The ELECTRONIC RETURN ORIGINATOR (ERO) is the …
This document was prepared by the National Technology Committee and modified by HM Riggert for NY3.
The ELECTRONIC RETURN ORIGINATOR (ERO) is the Transmitter in Tax-Aide
In the TaxAide Program. The following information does not necessarily pertain to TWO.
…training is the brains
…technology is the tools
…counseling is the heart & soul
…transmitting is the voice
ERO Qualifications
• Must have a working knowledge of personal computers, software, and electronic communication systems
• EROs are required to be certified Tax-Aide volunteers. This allows the ERO to correct a rejected return (it’s important this be done in consultation with the counselor from that site).
• Must become proficient with the IRS- supplied tax preparation software.
Taxpayer Data and security
• Taxpayer data must be encrypted
• Protect Taxpayer Information
• Secure Computers
• Remove taxpayer data from computers as soon as practical
• By April 30th taxpayer data must be deleted and purged from all computers, including site, personal, or loaned
Why do we need to train?
• Technology requirements increase every year
• Protection of taxpayer information continues to be prime concern
• Computer setup requirements more complex
Training of EROs
• Training will be conducted by instructors with support from TC.
• All EROs must attend ERO Training, regardless of previous experience.
Site Operations
Site procedures
• Create file folders for paper copies of:
• DCR (Declaration Control Report)
• ACKS (Acknowledgements)
• REJECTS (Reject papers for ALL returns that are rejected)
• Keep the reject papers in this file, even after the return has been accepted
• Identify completed returns
• Use Site Sign-in sheet
• Transmitting from site or from off-site (home)
Backup daily
← Backup ALL returns, from the transmitting computer, on a daily basis
• If something happens to the transmitting computer, this is your only way to recover your tax returns.
← One computer per EFIN can be used to transmit returns to CCH.
• Returns Quality Reviewed must be backed up and restored to the transmitting computer at the end of a shift. Cross check against the QR Site Sign-In Sheet to make sure all returns are ready for transmission, PLUS any returns that have been changed to “paper returns” as they are to be included in our database.
← Returns from every computer must be backed up to a flashdrive and restored to the transmitting computer.
TaxWise backup backs up tax returns and all related files
Insert ‘backup’ flashdrive.
← You should already be logged in as your user
← Click on Tools
← Select Backup to Disk
← Select Start a new backup
← Click OK
← Select ALL USERS, click OK
← Select ALL for each user, click OK
← When all returns have been selected for backup, select the flashdrive previously inserted.
← Click OK Make sure the flashdrive is identified in the top box (Location)
← In the Confirm box, click on Yes for “earlier backup exists” (this is covering up the previous backup)
← Click OK on the Backup Complete box
NEVER erase returns from the Transmitting computer during the tax season. That will be done at the end of the season.
Transmitting returns
As tax returns are prepared and the return is finished, the preparer will run diagnostics and create an efile so that the printed copy given to the taxpayer includes the DCN for the tax return. Make sure all returns to be transmitted have been restored to the transmitting computer.
SORT all of the 8879s ready for transmission, into DCN order.
Click on Communications on the Toolbar
Click “Send Federal/State Returns to….” (CTRL+S)
Make sure you’re actually online by opening an Internet Explorer or FireFox screen.
Make sure the printer is connected to the computer.
Click on each name for which you want to transmit a return – do not click on any for which you don’t have the 8879 in your stack.
• Best Practice: Click on the return AND turn the 8879 over at the same time.
• Tip: Top blue title bar of this screen shows the number of returns selected/# of e-files available to be transmitted. Count the number of 8879’s – it should match the 1st number.
If all looks good, click on Send.
WAIT. The Declaration Control Report screen will appear. This may take several minutes.
Verify that the returns shown on this screen match the 8879s you have.
← Things to look for:
• Refund/Balance due amount is correct
• No duplicate Declaration Control Numbers (DCN)
• Verify that the 8879s for each return have been signed
• Returns omitted due to batching errors (Error 189)
Common 189 errors
Return was edited after e-file was created
Possible Cause:
• Time and date on stand alone computers are greater than transmitting computer
← Solution:
• Synchronize date and time on all computers
Possible Cause:
• Preparer opened the return and did not create a new e-file
← Solution:
• Open the return, run diagnostics, and create a new e-file
Invalid total record count
Cause:
← The return contains a blank or duplicate statement
• Schedule A Detail
• Interest Statement
• Dividend Statement
• W2 or 1099-R when another one was used, leaving the empty form on the tree.
Typically caused by carrying forward the return when you have these forms loaded in Tax Form Defaults. Alternately, a form received last year is no longer applicable.
← Solution:
• Remove the blank statement
Cause:
• Waiver amount is not entered on 2210 correctly Use ONLY page 3 OR page 4
← 2210 page 3 is for normal waiver
← 2210 page 4 is for when the taxpayer has made estimated payments.
• The Penalty waived amount is zero
← Solution:
• Enter the penalty amount you are waiving
Invalid number of statements; e-file has more than 30 W-2 or 1099-R statements
This should be switched to a paper return.
Click the PRINT icon (2nd icon from the left on the toolbar – choose the proper printer.)
• Warning: This is the ONLY chance to print this DCR, and it is a very important document. If you can’t print for any reason, DO NOT continue, but close this window and click NO when asked if it's okay to send.
• Tip: You can save the DCR to an Excel document. Name the file with current date, or you can save it as a .pdf file.
After the DCR prints, review it – if all is okay, staple multiple pages together (upper left corner)
Close the DCR screen,
Click the X in the upper right corner of the screen.
You’ll see “Please check your DCR report. Okay to continue?” If you haven’t found any problems, click Yes and the actual transmission starts.
Click No if the information on the DCR is not correct
← Cancels the transmission
← E-files remain on your system to correct and resend
You’ll get a message that you’re connected.
(In actual work, it will not say
“Training Electronic Filing Center”)
When “The session was successful. “Close to exit.” appears, click Close.
The ACK screen will appear (This will be discussed later)
If there are no new ACK files, you’ll be informed that no ACKS match your filter.
Click Cancel.
It is recommended that you place the printed DCR on top of the stack of 8879s and bound together. Then annotate the Site Sign-in sheet(s) to enter the date the returns were sent.
On the Site Sign-in sheet you will also enter the dates the federal and state returns are acknowledged.
Review the Session Information for transmission messages
← Displays transmission messages
← Identifies the files you are picking up
← Indicates if you do not pick up any files
• No Mail to Toss
← Indicates if your communication session was successful
Troubleshooting Tip: What should I do if my communications session is not successful?
← Click Connect to try again
• TaxWise will try to resend the transmission
← Click Close to try again at a later time
• TaxWise stores the transmittal file
← Will be prompted to send the transmittal file the next time you click Send Federal/State Returns to.
• Click Retransmit Batch to send the transmittal file
• Click Unbatch to remove the transmittal file
Troubleshooting Tip: Can CCH stop a return that I filed by mistake?
← CCH cannot stop returns that have been electronically filed
← E-files are automatically placed into a transmittal file to send to the IRS
Acknowledgements
Available acknowledgements (ACK) will automatically download when transmit e-files
← Acknowledgements are posted to your CCH Electronic Mailbox
← IRS (Acknowledgements)
← STATE (Acknowledgements)
← EMAIL (TaxWise Mail)
Set Filter Criteria
The first time you check for Acks, you should set your Filter Criteria. In TaxAide we don’t need the Bank Files checked, nor the Puerto Rico Files. Under normal circumstances you’ll want the Processed Files Unchecked. There are times when you need to change that, but the default should be unchecked. Make sure that the state files are checked. EFC Rejects may be left checked, but in general there is no need to show them – and you’ll never want to print them.
Handling Acknowledgments (ACKS)
Make sure the printer is turned on.
If you transmit tax returns, you will automatically receive any waiting acknowledgements. If you are not transmitting tax returns:
Click on Communications
Click on Get Acks, Mails and Updates
Click on Get
When you see “The session was successful”. Press ‘Close’ to exit. Click on Close.
If there were any Acks, you’ll get a screen titled “Select Acknowledgment Files:” with at least one line of typing that starts with “False” (meaning that it hasn’t been opened yet). Put a checkmark next to each of those lines, and click OK
The next screen is titled “View Processed Acknowledgments” and you MUST click on the button that says “Details.” This screen will disappear – just wait. DO NOT click on OK, as that will close the screen and not give you the opportunity to print.
The next screen is titled Acknowledgements – click on the Print icon – click OK, to indicate that it’s going to the correct printer.
If the print was successful, close the Acknowledgements screen with the X in the upper right corner.
You’ll see the “View Processed…..” screen again – click OK.
Enter the acknowledgement dates on the Site sign-in sheet(s). Locate the stacks of transmitted files, with the Document Control Report (DCR) on top – there could be several. The following steps represent a best practice.
On the DCR, mark a check next to each name that also appears on the Acknowledgements sheet. When ALL of the returns have the check, make a LARGE checkmark across the entire DCR to indicate ALL of the returns have been accounted for. This assures that all of the transmitted returns have been acknowledged.
Place the DCR in the front of the DCR file folder - even if it’s not complete, because when the acknowledgements come in later, you’ll know to look at previous DCR, which do not have the LARGE checkmark.
If the Acknowledgements contain multiple sheets, staple them together and file to the FRONT of the Acks folder.
If there are any REJECTS, pull the 8879s for those rejects to be handled later. File the remaining 8879s in DCN numerical order. Insert 8879s into those previously filed in the 8879 folder.
If you don’t get the Acks printed, you can find them again. Click on Reports – Acknowledgements
Click OK – you’ll see the Filter Criteria dialog box.
In NY, the State Files will also be checked.
Check next to Processed Files and press OK. You will then see ALL of your Ack files.
After printing the acknowledgements you need, change the filter criteria back so the next time you only see the current “false” files, by reversing the above procedure.
Click on header box File Date to sort the newest files at the top if you prefer that order.
Although not shown in this figure, all of the files will be labeled True so you need to select only the ones you need.
Print your Acknowledgements and Email
← Click the Printer icon
← Click OK to print
• Click Cancel to quit the printing process
← Close the Acknowledgement window
• Click the X in the upper right corner of the window
← Click OK on the View Processed Acknowledgements window
Note: You should process and print all acknowledgements and emails.
MAJOR REASONS FOR REJECTS
← Incorrect social security numbers
← Misspelled names
← Last name used on return does not match social security records
← Incorrect EINs
← Incorrect employer or payer names
Fixing the Rejected Return in TaxWise
← Open the rejected return
← Form containing the error will have a red exclamation point (!)
← The rejected entry is typically in red
• Based on the IRS Sequence Number
• Sequence number equals the e-file number in the status bar
← Only if necessary, contact taxpayer by phone or by letter to get correct information Usually corrections can be done by verifying information on documents that have been retained.
← Fix the error
← Run diagnostics and create an e-file return
← If the return does not involve major changes, retransmit the return
← These REJECTS REQUIRE NEW SIGNATURES
← $50 to “Total Income” or “AGI”
← $14 to “Total Tax,” “Federal Income Tax Withheld,” Refund,” or “Amount you owe.”
REJECTS THAT MUST BE PAPER FILED
← Change in name and/or in SSN
← Another taxpayer has claimed the same dependent
← Cannot reach the taxpayer by phone
If it must be changed to a paper return, a new 1040 form and state form, if applicable, must be printed for the taxpayer(s) to sign and all W-2 and 1099 forms returned to the taxpayer(s). Any state “paper only” forms must also be printed (e.g. NY IT-2 and IT-1099R).
IRS Record Keeping Guidelines
➢ The following should be kept confidential and in a secured location until the end of tax season.
➢ One signed Form 8879 for each return transmitted with One copy of Forms W-2 and 1099-R (with or without any withholding)
➢ Master backup disk with all electronically transmitted returns
➢ Copy of IRS Acknowledgement Report for transmitted federal returns – In NY3 the IRS also requests the state acknowledgements.
➢ Copy of Declaration Control Report (DCR) for transmitted returns
➢ All TW installations must be in an encrypted drive
• Troubleshooting Tip: How can I tell if TaxWise updated to the correct version?
← Open TaxWise
• You do not have to log in
← Open the Help menu
← Select About TaxWise
← Verify the version number
← Click OK
Note: If there is a major update you must have it installed before you transmit returns. It must be installed on all computers.
Submittal requirements
• For PPIN, send 8879's and/or attachments to the SPEC in your area, according to their schedule. Some prefer daily/weekly mailings – some prefer monthly.
• When Form 8453 is used, mail one copy of the form with applicable attachment(s) to IRS within 3 days after ACKS. Retain second copy along with applicable attachments, attached to the 8879, until regular submittal to SPEC.
Utility Program
(This might be restricted to the Admin User)
TaxWise Utility handles setup, file maintenance, software updates, and e-mail
← Steps to opening the TaxWise Utility Program
1. Open the Tools menu
2. Select Utilities/Setup Options
← TaxWise Utility has the following menus
» File
» Communication
» Tools
» Setup
» Help
The Site Administrator can use TaxWise Explorer to manage files
← The Admin user has access to files in all user directories
← All other users can only access files belonging to the active user
← Locating TaxWise Explorer from the Utility Program
• Open the File menu
• Select TaxWise Explorer
Actions that are available for file management in TaxWise Explorer
➢ Copy Files to Another User -- Use this action to copy Tax Form Defaults, Form Print Defaults, and History lists from one user to another.
➢ You cannot copy tax returns to another user.
➢ Move Files to Another User -- Use this action to move tax returns and other files from one user to another.
Use the Look in box to find the file or files you want to select
← Expand the folder or drive to show subdirectories
• Click the plus sign (+)
← Admin user can select files in any folder or drive
← Other user names can only select files from their own user name
Statistical information displays for the highlighted return
← SSN/EIN
← Taxpayer Name
← Return type
← Date created
← Date last edited
← Date last printed
← Preparer ID
This is how TaxWise 2007 looked. With TaxWise 2008 there was very little information shown, and sort function was not available
With TaxWise 2009 we will probably have the ability to sort again.
Move returns from one User name to another User name - such as from the current User to the one named RETAIN. This keeps the current User more manageable and makes year-end easier.
← Select user name
← Select file name
← Select Action Move files to Another User
← Select a user name
← Click the Move button
ERO responsibilities
• Restore returns
• Transmit returns
• Get acknowledgements
• Assure protection of tax payer data
• Important to consult with a counselor at the site to fix rejected returns & retransmit
• Do not email returns outside TaxWise system
• Update computers to latest major TaxWise release
• Record keeping
• Use Tax-Aide Site Sign-in Sheet or computer generated Sign-in Sheet.
EFIN transmitting
• One transmitting computer per EFIN for entire season
• Must use Encrypted drive computers for transmitting
• Acknowledged returns must be maintained until end of season
SITE SIGN IN SHEET
Site sign-in sheets may be used to track return status, and should be kept until the end of the season. They are also used to track the totals needed for monthly activity reporting.
[pic]
Common Reject Codes - the information at the top of every Reject from Acknowledgements will have this information printed. This information is available in Pub 1345a, but the wording there is no different than is shown on the Reject form.
• Reject Code 500 - Primary SSN and Primary Name Control must match the IRS Master File
• Reject Code 501- Qualifying SSN of Schedule EIC and the corresponding year of birth must match data received from the SSA or Qualifying SSN of Schedule EIC and the corresponding Qualifying Child Name Control must match IRS Master file
• Reject Code 503 - Secondary SSN and Spouse’s Name Control of the Tax Form must match the IRS Master File
• Reject Code 504 - Dependent’s SSN of Form 1040/1040A and corresponding Dependent Name Control must match the IRS Master File
-----------------------
See Pub 4012 for
actual dates for
direct deposit and
check mailed dates
Thursday
Direct Deposit sent
via ACH for posting
on 8th day
Paper Check
processed & printed for
mailing on 15th day
IRS sends info
to MasterFile for
posting & refund
processing
IRS
ERO completes
return processing
ERO corrects
return and
re-creates e-file
ERO
receives
& processes
Ack files
YES
NO
Is
Return
Accepted?
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