund scam affecting taxpayers
VTA 2018 Archives
Quality Alert from SPEC Headquarters: 2018 Form 1040-ES
Background: The IRS is continuing to update its programming and processing systems for some 2018 forms impacted by the Tax Reform Act. This includes Form 1040-ES, Estimated Tax for Individuals, for all software vendors. IRS expects to release this form to software vendor in mid-February.
Once the form is released TaxSlayer will update the software with the correct 2018 Form 1040-ES. Until this form is released by IRS, VITA/TCE sites should not provide the 2017 coupons currently printing from the software to the taxpayer.
Message to the Taxpayer: Inform taxpayers that the 2018 1040-ES is not currently available from IRS due to the recent tax law changes and to check IRS.gov in late February to obtain the 2018 copy. Estimated payments are due quarterly so the first payment for the year is not due until April 15. So, there is time to determine the amount of your estimated payments.
Estimated payments are due on the 15th of April, June, September and January of the following year. Note: If these due dates fall on a Saturday, Sunday or legal holiday, the payments are due the next business day. Once available you may send estimated tax payments with the 2018 Form 1040-ES, pay online at https://www.irs.gov/payments, or from a mobile device using the IRS2Go app.
Thank you for your patience and continued support as we work through this process together.
Pro Online/Desktop: Notification from Indiana Department of Revenue
The Indiana Department of Revenue sent out the below messaging to all software vendors.
“The Indiana Department of Revenue became aware this morning of a duplicate deposit situation that occurred with several of our customers overnight. We apologize for this inconvenience. Please be assured, the department is doing everything we can to rectify the situation. As of today, all customers’ second deposits are currently pending to be removed within 24 hours. Again, we apologize for the inconvenience and we appreciate your cooperation during this process.“
Pro Online 2017: Open Return reminder and additional Report information
Below is a reminder of the message sent out by SPEC last week. Today is the opening day for many sites to service your taxpayers on EITC Awareness Day.
We have an additional report that will list all returns (regardless of status) that you may want to run prior to electronically filing the return. It also includes the state abbreviation of any state listed on the return.
This is listed under Reports>>Management Reports
Make sure you select 2017 and select the EFIN even if you are running it at your site level.
~~ Original blog Post ~~~
VITA/TCE sites that prepared tax returns prior to January 29th will now be able to transmit those created returns. To ensure these returns are re-calculated based on the updated forms and instructions released by IRS to software vendors, each tax return must be opened prior to transmitting to TaxSlayer. This will ensure previously prepared tax returns have the updated IRS forms calculations applied prior to transmission and reduce the need of VITA/TCE sites having to prepare amended returns.
Sites are strongly encouraged to run a Site Production Detail management report (titled: Pro Web Returns – Detailed Return Report) listing all returns prepared prior to January 29th to assess possible return calculations changes. This report will reflect the original return calculations for refund, credit, or balance due dollar amounts. Sites may also review the “Client Return History” to determine if the refund or balance due changed on a tax return.
Taxpayers must sign a new declaration (Form 8879, IRS e-file Signature Authorization) if the electronic return data on individual income tax returns is changed after taxpayers signed the original, and the amounts differ by more than either $50 to “Total income” or “AGI,” or $14 to “Total tax,” “Federal income tax withheld,” “Refund,” or “Amount you owe.” See Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns, for additional guidance.
Pro Online: Paper Global Carryforward Consent Form
The following was sent out by the IRS Core team:
This filing season 2018; taxpayers using volunteer sites will need consent annually on whether they want their tax return information accessible to all sites participating in the VITA/TCE program. A taxpayer who consents will be able to visit any volunteer site in the subsequent year and the site will be able to populate the return with data from the prior year. This is a two-year process.
Based on IRC 7216, if the return preparer is entering the consent PIN and date into the tax preparation software the taxpayer must sign and date a paper consent form before entering the consent PIN and date into the tax preparation software. The site may give the signed paper consent form to the taxpayer or maintain at the site. Whether the signed copy is given to the taxpayer or maintained at the site, a copy of the consent in the tax preparation software with the PIN must be provided to the taxpayer for his/her records.
Many taxpayers do not want to enter their own PIN, so we have been asked about guidance for paper consents to ensure sites are compliance. Attached is the consent form approved by Counsel with the mandatory language for a paper Global Carry Forward consent based on IRC 7216. Use of this paper consent is only required for sites when the return preparer is entering the Global Carry Forward consent PIN on behalf of the taxpayer.
Blog Posted 01/17/2018 3:42 pm eastern
Status Update on Tax Year 2017 Software Orders
The following message was distributed by SPEC this morning:
Background: TaxSlayer software ordering season began on October 2, 2017. Due to an IRS system technology issue impacting the procurement of software; IRS has to delay the processing of the 2017 TaxSlayer software orders. We are expecting to have the issue resolved by the end of this week (December 1st). Please continue to submit your orders. We expect to start processing orders by Tuesday next week.
Until receipt of software, sites still have the ability to complete many site administrative functions, such as verifying site Information, creating security templates, adding preparers, creating/assigning custom questions, etc. VITA/TCE sites should continue to use the Practice Lab for training purposes.
Blog Posted 11/27/2017