ADMINISTRATIVE MESSAGE
 
ROUTINE       
 
R 052225Z DEC 03 ZYB MIN PSN 580152J21
 
FM CNO WASHINGTON DC//NO9//
 
TO NAVADMIN
 
UNCLAS //N02300//
NAVADMIN 311/03
 
MSGID/GENADMIN/CNO WASHINGTON DC/N09/-/DEC//
 
SUBJ/2003 VOLUNTEER INCOME TAX ASSISTANCE (VITA)
/ELECTRONIC TAX FILING (ELF) POLICY AND PROGRAM GUIDANCE//
 
REF/A/MSG/CNO/161330ZDEC2002//
 
AMPN/REF A IS NAVADMIN 403/02//
POC/REILLY/CDR/OJAG 16.1/LOC:JAG/TEL:202-685-4642 DSN 325//
 
RMKS/1.  THIS NAVADMIN PROVIDES VOLUNTEER INCOME TAX ASSISTANCE
(VITA)/ELECTRONIC TAX FILING (ELF) POLICY AND PROGRAM GUIDANCE.
THIS MSG SUPERSEDES REF A.
 
2.  IN THE 2002 TAX SEASON, THE VITA/ELF PROGRAM COMPLETED NEARLY
170,000 FEDERAL AND STATE TAX RETURNS, SAVING ACTIVE DUTY SERVICE
MEMBERS AND THEIR DEPENDENTS ALMOST 16 MILLION DOLLARS IN COMMERCIAL
TAX PREPARATION FEES.  BECAUSE THIS PROGRAM HAS PROVEN SO SUCCESSFUL
IN THE PAST YEARS, WE WILL AGAIN FULLY SUPPORT OUR SAILORS IN TAX
PREPARATION FOR THE 2003 TAX SEASON.
 
3.  THE VITA/ELF PROGRAM IS A PROVEN WINNER THAT 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.  VITA/ELF 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 VITA/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 1 PERCENT ERROR RATE AS COMPARED TO 15 PERCENT FOR PAPER
RETURNS.
 
4.  PAST TAX SEASONS HAVE SHOWN THAT THE SUCCESS OF TAX ASSISTANCE
CENTERS IS PREDICATED ON SUPPORT FROM LOCAL AREA COMMANDS.  WHILE
THE LOCAL AREA NAVAL LEGAL SERVICE OFFICE (NLSO) - OR IN THEIR
ABSENCE, THE LOCAL STAFF JUDGE ADVOCATE OR FLEET AND FAMILY SERVICE
CENTER REPRESENTATIVE - WILL ONCE AGAIN MANAGE THE MAIN REGIONAL TAX
ASSISTANCE CENTERS, LOCAL AREA COMMANDS ARE STRONGLY ENCOURAGED TO
CONTINUE TO SUPPORT REGIONAL TAX ASSISTANCE CENTERS BY PROVIDING
PERSONNEL, EQUIPMENT, AND FACILITIES.  WHEN LOCAL AREA COMMANDS
SUPPORT THE NEEDS OF THE VITA/ELF PROGRAMS, THEY THRIVE AND SAILORS
BENEFIT.
 
5.  SUFFICIENT MANPOWER IS THE KEY TO SUCCESS.  VITA/ELF CANNOT
SUCCEED WITHOUT THE SUPPORT OF EVERY COMMAND TO INCLUDE SENDING
SAILORS TAD OR ALLOWING PERSONNEL TO WORK PART TIME AT THE MAIN
REGIONAL TAX ASSISTANCE CENTERS.  ALTHOUGH TAX CENTERS CAN SURVIVE
ON VOLUNTEERS, EXPERIENCE SHOWS THAT TRAINED PERSONNEL ASSIGNED TAD
FOR THE 12-WEEK TAX SEASON ARE THE MOST EFFECTIVE MEANS OF ACHIEVING
SUCCESS.  THIS SUPPORT IS ESPECIALLY CRITICAL DURING FEBRUARY, THE
PEAK FILING TIME.  INSUFFICIENT MANPOWER REMAINS THE SINGLE BIGGEST
OBSTACLE TO THIS QOL PROGRAM REACHING ALL OF OUR SAILORS.  THE GOAL
IS ONE VOLUNTEER OR TAD MEMBER PER 100 MEMBERS OF EACH COMMAND.  ONE
FULL TIME TAD TAX PREPARER (TRAINED BY THE IRS AND/OR VITA/ELF TAX
OFFICERS) CAN PROVIDE OVER $50,000 WORTH OF SERVICES.  INFORMATION
INVOLVING TAX PREPARER TRAINING CAN BE OBTAINED BY CONTACTING THE
POC, CDR REILLY, OR THE LOCAL AREA NLSO.
 
6.  NAVY'S TRANSITION TO NMCI, COMBINED WITH THE INCREASING
COMPLEXITY OF IRS SOFTWARE, PRESENTS A NEW CHALLENGE FOR THIS YEAR'S
VITA/ELF PROGRAM.  OJAG AND LOCAL NAVAL LEGAL SERVICE OFFICES WILL
ASSIST REGIONAL AND LOCAL COMMANDERS IN OBTAINING NMCI AND IT
SUPPORT.
 
7.  THE VITA/ELF PROGRAM HAS BEEN A VERY SUCCESSFUL PROGRAM.  WITH
YOUR SUPPORT, WE CAN CONTINUE THIS VALUABLE QUALITY OF LIFE BENEFIT
FOR OUR SAILORS AND THEIR FAMILIES.
 
8.  RELEASED BY ADMIRAL MIKE MULLEN, VCNO.//
 
BT
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