Volunteer Standards of Conduct (Ethics) Training PART 2

What is the impact on taxpayers?

A taxpayer is responsible for paying only the correct amount of tax due under the law.

Volunteer Standards of Conduct Agreement, has been read and agreed to.

After each test, the Link & Learn system on VITA/TCE Central will add the letter "P" to Form 13615 indicating a passing score for the VSC Training and (if applicable) Intake/Interview & Quality Review certification and tax law certification levels.

Taxpayer review and acknowledgment

After the return is completed, an IRS tax law-certified volunteer must briefly discuss the filing status, dependents, income, adjusted gross income, credits, taxes, payments, and the refund or balance due with the taxpayer.

Volunteer Standards of Conduct Agreement, has been read and agreed to.

All coordinators and alternate coordinators are required to certify by passing the Site Coordinator Test with a score of 80% or higher prior to working at a site.

What if the taxpayer is not telling the truth?

As described under VSC #4, the tax controversy process can be long and drawn-out. A volunteer who senses that a taxpayer is not telling the truth should not ignore it.

Instructions for Completing Training, Certification, and the VSC Agreement

Beginning Filing Season 2023, all volunteers will be required to register and certify via Link & Learn Taxes. Volunteers must generate the Form 13615, Volunteer Standards of Conduct Agreement and provide to their Site Coordinator prior to volunteering. W

What is a volunteer?

Compensation (other than reasonable reimbursement or allowance for expenses actually incurred), or • Any other thing of value in lieu of compensation

Volunteer Standards of Conduct Agreement, has been read and agreed to.

Coordinators not performing duties that require tax law certification must also pass the Intake/ Interview & Quality Review certification.

Egregious actions include, but are not limited to, one or more of the following willful actions:

Creating harm to taxpayers, volunteers or IRS employees • Refusing to adhere to the Quality Site Requirements • Accepting payments for return preparation at VITA/TCE sites • Using taxpayer personal information for personal gain • Knowingly preparing false returns • Engaging in criminal, infamous, dishonest, notorious, disgraceful conduct • Any other conduct deemed to have a negative impact on the VITA/TCE program

Volunteer's role in reporting questionable activity

Honest taxpayers and tax preparers preserve the tax system's integrity. To sustain confidence in the VITA/ TCE program, you must report violations that raise substantial questions about another volunteer's honesty, trustworthiness, or fitness as a tax preparer.

Coordinator's Responsibility

If a coordinator determines a volunteer has violated the Volunteer Standards of Conduct, the coordinator needs to immediately remove the volunteer from all site activities and deactivate their access to tax preparation software.

How might the taxpayer find relief?

If tax collection would cause significant hardship, the taxpayer may be able to find relief.

What if an unethical situation is discovered at a site?

If volunteers, coordinators, or taxpayers identify potential problems at the partner, site, or volunteer level that they feel may require additional, independent scrutiny, they should report these issues using the external referral process (VolTax) by emailing SPEC headquarters at [email protected] and copy the partner and the local SPEC territory office as appropriate.

Resolving Problems

In general, the coordinator is the first point of contact for resolving any problems that a volunteer may encounter

What is the impact on VITA/TCE program?

Unfortunately, one volunteer's unethical behavior can cast a cloud of suspicion on the VITA/TCE program as a whole.

Individual or company is violating the tax laws

Use Form 3949-A, Information Referral. Complete this form online at www.irs.gov/pub/irs-pdf/f3949a.pdf. Print the form and mail to: Internal Revenue Service, Fresno, CA, 93888.

Volunteer Registry

Volunteers and partners released from the VITA/TCE program for egregious actions and willful violations of the Volunteer Standards of Conduct, can be added to the IRS-SPEC Volunteer Registry.

Make an effort to find the answer

When in doubt: • Seek assistance from the coordinator • Seek assistance from a tax preparer with more experience • Reschedule/suggest the taxpayer come back when a more experienced tax preparer is available • Reference/research publications (i.e. Publication 17, Publication 4012, Publication 596, etc.) • Research www.irs.gov for the answer • Call the VITA/TCE Hotline at 1-800-829-VITA (8482) • Research the Interactive Tax Assistance (ITA) on www.irs.gov to address tax law issues • Advise taxpayers to seek assistance from a professional tax preparer

Tax returns include the following disclosure statements:

• For the Taxpayer: "Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete." • For the Preparer: "Declaration of preparer (other than the taxpayer) is based on all information of which preparer has any knowledge."

Taxpayers have been unsuccessful in resolving their issue with the IRS

Tell taxpayers that the Taxpayer Advocate Service can offer special help to a taxpayer experiencing a significant hardship as the result of a tax problem.

Volunteers using Link & Learn Taxes must:

Pass the VSC certification test with a score of 80% or higher. New volunteers must review the VSC Training prior to taking the certification test.

Volunteer Protection Act

Public Law 105-19, Volunteer Protection Act of 1997 (VPA) generally protects volunteers from liability for negligent acts they perform within the scope of their responsibilities in the organization for whom they volunteer.

The email notification should include your name, contact number, site name, and a detailed description of the incident including the individuals full name, date the incident occurred and the number of taxpayer's affected by the violation if applicable.

Publication 4836 (EN/SP), VITA/TCE Free Tax Programs - English & Spanish • Form 13614-C, Intake/Interview & Quality Review Sheet • Publication 730, Important Tax Records-Envelope

Victims of identity theft

Refer taxpayers to Identity Protection Specialized Unit at 1-800-908-4490. The Protection Specialized Unit may issue these taxpayers a notice. Volunteers may prepare returns for taxpayers who bring in their current CP01A Notice or special PIN (6 digit IPPIN). Include the IPPIN on the software main information page. Instructions are located at: www.irs.gov/uac/Identity-Protection.

Taxpayers believe they are victims of discrimination

Refer taxpayers to: (Written complaints) Operations Director, Civil Rights Division; Internal Revenue Service, Room 2413; 1111 Constitution Ave., NW; Washington, DC 20224. (Email complaints) [email protected]

Federal refund inquiries

Refer the taxpayer to www.irs.gov and click on Where's My Refund?

State/local refund inquiries

Refer to the appropriate state or local revenue office.

Taxpayers have account questions such as balance due notices and transcript or installment agreement requests

Taxpayers should be referred to www.irs.gov: • If they want to make a payment, they will click on Make a Payment icon. • If they are requesting an installment agreement they will select, Can't Pay Now? • If they have a notice, they should/can enter understanding your notice in the Search feature on IRS.gov. If they still need help, refer the taxpayer to a local Taxpayer Assistance Center or they can call the tollfree number 1-800-829-1040.

The consequences to the tax site or sponsoring organization may include:

Terminating the partnership between the IRS and the sponsoring organization • Discontinuing IRS support • Inclusion in the IRS Volunteer Registry and removal from volunteering in the VITA/TCE program indefinitely • Revoking or retrieving the sponsoring organization's grant funds • Deactivating IRS Electronic Filing Identification Number (EFIN) • Removing all IRS products, supplies, and loaned equipment from the site • Removing all taxpayer information from the site • Disallowing use of IRS logos • Referring for potential Treasury Inspector General for Tax Administration (TIGTA) and criminal investigations • Holding partner responsible for stolen refunds or other losses due to fraudulent acts at a site

Who enforces the standards?

The U.S. tax system is based on voluntary compliance. Most taxpayers compute their tax accurately, but at times unscrupulous taxpayers and preparers evade the system by filing fraudulent returns. For this reason, some sponsoring organizations may perform background checks on their volunteers.

External Referral Process

The external referral process (VolTax) provides taxpayers, volunteers, coordinators, and others an avenue to report potential unethical problems encountered at VITA/TCE sites.

What does the VPA do?

The purpose of the VPA is to promote the interests of social service program beneficiaries and taxpayers and to sustain the availability of programs, nonprofit organizations, and governmental entities that depend on volunteer contributions.

Print and review the form and give the completed form to the partner-designated official or site coordinator.

The sponsoring partner's approving official or coordinator will verify your identity, name and address by using your government-issued photo identification, and certify by signing and dating the form.

How are the standards enforced?

To maintain confidence in VITA/TCE program, IRS-SPEC enhanced Form 13615, Volunteer Standards of Conduct Agreement. The intent is to provide guidance to volunteers and a structure for regulating ethical standards.

Question 3: Taxpayer Isabel's completed Form 13614-C indicates that she does not have an account to directly deposit a refund. When volunteer James prepares Isabel's return, it shows that Isabel is entitled to a $1,200 refund. James tells Isabel that a paper check may take up to 6 weeks to arrive, but if she has the funds directly deposited to a checking account, the amount would be available in up to 21 business days. He offers to have the money deposited to his own checking account, stating that on receipt of the money he would turn it over to her. Isabel agrees and allows James to enter his routing

a. Is there a Volunteer Standards of Conduct violation? If yes, identify the VSC and describe. b. What could happen to the volunteer?

Question 4: While volunteer Lily is completing Ryan's return, she notes that he is single and asks him if he would like to meet some evening at a local bar so they could get to know each other better. Although Ryan says that he would prefer that she not call him, Lily says she does not give up that easily and that she will call him later in the week. Ryan reports the conversation to the coordinator before he leaves the site

a. Is there a Volunteer Standards of Conduct violation? If yes, identify the VSC and describe. b. What could happen to the volunteer?

Question 5: Volunteer John is preparing a return for taxpayer Max, who sold stock during the tax year. Max says he does not want to report capital gains and tells John that the cost basis on the stock sold was equal to or higher than the sales price. Based on his own stock portfolio, John believes Max is lying. John explains to Max that if the IRS examines the return, the cost basis will have to be supported by written statements or other documents of the purchases. Max says he understands, but he still wants the return completed with the amounts he has given to John. After John completes the return and Max signs Form 8879, the return is e-filed.

a. Is there a Volunteer Standards of Conduct violation? If yes, identify the VSC and describe. b. What could happen to the volunteer?

Question 6: When Joelle, coordinator, returns from a lunch break, she notices the waiting area is nearly empty. When she asks Greeter Jade what happened, Jade says that volunteer Nathan and a taxpayer had a loud, bitter argument, and many taxpayers got concerned and left. Joelle takes Nathan to a private area and asks him to explain what happened. Nathan says the taxpayer became upset when Nathan told him that as a noncustodial parent he had to have a signed Form 8332, Release/Revocation of Release of Claim to Exemption for Child By Custodial Parent, or he could not claim his children as dependents. Nathan admits that he got angry when the taxpayer started name calling. Nathan says he told the taxpayer, "If you don't like our free service, then you can go somewhere else." Nathan also says there was a lot of yelling and cussing on both sides and then the taxpayer left the site.

a. Is there a Volunteer Standards of Conduct violation? If yes, identify the VSC and describe. b. What should the volunteer have done? c. What could happen to the volunteer?

Question 1: Taxpayer Edna brings her tax documents to the site. She completes Form 13614-C, Intake/ Interview & Quality Review Sheet. She indicates in Part III of Form 13614-C that she has self-employment income along with other income and expenses. Joe, a volunteer tax preparer, reviews Form 13614-C with Edna. He asks if she brought all of her documents today, and asks to see them. Included in the documents is Form 1099-NEC, Nonemployee Compensation, showing $7,500 of non-employee compensation in Box 1. She tells Joe that she has a cleaning business that provides services to local businesses. Edna says she also received $4,000 in cash payments for additional cleaning work. When Joe asks if she received any documentation supporting these payments, she says no, the payments were simply paid to her for each cleaning job she performed. Joe suggests because the IRS has no record of the cash payments, Edna does not need to report these payments on her return. Edna is concerned and feels like she could "get in trouble" with the IRS if she does not report all of her income. Joe assures her that the chance of the IRS discovering that she did not report cash income is very small. Joe prepares Form 1040, Individual Income Tax Return. On Schedule C, Line 1 he reports only the $7,500 reported in Box 1 of Form 1099-NEC. When Joe completes the return and after the quality review has been completed, he hands it to Edna to sign Form 8879, IRS e-file Signature Authorization.

a. Is there a Volunteer Standards of Conduct violation? If yes, identify which VSC and describe. b. What should the volunteer have done? c. What could happen to the volunteer?

Question 2: Taxpayer George completes Form 13614-C indicating in Part II that his marital status is single with one dependent, Amelia. Volunteer preparer Marge reviews the intake form and the taxpayer's information documents. When Marge asks if Amelia is related to George, he says no, that Amelia is the child of a personal friend who is not filing a tax return. Amelia's mother told George to claim the child and even gave him Amelia's Social Security card. Marge then asks whether George provided more than one-half of Amelia's support, but George says no. He goes on to say that he should be able to claim Amelia as a dependent because no one else is claiming her. Marge agrees that although Amelia is not George's qualifying child or relative, he can still claim her as a dependent because no one else will. Marge goes on to suggest that the child could be listed as George's niece who lives with him, so that he can file as a Head of Household and claim the Earned Income Credit (EIC). Marge completes Form 13614-C, Part II, accordingly. Marge assures George that chances of the IRS discovering that he and Amelia are not related would be very small. Marge prepares the return with the Head of Household status and claiming the EIC and Child Tax Credits for "qualifying child" Amelia. George signs Form 8879.

a. Is there a Volunteer Standards of Conduct violation? If yes, identify which VSC and describe. b. What should the volunteer have done? c. What could happen to the volunteer?

Volunteers may view training by using:

• Link & Learn Taxes (preferred), OR • The following products, are available for download at www.irs.gov: o Publication 4961, VITA/TCE Volunteer Standards of Conduct - Ethics Training o Publication 5101, Intake/Interview & Quality Review Training o Form 6744, Volunteer Assister's Test/Retest