The following scenarios are based on actual returns and situations that have occurred in this years VITA program. The responses provided here would be similar to those you would provide to actual taxpayers in the event a similar situation would occur.
Scenario
Inez Sanchez, age 49, ITIN # 933-12-1987 is married but has been separated from her husband since March 3, 2017. She is a housekeeper for Acme Hotels Inc. She has four daughters, all born and raised in the U.S. who lived with her the entire year who she fully supports. No one had any health insurance for the entire year
Name Date of Birth Social Security Number Earnings
Polet Sanchez 09/09/2006 454-11-2222 $0
Jessica Sanchez 07/07/2004 453-11-2222 $0
Stephanie Sanchez 05/05/2002 452-11-2222 $0
Juanita Sanchez 03/03/1995 451-11-2222 $8000
For legal reasons, she tells you that she wants to file a paper return. She also wants her refund mailed to her.
Inez’s Refund for 2019 was $4,600.
After completing Inez’s return, she mentions to you that many of her friend’s and co-workers who make about the same amount of money and have the same number of children got almost double of what she is getting?
Obviously, one of the major reasons is that she has an ITIN number and not a social security number which does not make her eligible for EIC. Another reason is because she has a child who is over 24 and makes more than $4250. Lastly she has a child who turned 17 in 2019 and is no longer eligible for the child tax credit
As usual the taxpayer is upset and believes that the return was not completed correctly. As the tax preparer or quality reviewer, your job is to explain to the taxpayer why your work is correct and why this changed occur
In the preparation process, all UIW-VITA procedures were followed and the results of your return are 100% accurate.
Instructions
For the purposes of this scenario, you must explain to Inez why her refund is the way it is. As the tax preparer or quality reviewer, your job is to explain to the taxpayer why your work is correct and why this return resulted in the refund that it did. Remember, you are dealing with a taxpayer who is unhappy with your work. For this assignment, you are not required to re-explain to me the results of the return again. Rather, I am looking for a procedure you would use to assure the taxpayer the result of your work are accurate. Remember, all of the policies and procedures that were used in the preparation process. Be creative.