TO NAVADMIN RAAUZYUW RUEWMCS0305 0492013-UUUU--RUCCBWF. ZNR UUUUU R 142013Z DEC 04 ZYB MIN PSN 803853J27 FM CNO WASHINGTON DC//N09// TO NAVADMIN BT UNCLAS NAVADMIN 282/04 MSGID/GENADMIN/CNO WASHINGTON DC N09/-/DEC// SUBJ/2005 VOLUNTEER INCOME TAX ASSISTANCE (VITA) ELECTRONIC TAX /FILING (ELF) POLICY AND PROGRAM GUIDANCE// REF/A/MSG/CNO/052225ZDEC2003// AMPN/REF A IS NAVADMIN 311/03// POC/COOK TT/LT/OJAG 16.2/JAG/TEL:202-685-4641 DSN 325// GENTEXT/REMARKS/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 2003 TAX SEASON, THE VITA/ELF PROGRAM COMPLETED NEARLY 137,000 FEDERAL AND STATE TAX RETURNS, SAVING ACTIVE DUTY SERVICE MEMBERS AND THEIR DEPENDENTS MORE THAN 17 MILLION DOLLARS IN COMMERCIAL TAX PREPARATION FEES. BECAUSE THIS PROGRAM HAS PROVEN SO SUCCESSFUL IN THE PAST YEARS, WE AGAIN WILL FULLY SUPPORT OUR PAGE 02 RUEWMCS0305 UNCLAS SAILORS IN TAX PREPARATION FOR THE 2004 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 MAY CHARGE OVER $140 FOR THE AVERAGE ELECTRONICALLY FILED RETURN. VITA/ELF PREPARES AND 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 PAGE 03 RUEWMCS0305 UNCLAS 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 PROGRAM, THEY THRIVE AND SAILORS BENEFIT. 5. SUFFICIENT MANPOWER IS THE KEY TO SUCCESS. VITA/ELF WILL ONLY SUCCEED WITH 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 (TRAINIED BY THE IRS AND/OR VITA/ELF TAX PAGE 04 RUEWMCS0305 UNCLAS OFFICERS) CAN PROVIDE OVER $50,000 WORTH OF SERVICES. INFORMATION INVOLVING TAX PREPARER TRAINING CAN BE OBTAINED BY CONTACTING THE POC, LT COOK, OR THE LOCAL AREA NLSO. 6. 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. 7. RELEASED BY ADM J. B. NATHMAN, VNCO.// BT #0305 NNNN RTD:000-000/COPIES: