What should tax professionals expect for the upcoming tax season? Here is our slide presentation from the Accounting Today Pre-Tax Season Update webinar held December 3rd 2015.

1. 2015 PRE-TAX SEASON UPDATE
12/08/15

2. MODERATOR: Roger Russell
Senior Editor for Tax, Accounting Today
Roger Russell is a tax attorney and a legal and
accounting journalist with expertise across a
wide spectrum of tax, legal and accounting
issues. He has written and co-authored articles
in tax journals and newsletters, and has
contributed to prominent tax research services.

3. PRESENTER: Charles E. “Chuck” McCabe
President and CEO, Peoples Income Tax
Chuck founded Peoples Income Tax in 1987 after 19+ years as an H & R
Block executive and serves as President and CEO. Peoples operates income
tax offices throughout central-Virginia and provides income tax school and tax
practice management systems to independent tax firms nationwide, and offers
online tax courses nationwide. Chuck has conducted tax practice management
seminars for several professional associations including the National Society
of Tax Professionals (NSTP), the National Society of Accountants (NSA), and
the National Association of Tax Professionals (NATP).
He is coauthor of two nationally distributed books on career education for adults
and numerous published articles on adult education and tax practice management.
He is President of Peoples Income Tax School and served on the Dean’s Advisory
Council of the School of Continuing Studies at the University of Richmond. Chuck
has also served on the Executive Committee of the VA Career College Advisory
Board and has taught tax preparation and small business management at several
colleges, including Hofstra and Virginia Commonwealth University.

4. PRESENTER: Catherine A. Mueller, EA, CTP
Director of Peoples Tax and Business Services
Cathy Mueller is an Enrolled Agent, licensed to represent taxpayers before the
IRS. She has also held Series 7 and 66 securities licenses. She is a member
of the National Association of Accountants, the National Society of Tax
Professionals and a past member of the National Association of Enrolled
Agents, and the Virginia Society of Enrolled Agents, where she served as chair
of the VSEA Education Committee. She has earned designations of Chartered
Tax Professional, from the Income Tax School. She has also completed the
advanced education in taxpayer representation to become a Fellow of the
National Tax Practice Institute. Cathy has done extensive work with small
businesses in tax consulting, tax preparation, accounting and operations
management.
Before joining Peoples, she worked for 15 years for U-Tote’'M of Virginia, Inc.,
where she advanced from Accounting Clerk to General Manager and then
President of the 17-store chain, until the company was sold in 1992. Previously
she had held various accounting jobs, and she was also self-employed
providing Accounting, Tax and Business Consulting services for small
businesses.

5. IRS Revised PTIN Fees
 Effective November 1, 2015
 The 2016 PTIN Fee changed to $50 annually
 IRS collects $33; third party vendor $17
 Fee is the same for new and renewal
applications
 PTIN open season began in early November

6. Annual Filing Season Program
 Voluntary Program for unenrolled preparers
 Incentives for participation
 IRS Program Directory
 Limited Representation Rights
 Beginning in 2016 unenrolled preparers must have
earned an AFSP Record of Completion in order to
represent clients before the IRS on returns they
prepared.
 Attorneys, CPAs and EAs will continue to have full
representation rights.

7. Annual Filing Season Program
 Obtain Active PTIN
 Complete Required 18 Hours of CE
 Take AFTR-Annual Federal Tax Refresher
Course (6 Hours CE)
 Pass Test if Required
 Consent to Circular 230 Requirements
 Record of Completion
 December 31, 2015

8. Annual Filing Season Program

9. Identity Theft Measures

10. Identity Theft Measures

11. Identity Theft Measures
IRS will test W-2 Verification Code for 2016 Filing Season
Payroll Services will include a 16-digit code and Validation Code field
on some W-2 forms provided to employers
Instructions on forms:
 “Verification Code. If this field is populated, enter this code
when it is requested by your tax preparation software. It is
possible that your software or prepare will not request the
code. The code is not entered on paper-filed returns.
Some employees will receive forms with the Verification Code box
“blank”
Return processing will not be delayed for missing or incorrect
Verification Codes.

12. Office Security-Our
Responsibility
Policies and procedures in place and enforced to protect taxpayer
data.
All employees should be aware and in compliance of disclosure rules
Locked offices, desks, files
Computer passwords
Secure disposal procedures in place
Secure, encrypted file transfers
Secure back-up systems
“Need-to-know” policies
 Taxpayer information should only be shared with persons needed to properly
prepare the tax return.

13. IRS Regulations
 Section 7216
 Taxpayer Consent to Disclose Information
 Mandatory Language
 Rev. Proc. 2013-14
 General Education Information

14. ACA Issues
 Penalty Increases
 Greater of 2% of household AGI or $325 per adult
(162.50 per child)
 New Forms Required in 2015
 1095-B
 Reports coverage for 2015 for taxpayer, spouse,
dependents
 Issued by employer plans, government sponsored
plans or an individual market plan
 1095-C
 Indicates whether employee & family was offered health
coverage for some or all of 2015
 Must be filed by employers with more than 50 employees

15. ACA Resources
 IRS Best Practices Information
 Individual Shared Responsibility Provision
 http://www.irs.gov/pub/irs-utl/Best%20Practices
%205000A.pdf
 Premium Tax Credit
 http://www.irs.gov/pub/irs-utl/Best%20Practices
%2036B.pdf
 Beyond the Basics
 http://www.healthreformbeyondthebasics.org/

16. Legislation
 Tax Extenders????
• 50+ expired provisions
• State and local sales tax, tuition
deduction, teacher’s expenses,
research and energy credits
 Delayed Filing Season???
 IRS Budget Cuts
• Longer wait times.

17. Electronic Signatures
Forms 8878 and 8879
 Software Provided Acceptable Methods
 Electronic Signature Pad
 Stylus used on Display Screen
 Digitized Image of handwritten signature
 Typed name in electronic record (ex: website
form)
 Digital Signature
 Shared Secret
 Mark captured as graphic

18. Electronic Signatures
Forms 8878 and 8879 (cont.)
 Software Must Record
 Digital image of signed form
 Date and time of signature
 Taxpayer’s computer IP address (Remote transaction
 Taxpayer’s login identification
 Identity Verification—must pass knowledge passed
authentication tests (remote) or confirm government ID
verified
 Method used to sign

19. Electronic Signatures
Forms 8878 and 8879 (cont.)
 Identity Verification Methods
 In Person Transactions
 Must validate taxpayer identification unless a multi-year business
relationship exists
 Examine government issued picture ID
 Record name, SSN, address, DOB
 Must be able to separately identify each taxpayer
 Remote Transactions
 ERO must record name, address, DOB,SSN
 Software must verify identity thru external methods (ex credit inquiries)
 Software may use knowledge based verification methods
 Software must interact with tax records so that signatures may not be
transferred.

20. Systematic Operating Methods
Policies & Procedures Personnel Policies

21. Systematic Operating Methods

22. Tax Preparer Staffing
 Shortage of Tax Preparers
 Preparer Regulations
 Preparers Retiring
 Recruiting Tax Preparers
 Homemakers with young children
 Early retirees
 Other prospects
 Training New Tax Preparers
 Operating a Tax School
 Online Tax Course

23. Tax Preparer Staffing (cont.)
 Continuing Education
 Tax law updates
 Advanced courses
 Small Business courses
 Scheduling Tax Preparers
 Minimize “dead time”
 Monitor productivity
 Employment Agreements
 Non-compete provision
 Non-solicitation provision
 Confidentiality provision

24. Client Retention
 Causes of Low Client
Retention
 Poor client service
 Inadequate communication
 Errors
 Non-retention of tax preparers
 Transient clientele
 Retention Rate Goals
 EITC Returns
 Form 1040
 Business Returns
 Corrective Measures
 Training
 Quality Control

25. Quality Control
 Checking Tax Returns
 IRS Due Diligence
 Training
 Client Service
 Professionalism
 Tax Planning
 Secret Shopper
 Checklist Report
 Pay in Cash

26. Technology
 Computer Equipment
 Used PCs
 Dual monitors
 Scanners
 Computer Systems
 Networks (LAN, WAN)
 “Cloud” systems
 Data Back-up Systems
 Communication
 Internet Service
 VoIP Phones
 Virtual Tax Service
 Secure File Transfer Process

27. Website Marketing
 Basic Website Information
 Company Info, Bios
 Company News Releases
 Company Contact Information
 Taxpayer Resources & Links
 Tax Tips
 e-Newsletters (archived)
 Interactive Website Features
 Interactive Tax Organizer
 Online Tax Service
 Webinars (play on demand)
 Videos
 IRS e-services
 Taxpayer Files
 Taxpayer Forums
 Appointment Scheduling

28. Tax Preparation Software
 Functionality
 All states
 Corporate returns
 Bank products
 Limitations
 Stability
 Exporting data
 Support
 Change Vendors?
 Training, learning curve
 Poor support
 Errors, lost data, downtime, e-filing glitches
 Cost

29. Summary:
 IRS Legislation and Regulations
 Systematic Operating Procedures
 Tax Preparer Training
 Client Communication
 Marketing
 Planning
 Staff Meetings
 Review systems, procedures and
execution
 Technology Needs
 Tax Software

30.  Special Offer
 SAVE 65% On Original Prices of Tax Practice
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 Offer Details: Offer ends 12/17/14. Not valid with
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 www.TheIncomeTaxSchool.com
 1.800.984.1040

31. For More Information Contact:For More Information Contact:
Charles McCabe CMcCabe@theincometaxschool.com
President and CEO, Peoples Income Tax
Catherine Mueller, EA,CTP cmueller@peoplestax.com
Director of Peoples Tax and Business Services