Training Flashcards
(30 cards)
Why is Form 13614-C helpful?
The form allows the taxpayer to give all of the information necessary to prepare the tax return.
Does form 13614-C need to be used for every tax return?
Yes, it needs to be used for every single tax return that is prepared.
How is form 13614-C prepared?
The form can be prepared by allowing the taxpayer to complete pages 1-3 of the form before meeting with a volunteer or the taxpayer can fill out the form with the volunteer as an interview is being conducted. Nevertheless, the form must be completed prior to preparation of the return.
What form must taxpayers fill out in order to allow the site to prepare the return with the methods provided in the form?
Form 14446, Virtual VITA/TCE Taxpayer consent form. Both spouses must sign the form if filing jointly.
Should ID be verified?
Yes Photo ID should be verified. The taxpayer and the spouse must both present photo ID.
What is important about the certification level of a site or volunteer.
Certification levels are important from (Basic) to (Advanced) to (Military) because it ensures that the site or volunteer is qualified to prepare the return.
Why is it important to conduct a thorough interview prior to inputting the taxpayer’s information into the system? (3 reasons)
- The tax return may be above your certification level
- The tax return is outside the scope of the VITA/TCE program.
- The taxpayer does not have all needed information or documentation.
Why are clarifying questions important?
Clarifying questions while reviewing Form 13614-C are important as they can help gather all information that is needed for the return.
What is very important during the interview process?
That the taxpayer and tax preparer understand all the questions and the answers to the questions on Form 13614-C.
What should the tax preparer be alert of while conducting the interview?
The tax preparer should be on alert for conflicting information on different parts of the Form 13614-C.
For example, “I see your are over the age of 65, yet you indicated that you do not receive social security benefits.”
What is the first part of the interview process of form 13614-C?
The first part of the interview consists of completing part 1 of the form which looks at personal information. The tax preparer must ensure that all information is accurate and correct. The tax preparer must ensure that the names provided match the social security documents.
Note: if the taxpayer is not a U.S citizen ensure that you are able to do the return by following the flow chart provided in publication 4012.
What does information in part 1 impact?
Information in part 1 impacts many tax law determinations. For example, a full-time student may be able to receive many credits depending on if the person can be claimed as a dependent or not.
Note: Use publication 17 Your Federal Income Tax to verify the taxpayer meets “the full-time student” requirement.
How does a person being legally blind or totally and permanently disabled affect a tax return?
These factors can affect multiple tax law issues such as:
- Personal Exemption
- Pension Taxability
- Whether the taxpayer can be claimed as a dependent
Note: Verify the taxpayer’s requirements in publication 17 for these classifications.
What does part 2 of the form 13614-C pertain to?
Part 2 pertains to the marital status and household information. Information in this section will help you make determinations about:
- Filing Status
- Dependents
- Various credits and deductions
Note: Many taxpayers believe they should only list dependents, make sure to go over the section with the taxpayer.
What is critical about page 2 of form 13614-C?
The most critical part about page 2 of form 13614-C is that all unanswered or questions answered with “unsure” are discussed with the taxpayer in order to figure out a “yes” or “no” response to each question.
What is important about part 3, income?
Part 3 is about income. Taxpayers should answer each question with yes, no, or unsure. Each type of income has the forms that are used to report the income in parenthesis next to the question. As each question is discussed, verify that all information agrees with the documents provided by the taxpayer. You should change the original answer as information is discussed.
What is especially important about interviewing an individual who is self-employed?
It is important that self-employed individuals are reporting all types of income earned. This requires an extensive interview in order to determine that the self-employed individual is reporting all income including cash payments received for work performed.
Note: You should always verify that the taxpayer has provided all required source documents and information.
What is another important step while interviewing a taxpayer even if they answer all of the income questions?
It is important to still ask clarifying questions regarding the answers. For example, a taxpayer may have brought the correct form regarding the question, but they may have forgotten another form that still falls under that question.
What is important about part 4 of form 13614-C?
The most important thing about part 4 is that it cover the taxpayer’s expenses. These expenses can qualify the taxpayer for a tax credit or deduction. It is the tax preparer’s job to use reference materials to determine eligibility and take into consideration the most advantageous position for the taxpayer.
How does part 5 of form 13614-C play a role in the tax preparation?
Part 5 relates as it covers life events. This section asks numerous questions that relate to the calculation of the tax and the processing of the return.
Note: Publication 17 and 4012 contain additional information that needs to be collected to determine a correct return.
What additional information may be needed in order to complete the additional information section?
Information such as how the taxpayer will want to receive their refund as well as other information that may be needed to complete the tax return.
How should the demographic section be recorded?
The demographic section should be recorded by asking the coordinator how to do it.
What is Form 15080?
Form 15080 is used to obtain the taxpayer’s consent to use their tax return information available to any VITA/TCE site for next filing season. The taxpayer has the option to decline the consent. The coordinator will instruct you on how the taxpayer will complete this form.
Can you typically rely on good faith from a taxpayer?
Yes, you can primarily rely on good faith. It is the tax preparer’s job to ask clarifying questions about information that seems incomplete or inconsistent.
For example: You do not need to see proof of taxpayer’s contribution to a charity if you feel comfortable that this information is not unusual or questionable.
