This User`s Guide outlines the step-by-step tasks that must be taken to completely process a Tax Return with this software program.
1.) The Transmitting/Main Computer should transmit to Central Site at least twice a day, once in the morning and once in the evening. If you are operating a system with Non-Transmitting Computers, set up a regular schedule for transferring and retrieving data to and from the Non-Transmitting and Transmitting Computers. If you are operating as a Multi-Office Organization or a Service Bureau, set up a regular schedule for transmitting by the Remote Computer(s) to the Main Computer via Central Site. See Chapter 2 under Communications Setup in the Manual to enable automatic scheduling.
2.) Check the Work In Progress Summary (WIP) screen for New Items:
a. Checks to be printed-The Check Ready by Site Report provides a list of all Taxpayers whose checks are ready with their phone numbers.
b. IRS Rejects-Correct Return(s) and contact Taxpayer(s) if necessary.
c. Software Updates-Apply all software updates to both Transmitting and Non-Transmitting Computers, and contact Technical Support immediately if you have any problems.
d. Bulletins-Read Bulletins regularly in case they apply to you or your Taxpayers.
The following page gives a detailed list of the bank products offered, along with the Tax Preparation and other services for which the Taxpayer can be charged a fee. This program has been enhanced to provide several billing options. You can make copies of this page for your office staff for quick reference. For detailed instructions on setting up billing and entering fees into the program, please refer to Chapter 2.
Tax Preparation
A fee is normally charged for preparing the Tax Return for the Taxpayer. This fee is automatically deducted from the Taxpayer`s refund, when applicable. Be sure your information is entered on page 2 of the Return, and sign and date the return if you are a Paid Preparer. If you are only assisting the Taxpayer with entering the data into the computer and not signing the return as a Paid Preparer, the Taxpayer cannotbe charged a Tax Preparation fee.
Electronic Filing
A fee may be charged when the Taxpayer`s tax return is electronically filed with both the IRS and state taxing agency. Some banks do not allow an electronic filing fee to be charged when a Taxpayer is purchasing a bank product. The Taxpayer must electronically file their return to receive a bank product. Also, electronic filing typically provides a faster refund. If the Taxpayer chooses to do a paper return, it may be several weeks before their refund will be available.
Protection Plus
A fee will be charged when the Taxpayer chooses to purchase Protection Plus, an audit protection product offered by an independent company made available directly through the software. See Appendix 8 for details.
CADR+
A fee will be charged when the
Taxpayer chooses to purchase CADR+, a health services product offered by an
independent company made available directly through the software. See Appendix 8 for details.
RAC (Refund Anticipation Check)
The Taxpayer should receive their check from you in two to four weeks.
RAC Direct Deposit
The Taxpayer`s refund will be sent directly to their bank account. You will NOT print a check for the Taxpayer.
Direct Deposit of Refund
The Taxpayer should receive a direct deposit of their refund into their bank account in two to four weeks. The customer must pay any fees due in advance of filing the return electronically.
Paper Check
The IRS will mail a check to the Taxpayer`s home in two to four weeks. The customer must pay any fees due in advance of filing the return electronically.
This program allows the Tax Preparer to electronically store IRS documents in accordance with IRS Rev. Proc. 97-22. Please refer to that document for more information regarding the storage of electronic tax returns and other documents.
1.) Fill out the Taxpayer Questionnaire and have the Taxpayer sign the form verifying everything is true and correct. This questionnaire is available at the end of this User`s Guide and as a PDF in the Xlink15 directory for you to make copies.
2.) Check the Taxpayer`s Photo Identification and Social Security card to verify that the information matches the information on the Taxpayer Questionnaire.
3.) Begin the Tax Return and complete the Taxpayer Data sheet, along with the applicable Due Diligence questions. This program assists the Tax Preparer in fulfilling his or her federal requirements mandated in IRS Treasury Regulation § 1.66695-2. Complete any additional Due Diligence requirements of the state in which the Tax Preparer is operating or preparing returns.
4.) Print the Consent to Use and Privacy Notice forms and have the Taxpayer sign these forms. If there is a Spouse, he or she also needs to sign these forms. Alternatively, use the Signature Pad to capture the signature(s) on these forms. The electronically signed forms will be saved in the Document Archive as a permanent record of the Tax Return.
5.) Scan the Taxpayer Questionnaire, any additional Due Diligence Documentation, Photo Identification(s), Social Security card(s), and any other applicable identifications and documents to create a complete electronic copy of the return if this equipment is being utilized by your office. Otherwise, a hard copy of all of these documents should be kept as part of the Taxpayer`s tax return records.
6.) Continue preparing the Federal Tax Return.
7.) When the federal portion of the Return file is completed, verify the Return file and make any necessary corrections.
8.) Add State Return(s) if applicable and complete them. The State Return may be automatically added to the return if this option was selected during Setup. See Chapter 2 of the Manual.
9.) Verify the Return file again and make any necessary corrections.
10.) Queue the Return file for Transmitting or Transferring. See the Manual for more information on transmitting and transferring returns to and from Transmitting Computers, Non-Transmitting Computers, Remote Computers, and Central Site.
11.) Print the Consent to Disclosure and Bank Application and have the Taxpayer sign these forms if the Taxpayer is purchasing a Bank Product. Alternatively, use the Signature Pad to capture the Taxpayer`s Signature on these forms. The forms will then be signed and saved in the Document Archive as a permanent record of the Tax Return.
12.) Print the Form 8879 if the return is being electronically filed, and the ERO is using the Practitioner PIN method and/or auto-generating the Taxpayer`s PIN and have the Taxpayer sign this form. Alternatively, use the Signature Pad to capture the Taxpayer`s Signature and Tax Preparer`s signature on this form. This form will be signed and saved in the Document Archive as a permanent record of the Tax Return. Either a hard copy or an electronic copy of the signed Form 8879 must be kept as part of the Tax Preparer`s records.
13.) Print all applicable forms as follows:
a. Taxpayer copy of the Federal and State Return
b. Preparer copy of the Federal and State Return (if you keep hard copies)
c. IRS copy of the return if the Federal Return is being mailed
d. State copy of the return if State Return is being mailed
e. Taxpayer copy of all applicable bank documents
f. Preparer copy of all applicable bank documents (if you keep hard copies)
g. Taxpayer copy of all other applicable product applications
h. Payment voucher, if applicable
14.) If this is an electronically filed Return,
a. If the Federal Return includes attachments that cannot be electronically filed, but instead must be mailed to the IRS, these attachments, along with a copy of Form 8879, will be printed with the Taxpayer`s return along with mailing directions.
b. Do not mail the IRS any documents, including Form 8879, except under the conditions listed above.
15.) If this is a paper Return being mailed to the IRS and/or State,
a. Have the Taxpayer sign the appropriate Return.
b. Sign the appropriate Return if you are a Paid Preparer.
c. Mail the appropriate Return along with any other required documents.
16.) On a regularly scheduled basis, from the Work In Progress Summary screen, click Transmit to send the electronically filed Return(s) from a Transmitting Computer and/or Remote Computer to Central Site and/or Main Office, or click Transfer from a Non-Transmitting Computer to send to an external storage device for Retrieving by a Transmitting Computer.
17.) Give the Taxpayer the following documents for his or her Records:
a. A copy of the Federal Return, and any copies of State Returns, as applicable
b. A signed Form 8879 if the Return has been filed electronically if requested
c. A signed copy of the Bank Application, as applicable
d. The Taxpayer`s (and Spouse`s) copy(ies) of their W-2s
e. Any other documentation the Taxpayer brought with them for preparing the Tax Return
18.) As the Preparer, keep for your Records (as a hard copy or as an electronic copy):
a. A copy of the Federal Tax Return, and any copies of State Returns, as applicable
b. A signed Form 8879, if applicable, which must be kept for at least 3 years from the due date of the Federal Return or the filing date of the Return, whichever is later
c. The top copy of the Bank Application
d. The signed Taxpayer Questionnaire
e. Any documents related to the Due Diligence Requirements
f. The photocopies of all Social Security cards and Picture Identifications
g. Signed Consent to Use, Consent to Disclosure, and Privacy Notice forms
h. Copies of all W-2`s used to prepare the Tax Return
1.) The Taxpayer must present their Photo Identification to pick up the check. This is the case even if you saw the ID before, and you remember the Taxpayer. DO NOT GIVE A CHECK TO ANYONE EXCEPT THE TAXPAYER, OR THE TAXPAYER`S SPOUSE IF THEY FILED A JOINT RETURN.
2.) If a Bank Product has been requested, write the Check Number on the bottom of the Bank Application and have the Taxpayer date and sign that he or she received the check.
3.) This is your last opportunity to get the Taxpayer`s Signature on every required form. Check one more time to be sure this is completed.
Note: If a Taxpayer does not receive their entire expected Refund, he or she needs to call the Treasury Department at 800-304-3107 if a letter has been received by the Taxpayer from the IRS indicating the shortage is for a repayment of debt to a government agency. If the Taxpayer did not receive a letter, the Taxpayer needs to contact the bank to determine why the entire Refund was not paid.
It is very important to explain this carefully to your Taxpayers: The IRS does not guarantee Refunds on any date or time. Additionally, the Banks do not guarantee they will give a loan to any or all of your Taxpayers. The following responses have been created for you to use as talking points when and if a Taxpayer is questioning when they will receive a form of payment:
Electronic Filing
“We are submitting your tax return to the IRS electronically. If the IRS identifies any errors, you will not receive a refund. If the IRS accepts your return, they will pay your refund in two to four weeks.”
RAC (Refund Anticipation Check)
“In addition to electronic filing, we are submitting a request to the bank to receive your refund from the IRS and to allow us to print a check for your refund less fees. The check for your refund will become available as soon as the IRS pays your refund (in two to four weeks). ”
RAC DD (RAC Direct Deposit)
“In addition to electronic filing, we are submitting a request to the bank to receive your refund from the IRS, and to deposit your refund less fees directly into your bank account. The direct deposit of your refund will become available as soon as the IRS pays your refund (in two to four weeks). You will need to contact your bank to determine if the Bank made the deposit.”