ADMINISTRATIVE MESSAGE
 
ROUTINE       
 
R 122315Z DEC 01 ZYB MIN PSN 075069J27
 
FM CNO WASHINGTON DC//DNS//
 
TO NAVADMIN
 
UNCLAS //N03104//
NAVADMIN 323/01
 
MSGID/GENADMIN/CNO WASHINGTON DC/DNS//
 
SUBJ/ELECTRONIC TAX FILING-VOLUNTEER INCOME TAX ASSISTANCE POLICY
/AND PROGRAM GUIDANCE//
 
REF/A/MSG/CNO/271740ZOCT2000//
 
AMPN/NAVADMIN 278/00//
POC/PARK/LT/OJAG 16.2/-/TEL:202-685-4641 DSN 325//
 
RMKS/1.  THIS NAVADMIN PROVIDES ELECTRONIC TAX FILING
(ELF)/VOLUNTEER INCOME TAX ASSISTANCE (VITA) POLICY AND PROGRAM
GUIDANCE AND SUPERSEDES REF A.
 
2.  SINCE 1994 THE ELF/VITA PROGRAM HAS GREATLY ENHANCED NAVY
QUALITY OF SERVICE BY PROVIDING ASSISTANCE IN PREPARING BOTH FEDERAL
AND STATE INCOME TAX RETURNS.  IN THE 2001 TAX SEASON ALONE, NEARLY
180,000 FEDERAL AND STATE TAX RETURNS WERE COMPLETED BY ELF/VITA
SAVING ACTIVE DUTY SERVICE MEMBERS AND THEIR DEPENDENTS ALMOST 11
MILLION DOLLARS IN COMMERCIAL TAX PREPARATION FEES.
 
3.  THE ELF/VITA PROGRAM IMPROVES MORALE AND READINESS - AND KEEPS
MONEY IN SAILORS POCKETS - BY SIGNIFICANTLY REDUCING THE EFFORT AND
COST INVOLVED IN MEETING FEDERAL AND STATE TAX OBLIGATIONS:
 
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 DEPENDENTS.
B.  FASTER REFUNDS. PAPER RETURNS TAKE EIGHT OR MORE WEEKS TO
PROCESS IN CONUS, EVEN LONGER IF SUBMITTED FROM OVERSEAS OR WHILE
DEPLOYED. WITH ELF, REFUNDS ARE DEPOSITED DIRECTLY INTO A SAILOR'S
BANK ACCOUNT WITHIN TWO WEEKS OF TRANSMISSION, EVEN FROM OVERSEAS OR
AFLOAT COMMANDS. THE QUICK REFUNDS AVAILABLE THROUGH ELF REDUCE THE
NEED FOR REFUND ANTICIPATION LOANS (SHORT TERM LOANS WITH ADDED
CHARGES AND HIGH INTEREST RATES).
C.  FEWER MISTAKES.  ELF RETURNS ARE MUCH MORE ACCURATE - LESS THAN
ONE PERCENT ERROR RATE AS COMPARED TO FIFTEEN PERCENT FOR PAPER
RETURNS.
 
4.  THE LOCAL AREA NAVAL LEGAL SERVICE OFFICE (NLSO) - OR IN THEIR
ABSENCE THE LOCAL STAFF JUDGE ADVOCATE OR FLEET AND FAMILY SERVICE
REPRESENTATIVE - MANAGE THE MAIN TAX ASSISTANCE CENTERS.  PAST TAX
SEASONS HAVE SHOWN THAT THE SUCCESS OF A TAX ASSISTANCE CENTER IS
PREDICATED ON TOP-DOWN SUPPORT FROM LOCAL AREA COMMANDS.  THUS,
LOCAL AREA COMMANDS ARE ASKED TO SUPPORT THE MAIN TAX ASSISTANCE
CENTER IN THREE MAIN AREAS:  PERSONNEL, EQUIPMENT, AND FACILITIES.
WHEN LOCAL AREA COMMANDS SUPPORT THE NEEDS OF THE ELF/VITA PROGRAMS,
THEY THRIVE AND SAILORS BENEFIT.
 
5.  AT THE HEART OF THE ELF/VITA PROGRAM ARE THE SAILORS THEMSELVES.
ELF/VITA CANNOT SUCCEED WITHOUT THE SUPPORT OF EVERY COMMAND TO
INCLUDING SENDING SAILORS TAD OR ALLOWING PERSONNEL TO WORK PART
TIME AT THE MAIN TAX ASSISTANCE CENTERS.  ALTHOUGH TAX CENTERS CAN
SURVIVE ON VOLUNTEERS, EXPERIENCE SHOWS THAT TRAINED PERSONNEL
ASSIGNED TAD FOR THE TWELVE WEEK TAX SEASON ARE THE MOST EFFECTIVE
MEANS OF ACHIEVING SUCCESS.  INSUFFICIENT MANPOWER REMAINS THE
SINGLE BIGGEST OBSTACLE PREVENTING THIS QOL PROGRAM FROM REACHING
ALL SAILORS WHO DESERVE IT.  THE GOAL IS ONE VOLUNTEER OR TAD MEMBER
PER HUNDRED MEMBERS OF EACH COMMAND.  ONE FULL TIME TAD TAX PREPARER
(TRAINED BY THE IRS AND ELF/VITA TAX OFFICERS) CAN PROVIDE OVER
$50,000 WORTH OF SERVICES.  INFORMATION INVOLVING TAX PREPARER
TRAINING CAN BE OBTAINED BY CONTACTING THE LOCAL NLSO OR AREA IRS
TAXPAYER EDUCATION COORDINATOR.
 
6.  THE ELF/VITA PROGRAM IS A PROVEN WINNER.  IT IS ESPECIALLY
IMPORTANT THIS TAX SEASON IN LIGHT OF OPERATIONAL COMMITMENTS AND
RESERVE RECALLS.  SAILORS NEED THE PEACE OF MIND CONCERNING THEIR
PERSONAL AFFAIRS THAT THIS PROGRAM OFFERS.  WE NEED EVERYONE'S
SUPPORT TO ENSURE CONTINUED SUCCESS.
 
7.  VADM P. A. TRACEY, DIRECTOR, NAVY STAFF.///
 
BT