VITA/TCE partners and volunteers,

I want to take this opportunity to send my heartfelt thanks for another successful filing season.

This filing season required more flexibility than ever. You have taken all the lessons learned over the past two pandemic seasons to combine virtual preparation with the return of face-to-face operations. You safely delivered tax returns to over 2 million people with stunning accuracy, a dramatic increase over last year. Official numbers are forthcoming, but I can say in confidence that we have increased production exponentially this year, across the nation!

Nothing is more satisfying than working with our communities and helping them grow. We focus so much on numbers, but it is the personal service we are able to provide and relationships that we develop, that make what we do so special. I look forward to hearing your stories and seeing your well-deserved celebrations.

Thank you again for all your time and effort this filing season.

Frank Nolden

Director, Stakeholder Partnerships,

Education and Communication (SPEC)

Now that tax season has come and gone, our support hours have shifted to off-season hours. TaxSlayer VITA/TCE support is now available Monday – Friday from 8am-5pm ET. Closed on weekends.

On Sunday, April 4th, TaxSlayer VITA/TCE Support will be closed for Easter Sunday. Normal tax season hours will resume on Monday, April 5th.

Below are bullet points from our opening presentation of the All Partner Call before opening up for Q&A from the field. Q&A notes are at the bottom of this post.

The American Rescue Act was signed into law late afternoon Thursday, March 11, 2021.  One of its many provisions was the exclusion of up to the first $10,200 of unemployment compensation.  Friday, March 12, 2021 the IRS released the Unemployment Compensation Exclusion Worksheet.  On Tuesday, March 16, 2021 the IRS instructed software vendors to use the UCE Worksheet for the tax calculation.  On Friday, March 19, TaxSlayer had updated the software to adhere to this IRS guidance.  On March 23, 2021 IRS released updated guidance to software vendors that there were certain items that the UEC was not be taken into consideration when calculating the Modified AGI for those items.  By Wednesday TaxSlayer had updated the software to calculate UCE in accordance with the IRS new guidelines.

The IRS has not provided guidance on what to do with returns that might have been affected by the updated guidelines, suggest your site review tax returns with Form 1099-G filed between Friday and Monday to see if any had additional changes and create a return tag so you can easily find them, once the IRS provides guidance.

Also, any returns containing Unemployment filed before the IRS directed software changes require no action for the Federal adjustments, the IRS announced they will make the adjustments, no need to file a Federal Amended tax return and there is no timeframe on how long this will take or what taxpayers are expected to see (letter/notice).  Please work with your RM to determine what process your State wants followed.

One other provision of the American Rescue Plan is not requiring any Repayment of the Premium Tax Credit.  To date the IRS has not provided any guidance to software vendors on how to handle the change.  The IRS has not announced how returns already filed will be handled.  More to come.

With all these mid-season changes and season extension, the IRS is playing catch up with updating the Modernized EFile (MeF) system.  There are 2 common items that will cause a return to reject, withholding greater than income, this can occur when all the UC was removed and there was withholding, or when a direct debit date is entered after 4/15.  The IRS continues to update the MeF system.

Finally, rejects are from the IRS, if you are trying to understand why a return rejected please reach out to your RM for some guidance, if the explanation provided from the IRS is not sufficient.

Status of Issue 5502 – Fees not appearing on the invoice?

• Issue 5502 has been committed by development to resolve, however, we do not have an ETA at this time.

For NY, can we decouple these returns from the Federal so we can send them in mass later once NY has updated related to Federal UCE?

• Currently, the only way to not file a state return at the same time as of the Federal is to access the returns individually and mark the state return as “Paper”.

Can we e-file Federal direct debits for 5/17/21 now?

• The IRS has not adjusted their business rules to support direct debits past 4/15/21.

Has the issue been corrected where you can’t print the accepted return from Client Status?

• We expect this to be resolved by next week (week of 3/28/21)

How to clear a rejected return that the TP now doesn’t want to file electronically?

• To clear the “rejected” status, go into the return and mark it as a paper return.

How come the adjustment for PTC repayment is not reflecting in TaxSlayer yet?

• The IRS, to date, has not issued guidance to software vendors on how to handle the PTC provision.

Do we need to amend Federal returns for UCE?

• No, the IRS has stated for returns already filed prior to the UCE implementation that they will automatically adjust these returns on their end.

Where can we find what preparer e-filed a return?

• Go to Client Status for that return. The Return History will show the username for the preparer that transmitted the return.

Below are bullet points from our opening presentation of the All Partner Call before opening up for Q&A from the field. Q&A notes are at the bottom of this post.

Updates since the Last All Partner Call:

• American Rescue Plan
  • The IRS has already started having calls with industry
  • First priority will be distributing EIP3
    • Will issue 1444 C for EIP3 amounts
    • Will be reconciled on TY2021 returns
  • IRS must interpret the updated law in regards to handling the unemployment changes
    • Committed to issue public guidance on how already filed returns with unemployment should be handled
    • We are adding a column to the Pro Web Returns – Detailed Returns report
  • The majority of all changes will be handled via the TY2021 returns
    • Reconciliation of advanced CTC payments
    • Reconciliation of EIP3
  • As the IRS releases information we will assist in distributing it via the blog and Message center
• Scanned Documents
  • We have started the process of automatically deleting the docs after 14 days
• 8915-E
  • Can now add the form to your custom print sets
• E-file volume
  • Seeing pretty significant increases in return prep and e-file volume
• Suggestion Box
  • Reminder that this is a good time to be entering software suggestions as you are preparing returns
    • What would make a process easier
    • Most of you are implementing new processes this year, so how can we help from an application level
  • FSA URLs
    • Messaging around who to contact for support has been much better since our last call
  • Volunteer Times Blog post
    • Opportunity to share your best practices for making appointments, virtual processes, hybrid processes.

IPPIN – How is the best way for a taxpayer to get one?

• Reach out to your Relationship Manager for guidance for best steps to request an IP PIN for the taxpayer.

If we send a return with a wrong RTN number, can we correct that with the IRS before they issue any refunds?

• Generally, no, TaxSlayer (nor any software vendor) can retransmit updated banking info to the IRS after an accepted ack.

8915-E – Are there any known issues still or are we good to e-file?

• All 8915-E updates at this time are live in the software.

State sometimes loading blank page?

• We have an active defect reported with development to look into this, but in the meantime, if this happens at your site, you can refresh the browser page and it will load.

Any update on extending the filing deadline past April 15^th?

• No statements or guidance has been made regarding the filing deadline at this time.

Do we need to use the EIC Checklist as volunteer sites?

• No, the checklist is for paid professionals only.

Can we e-file 2019 amended Federal returns now?

• Yes

Can we elect not to spread taxable income over 3 years with the 8915-E yet?

• Yes

Below are bullet points from our opening presentation of the All Partner Call before opening up for Q&A from the field. Q&A notes are at the bottom of this post.

Updates since the Last All Partner Call:

• State Only e-file has been turned on
  • Remember you still have to select a Federal e-file type
• Watch the blog for e-file messages from the state(s)
• Watch the blog for trending rejects
  • Taxpayer SSN is locked by SSA, you will need to paper file the return (IND-941-X)
• Watch the blog for instructions on trending support calls
  • How do I deactivate a return
    • Correct security template
    • In Progress/Review failed
  • Do Not Mail Banners on State forms
    • States are all over the place with approving forms due to late changes with Cares Act
    • Once we receive print approval, we remove the strip
      • Does not prevent you from e-filing the return
    • Setting up your Ad Hoc Sites
    • What to do if the taxpayer doesn’t know the Spouse SSN for MFS returns
    • Tips on where to find 2019 Earned Income
  • 1040X returns
    • Hold them until we resolve sending the e-file without the 1040X indicator
    • IRS is still working on the 1040X schema, so changes will be occurring over the next few weeks
      • They are currently using 2019 schema
    • Form 8915-E
      • The ability to use Form 8915-E now available for all distribution codes and not just early distributions
      • If Payer died in 2020, distribution is fully taxable on the 2020 return and cannot be spread over 3 years. This is triggered if a TP/SP is marked as deceased in 2020 in Basic Information.

Sites using a FSA Kiosk URL:

• We strongly recommend using the URL we sent you rather than using a URL shortener
  • We cannot control where a URL shortener redirects the URL
  • Tiny URL definitely redirects to something other than the VITA/TCE Kiosk landing page
  • Bit.ly seems to be hit and miss
  • Make sure if you are embedding the URL on an Intranet site, it does not add anything before or after the URL
• Make sure you are communicating how to reach a certified volunteer when sending out the URLs
  • Consumer (TaxSlayer.com) support does not have direct access to their information and they will get messaging to reach back out to where they received the URL from

1040NR:

• On for Pro Online
• Received ATS approval for the FSA Kiosk URL
  • Will create a timeline on when the e-file block will be removed

Form 8915-E – How are withholdings handled? Are they spread over 3 years?

• From our current understandings, Form 8915-E does not account for withholdings so any withholdings are included only in the current year.

Form 8915-E and if it will be added to print sets?

• Yes, we are actively working to make it available as an option to add to a print set.

How to remove EIC from a return?

• In the Federal Section go to Credits > Claiming Refundable Credits After Disallowance > Not Eligible for EIC.

Can TaxSlayer Pro Online be accessed on an iPad?

• Yes.

Can we e-file state amended returns for 2020?

• E-filing state amended returns is not supported in TaxSlayer Pro Online or FSA Software at this time.

Can the FSA product support 1040-NR filings?

• Yes.

Is there a reason why a 1099-R cannot be marked as a Corrected 1099-R like you can for a W-2?

• Adding this checkbox is on our Enhancement backlog for future implementation.

Is State Only filing supported in the FSA software?

• No.

Below are bullet points from our opening presentation of the All Partner Call before opening up for Q&A from the field.

E-file opening Day 2/12

• We received over 1,400 e-files during our controlled launch window
  • Transmitted and received acks for 101 returns
  • The rest will be submitted to the IRS on Friday
• We will monitor IRS volumes and turn on 2020 e-file late morning (ET) on the 12^th.
• You will have to open returns created prior to the 12^th in order to electronically file them

FSA URLs

• E-files submitted by the taxpayers will be sent to the IRS on the 12^th

Scanned Docs

• We have turned on the scanned document feature for all orders we have received
• If your site is not turned on, please reach out to your SPEC RM
• Scanned Document mini guide under VITA/TCE User guides and on the Practice Lab (section 6)
• Video on the Practice Lab

Trending Rejects

• Name/SSN Mismatch
• EIN/Company name mismatch
• EFIN not active
• Biggest is IPPIN
  • IRS opened up for anyone to apply for get an IP PIN
  • May not understand they need to give it to their preparer
  • May not understand it changes every year

Customer Service Opportunities

• Monday – Friday 8am – midnight ET
• Saturday/Sunday – 8am – 8 pm ET
• Phone
• Email
• Chat
• Phone number and email address is located on the VITA/TCE Springboard

When will Phase II of 8915-E be implemented?

• There is not a specific ETA for Phase II, however, as additional F8915-E updates are released, they will be included in Release Notes.

Do you need to use both the 8915-E and 5329 to remove an early distribution penalty?

• No, if the early distribution is COVID-19 related, electing to use Form 8915-E will remove the early distribution penalty (up to $100,000).

Can you edit existing security templates to use scanned documents?

• Yes, if your site is using Scanned Documents, you can edit existing Security Templates to allow scanned document feature access.

What will be included in additional 8915-E updates?

• Additional updates will include, but not limited to:
  • Election to NOT spread the taxable amount over 3 years (Line 9 checkbox)
  • The option to utilize Form 8915-E for any 1099-R distribution and not just for early distributions as it is currently

Form 8915-E and withholdings: Do withholdings from the 1099-R get spread over 3 years?

• Form 8915-E instructions do not specifically mention how 1099-R withholdings should be (or could be) handled if electing to use Form 8915-E. Any 1099-R withholdings reported appear to be counted in the first year as they normally would be. We recommend consulting with your SPEC Relationship Manager for further guidance.