Technology Update AARP Tax-Aide Regional Meetings – St. Louis October 2011 Bob Willis – NTC Chairman & Veronic

1. Technology Update AARP Tax-Aide Regional Meetings – St. Louis October 2011 Bob Willis – NTC Chairman & Veronica Coates - Technology Manager

2. NTC Update • TCS & ERO Survey Results • Status on IRS Depot Image • ERO Procedures & Document Retention • TaxWise 2011 Enhancements • Planning for Tax-Year 2011 • Updating Extranet Docs • Images to “refresh” Computers • TCS Conference Calls • Windows 7 Upgrade Program

3. Tax-Year 2011 Recommendations • Major Objectives • Promote TaxWise-OnLine (TWO) • Expand use and training on Networking • Provide awareness and more Printer Setup Training • Promote using new Image to update computers in the field • To accomplish these objectives it will require the support and a ‘Push’ from the Tax-Aide leadership.

4. TCS & ERO Survey Results • Overwhelming support from TCS’s to add EROs to distribution of Tech Bulletins, & ERO’s also want Tech Bulletins • Gains in Networking and TWO • Printer Configurations • Use of new Images & TWO Results from 3331 sites – 53.4% of our total sites

5. 2011 TCS Survey Projected TWO Growth for 2012

6. 2011 TCS Survey TWO Growth for 2012 • The Survey also said that 40% of our TaxWise Desktop sites have Internet available at the site, but either don’t or are not allowed to use it. • You need to pursue using the existing Internet at these sites

7. 2011 TCS Survey Top Ten TWO States in 2011 Based on Surveys submitted with at least 50% of the state’s sites reported

8. 2011 TCS Survey Printer Configurations

9. 2011 TCS Survey Printer Configurations – Non-Networked • Almost 50% of sites do not network or use an electronic switch for printing. • Over 50% of sites using non-networked printers have a printer connected to each computer and another 20% physically move the printer (or printer cable) between computers. This is ridiculous! • A waste of resources and lack of training?

10. 2011 TCS Survey • TWO Networks Networks can be wired, wireless or combination of wired and wireless.

11. 2011 TCS Survey • TWO Networks • Almost 50% use wireless • Wireless networks increase versatility, but can drop the connection if unstable • Recommend some wired computers if possible in each network

12. 2011 TCS Survey New Computer Images – Huge Success • From the preliminary sample over 1000 computers were updated using the Image. • 800 with Windows XP • Nearly 200 to Windows 7 • With an earlier release of the Image and more field experience this should expand substantially this next year.

13. 2011 IRS Depot Laptop Image • Earlier this summer we reviewed the Image that was prepared for these depot laptops • There were a number of serious problems-Most were resolved before computer’s shipped • Unfortunately several changes recommended for the Manual shipped with computers were not made – it had already been printed

14. What’s New for 2011 • IRS will expand use of… Modernized eFile (MeF) • Most tax forms can be processed by MeF in TY 2011 • Fewer Validation Errors, some will be resolved automatically All Return Processing will use MeF in TY 2012

15. What’s New for 2011 • Modernized eFile (MeF) will allow the e-filing of prior year and Amended tax returns • MeF will eventually permit e-filing returns for two prior years, but in 2012, TaxWise will only e-file 2010 returns. • Amended Returns can also be e-filed in future, but not in 2012.

16. ERO Procedures & Document Retention Policy • The IRS no longer requires retention of a signed Form 8879 or W-2s, W2Gs, or 1099Rs • Taxpayer(s) still signs the Form 8879 but keeps it with their records. • IRS ask States to also eliminate their retention requirements, as of Sep 30th, only Georgia has not yet agreed

17. ERO Procedures & Document Retention Policy • To take advantage of the reduced IRS document retention requirements and further reduce the potential for the loss of taxpayer identity, the NLT has approved the following policy…

18. New AARP Tax-Aide Document Retention Policy • Sites or EROs will not keep any forms or documents with taxpayer identity and/or SSN number on the document. • W-2s’, 1099s’, Form 8879, etc. will no longer be retained at the site or by the ERO, Unless it is mandated by the IRS or a State. i.e. Form 8453 if used for mailing documents to support a return, may still be retained until mailed to IRS.

19. ERO Procedures & Document Retention Recommendation • Recommend Using Return Stage in TaxWise to track return status.

20. ERO Procedures & Document Retention Recommendation • Recommend also using Activity Reporting, QR & ERO Tracking Log to track returns.

21. ERO Procedures & Document Retention Recommendation • The Client Letter is available as an option. It does not need a SS# and other pertinent information can be selected by default before printing. Some limitations with TWO that will not provide State Return information

22. ERO Procedures & Document Retention Recommendation • TWO sites should consider transmitting ‘Suspect’ returns from the site to get ACKs before the Taxpayer leaves. Example: Taxpayer who is unsure if dependents have been claimed by someone else – a former spouse?

23. ERO Procedures & Document Retention Recommendation • We are pursuing other tools to minimize and fix rejects. • More thorough Quality Review of SSNs and EINs • We are also seeking and testing on-line or phone methods to verify Company name/EIN number matching with the IRS and third-party companies to more easily resolve rejects.

24. ERO Procedures & Document Retention Recommendation • There will be more information and training provided as it is developed. • The goal is to improve the accuracy of the tax return and simplify the ERO duties.

25. What’s New for 2011 • TaxWise 2011 will again “Link” State Returns with the Federal Return with both Desktop and TWO as we did prior to TW 2010 for States using MeF. Linked state returns are held until the federal return is accepted. This eliminates the potential that a federal reject may make it necessary to amend the state return. And should eliminate the confusing two state acknowledgements • Unlinked will still be available for State returns without a Federal Return

26. What’s New for 2011 • Other TaxWise 2011 Changes: • Preparer Use Fields will move from the bottom of the Main Info form to a separate form. This new form will have more fields and include a Taxpayer Reminder Field that will carry over to the next year’s return. • Returns with a Taxpayer ITIN will require that SSNs be manually entered on W-2s.

27. What’s New for 2011 • TaxWise 2011, both Desktop and TWO,will offer the following • The ability to attach PDFs to MeFreturns. • Optional (scanned) electronic attachments will permit the submission of most forms that currently require the mailing of Form 8453 and will allow e-filingsome returns that were previously required to be mailed. AARP Tax-Aide has not yet approved this option in 2012. Potential security issues need to be resolved.

28. What’s New for 2011 • TWOfor TaxWise 2011will offer the following enhancements: • Use the function keys F1(Help), F3 (Clear or Add Red fields) and F8 (Override) keys just like Desktop • A Training Section to the HELP Center that will link to the Link-&-Learn Lessons • Alink to a page that will show the 1040 version and release notes, state version numbers and state release notes

29. What’s New for 2011 • TWOand Support website ADMIN password recovery simplified: After 3 failed login attempts and 3 failed attempts to answer the security question… • Enter the email address for the ADMIN user. If this matches the email address on file a temporary password will be sent by email to that email address. • Use this temporary password and then reset a new ADMIN password

30. Technical Documentation & Support Early release of documentation as in 2009-10 Continue TCS Conference Calls Use Information from TaxWise Support Calls to improve training material Tax-Year 2011-12 Planning

31. Technical Documentation & Support Volunteers should use your own state’s resources first, the TCS & TCs. For additional help on Technical topics, like networking, computer issues, etc, email requests to taxaidetech@aarp.org TaxWise questions should initially be directed to CCH/TaxWise Customer Support by phone or email Tax-Year 2011-12 Planning

32. Category 1 & Repairing Printers Category 1 is intend to replace AARP Tax-Aide (purchased and donated) equipment that is no longer useable. We have a contract with GraceWorkz that repairs or replaces printers during the Tax Season at no cost to Tax-Aide. This year we will purchase over 100 printers as Category 1 replacements, most of which should have been fixed or replaced by GraceWorkz. A waste of Tax-Aide $$ Tax-Year 2011-12 Planning

33. Tax-Year 2011-12 Planning • Individual by model Tune-up instructions for AARP purchased computers will no longer be published. • Will encourage the use of fresh Images. • Will publish generic XP and Windows 7 tune-up documents, primarily for use by Personal and site- provided computers. • Plan to release generic Images for both XP and Windows 7 for field upgrading of AARP Tax-Aide Computers. • Limited beta testing with the Enterprise Licenses

34. Tax-Year 2011-12 Planning • Continue transition to Windows 7 on AARP Tax-Aide computers. • New computers will have Windows 7 • Continue working on an upgrade plan for Windows 7 on existing AARP Tax-Aide Purchased & Donated computers over the next several years. • No need for TechSoup Windows 7 Licenses. Due to Enterprise Grant from Microsoft. (Except for computers not on last year’s inventory report.)

35. Questions?