ADMINISTRATIVE MESSAGE
 
ROUTINE       
 
R 271740Z OCT 00 ZYB MIN PSN 667165J31
 
FM CNO WASHINGTON DC//N09//
 
TO NAVADMIN
 
UNCLAS
NAVADMIN 278/00
 
MSGID/GENADMIN/CNO WASHINGTON DC//
 
SUBJ/ELECTRONIC TAX FILING POLICY AND PROGRAM GUIDANCE//
 
REF/A/MSG/CNO/271739ZOCT1999//
 
AMPN/REF A IS NAVADMIN 290/99//
POC/GRAINGER/LT/OJAG/LOC:36.2/TEL:(202)685-4641//
 
RMKS/1.  THIS NAVADMIN PROVIDES ELECTRONIC TAX FILING
(ELF)/VOLUNTEER INCOME TAX ASSISTANCE (VITA) POLICY AND PROGRAM
GUIDANCE AND SUPERSEDES REF A.
 
2.  SINCE ITS INCEPTION IN 1994, THE ELF/VITA PROGRAM HAS ASSISTED
SAILORS WITH WELL OVER HALF A MILLION FEDERAL AND STATE TAX RETURNS,
AND HAS SAVED OUR SAILORS MILLIONS OF DOLLARS IN COMMERCIAL TAX
PREPARATION FEES.  DURING THE PAST THREE YEARS, ELF/VITA HAS
CONSISTENTLY REACHED OVER ONE THIRD OF THE ACTIVE DUTY POPULATION.
THIS PROGRAM PROVIDES A VITAL ENHANCEMENT OF NAVY QUALITY OF
SERVICE.
 
3.  THE ELF/VITA PROGRAM PUTS MONEY IN OUR SAILORS POCKETS IN
THREE MAJOR WAYS:
 
A.  NO PREPARATION FEES.  COMMERCIAL TAX PREPARERS CHARGE OVER $100
FOR THE AVERAGE ELECTRONICALLY FILED RETURN.  ELF/VITA FILES THE
SAME RETURNS AT NO COST TO SAILORS AND THEIR FAMILIES.
B.  FASTER REFUNDS.  PAPER RETURNS TAKE EIGHT OR MORE WEEKS IN
CONUS, EVEN LONGER IF OVERSEAS OR DEPLOYED.  WITH ELF, REFUNDS ARE
DEPOSITED
DIRECTLY INTO A SAILOR'S BANK ACCOUNT WITHIN TWO WEEKS OF
TRANSMISSION, EVEN FROM OVERSEAS OR AFLOAT COMMANDS.
C.  NO NEED FOR REFUND ANTICIPATION LOANS.  THE QUICK REFUNDS
AVAILABLE THROUGH ELF REDUCE THE NEED FOR REFUND ANTICIPATION LOANS
(SHORT TERM LOANS WITH ADDED CHARGES AND HIGH INTEREST RATES).
 
4.  INCREASED READINESS.  ELF/VITA SAVES OUR SAILORS TIME AND
TROUBLE.  TRADITIONAL PAPER RETURNS HAVE AN ERROR RATE OF FIFTEEN
PERCENT; FILING BY COMPUTER HAS A LESS THAN ONE PERCENT ERROR RATE.
ELF/VITA ALLOWS SAILORS TO FILE THEIR TAX RETURNS AND MOVE ON.
 
5.  ELF IS HERE TO STAY.  THE IRS HAS SET A GOAL OF HAVING
80 PERCENT OF ALL TAXPAYERS ELECTRONICALLY FILE FEDERAL TAX RETURNS
BY THE YEAR 2007.  THE NAVY'S ELF PROGRAM HAS GIVEN OUR SAILORS AN
EDGE IN THE ELECTRONIC AGE, AND WILL BECOME EVEN MORE IMPORTANT AS
THE IRS MOVES TO AN ALL-ELECTRONIC FORMAT.
 
6.  LESSONS LEARNED FROM PAST TAX SEASONS SHOW UNEQUIVOCALLY
THAT THE SUCCESS OF EACH TAX SITE DEPENDS ON TOP-DOWN COMMITMENT.
WHERE COMMANDERS SUPPORT ELF, IT THRIVES AND SAILORS BENEFIT.  THE
FOUR ESSENTIAL ELEMENTS OF A SUCCESSFUL ELF/VITA PROGRAM ARE
PERSONNEL, EQUIPMENT, FACILITIES, AND TRAINING.  LOCAL COMMAND
SUPPORT IS NEEDED IN EACH OF THESE AREAS IF THE PROGRAM IS TO
SUCCEED.
 
7.  SAILORS ARE THE HEART OF THE ELF/VITA PROGRAM.  VOLUNTEERISM IS
ENCOURAGED, INCLUDING THE SENDING OF INTERESTED PERSONNEL TAD TO TAX
CENTERS, OR AFFORDING THEM THE OPPORTUNITY TO WORK PART TIME AT TAX
CENTERS.  MANPOWER SHORTAGES CONTINUE TO BE THE BIGGEST IMPEDIMENT
TO PROVIDING THIS OUTSTANDING PROGRAM TO ALL DESERVING SAILORS.  THE
NAVY'S TARGET IS ONE VOLUNTEER OR TAD MEMBER PER HUNDRED MEMBERS OF
EACH COMMAND.  ONE FULL TIME TAD TAX PREPARER (TRAINED BY IRS AND
ELF/VITA TAX OFFICERS) CAN PROVIDE OVER 50,000 DOLLARS WORTH OF
SERVICES.
 
8.  THE ELF/VITA PROGRAM IS A PROVEN WINNER.  THE GOAL FOR THIS
UPCOMING TAX SEASON IS TO PREPARE 200,000 RETURNS AND INCREASE STATE
ELECTRONIC FILING.  TO PROVIDE THESE INCREASED BENEFITS TO SAILORS,
WE NEED SUPPORT FROM EVERYONE.
 
9.  ADMIRAL WILLIAM J. FALLON, VCNO.//
 
BT