October, 2010

*Verification Training

*Agenda

*Training Assessment

*Internal Audit Results

*Audit Results

*Discuss Improvements

*IRS Forms/Banner Screens

*Verification Procedures

*Practice

*Questions

*Training Assessment

we are least confident in these 4 areas

*Confidence in Verification Procedures

*Understanding tax information and Fed Law

*Confidence when doing a Federal Verification

*Understanding tax forms and schedules

*Internal Audit Results

Errors, from highest to lowest

1. Tax Deferred Pensions

2. Banner not being updated

3. Earned Income

4. Taxes not being Signed

5. Number of Family Attending College

6. U.S. Income Tax Paid and Education Credits

*Audit Results

Errors Found From Highest to Lowest

*1. Tax Deferred Pension

*2. Number of Students in College

*3. Students Earning Money/Not Filling Taxes

*Where could we improve?

*Tax Deferred Pensions

*Updated Banner

*# of Students in College

*Students that earn enough are filing

*Earned Income

*Taxes Being Signed

*IRS Forms

*Form 1040, 2009

*Form 1040 A, 2009

*Form 1040 EZ, 2009

*Required Verification Items

*1. Household Size

*2. Number in College

*3. Adjusted Gross Income (AGI)

*4. U.S. Taxes Paid

*5. Certain types of untaxed income and benefits

*Line Items from the 2009 Tax

Return

1040 1040A 1040EZ

AGI 37 21 4

Income Tax Paid 55 35 11

Deductible IRA/SEP

28 plus 32 17

Tax-exempt Interest Income

8b 8b

Untaxed Portions of IRAs and Pensions

15a minus 15b and16a minus 16b

11a minus 11b and12a minus 12b

*Earned Income

*Wages

*+ Business Income

*+ Farm Income

*= Earned Income

*Untaxed Income

*Child Support

*Paments to tax-deferred or sheltered pension and savings plans (paid directly or withheld from earnings) 401K and 403b plans. These types of payments are listed in boxes 12a through 12d of the W-2 and will have one of the following codes. D, E, F, G, H, or S. Employer contributions to these plans should not be reported as an untaxed benefit.

*Deductible IRA payments.

*Tax exempt interest income – Certain types of interest such as interest on municipal bonds – this is on line 8b on 1040 and 1040A forms.

*NO Income or Low Income

*Time to Practice

Verification Bingo

*Verifications

Questions?

*Wrap Up

Go over Agenda