Standards of Conduct (Ethics) Training

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Standards of Conduct (Ethics) Training
A Guide for AARP Foundation Tax-Aide Volunteers
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Agenda Overview

• Volunteer Agreement (Form 13615)
• Understanding the six (6) Volunteer Standards of
  Conduct (Form 13615)
• Applying tax law ethically and accurately
• Reporting possible violations
• Consequences of failure to adhere to the program
  requirements and
• Examples of situations that raise ethical
  questions.

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Unethical Defined

• According to IRS-SPEC
• not conforming to agreed standards of moral
  conduct, especially within a particular
  profession.
• Intent to disregard established laws, procedures,
  or set policies.
• Not to be confused with a lack of knowledge or a
  simple mistake.

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Volunteer Standards of Conduct 

• Form 13615, Volunteer Standards of Conduct
  Agreement, applies to all conduct and ethical
  behavior in the AARP Foundation Tax-Aide Program.
• All Volunteers must agree to the standards of
  conduct prior to working at a Tax-Aide site (i.e.
  leadership, preparers, greeters, and client
  facilitators)
• Responsibility of all volunteers is to provide
  the highest quality and the best service to
  taxpayers

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IRS Six Standards of Conduct

1. Follow the Quality Site Requirements (QSR)
   (i.e. 10 QSR PowerPoint presentation sent to
   each LC in November, same as IRS Site (Local)
   Coordinator Training)
2. Not accept payment or solicit donations for
   federal or state tax return preparation
3. Not solicit business from taxpayers I assist or
   use the knowledge I gained (their information)
   about them for any direct or indirect personal
   benefit for me or any other specific individual

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IRS Six Standards of Conduct(continued)

• 4. Not knowingly prepare false returns
• 5. Not engage in criminal, infamous, dishonest,
  notoriously disgraceful conduct, or any other
  conduct deemed to have a negative effect on the
  VITA/TCE Program
• 6. Treat all taxpayers in a professional,
  courteous, and respectful manner

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IRS Quality Site Requirements (QSR)

• QSR1, Certification
• In order to answer tax law questions, instruct
  tax law classes, prepare or correct tax returns,
  and/or conduct quality reviews of completed tax
  returns, must be certified.
• As part of certification, volunteers must pass a
  Basic, Intermediate and Advanced test developed
  by the IRS.

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Quality Site Requirements (QSR) - continued

• QSR2, Intake/Interview Process
• All sites must use the IRS Form 13614-C,
  Intake/Interview Quality Review Sheet, for
  every return prepared.
• The electronic Form 13614-C, available in TaxWise
  interview mode, may be used in lieu of the paper
  Form 13614-C.

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Quality Site Requirements (QSR) - continued

• QSR3, Quality Review Process
• All returns must be quality reviewed and
  discussed with the taxpayer
• Complete Section C of the intake form (Form
  13614-C)
• QSR4, Reference Materials
• All sites must have the following on-site 
• Pub 4012, Volunteer Resource Guide
• Pub 17, Your Federal Income Tax for Individuals

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Quality Site Requirements (QSR) - continued

• QSR5, Volunteer Agreement
• All volunteers (preparers, quality reviewers,
  greeters, etc) must complete the Volunteer
  Standards of Conduct Training and
• Certify to their adherence by signing Form 13615
  prior to working at a site.
• QSR6, Timely Filing
• All sites must have a process in place to ensure
  every return is electronically filed or delivered
  to taxpayer in a timely manner

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Quality Site Requirements (QSR) - continued

• QSR7, Title VI - Civil Rights Act of 1964
• Title VI of the Civil Rights Act of 1964
  information, AARP Foundation Tax-Aide poster
  D143 must be displayed
• QSR8, Site Identification Number
• Site Identification Number (SIDN) must be
  included on ALL returns prepared by VITA/TCE
  sites.

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Quality Site Requirements (QSR) - continued

• QSR9, Elect Filing Identification Number
• The correct Electronic Filing Identification
  Number (EFIN) must be used on every return
  e-filed
• EFIN is found on Form 8879
• QSR10, Security, Privacy Confidentiality
• All guidelines discussed in Publication 4299,
  Privacy, Confidentiality, and Standards of
  Conduct A Public Trust must be followed

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Failure to Comply

• By law, tax return preparers are required to
  exercise due diligence in preparing or assisting
  in the preparation of tax returns
• At times taxpayers and preparers have evaded the
  system by filing fraudulent returns
• IRS and the AARP Foundation have the
  responsibility for providing oversight to protect
  the programs integrity and maintain taxpayer
  confidence

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Impact on the Program if Standards are not
followed

• Any or all of the following actions may occur if
  standards are not followed
• Volunteer(s) are removed from the program
• Tax sites are closed due to unethical behavior or
  not following Quality Site Requirements
• Partnership between the IRS and the sponsoring
  organization is terminated
• IRS support is discontinued

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Impact on Program(continued)

• Sponsoring organizations grant funds are revoked
  or retrieved
• IRS EFIN is deactivated
• All IRS products, supplies, and loaned equipment
  are removed from the site
• All taxpayer information is removed
• Use of IRS-SPEC and AARP Foundation logos is
  disallowed.

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Taxpayer Impact if Standards are not followed

• Taxpayer is responsible for paying the correct
  amount of tax due under the law
• Volunteers correctly apply the tax laws to the
  taxpayers situation but may be tempted to bend
  the law to help taxpayers
• Taxpayer may be subject to the examination
  process including appeals, litigation, and
  collection
• Could cause problems with service when taxpayer
  returns to the site the next year and refused
  same type of service

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Criminal Investigation

• Taxpayers and return preparers who violate the
  tax law are subject to various civil and criminal
  penalties
• Preparation of a knowingly false or fraudulent
  return is subject to criminal punishment
• IRS-SPEC will refer violations to the IRS
  Criminal Investigation Division or the Treasury
  Inspector General for Tax Administration.

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Volunteer Protection Act

• Public Law 105-19, Volunteer Protection Act of
  1997 (VPA)
• Protects volunteers from liability for negligent
  acts they perform within the scope of their
  responsibilities in the organization for whom
  they volunteer
• Volunteers must be following policies and
  procedures, including required training
• Harm must not be willful

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Who is a Volunteer?(Volunteer Protection Act)

• volunteer is an individual performing services
  for a nonprofit organization or a governmental
  entity who does not receive 
• (a) Compensation (other than reasonable
  reimbursement or allowance for expenses actually
  incurred), or  
• (b) Any other thing of value in lieu of
  compensation in excess of 500 per year, and such
  term includes a volunteer serving as a director,
  officer, trustee, or direct service volunteer

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Contacts for Referring Problems  

• Local Coordinator is the first point of contact
  for resolving any problems you encounter or
• AARP Foundation Tax-Aide incident report should
  be completed

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Contacts for Referring Problems (continued)

• IRS Contact Information
• E-mail IRS at WI.VolTax_at_irs.gov, call toll free
  1-877-330-1205, and/or contact your local
  IRS-SPEC relationship manager
• Refer taxpayers who are victims of identity theft
  and that theft has affected their current federal
  income tax return (Identity Protection
  Specialized Unit at 1-800-908-4490)

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Contacts for Referring Problems (continued)

• Refer taxpayers with balance due notices or
  installment agreement requests to local Taxpayer
  Assistance Center or call IRS toll free at
  1-800-829-1040.
• Refer federal refund inquiries to www.irs.gov and
  click on Wheres My Refund or call
  1-800-829-1954 or 1-800-829-4477.

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Taxpayer Advocate Service (TAS)

• Taxpayer Advocate Service (TAS) might be able to
  help
• If taxpayers come to a VITA/TCE site with a tax
  problem and have been unsuccessful in resolving
  their issue with the IRS, or
• If taxpayer is experiencing a significant
  hardship as the result of a tax problem.
• For more information, taxpayers can call toll
  free, 18777774778 (18008294059 for TTY/TDD).

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Example 1Not Reporting Cash Income

• Self-employed taxpayer has a 1099-MISC with
  income reported in Box 7
• Taxpayer tells volunteer they also have cash
  income not reported on a 1099-MISC
• Volunteer tells taxpayer he does not need to
  report the cash income because the IRS may not
  catch it
• Volunteer completes Schedule C without the cash
  income.
• You are the Local Coordinator, what do you do?

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Example 1What Should You Do?

• What Standard of Conduct was violated?
• 4 (should not knowingly prepare a false return)
• The local Coordinator should discuss the incident
  with immediate supervisor
• AARP Foundation Incident Review Protocol should
  be followed

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Example 2Claiming a Person as a Dependent

• Taxpayer lists a person who was not related but
  a child of a personal friend who was not claiming
  this child as a dependent
• Volunteer stated that, although the child was not
  a qualified child or relative, since no one
  else is claiming the child it would be OK to put
  this person on the return
• Volunteer completes Form 1040 claiming the
  dependent.
• You are the Local Coordinator, what do you do?

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Example 2What Should You Do?

• What Standard of Conduct was violated?
• 4 (should not knowingly prepare a false return)
• The local Coordinator should discuss the incident
  with immediate supervisor
• AARP Foundation Incident Review Protocol should
  be followed

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Example 3Using Volunteers Account

• Taxpayers indicate on Part V of intake sheet that
  they have no bank account for direct deposit
• Taxpayer is entitled to refund of 1200
• Volunteer says direct deposit of refunds to bank
  account are available within 7-10 business days
• Volunteer says he could have refund deposited to
  his bank account and, when received, would
  contact taxpayer to give them their money
• Return completed with volunteers account .
• You are the Local Coordinator, what do you do?

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Example 3What Should You Do?

• What Standard of Conduct was violated?
• 3 (should not solicit business from taxpayers I
  assist or use the knowledge I gained about them
  for any direct or indirect personal benefit for
  me or any other specific individual)
• The local Coordinator should discuss the incident
  with immediate supervisor
• AARP Foundation Incident Review Protocol should
  be followed

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Example 4Making a Personal Advance

• Volunteer noted the taxpayer was single and asked
  if she would like to meet some evening at a local
  bar
• Taxpayer stated she was uncomfortable with
  meeting him and would prefer he not call her
• Taxpayer reported the conversation she had with
  the volunteer to the Local Coordinator before she
  left the site.
• You are the Local Coordinator, what do you do?

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Example 4What Should You Do?

• What Standard of Conduct was violated?
• 6 (should treat all taxpayers in a
  professional, courteous, and respectful manner)
• The local Coordinator should discuss the incident
  with immediate supervisor
• AARP Foundation Incident Review Protocol should
  be followed

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Example 5TP Files a Fraudulent Return

• Taxpayer stated they did not want to report
  capital gains because their sales price was
  equivalent to or higher than the cost basis
• Volunteer told taxpayer that, if audited or
  received a letter from the IRS, amounts would
  have to be supported by written statements or
  other documents of the purchases
• Taxpayer understood, but did not care and wanted
  return completed as was.
• You are the Local Coordinator, what do you do?

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Example 5What Should You Do?

• What Standard of Conduct was violated?
• 4 (should not knowingly prepare a false return)
• The local Coordinator should discuss the incident
  with immediate supervisor
• AARP Foundation Incident Review Protocol should
  be followed

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Example 6Volunteer Commits Criminal Act

• Local Coordinator learns from other volunteers
  that volunteer has been arrested for a crime
• Volunteer comes to site and Local Coordinator
  speaks to him privately
• Local Coordinator learns volunteer got into an
  altercation at a bar and is out on bail
• Local Coordinator asks if it is true he had prior
  arrests and altercations with the law the
  volunteer says it is true.
• You are the Local Coordinator, what do you do?

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Example 6What Should You Do?

• What Standard of Conduct was violated?
• 5 (should not engage in criminal, infamous,
  dishonest, notoriously disgraceful conduct, or
  any other conduct deemed to have a negative
  effect on the VITA/TCE Program)
• The local Coordinator should discuss the incident
  with immediate supervisor
• AARP Foundation Incident Review Protocol should
  be followed

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Example 7Volunteer Argues with Taxpayer

• Local Coordinator is called by center stating
  volunteer had an argument with taxpayer causing
  major disruptions at the site
• Many taxpayers were upset and left
• Coordinator talked to volunteer volunteer said
  taxpayer was upset because he did not believe
  what could be claimed or not on his return
• Volunteer admitted he got angry because he did
  not like what taxpayer said to him.
• You are the Local Coordinator, what do you do?

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Example 7What Should You Do?

• What Standard of Conduct was violated?
• 6 (should treat all taxpayers in a
  professional, courteous, and respectful manner)
• The local Coordinator should discuss the incident
  with immediate supervisor
• AARP Foundation Incident Review Protocol should
  be followed

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Ethics Training
QUESTIONS?
COMMENTS?