SOW_Draft_-_Holloman_AFB_Tax_Center.docx

Statement of Work – Holloman AFB Tax Center Attachment I

STATEMENT OF WORK ELECTRONIC TAX FILING

PURPOSE:

The Contractor will assist Holloman Air Force Base military personnel to electronically file their Volunteer Income Tax Assistance (VITA) prepared income tax returns. Work will be performed at the Holloman AFB Tax Center, located at: (To Be Designated at Time of Award); Holloman AFB, NM and monitored by 49 WG/JA. The contractor will use government furnished desktop computer hardware with Laser printer. The hardware will operate Taxwise Electronic Filing and Tax Preparation software, which is approved by the Internal Revenue Service. All supplies and equipment will be government furnished.

OBJECTIVE:

The objective of this contract is to provide tax preparation service and electronic filing capability of income tax forms to the IRS and state governments for all active duty members and eligible dependents on Holloman AFB in support of the VITA program.

QUALIFICATIONS:

The Contractor will provide one (1) individual to manage the Holloman AFB VITA Tax Center with the following qualifications:

1. A minimum of three (3) years of experience preparing individual income tax returns.

2. Prior experience managing, directing or supervising other individual income tax return preparers, to include the ability to check and quality control individual income tax returns prepared by others.

RESPONSIBILITIES:

1. Responsible for creating work schedules of VITA volunteers to ensure adequate volunteer resources are available during operational hours.

2. Establish and maintain appropriate suspense files to ensure actions are taken in a timely manner.

3. Prioritize work to maximize personnel productivity, and set hours as the work dictates as coordinated with and approved by the Government point of contact who is TSgt Tabitha Wade, telephone (575) 572-0858.

4. Ensure security procedures and regulations are strictly adhered to in the processing of Privacy Act materials.

5. Input data and /or information into automated system, Taxwise.

6. Verify and reconcile data input into the automated system. Identify the cause of discrepancies and make appropriate corrections.

7. Establish and maintain appropriate tracking files for follow-up questions from military personnel and/or IRS.

8. Pass VITA training and demonstrate proficiency in preparing income tax returns.

9. Assist in training of VITA personnel on electronic filing procedures.

10. Prepare income tax returns for military and civilian personnel eligible to receive assistance from the Holloman AFB tax center.

DATES

The contract period of performance will be 15 December 2012 through 30 April 2013. The Tax Center will be open Monday through Friday (except Federal Holidays) between the hours of 8:00 A.M. and 4:00 P.M. and occasionally on Saturdays as demand and volunteer manning dictates. Hours worked will average approximately four to six hours per day worked, but will vary depending on workload. Work schedules will be coordinated with and approved by the designated Government point of contact. In addition, an orientation and training session will be necessary and is normally scheduled for January. The orientation is a billable event with hours to be included in the first full month’s invoice. The Government point of contact will keep track of hours.

BILLING:

The contractor will submit invoices monthly for work performed. The contractor shall not schedule nor perform more hours of work than stated in the purchase order’s Schedule of Supplies/Services to include any modifications thereto.

SPECIFIC DUTIES:

1. Read IRS Publication 1345, “Handbook for Electronic Filers”.

2. Set up necessary files:

(a) “Problem File” for returns that need additional work

(b) “Ready to Input /Upload from Disk”

(c) “Ready to Transmit”

(d) “Awaiting Acknowledgment”

(e) “Acknowledged/Ready to Complete”

(f) “Ready to Mail to IRS”: Top Copy IRS Form 8453 & W-2s etc. (POA & Divorce Decree if applicable)

(g) “Office Copy” **: 2nd IRS Form 8453, W-2s etc., Info Sheet (POA & Div. Decrees if applicable)

(h) “Ready to Return to VITA Rep”: ACK, 3rd IRS Form 8453, Print out of Return, extra W-2s etc., & other forms

(i) “DCR & Acknowledgment Reports”

(j) “Mailed Paper Returns”

(k) Each VITA rep needs a pocket folder labeled with his/her name

(l) Each VITA rep needs a drop file labeled with his/her name

(m) “Office Pick-up” File (accordion file labeled A-Z) **Will need multiple files labeled 00-10 (corresponds to the individuals’ number portion of the Declaration Control Number).

3. Prepare and/or Accept Returns

- Returns should be collected from the VITA rep when at all possible (but exceptions are made).

- Disks labels must include Privacy Act Statement and VITA rep’s name.

- Info Sheet required for each return & must include VITA rep’s name and client’s phone numbers (home & work).

- Date the Info Sheets.

- In the event that VITA representatives are unavailable or require assistance, be prepared to prepare income tax returns and/or assist VITA representatives to prepare complex income tax returns.

4. Perform Quality Review

- Info sheet complete? (i.e., birth dates, dependent’s data including number of months dependent lived in client’s home)

- Are the IRS Forms 8453 complete? 3 copies with ORIGINAL client signatures on each.

- Are the W-2s and 1099s included (POA and Divorce Decrees when applicable)?

- Do all SSANs match?

- Attempt to obtain missing info from VITA rep or client ASAP.

5. Batch Returns Received

- Send returns that do not qualify for electronic filing back to VITA rep. Notify VITA rep & client.

Record problem and actions on Info Sheet and make a copy of Info Sheet for our “Mailed Paper Returns” file.

- Put other returns in “Ready to Input” file. Group by date received so work can be processed in the proper order.

- Return VITA rep folders to the filing cabinet by the end of the day (so available for new returns the following morning).

6. Input Return Data into Electronic Filing System

Disk Returns:

- Upload returns from VITA rep’s disk; only upload returns with a complete Info sheet & 3 signed IRS Forms 8453.

- Use Advance Restore Options (only need Return files, Database recs, Current User, & Confirmation for all Overwrites).

- Put VITA rep’s disk back in their folder and return to the filing cabinet.

- Beginning of each season verify several returns submitted on disk, from each VITA rep. Verify PRICE SHEET is filled in, default fields are set properly, ranks are being entered properly and look for OVERRIDDEN fields (this may be an indication they are not using the computer program properly).

Inform VITA rep of any problems by filling out Error Sheet (and calling if necessary).

Paper Returns:

- Re-Check SSAN’s against two sources if possible; however frequently only have a W-2.

- Input information from the Info Sheet, paper tax return, and W-2s, 1099s etc.

Disk AND Paper Returns:

- After return is uploaded/inputted run Diagnostics for each return. Be sure to scroll up on the DIAGNOSTIC SCREEN looking for WARNINGS.

- Make an E-FILE for each return, provided no errors were detected during Diagnostics and the Warnings have been reviewed.

- Note nature of any problems and actions on Info Sheet for any returns unable to complete.

7. Batch Returns Input

- Put completed inputted returns in the “Ready to Transmit” file.

- Put the incomplete returns in the “Problem File”.

8. Transmit Data

- Before you transmit make sure you have 3 copies of IRS Form 8453 with client’s original signatures on EACH!

- Only transmit those returns without errors.

- Print out report of returns to be transmitted (DCR Report).

- Compare DCR report with returns in the “Ready to Transmit” file (same number of returns).

- Transmit once a day.

- If transmission fails, try again!

9. Batch Returns Transmitted

- Put all transmitted returns in “Awaiting Acknowledgment” file.

- Include DCR report with returns that were transmitted.

10. Empty “Problem File” As Needed (or Daily)

- For rejected returns: Look at the “Reject Sheet” for an explanation (handbook contains same info);

- Fix error(s), make notation on Info Sheet, and put return at front of the “Ready to Transmit” file.

- Contact VITA rep and/or client to secure missing or erroneous information when necessary.

- Put resolved problem returns at the front of the “Ready to Input” file (input first).

- If the problem is unsolvable send return back to VITA rep and notify client & VITA rep that they must mail in the return. Include documentation on the Info Sheet regarding the problem and actions taken to correct it. Make a copy of the Info Sheet and file it in the “Mailed Paper Returns” file. If the return has been entered in the computer and it will not be transmitted, change the flag in the system from “E-File” to “Paper Return”.

11. Pick up Acknowledgments from UTS (Daily)

- Request UTS to transmit Acknowledgments to Tax Center first thing each morning.

- If request fails (times out) try again!

- Print Acknowledgments and the Acknowledgment Report; Reject messages will print automatically.

- Compare the Acknowledgment Report to the DCR Report (should agree). Look for rejects and duplications.

- Contact UTS if error message “Bad Mail File” (only partial file was transmitted).

- Read E-Mail Messages sent from UTS (notification of delays or current problems).

12. Batch Acknowledged Returns

- Put Acknowledgments and Acknowledgment Report with returns in the “Acknowledged/Ready to Complete” file.

- Put rejected returns in the “Problem File”; record rejection message & date on the Info Sheet.

13. Print Return/Copy

- Print tax returns (include Form 8453) on the laser printer.

- If necessary copy W-2s, 1099s, POA, Divorce Decrees, etc.

14. Process IRS Form 8453s

- Separate and sort Acknowledgments & printed tax returns. Match up with IRS Form 8453s.

- Fill in Declaration Control Number (DCN) in appropriate boxes on IRS Form 8453s (all 3 copies).

- Fill in amounts in Part I “Tax Return Info” on IRS Form 8453 (all 3 copies); get info from computer printout of 8453.

- If Part I on IRS Form 8453 is already filled in (by client or VITA rep), verify figures are correct. Make any necessary corrections (frequently rounding errors).

- Verify IRS Form 8453s are signed by an IRS rep or electronic tax return filer (sign if necessary) – ERO signature.

- Fill in “Holloman AFB” & VITA Site number in the Firm’s name in the ERO section of the IRS Form 8453s.

- Separate IRS Form 8453s into three piles- IRS pile, Office pile, & Client pile.

- Attach original W-2s, 1099s to front of top copy of IRS Form 8453 (POA/Divorce Decree behind if applicable)-IRS pile.

- Attach additional W-2s, 1099s (POA, Div. Decrees) & Info Sheet to back of second copy of IRS Form 8453-Office pile.

- Staple Acknowledgment, third copy of IRS Form 8453, computer print out of Form 8453/tax return, extra W-2s, 1099s and any other documentation turned in- Client pile.

- Write client’s phone(s) & VITA rep’s name on top of Acknowledgment (eases filing & pick-up at the end of season).

- File IRS pile in the “Ready to Mail to IRS” file.

- File Office pile returns in proper “Office Copy” files (corresponding to the individual part of the Declaration Control Numbers (DCN)).

- File Client pile returns in appropriate VITA rep folders.

15. Mail Paper Work to IRS Service Center

- Top copy of IRS Form 8453 and attachments should be mailed to the correct Service Center within approximately 24 hours after being accepted by the Service Center.

- Double check for the client’s signature, DCN and that all other pertinent info is filled in before mailing.

- Log mailing date of batches on Acknowledgment reports.

16. Record Keeping & Security

- File Acknowledgment and DCR reports in chronological order.

- Note on Acknowledgment Reports when the IRS Form 8453s were mailed to the IRS Service Center.

- Back up tax returns on disks DAILY (use “Regular Backup Options”).

- Secure all tax returns and disks at the end of the day.

17. Management Reports

- Run Summary reports for management at the end of each week or on demand.

18. Customer Service

- Schedule tax center VITA appointments for retirees, spouses, dependents and other clients without VITA reps.

- Refer active duty members to VITA reps in their squadron.

- Assist in finding forms and pubs when necessary.

- Answer phones and return messages from the answering machine.

- Assist VITA reps in learning electronic tax filing procedures.

- Assist VITA reps using the UTS computer program when applicable.

- End of season contact VITA reps and clients who have not picked up their tax returns.

19. Prepare income tax returns for eligible civilian and military personnel.