Introduction

Becoming certified as Vita Tax Preparer requires satisfactory completion of an open book test each year.    Annual certification is required even if you are a Tax Professional.  The purpose of the open book test is to make sure you are familiar with filling tax forms and can follow instructions; the passing grade is 70% of the multiple choice questions; if you do not pass a section, you can take a retest.

IRS Tax Law Training options for VITA Tax Preparers

• IRS Classroom tax training during January 2006.  You can sign up for the training on this online registration form.
• IRS  online training course.  You can do this in the privacy of your own home, at your own pace, and each time you successfully complete a module, you can print out a certificate which you then mail to the IRS VITA Coordinator.
• Retired and Senior Volunteer Program (RSVP) online training resource site that can be used to help pass the required test

Tax Preparation

Certified VITA Tax Preparer volunteers may assist certain taxpayers. Tax returns prepared by VITA volunteers are considered self-prepared by the taxpayer.  VITA volunteers do not sign the tax returns as individuals; the return includes the Site ID for statistical and tracking purposes.

The Tax Law Training teaches the basic concepts of income tax law and is sufficient for preparing tax returns on paper.   Additional training is required to prepare taxes electronically.  The IRS training for VITA volunteers does not qualify a volunteer to give tax advice or complete tax returns for pay;  different requirements apply for preparing tax returns for pay.  In addition, VITA volunteers prepare simple return.

Tax Preparation for Pay

The rules and requirements  to become a paid (professional) tax preparer for federal and California income tax returns is available on the California Tax Education Council (CTEC) website.   It requires completion of a certain number of hours of training each year from a recognized institution, obtaining  a Surety Bond from an Insurance Company, and registering with the CTEC.   People with certain other professional qualifications may be exempt from these requirement.

TaxWise E-File Basic and Refresher Training

E-File training is an additional 3-hour training session on using a computer program for completing the return on a computer.   The software for the 2005 Tax year  is TaxWise provided by Universal Tax Systems.  In this training, you will learn to complete the tax return on a computer and create an E-File of the return.  The E-File is a computer file ready for transmission by internet to the IRS and the State.   While there are no formal pre-requisites for the class,  it will be difficult and frustrating if you are not familiar with a PC or laptop and Microsoft Windows.  If you have used other tax preparation software in the past, this training will be easy for you.  This software is different from software used for preparing tax returns at home since it is to support the preparation of a large number of tax returns by a person familiar with the software, and does not have the large number of menus and questions that come with software for individual tax preparation.

TaxWise Transmitter Training

TaxWise Transmitter Training is a  3 hour training session on the administrative details of transmitting the E-File to the IRS and State.   The pre-requisite is past experience with TaxWise.  You must be very comfortable using a computer and the internet.   You will learn the steps to transmit tax returns prepared at the site electronically over the internet, and to create the supporting paperwork (remember that electronic filing is not the same as paperless filing).

Pilot sessions for additional Training

This is an experiment being tried for the first time.  For those who have prepared taxes before, are familiar with TaxWise, and have received their certification, there are additional training opportunities.  Some coordinators may provide additional training to prospective volunteers of their sites to discuss common problems that occurred in the past which were not presented in the formal training.  Since each site has different approaches and processes, this will also be a forum for best practices.  Active participation in discussions will be required in these additional training sessions.