ADMINISTRATIVE MESSAGE
 
ROUTINE       
 
R 161330Z DEC 02 ZYB MIN PSN 015422J14
 
FM CNO WASHINGTON DC//N09//
 
TO NAVADMIN
 
UNCLAS
NAVADMIN 403/02
 
MSGID/GENADMIN/CNO WASHINGTON DC/-/DEC//
 
SUBJ/ELECTRONIC TAX FILING POLICY AND PROGRAM GUIDANCE//
 
REF/A/MSG/CNO/122315ZDEC2001//
 
AMPN/REF A IS NAVADMIN 323/01//
POC/PARK/LT/OJAG 16.2/LOC:JAG/TEL:202-685-4641 DSN 325//
 
RMKS/1.  THIS NAVADMIN PROVIDES ELECTRONIC TAX FILING
(ELF)/VOLUNTEER INCOME TAX ASSISTANCE (VITA) POLICY AND PROGRAM
GUIDANCE.  THIS MSG SUPERSEDES REF A.
 
2.  SINCE ITS INCEPTION IN 1995, 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 THE ELF/VITA PROGRAM SAVING ACTIVE DUTY SERVICE MEMBERS
AND THEIR DEPENDENTS ALMOST 13 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
DOLLARS FOR THE AVERAGE ELECTRONICALLY FILED RETURN.  ELF/VITA FILES
THE SAME RETURNS AT NO COST TO THE 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 ON AN AVERAGE OF TWO WEEKS FROM THE DATE OF
TRANSMISSION, EVEN FROM OVERSEAS AND AFLOAT COMMANDS.  THE QUICK
REFUNDS FROM ELF/VITA 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
CENTER REPRESENTATIVE - MANAGE THE MAIN TAX ASSISTANCE CENTERS.
PAST TAX SEASONS HAVE SHOWN THAT THE SUCCESS OF THE 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
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.  THIS SUPPORT IS ESPECIALLY NECESSARY
DURING THE MONTH OF FEBRUARY, THE PEAK FILING TIME. 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/OR ELF/VITA TAX
OFFICERS) CAN PROVIDE OVER 50,000 DOLLARS WORTH OF SERVICES.
INFORMATION INVOLVING TAX PREPARER TRAINING CAN BE OBTAINED BY
CONTACTING YOUR LOCAL AREA NLSO.
 
6.  THE ELF/VITA PROGRAM IS A PROVEN WINNER.  IT IS ESPECIALLY
IMPORTANT THIS TAX SEASON IN LIGHT OF OPERATIONAL COMMITMENTS.
ADDITIONALLY, THERE ARE SEVERAL NEW TAX BREAKS THAT TAKE EFFECT THIS
TAX YEAR AND WILL BENEFIT A LARGE NUMBER OF OUR SAILORS INCLUDING
CHANGES TO THE EARNED INCOME TAX CREDIT.  SAILORS NEED THE PEACE OF
MIND CONCERNING THEIR PERSONAL AFFAIRS THAT THIS PROGRAM OFFERS.  WE
NEED EVERYONE'S SUPPORT TO ENSURE CONTINUED SUCCESS.
 
7.  RELEASED BY ADMIRAL WILLIAM J. FALLON, VCNO.//
 
BT