getting started guide - refund advantage -...

User’s Guide

Covering the Refund Transfer Disbursement Service For the 2016 Filing Season

Version 2016.401

Release Date 11/24/2015

Version 2016.401 Release Date 11/24/2015 -1-

Index

Welcome Customer Support………………………………………………………………………………………………….………….. 3 What’s New for 2016…………………………………………………………………………….…………………………...… 3 Getting Started Accessing Your TFS Client Management System…………………………………………….…………………………...… 6 Logging In..……………………………………………………..……….…………………………………………………..….. 6 Activating Your Account………………………………………………………………………………………………………… 6 Check Cashing Arrangements…..………………………………………………..……………………………………..…….… 11 Security Precautions…………………………………………………………………………………………………………… 12 Group Office Management (tools to manage entire groups of offices)……………………………………………….…… 12 Contacting Customer Support ………………………………………………………….……………….………………….….. 13

Descriptions of Our Financial Services……………….………………………………………………………………….. 14

Requirements for Offering Refund Transfers………….…….…………………………………………………………. 16

Taxpayer Applications Completing the Taxpayer Application ……………………………………………………………………………..………….. 18 Submitting the Taxpayer Application ………………………………………………………………………………………….. 21 Printing the Taxpayer Application ………………………………….……………………………………………….…..……… 21 Modifying a Previously Submitted Application ………………………………………………………………….……………. 22 Deleting a Previously Submitted Application or Taxpayer Record……………………………………………………….. 22 Additional Taxpayer Disclosures Required by IRS ………………………………………………………………………… 22 Additional Taxpayer Disclosures Required by State or Local Law …….…………………………………………..…….. 23 Retention Requirements of Taxpayer Identification and Paperwork………………………………………………………… 23

Taxpayer Refund Advances Refund Advance Applications …………………….……………………………………………………………..………….. 24 Taxpayer Eligibility ……………………………………………………..…………………………………………………….. 25 Federal Lending Laws …………………………..……………….……………………………………………….…..……… 25 Disclosures Required by State and Local Laws ……………………………….…………………………………….…….. 26 Handling Declined Advances……………… ………………………………………………………………….……………. 26 Taxpayer Loyalty Cash Reward Program Program Participation……….. …………………….……………………………………………………………..………….. 27 Issuing Loyalty Cards ……………………………………………………..…………………………………………………….. 27 Printing Checks & Check Handling Procedures Preparing for Tax Season………………………………………………………………………………………….……………… 29 Preparing to Print Checks ………………………………………………………………………………………….……………… 29 Steps for Check Printing………………………………………………………………………………………….……………… 29 Reprinting a Previously Printed Check..………………………………………………………………………….…….………. 30 Distributing a Check to a Taxpayer…………………………….………………………………………………………..……….. 31 Check Storage and Security…….………………………….…………………………………………………………..……….. 31 Handling Lost, Damaged or Forged Checks..…………….……………………………………………………………………. 32

Bank Deposit Handling Procedures A Bank Deposit Sent to an Incorrect Bank Account ………………………………………………………………….……….. 34 Taxpayer Fraud and the Bank Deposit………………………………..…………….…………………………………….…….. 34

Prepaid Card Handling Procedures How to Participate …………………………………………………………………………………………………………………. 35 Procedures for Offering the Prepaid Card……………………………………………………..…..…………………….……… 36 Card Storage and Security ……………………………………………………………………………………………………. 36 Taxpayer Fraud and the Instant-Issue Prepaid Card …………………………………………………..…..………………. 37 Handling Lost Cards …………………………………………………………………………………………………….………… 37

Taxpayer Status Information & Report Checking a Taxpayer’s Status …………………………………………………………………………………………………… 38 Reports ……………..………………………………………………………………….…………………………………..……….. 38

Fee Payments Fee Payment Overview ………………………………………………………………………………………………………… 41 Fee Deposit History Report…………………………………………………………………………………………………… 41


Account Configuration Changing Your Account Options …………………………………………………………………………………………… 42 Changing Your Account Information ………………………………………………………………………………….…… 42 Program Opt Ins………………………………………………………………………………………………………………. 43 Ordering Supplies …………………………………………………………………………………………………………… 43

ERO Business Practices and Procedures ERO Security Requirements……………………………………………………………………….………….………..….. 44 ERO Compliance with Other Consumer Laws ……………………………………………………………….………… 45 Customer Complaints ………………………………………………………………………………………………………. 46 ERO Marketing Materials Requirements ………………………………………………………………………………… 46 Disqualification and Suspension of EROs………………………………………………………………………………. 47 Appendix A - BSA/AML and OFAC Compliance Program Guideline for Electronic Return Originators (EROs) Appendix B – Product Summaries and Reminders


Welcome Thank you for choosing TaxSlayer Financial Services (TFS) for your tax refund services. Our program helps you compete with the national chains by providing you with the tools you need. Unlike many of the largest Refund Transfer programs, our program is focused on you – the independent ERO. This User’s Guide will walk you through the process of using TFS and giving your business the advantage you’ve been looking for! Prior to Tax Season, please read this User’s Guide as it will walk you through the process of setting up your TFS account, making sure you have a smooth and enjoyable tax season.

CUSTOMER SUPPORT TFS is committed to providing exceptional customer service and support to our clients. Your requests and needs never go unattended. Our Customer Support lines are open during business hours, with greatly expanded support during the filing season. For specific hours, please visit the Client Management System and choose the Support menu. To quickly assist you with your support need, it is important to contact the appropriate team member who can help you.

TaxSlayer Pro Software TFS

Software and Tax Questions, technical issues Questions related to Refund Transfer Products

Email: [email protected] Email: [email protected]

Phone: 706-868-0985 Support: 888-284-4031

Fax: 706-868-1955 Fax: 888-284-4032

See page 13 for a full listing of our contact information.

WHAT’S NEW FOR 2016 Below is a list of enhancements, improvements and other changes for the upcoming season. Many of our improvements are the result of your suggestions, so, if there is any way that we can make your experience more pleasant, please be sure to let us know!

Loyalty Cash Reward Program

Offer your customers instant cash rewards of up to $100 through this new program. With this program, qualifying EROs can offer their customers INSTANT cash rewards of up to $100 on a FasterMoney™ Visa® Prepaid card. This is just one of our newest programs to help you compete. Eligible EROs can opt into the program through the OPT IN option in the Client Management Center. If you are new to TFS and this program does not appear in your OPT IN screen, don’t worry. Our most exciting programs are sometimes reserved for our returning EROs. And next year, you will be a returning ERO, helping you qualify for additional features and offerings. For more information on this new program, see page 27.

mailto:[email protected]


Taxpayer Refund Advances

New this year: Qualifying EROs can attract new customers and retain existing customers with Taxpayer Advances of $500. Eligible EROs can opt into the program through the OPT IN screen in the Client Management Center. If you are new to TFS, don’t worry if this program does not appear in your OPT IN screen. Our most exciting programs are sometimes reserved for our returning EROs. And next year, you will be a returning ERO, helping you qualify for additional features and offerings. For more information on this new program, see page 24.

Updated Taxpayer Application Form

You’ll find a new, improved format for the taxpayer application form. The first page includes a listing of all fees and deductions authorized by the taxpayer(s), who will now sign at the bottom of page 2. The application no longer requires a signature by the ERO or tax preparer. Additional Reporting Features

We’ve improved several of our reports to give you quicker access to the information YOU need. You’ll find more options to filter and sort data, as well as the ability to modify report formats. Plus, we’ve improved the response time for report generation.

Offering State RTs Has Never Been Easier

Approximately 8% of all federal refunds go unpaid by the IRS. As a result, offering state refund products has never been more important. By offering BOTH federal and state refund products, you help ensure your fees are paid in the event the federal refund is not released by the IRS. And it’s never been easier and more convenient to offer state refunds.

Remember to take advantage of our State/Fed Disbursement Worksheet. This worksheet helps you explain the expected check and fee amounts in cases where the taxpayer receives both a state and federal refund. If you view or print the worksheet BEFORE the refunds are received, the worksheet shows the estimated check/deposit amounts for the two possible cases (state refund received before federal refund, and federal refund received before state refund). If you view the worksheet AFTER refund money has been received, the worksheet contains added information to explain exactly how the check amounts were calculated, based on the order in which the refunds were ACTUALLY received. These changes allow you to easily explain how refund amounts were calculated in cases where the state refund is received first, or in cases where the IRS paid less than expected. Please see page 15 for more information on the State/Fed Disbursement Worksheet.

ERO Market Analysis

The ERO Market Analysis, detailing your competitors, has been updated to include the 2015 filing season information.

Also, we have expanded the ERO Market Analysis Report for our active EROs to include ALL the zip codes in their state. You can now view the data for competitors in any zip code in your state and in your market (the area within 5 miles of your zip code’s midpoint). Your report outlines volume and performance information, including detailed electronic filing volume for the past 15 years on each office within a selected zip code.

Use this information to learn who your competition really is, how you compare, determine your future marketing plans, and to help value your business.

Program Opt Ins

You will find optional programs that may be available to you under the new menu item called PROGRAM OPT INS. Programs listed here may include Prepaid Card options, loyalty cards, and taxpayer refund advances. To opt into a particular program, or for additional information on that program, click the program.


Multi-Office Reporting and Group Management

Do you have more than one office? If so, we can link your offices together to give you access to our expanded group management reporting tools. These tools enable you to monitor your offices, quickly, and efficiently, from the convenience of your phone, or your computer. For more information, see GROUP OFFICE MANAGEMENT on page 12.

Prepaid Card Program Enhancements

In order to offer enhanced card features, we are now offering the FasterMoney™ Visa® prepaid card issued by MetaBank. Prepaid cards are still available in 2 formats: instant-issue cards that can be distributed through eligible ERO offices, and personalized cards that are mailed by MetaBank to the taxpayer.

Additionally, every taxpayer who receives an instant-issue card through your office will also automatically receive a personalized card from MetaBank. If they wish, your client can simply activate their personalized card, and the money on the instant issue card will automatically transfer to the personalized card. The instant issue card is immediately closed and no longer available for use. The personalized card provides an added layer or security for your customers as it has their name on the front of the card. As a result of this change, please note that unused prepaid cards you received last year from our card processor should be securely discarded. Cards you receive for use in the 2016 filing season, which remain unused at the end of 2016, should be retained by you for use in 2017.


Getting Started

ACCESSING YOUR TFS CLIENT MANAGEMENT SYSTEM We, along with the IRS and federal authorities, require EROs to follow applicable laws and regulations. As a result, EROs are required to complete a training program, a compliance test, and activation steps prior to tax season in order to activate your account. These items will be completed at the TFS Client Management Center. In addition to activation, Your TFS Client Management System allows you and your staff to print checks, access reports, access client information, track fees, check a Refund Transfer status, change your account information, and keep up to date with current industry news. In order to log into the TFS website at www.taxslayerfs.com, you must have your EFIN and password:

Your EFIN (Electronic Filing Identification Number) will be your location ID with TFS.

Your password is an eight-digit number included in an Activation Letter emailed to the address on file.

If you don’t remember your password, you can select “Forgot Password” next to the Login Button. A link will then be forwarded to the EFIN owner’s email address for the purpose of re-setting the password.

Another option is to request a new activation letter by calling Customer Support at 888-284-4031 or emailing [email protected] with your Name and EFIN. (Please note that for security reasons, we do not supply passwords over the phone).

LOGGING IN You can access the Client Management System in two ways: The first is through our secure web site at www.taxslayerfs.com. Simply navigate to our web site and enter your EFIN at the log-in screen (as seen to the right). The second way to access the Client Management System is through your TaxSlayer Pro Tax Software. Simply select Option #2 –E-File from the Main Menu of TaxSlayer Pro to access the TaxSlayer Financial Services Menu.

ACTIVATING YOUR ACCOUNT When you log into the Client Management System for the first time, you will be prompted to complete the following steps:

1. COMPLETE THE ERO AGREEMENT. As you know, as a condition of your participation in the TFS program, you have to agree to the terms and conditions of the ERO Agreement. The ERO Agreement lays out your responsibilities and obligations under the program. After you agree to the ERO Agreement on-line:

Print a copy of the ERO agreement along with the ERO Signature Page.

If prompted to, please sign and fax the ERO Signature Page to TFS at 888-284-4032.

http://www.taxslayerfs.com/



You are required to retain a copy of both of these documents in your office for your records. If a government auditor visits you to review the adequacy of your procedures, you may be asked to produce a copy of the ERO Agreement and the signed acknowledgment form. To ensure compliance with proper procedures, TFS and Ohio Valley Bank may also ask to see a copy of both documents if either company audits your office.

Failure to Agree to the ERO Agreement and fax the signed ERO agreement signature page will disqualify you from the TFS program and you will not be able to offer products in your office.

After faxing your acknowledgment form, please allow up to 24 hours for the Client Management System to reflect our receipt of your faxed form.

2. COMPLETE THE COMPLIANCE TRAINING/TESTING AND REVIEW STATE REQUIREMENTS.

The IRS and other regulatory agencies require that EROs be knowledgeable and follow certain procedures. This training will help ensure you are adequately prepared and following correct procedures. The EFIN owner, along with all paid return preparers and other employees who deal with Refund Transfers in your office, are required to complete this training and take the short test prior to the start of tax season. All individuals who will be offering or discussing Refund Transfers with taxpayers, or who have access to customer information in conjunction with Refund Transfer services, are required to review the training video and take the compliance test.

The Training and Testing Module may take from twenty to forty minutes to complete. Select User Training and Testing Program from the Home Page to begin. Tax preparers in your office can access the User Training and Testing directly from the website at www.taxslayerfs.com.

Review Disclosure Requirements of Your State. - Some states have specific disclosures you are required to provide taxpayers according to state law. In many cases, substantial financial penalties exist if you fail to follow state laws. If you are in one of these states, you are required to provide any additional disclosures required by your state law, and to follow any other guidelines of your state as they pertain to your business. Please review the specific disclosure requirements of your state. If you are required to post a wall posting, you must ensure that you do so prior to the start of tax season. If you are required to provide taxpayers with certain written disclosures, we have provided forms that you can use for this purpose. Some states may also have certain required oral disclosures or certain prohibited activities. You should review applicable state laws to ensure your compliance with the laws of your specific state prior to the start of tax season.

3. REVIEW YOUR SUPPLY ORDER.

Once the above steps are complete, you are ready to review your supply order for the upcoming tax season.

At the TFS Client Management Center Home Page, select Review your current supply order to view your pending check and supply order.

If you would like to make changes to your order, please contact TFS Support at 888-284-4031. The first shipment of supplies will be available at the end of December.

You can order marketing materials, as well as additional checks and prepaid debit cards though the Client Management System. Simply click ORDER SUPPLIES under the Manage My Account menu, or give us a call at 888-284-4031.

http://www.taxslayerfs.com/


Out-of-season orders (orders placed after March 31) are typically not filled until the following November or December. If you need an out-of-season order filled immediately, please let us know.

Important Note: Any marketing or advertising materials you develop that mention Refund Transfers must be submitted to TFS for approval. Like other Refund Transfer product programs, we are required by federal guidelines to verify that the materials adhere to certain standards and to provide you written approval prior to your use of the materials. If you fail to obtain written approval, you may be suspended from the program.

4. VERIFY AND MANAGE YOUR ACCOUNT INFORMATION.

From the Manage My Account menu, click MY ACCOUNT INFORMATION. This option allows you to view or update your office address, banking information, and other similar information. Please make certain this information is correct. Remember, you can password protect access to this option or any other option – see “Adding Security to Your Account” below.

Bank Information - It is critically important that this information is correct in order for you to receive the fees deducted from your taxpayers’ refunds on your behalf. Fees will be sent through ACH direct deposit to the account specified here. If the information you enter here is incorrect, you will be liable for any loss of fees that result.

Office & Ownership Information- Please be certain that this information is accurate and complete in advance of tax season. Pay special attention to making sure your email address is up to date so that you receive important announcements during the season.

5. SELECT ACCOUNT OPTIONS.

In the Manage My Account menu - review the setup options available to you.

Under check printing options, select whether you want to automatically receive an email when new checks are released to your account for printing.

Advertising on your Customer’s Check Stub – This text will appear on the customer stub portion of the check. You can choose to thank customers, advertise additional services, provide your office phone number, or supply other instructions. To add your message, simply click MY OPTIONS in the Manage My Account menu and follow the instructions. After you add your advertising, take a look at the other options available to you on this screen (see below), making any changes you wish. When you are finished, click SAVE CHANGES at the bottom of the screen.

Receiving Fees - By default, your office will receive all preparation fees charged to applicants submitted by your EFIN. However, if you are part of a chain of offices, you might want to credit fees to the EFIN of the parent office. Review the EFIN number receiving your fees under MY OPTIONS. Contact TFS to make any change in the EFIN receiving your fees. You are responsible for making sure these EFIN’s are correct before the start of the filing season.

Adding Security to your Account - You should password protect the ability to change your account configuration for maximum security. We recommend password protecting these options if other individuals in your office will also be using the TFS Client Management System. If you enter a password under Login & Password Options, a password will be required in order to access options.

You can also control whether an additional password is required for reprinting checks and for access to various reports within TFS. These passwords may be different than your other TFS passwords. If you forget your passwords, please call us for assistance.

Personalize Your P.A.C.S. account - Save yourself time by eliminating calls to your office with Phone Assisted Customer Support (PACS)! We provide a toll-free number for your


taxpayers to call where they hear a personalized message regarding the status of the Refund Transfers. You personalize the messages your clients hear with PACS by choosing PHONE SUPPORT SETTINGS from the Manage My Account menu. Taxpayers can call up to five times per disbursement (i.e. per check or direct deposit). In other words, taxpayers receiving two checks can call up to 10 times. We have found that taxpayers typically call 3 to 4 times per check.

Choose whether you want a receipt to print each time a taxpayer’s refund is received, but fully applied to pay fees. These receipts are sometimes referred to as “zero dollar checks.”

Select the default number of copies of the application that should print, when you use the Client Management System to print an application.

For security purposes, we will send an automated email to you when changes are made to any of your account settings through the Client Management System.

6. SET YOUR PHONE ASSISTED CUSTOMER SUPPORT (PACS) SETTINGS.

Under Manage My Account, select phone support settings to provide your taxpayer clients with a customized, personal automated customer service line. PACS eliminates calls to your office by having your customers call the toll-free PACS line (1-877-394-5303) to find the status of their refund and whether their check is available to be picked up.

Each taxpayer may call up to 5 times per disbursement (i.e. per check or direct deposit). In other words, taxpayers receiving two checks (for example, two federal checks, or a federal and a state check) can call up to 10 times. Taxpayers receive a polite message telling them how many calls remain once they are close to their maximum number of calls. We have found that taxpayers typically call 3 to 4 times per check.

Taxpayers may also obtain the status of their Refund Transfer at www.taxstatusnow.com without limits on the number of times the taxpayer may inquire.

For the convenience of you and your customers, we provide you with small cards you can hand taxpayers with instructions on using www.taxstatusnow.com, or calling PACS. You have complete control over the messages your customers receive. Click PHONE SUPPORT SETTINGS from the Manage My Account menu to personalize your messages. Best of all, this service is FREE!

7. REVIEW REFERENCE MATERIALS AND MARKET ANALYSIS.

Reference Materials are available by clicking Forms and Materials from the menu.

View your Tax Market Analysis - View your personal Tax Market Analysis for your office zip code, detailing your competitors’ volume and growth, your market area, and your region’s filing patterns. This information can show you who your competition is, how you compare, and help you determine future marketing plans. Access your Tax Market Analysis anytime by choosing TAX MARKET ANALYSIS from the Reports menu. The analysis is updated every spring and fall.

IMPORTANT NOTES:

Any marketing materials you develop that mention tax refund products must be submitted to TFS for approval prior to their use. We, like other refund product programs, are required by


government regulators to verify that the materials adhere to certain standards and provide you with written approval prior to your use of the materials.

To offer enhanced card features, we are now offering the FasterMoney™ Visa® prepaid card issued by MetaBank. As a result, unused prepaid cards you received last year from our previous card processor should be securely discarded. Cards you receive for use in the 2016 filing season, which remain unused at the end of 2016, should be retained by you for use in 2017.


CHECK CASHING ARRANGEMENTS

Walmart provides check cashing services for checks issued to your clients. Walmart charges a $3 fee to cash checks of $1,000 or less, and $6 to cash checks between $1,000 and $7,500. Because of state restrictions, Walmart does not cash checks in NY, NJ, or RI. State statute in Florida sets a $2,000 limit on check cashing.

Our checks may also be cashed at 7-Eleven stores equipped with the Vcom check-cashing kiosk. This kiosk is a fully automated check-cashing machine with touch screen technology in English and Spanish. Vcom is available at over 2,100 locations nationwide and is available 24 hours a day. Visit www.7-eleven.com to find the 7-Eleven Vcom location closest to you.

Additionally, our checks can also be cashed at participating locations for the merchants listed below. To find a location near you, choose Forms and Materials from the Client Management Center, and then choose the link “Check Cashing Retail Locations.”

Walmart Cashes Checks up to $7500.

Walmart charges a fee of $3 per check up to $1000

Walmart charges a fee of $6 per check from $1001 - $7500.

Because of state restrictions, Walmart does not cash checks in NY, NJ, or RI. State statute in Florida sets a $2,000 limit on check cashing.

Other Cooperating Check-Cashing Centers

7 Eleven

Albertsons, SuperValu, Shaw’s ($1500 maximum)

Carrs

Country Mart

Genuardi’s

H.E.B.

Homeland

K-Mart

Pavilions

Piggly Wiggly

Randalls

Safeway

Speedway

Tom Thumb

United Supermarkets

Vons

In order to further assist taxpayers in cashing our checks at other banks, Ohio Valley Bank has provided a Good Funds Check Cashing Letter. This letter may be found in the Client Mangaement Center under FORMS AND MATERIALS. We recommend that prior to the start of tax season you take this letter to local financial institutions to familiarize them with the program. We suggest that you start by visiting the bank with which you currently bank. In addition, we are happy to talk to your local bank to alleviate their concerns.

If a bank does not accept the Good Funds Check Cashing Letter, you may be successful in negotiating an arrangement with a local bank to cash your checks in exchange for a small fee. In these cases, a bank may typically charge the taxpayer a fee of $5.00. Or, you may wish to negotiate an arrangement with a local check casher to reduce their fee in exchange for you referring all of your clients to them. In negotiating these arrangements, it is important to explain to the check cashing institutions that the weekly cycles of the IRS may result in a large amount of checks on the same day, so the bank or check casher can anticipate their need for cash. Before making any arrangement with a check casher, please make sure any arrangements you may make are in compliance with your local laws.

http://www.7-eleven.com/


SECURITY PRECAUTIONS Your account information and taxpayer data are automatically protected by virtue of your EFIN and login password. Only an individual with your EFIN and the corresponding login password have access to your account. Consider utilizing the additional password protection available to you within the Client Management Center. You can set up passwords for areas of the Client Management Center to limit access by your staff, or by your satellite offices. Click “My Options” within MANAGE MY ACCOUNT.

GROUP OFFICE MANAGEMENT (tools to manage entire groups of offices) We understand the unique needs of office groups, and we have robust tools to help you manage and monitor your group. If you have multiple offices, let us know so that we can link them together, giving you access to these useful multi-office tools. These tools enable you to quickly and efficiently monitor your offices from the convenience of your phone or computer. Tools available to group office heads include:

Enrollment Reports. You can see which of your offices have enrolled with TFS, and the status of their enrollment, through the Group Enrollment Report, which is found under Current Year Reports in the Client Management Center.

Compliance Training. You can monitor the status of compliance training for each of your offices through the new Group Training Report, found under Current Year Reports in the Client Management Center.

Monitoring Office Volumes. You can monitor the status and refund product volume of each of your offices from within your account, using the Product Count Report (see page 40 for more information).

Monitoring Tax Season Activity. You can monitor tax season activity through the reports found under Current Year Reports, by filtering the report for one of your offices.

Monitoring Your Fees. New this year, you can monitor fees across your entire group through the Group Fees Earned Summary Report, also found under Current Year Reports.


CONTACTING CUSTOMER SUPPORT

TFS is committed to providing exceptional customer service and support to our clients. Our Customer Support lines are open during business hours, with greatly expanded support during the filing season. For specific hours, please visit the Client Management Center and choose the option CUSTOMER SUPPORT.

ERO Support: Specially trained customer service representatives are available to help assist you.

Live Support …………………………………………..……………………….. 1-888-284-4031 Fax (please include your EFIN)…………………….………………………… 1-888-284-4032

E-Mail Support (please include your EFIN)…………….…………………… [email protected]

Taxpayer Support: While most taxpayers visit www.taxstatusnow.com or use PACS to receive information on their refund and get answers to basic questions, we provide specialized taxpayer support to provide additional service and to help taxpayers with unique problems or questions.

Live Support………………………………………………………………….…. 1-888-284-4031 Web Support……………………………………………………………………. taxstatusnow.com 24-Hour Automated Support (through PACS system)……….…………….. 1- 877-394-5303 Fax…………………………………………………………………………….…. 1-888-284-4032

Mailing To TFS:

For mail correspondence, you can mail your materials to TFS, P.O. Box 20427, Louisville, KY 40250. Please be sure to include your EFIN in any correspondence you send to us by mail.

Below are some phone numbers related to the IRS and electronic filing that may be useful to you during the filing season.

Refund Status ……………………………………………………....… 1-800-829-4477 Individual Taxpayer Information ……………………………..….….. 1-800-829-1040 Criminal Investigation Hotline – Tax & EITC Fraud …………...…. 1-800-829-0433 U.S. Treasury Offset Program Call Center ………………………… 1-800-304-3107

http://www.taxpayerinfo.com/


Descriptions of our Financial Services

We offer a full suite of financial services. Disbursement methods include prepaid cards, instant issue checks, direct deposit..

PREPAID CARDS:

We now offer FasterMoney TM

Prepaid cards issued by MetaBank. MetaBank has issued over 500 million

prepaid cards and is a leader in the prepaid marketplace. The card has multiple features that customers will enjoy, such as fee-free ATMs (for customers that load additional funds or have a direct deposit). Prepaid cards are an increasingly popular way for a client to receive their refund. Prepaid cards are still available in 2 formats: instant-issue cards that can be distributed through eligible ERO offices, and personalized cards that are mailed by MetaBank to the taxpayer.

Additionally, every taxpayer who receives an instant-issue card through your office for their refund proceeds will also automatically receive a personalized card from MetaBank. If they wish, your client can simply activate their personalized card, and the money on the instant issue card will automatically transfer to the personalized card. The instant issue card is immediately closed and no longer available for use. The personalized card provides an added layer or security for your customers as it has their name on the front of the card. The prepaid card works like an ATM/debit card. The prepaid card contains the VISA logo and can be used nationwide at ATM machines or used to make purchases at stores that accept debit cards. Taxpayers who choose a prepaid card option are subject to additional fees and charges associated with the use of the prepaid card, as explained in the Cardholder Agreement provided with the card or available online at https://www.myfastermoney.com/cardholder-agreement-ra. When the taxpayer's refund is received, we deduct all applicable fees and place the proceeds on the prepaid card almost immediately. The prepaid card product may not be available in all areas.

BANK CHECKS:

Bank Checks are a quick and cost-effective method for your clients to receive their tax refund without having to pay their tax preparation fees up front. Some federal tax refunds are available as soon as five business days due to changes in IRS processing cycles under the IRS CADE2 payment system. This means that many refund disbursements will be available within five business days. In cases where the refund is processed by the IRS through the CADE2 system, RT checks are released daily upon the receipt of the IRS tax refund (or state tax refund, if applicable). For those refunds not coming through the CADE2 system, there is no guarantee when during the week the IRS will release that week’s refunds. It may occur any day of the week, at any time. You should be prepared for a large volume of checks when it occurs.

Once the tax refund is received from the IRS, we will deduct all applicable fees, and then you will print a check payable to the taxpayer.

If we do not receive an IRS and/or state refund on behalf of a taxpayer, no tax preparation or other fees can be deducted. In the case of unfunded refunds, you must collect your fees directly from the taxpayer. You can help ensure your tax preparation fees are paid by offering the state refund products, because your fees are deducted from the proceeds of whichever refund (federal or state) is received first. In cases where the federal refund is not paid by the IRS, your fees can still be paid to you if the state refund is received.


BANK DEPOSITS:

Our Refund Transfer Bank Deposit is a way for your clients with a checking or savings account to receive their tax refund. This product is similar to the Instant-Issue Check, except that, when the taxpayer's refund is received, we deduct all applicable fees and disburse the proceeds to the taxpayer's personal checking or savings account through ACH direct deposit.

For more information on selecting a Bank Deposit disbursement on the Taxpayer Application, please refer to the instructions for the Taxpayer Application found on page 18.

STATE REFUND PRODUCTS:

By offering state refund products to your clients, you build additional customer loyalty and provide another source for receipt of your fees. By routing your taxpayer’s state refund to the TFS program, you have a back-up source for your fees in cases where the taxpayer does not receive a federal refund.

When a taxpayer receives a state refund product, the proceeds of their state refund will be disbursed using the same disbursement method as the federal refund proceeds. For example, if a taxpayer selects a check disbursement, both the federal and state refund proceeds are processed as checks. In addition, because your fees are deducted from whichever refund is received first, state refunds could accelerate payment of your fees.

State refund proceeds may be available in as little as 2 days after filing the taxpayer's tax return. (Check with your state revenue agency for specific details in your state). State refund products are available in all states that levy a state income tax.

The “STATE/FED DISBURSEMENT WORKSHEET” is available through the Client Management Center for your use. Use this worksheet to explain the disbursement amounts a taxpayer receiving both a federal and state refund may receive. The worksheet helps taxpayers understand that the exact disbursement amounts will depend on whether the state refund is received before or after the federal refund. The reason for the difference is the fact that the tax preparation fees and processing fees are deducted from whichever refund is received first. To view this worksheet, choose FORMS AND MATERIALS. Then choose STATE/FED DISBURSEMENT WORKSHEET.


Requirements for Offering Refund Transfers

In order to ensure your compliance with applicable federal laws and procedures, please be sure to follow these

required steps when offering a Refund Transfer. We suggest you keep these instructions at your computer for

a handy reference guide.

1. Taxpayer must sign

Consent to Use Form.

Before you begin the Tax Return, discuss the different refund options

and fees with the taxpayer(s). Have the taxpayer sign the IRS required

“Consent to Use” Form.

2. ERO must provide all

taxpayer(s) with ALL

refund and

disbursement options.

Explain the difference between free direct deposit and paper check from

the IRS and the fee-based TFS products. Make sure the client has

information on the IRS free filing options before discussing Refund

Transfers. Explain any fees you charge to prepare and file a tax return.

3. ERO must verify ID’s

of taxpayers and

dependents.

Verify the identity of the taxpayer and their dependents. The BSA/AML

document (reproduced in Appendix A at the end of this manual) lists the

types of ID documents that are acceptable. As detailed in this document,

you are also responsible for recording and maintaining certain

information from these IDs. This information must be retained with the

other documentation related to our service.

Please note the compliance with the Patriot Act requires the taxpayer

provide a residential address that is not a post office box. If you retain

copies of the ID’s, they must be securely retained in your files for five

years and made available to TFS upon request.

4. ERO must complete

the RT request and

bank application in

TaxSlayer Pro

Software.

You complete the RT request and bank application in your TaxSlayer

Pro Tax Software. The taxpayer bank application is the binding contract

allowing our bank to receive and process the taxpayer’s refund as an RT.

5. Taxpayer must sign

the bank application

and consent to

disclose form.

The taxpayer must sign the taxpayer bank application, and the “Consent

to the Disclosure” form to complete the ERP request process. The

taxpayer bank application is a binding contract that allows our bank to

receive and process the taxpayer’s refund as an ERP.

The “Consent to the Disclosure” form is the second of two forms

required by IRS Regulation 7216. The taxpayer must read, understand,

and sign the “Consent to the Disclosure” form prior to e-filing the return.

This form, when signed by the taxpayer, is written proof that the

taxpayer has agreed to you disclosing his/her information to a third party

entity for the purpose of providing the peripheral product.


Taxpayer must sign

the bank application

and consent to

disclose form,

continued

If the taxpayer refuses to sign the taxpayer bank application or the

“Consent to the Disclosure” form, you cannot provide the taxpayer with

the RT he or she has requested, which means you cannot e-file the return

with the refund routed to the bank.

After the taxpayer signs the taxpayer bank application form, make a

copy of the signed application. Give the taxpayer the Disclosure Page

plus pages one through seven of the taxpayer bank application (this

includes the Privacy Disclosure). You must keep all original signed

documents in your file.

6. ERO completes the

return in TaxSlayer

Pro and e-files the

return.

Once the Tax Return and bank application are complete, TaxSlayer Pro

will send the IRS e-file, acknowledgment and application file to TFS on

your behalf for the purpose of providing an electronic refund product.

Electronic refund product requests must contain our bank’s routing

transit number and correct bank account number. Please allow an

adequate amount of time for all files to be received by TFS.


Taxpayer Applications

COMPLETING THE TAXPAYER APPLICATION The taxpayer application must be completed and signed by every taxpayer wanting to apply for a tax refund product. The taxpayer application is only one step in offering refund products. For a summary of each of the steps you follow in offering refund products, refer to the step-by-step overview beginning on page 16.

NOTE: To view materials explaining how your TaxSlayer software interfaces with TFS, please click FORMS AND MATERIALS from the Client Management Center, and click the “How to Use TaxSlayer Financial Services with Your TaxSlayer Software.” This year, there is a new format for the taxpayer application. It now consists of 7 pages:

Page 1 – Fees and deductions from tax refund(s)

Page 2 – Taxpayer disbursement selection and signature(s)

Pages 3, 4, and 5 – Terms of agreement between TFS and taxpayer(s)

Pages 6 and 7 – Privacy Notice required by federal law When the taxpayer application is printed, a one-page disclosure form entitled, “Important Product Disclosures Related to Electronic Refund Disbursement Service” will also print. You must provide this disclosure form to the taxpayer along with the application form. To complete the taxpayer application, offices follow one of two approaches:

1. Most EROs key the application into their tax software or the Client Management Center at the time the taxes are prepared, printing the taxpayer application which is then signed by the taxpayer.

2. Other EROs will print a blank application in advance that can be completed by hand with the taxpayer

and then enter the information from the complete and signed refund product application into our Client Management Center or the tax software at a later time. Blank taxpayer applications may be printed through the Client Management Center.

To enter an application through the Client Management Center, click ENTER/CHANGE APPLICATION from the Client Management Center menu. See “Submitting the Taxpayer Application” on page 21 for more information.

You must provide the taxpayer with a completed copy of the application (pages 1 through 7) and the separate disclosure that prints on an unnumbered sheet. Remember that if a taxpayer pays your fees in cash, you should enter a fee of zero on the appropriate line on page 1. In such a case, your fee will not be withheld from the proceeds of the taxpayer’s refund. All fees listed on page 1 of the printed application, including preparer, transmitter and disbursement service fees, must be listed and disclosed to the taxpayer before the taxpayer signs the taxpayer application. The taxpayer must sign and date the application before the tax return is transmitted to the IRS. Fees and Deductions

Page 1 of the new application format is entitled “Electronic Refund Disbursement Fees and Authorized Deductions.” It contains a listing of the various fees and other deductions that the taxpayer may authorize to be paid from their tax return. Descriptions of the various items are shown below. Please consult your state law to determine whether there are specific laws governing your ability to charge certain fees. Depending on the state in which your office is located, some of the fees shown below may not


be available according to state law. Please note that if TFS determines that the laws of your state may prohibit the charging of any of these fees, you will be unable to charge that fee. Also, please note that some states (including the states of MD, AR, ME and NY) have laws that prohibit you from charging service bureau or transmitter fees to disbursement service customers unless you also charge those same fees to other customers who don’t use our service.

Tax Preparation Fee: This is the fee charged for tax preparation determined by each individual ERO. Please note that under federal guidelines, you are not permitted to charge taxpayers differing tax preparation fees based on whether or not they apply for a tax refund product, or whether or not they are claiming the Earned Income Tax Credit. Additionally, note that you are NOT permitted to increase the Tax Preparation Fee or any other fees in cases where the taxpayer is receiving a taxpayer refund advance through our optional refund advance program.

E-file Fee: This is the amount charged the taxpayer for the electronic filing of the tax return. This fee may be determined by the ERO. Please note that under federal guidelines, you are not permitted to charge taxpayers a differing electronic filing fee based on whether or not they apply for a tax refund product, or whether or not they are claiming the Earned Income Tax Credit. Additionally, note that you are NOT permitted to increase the Tax Preparation Fee or any other fees in cases where the taxpayer is receiving a taxpayer refund advance through our optional refund advance program.

Service Bureau Fee: If you are part of a service bureau, this is the amount charged by your service bureau. If you are not part of a service bureau, a service bureau fee cannot be charged to the taxpayer. As is the case with all the fees that may be charged, a service bureau may not charge a different amount based on whether or not a taxpayer applies for a tax refund product, or claims the Earned Income Tax Credit.

Transmitter Fee: This is the amount charged for transmitting data between you and the IRS. This fee is charged to the taxpayer and is paid to TaxSlayer Pro.

Audit Fee: If available, an optional amount paid by a taxpayer to a third-party entity that will provide representation services in case of an audit by the IRS or another covered entity.

Other Authorized Deductions: There may be additional fees or charges shown on this line. In such a case, you are responsible to ensure that any appropriate forms or authorizations (including any separate forms to be completed by the taxpayer outside of the taxpayer application) are properly completed and signed by the taxpayer(s).

In the event you enter any of these fees or deductions by hand, you must verify that the fee information contained in this section matches that which is submitted to TFS (either through the Client Management Center or through your tax software). Also, if you mistakenly enter a higher fee on a fee line that is paid to another location, you will be responsible to collect those excess funds from the receiving party.

Other Application Fields To Complete

EFIN (appearing at the top of pages 1 and 2): The EFIN used to submit the taxpayer application to TFS.

Applicant Information (appearing at the top of pages 1 and 2): All lines in this section must be completed, with the exception of the spouse information which is required only if filing a joint return. Please note that in compliance with the Patriot Act, we are unable to accept applications unless the taxpayer is able to provide a residential address that is not a post office box.

Disbursement Selection: Check a box to indicate how the taxpayer’s refund proceeds should be released.


Box 1 – This is only used for disbursement to an existing FasterMoney™ prepaid card issued by MetaBank; by “existing,” we mean that the taxpayer obtained the card on their own directly from Meta Bank, rather than a card issued through the tax office. Selection of this box results in a waiver or reduction of TFS’s disbursement fees. If the taxpayer has an existing FasterMoney™ prepaid card and wishes to have their refund placed onto this card, enter the Bank Routing number and account number for the existing FasterMoney™ card.

For an existing FasterMoney™ card, the Bank Routing number will be 073972181, and the

direct deposit account number will begin with 240. The customer can call the customer service number on the back of their card to obtain their direct deposit account number. If the direct deposit account number doesn’t start with 240, the card in question is NOT an existing FasterMoney™ card, and therefore doesn’t qualify for this disbursement selection; if the taxpayer still wants to use that card, choose Box 4 below.

Box 2 – If you are participating in the prepaid card program, you may select this option to

have funds disbursed to a new FasterMoney™ card. Remember that you must distribute the materials that disclose the terms and fees for the card program.

o If you are eligible for instant-issue cards and the taxpayer chooses that option, distribute a card to the taxpayer from the stock shipped to you. Each card will be sealed in a separate envelope to provide extra security. Distribute the sealed envelope to the taxpayer -- It is to be opened only by the taxpayer. On the application, enter the 13-digit number printed on the envelope; our system will automatically know which card is inside the sealed envelope by virtue of this number.

o If the taxpayer chooses a new personalized card, “WILLBEMAILED” will appear as the envelope number. This field may be populated by your tax software.

Box 3 – Paper check to be printed in your office when the refund is received.

Box 4 – Direct deposit to a taxpayer’s existing bank account or an existing prepaid card other

than FasterMoney™. Enter the Bank Routing number and account number for the existing account or card. For a bank account, check the appropriate box to indicate whether the account is checking or savings.

Applicant Certification The taxpayer (and spouse, if filing a joint return) must sign and date the application at the bottom of page 2.


SUBMITTING THE TAXPAYER APPLICATION Once the taxpayer has signed the completed taxpayer application, information from this application must be submitted to TFS. For specific information, please click FORMS AND MATERIALS from the Client Management Center, and click the “How to Use TaxSlayer Financial Services with Your TaxSlayer Software.”

To enter application information directly into the Client Management Center, click the option ENTER/CHANGE APPLICATION. Continue by entering the Social Security number of the primary taxpayer and selecting whether you would also like to print this application. Printing the application is useful if the taxpayer has not yet signed the paper application. After making your selection, click Continue.

Continue by entering the primary applicant information as requested. You may use the ENTER key to quickly move to the next field. When moving to an item with a drop-down selection box (e.g., The Product Requested Box), you can press the first letter of a drop-down choice in order to quickly make a selection. For example, in the case of the Product Requested Box, you can press the first letter of the desired selection to quickly select that product type.

If you select a disbursement method other than check, you will be asked to enter the bank account or card information.

For deposit to the taxpayer’ existing checking or savings account, enter the Bank Routing number and the account number of the taxpayer’s personal check or savings account

For a pre-existing FasterMoney™ card, enter the Bank Routing number and the account number associated with the card.

For a new instant-issue FasterMoney™ prepaid card, enter the Card Envelope Number that you have distributed to the taxpayer.

For a new personalized FasterMoney™ prepaid card, this field should contain the phrase “WILLBEMAILED”. This field may be populated by your tax software.

Next, enter the fees to be deducted from the taxpayer’s refund. Continue by entering joint applicant information in cases where the tax return filed is a joint return. When you are finished, click Save Application in order to submit this taxpayer’s information.

Information submitted to TFS from the taxpayer application (either through the Client Management Center or through your tax software) must match that contained in the application signed by the taxpayer(s). In no event can you enter information not contained on the signed application as agreed to by the taxpayer.

PRINTING THE TAXPAYER APPLICATION

Every taxpayer applicant is required to sign a printed taxpayer application before the tax return is transmitted to the IRS.

If you are using the TFS Client Management Center to enter an application, you can automatically print an application when you first start to enter that application. (See “Submitting the Taxpayer Application” on the previous page for more information)

To print or reprint an application that has already been submitted to TFS, click PRINT TAXPAYER APPLICATION from the Client Management Center menu and enter the primary SSN of the taxpayer.

When an application is printed, you will be asked whether you want to print the Fee Summary page or Federal/State Disbursement Worksheet. State/Fed Disbursement Worksheet: If the taxpayer is applying for a state product along with a federal product, you may want to use the State/Fed Disbursement Worksheet to show the estimated check amounts


for the state and federal disbursements. This worksheet shows the estimated disbursement amounts for the taxpayer under the two possible scenarios. The worksheet shows disbursement amounts where the state refund is received BEFORE the federal refund, and also the scenario where the state refund is received AFTER the federal refund. The reason why this is important is because we will deduct your preparation fees and the processing fees from whichever refund is received first. In this way, we help protect your fees by providing another source for payment. We suggest that you give a copy of this worksheet to your clients to help explain how their state and federal disbursement amounts were calculated. If you would like to view or print a Statel/Fed Disbursement Worksheet without entering or printing an application, click FORMS AND MATERIALS from the Client Management Center menu and then select State/Fed Disbursement Worksheet from the list of available forms.

MODIFYING A PREVIOUSLY SUBMITTED APPLICATION

If the taxpayer application is incorrectly submitted, you may correct or modify that information by clicking ENTER/CHANGE APPLICATION from the Client Management Center menu. Enter the Social Security number or the last name of the primary taxpayer and click Continue. The current information on this taxpayer will be displayed. Make the appropriate changes and click Save Application in order to save your changes.

Please note that the submitted application information must match the signed application. Changes made to the taxpayer application will also require a new application to be completed and signed by the taxpayer. After a taxpayer’s refund has been received, the application can no longer be changed through the Client Management Center. If any changes or corrections are required, contact Customer Service for assistance.

DELETING A PREVIOUSLY SUBMITTED APPLICATION OR TAXPAYER RECORD

If you would like to delete a previously submitted taxpayer application or a taxpayer record from the Client Management Center, you can do this by first looking up the taxpayer record under VIEW TAXPAYER STATUS. On the top right of the screen in the “Options” area is the option to “Delete App”. Click on ‘Delete App” to remove the taxpayer record from the Client Management Center.

ADDITIONAL TAXPAYER DISCLOSURES REQUIRED BY IRS

The IRS has rules related to the use of tax return information by tax return preparers. These rules require you to obtain written permission to disclose or use tax return information for any purpose other than tax preparation. As a result of these rules, you cannot disclose or use tax return information for such things as offering a mortgage product, payroll services, insurance products, tax refund product, or any other ancillary product, unless the taxpayer has given you prior written permission. Please note that this law affects tax refund products as well as all other types of products, such as insurance or mortgage services.

As a result of this rule, there are two forms (one related to the USE of information, and one related to the DISCLOSURE of information) that must be signed by each taxpayer who applies for a tax refund product. You must maintain signed copies of both forms for five years. The IRS looks for these forms when they perform compliance audits at ERO locations.

The first form, CONSENT TO USE OF TAX RETURN INFORMATION, is required to give you the authority to use the fact that the taxpayer is receiving a refund to ask them whether they want to receive a tax refund product. To comply with the IRS rule, this form must be completed by the taxpayer before the taxpayer applies for a refund product. The second form, CONSENT TO DISCLOSURE OF TAX RETURN INFORMATION, is required once the taxpayer expresses interest in applying for a tax refund product and may be completed at the same time as the taxpayer refund product application. Both of these consent forms are provided to you as a courtesy by TFS and are available in the Client Management Center by choosing FORMS AND MATERIALS. It is highly recommended you seek professional counsel as to their legal sufficiency as a tax preparer. Also, your transmitter may provide you with similar versions of the same forms.


The IRS requires the taxpayer sign both forms BEFORE the final tax return has been provided to the taxpayer for his approval or signature. If the taxpayer does not sign both forms, then the taxpayer must not apply for a tax refund product. If the taxpayer indicates they do not wish to sign one of the forms, the IRS rules do not permit you to ask again.

ADDITIONAL TAXPAYER DISCLOSURES REQUIRED BY STATE OR LOCAL LAW

Some states have specific disclosures that you are required to provide to taxpayers according to state or local law. In many cases, substantial financial penalties exist if you fail to follow applicable law. If you are in one of these states, you are required to provide any additional disclosures required by your state or local law, and to follow any other guidelines of your locality as they pertain to your business. In the activation process, you were presented with information regarding the laws of your state. To view this information again or to determine whether local laws governing tax refund products may exist in your state, choose FORMS AND MATERIALS from the Client Management Center menu. Then choose the item for STATE DISCLOSURES. State specific forms are provided to you as a courtesy by TFS. It is highly recommended you seek professional counsel as to their legal sufficiency as a tax preparer. Also, your transmitter may provide you with similar versions of the same forms.

RETENTION REQUIREMENTS OF TAXPAYER IDENTIFICATION AND PAPERWORK

You must retain the information recorded from the taxpayer’s government-issued IDs (such as a driver’s license or state ID card) for 5 years. IDs used for taxpayer identification must be valid and must not be expired. With prior-year customers, it is possible that the ID on file may now be expired. If so, you must obtain information from their current ID.

In addition, you must retain the original signed application in your office, corresponding to the information submitted to TFS. Do not mail original applications to us, unless requested. If we contact you to obtain a copy of an original signed application or taxpayer identification and you are unable to produce the application or identification, you may be suspended from the program. If we suffer a loss due to your inability to produce a properly completed original signed application with appropriate ID, you may be held financially responsible.

Original applications, as well as ID copies that you choose to retain, must be securely retained for a minimum of five years. We may periodically request that you send your properly completed applications to us, in order to substantiate that you are following these procedures.


Taxpayer Refund Advances This year, we are offering Taxpayer Advances through eligible ERO offices. Qualifying taxpayers can receive a fixed amount of $500.00, and they will pay no fees or interest charges. The advance will be repaid from their tax refund(s). If a taxpayer’s refunds are not received, or if the refunds are insufficient to repay the full $500.00, neither the ERO nor the taxpayer is required to repay any remaining balance of that advance.

If your office is eligible for Refund Advances, you must opt-in to the program in order to participate. Within the Client Management Center, choose the “Program Opt In” function and then click the “Taxpayer Advances” button. You will be presented with the terms and conditions of the program, which can be downloaded by clicking the appropriate link. If you agree to the terms, check the “I Agree” box and then click the “Opt In” button. Not all tax software companies have chosen to support taxpayer advances, and we are unable to offer you advances in cases where your tax software company has elected not to support the option. If you are new to TFS and this program does not appear in your OPT IN screen, don’t worry. Our most exciting programs are sometimes reserved for our returning EROs. And next year, you will be a returning ERO, helping you qualify for additional features and offerings.

Participating EROs will be charged $33.00 for each approved Refund Advance. This charge will be withheld from the next available Fee Deposit after an approval. Under the program rules, you can’t increase your fees charged to an individual taxpayer because they received a Refund Advance. We will be monitoring levels of fees charged by offices participating in this program, and may suspend an office from this program who is found to be out of compliance with this provision.

REFUND ADVANCE APPLICATIONS You will request an advance as part of the submission process for our regular disbursement service (the Refund Transfer). To view materials explaining how an advance is selected within your particular tax software, please click FORMS AND MATERIALS from the Client Management Center and then click “How to Use TaxSlayer Financial Services with your TaxSlayer Software.” In addition to the regular Disbursement Service Agreement, you will have to present the taxpayer with a separate application for the Refund Advance. When you print our forms through your tax software, the advance application (entitled “Refund Advance Disclosure and Conditional Agreement”) will print with the Disbursement Service Agreement. Along with the advance application, a separate unnumbered sheet will also print; this sheet contains required disclosures, and it must also be presented to the taxpayer. This separate refund advance application must be signed by the taxpayer(s) and then retained by you for at least 5 years. The taxpayer must receive a copy of the application and all required disclosures. The refund advance application is in addition to the separate taxpayer application related to the refund transfer disbursement service. As a result, this means that taxpayers who apply for the refund advance will have completed two separate applications (one for the disbursement service and one for the refund advance), both of which must be signed by the taxpayer(s) and retained by you for the 5-year period.


TAXPAYER ELIGIBILITY

Before a taxpayer advance is approved, we will review the application data to ensure that the tax return meets our pre-defined criteria. The most important aspects of that criteria are listed below. Any of the following conditions will automatically disqualify the application, so you should not request an advance in any of these cases:

ERO is not eligible to offer the taxpayer advance program

Primary taxpayer is under 18 years of age

Amount of the federal refund is $10,000 or more.

Taxpayer has made estimated tax payments

Taxpayer has military personnel on active-duty, either currently or at anytime during 2015

Taxpayer is deceased.

Expected federal refund amount minus all fees is less than $700

Taxpayer has filed form 8888 (Deposit splitting)

Taxpayer has filed form 8863 (Education Credits)

Taxpayer has selected a disbursement method other than check, pre-existing FasterMoney™ card, or new FasterMoney™ card.

In addition, please note that taxpayer advance is available through the end of February, and is not available beginning in March or later. Also, please note that for a taxpayer to be eligible, they must have filed a tax return in which their refund will be routed through our refund transfer disbursement service, and the IRS must have acknowledged receipt of and accepted the tax return.

FEDERAL LENDING LAWS Equal Credit Opportunity Act (Regulation B) The Equal Credit Opportunity Act protects loan applicants from illegal discrimination by prohibiting lenders from considering certain factors, called “prohibited bases,” when making a decision to lend or extend credit. Factors that may not be considered are: Race, Color, Religion, National Origin, Sex, Marital Status, Age, receipt of public assistance income, or good faith exercise of rights under Consumer Protection laws. This means that you (and your employees and tax preparers) are strictly prohibited from asking questions about these factors and from having any information in writing in your files about these factors. All applicants for a Taxpayer Refund Advance should be given the same level of assistance.

When a Refund Advance is declined, an adverse action notice will be mailed to the taxpayer using the address contained on the tax return. This letter will disclose the reason why the advance has been denied.

Truth In Lending Act (Regulation Z)

You are required to provide every Refund Advance recipient with a Truth-In-Lending Act (TILA) Form. This information is included on the first page of the Refund Advance Disclosure and Conditional Agreement.


DISCLOSURES REQUIRED BY STATE AND LOCAL LAWS

Many states and cities have laws requiring specific disclosures regarding Refund Advances. Based on the jurisdiction, these may include wall posters, paper handouts, or even a requirement that you verbally discuss certain items with the taxpayer/applicant.

If your state or locality has any of these requirements, you will find customized instructions in the Client Management Center under “Forms and Materials.”

Please note that the disclosures for Refund Advances are in addition to the disclosures for our regular refund disbursement service. Although many of the disclosures for Refund Advances may look the same as those for the disbursement service, the law requires you to follow the separate rules listed.

State specific forms are provided to you as a courtesy by TFS. It is highly recommended you seek professional counsel as to their legal sufficiency.

HANDLING DECLINED ADVANCES

There is no secondary review process for a declined Refund Advance. When an advance is not approved, we will provide a phone number to you that you can give the taxpayer to obtain more information. Additionally, an adverse action notice is automatically mailed to the taxpayer using the address contained on the tax return. This letter will disclose the reason why the taxpayer has been denied an advance.

Please note that federal guidelines do not permit us to disclose specific reasons why an applicant is denied to any person other than the applicant. As a result, we are unable to provide EROs with specific reasons why a particular applicant was declined.


Taxpayer Loyalty Cash Reward Program This year, we are offering a new program to help you attract and retain customers for your tax office. You can have the ability to reward those persons you choose, by giving out prepaid cards in amounts of $25, $50, or $100. And, you’ll have the ability to defer payment for those cards until you start to receive preparation fees from taxpayer refunds.

PROGRAM PARTICIPATION

If your office is eligible for loyalty cards, you must opt-in to the program in order to participate. Within the Client Management Center, choose the “Program Opt In” function and then click the “Loyalty Cash Rewards” button. You will be presented with the terms and conditions of the program, which can be downloaded by clicking the appropriate link. If you agree to the terms, check the “I Agree” box and then click the “Opt In” button. Because TFS is advancing you the funds that will be placed on the cards, there is limit on the total amount of loyalty cards that are unpaid at any one time.

If you are new to TFS and this program does not appear in your OPT IN screen, don’t worry. Some of our programs are sometimes reserved for our returning EROs. And next year, you will be a returning ERO, helping you qualify for additional features and offerings.

How Many Cards Do You Get

Once you opt in, you will be charged $18.00 for your initial pack of 10 loyalty cards. Additional cards are available for purchase in packs of 10 through the “Loyalty Cash Reward Portal” found in the Client Management Center. Most people do not realize that there is a surprisingly high fee to create and produce each prepaid card. This charge helps defer the cost of card production related to the cards.

What To Do If You Need More Cards

If you require additional cards, you can order more cards for this program through the “Loyalty Cash Reward Portal” found in the Client Management Center menu. . You will be charged $18.00 per pack of 10 loyalty cards. Our regular prepaid cards (which may be available to you under our refund transfer services) can be used for the loyalty program. In fact, there are no differences between the cards, and they will be shipped to you together and can be used either as a loyalty card, a refund card, or both. However, due to the high cost of cards, we ship cards under our regular program based on card usage under our regular refund transfer program.

ISSUING LOYALTY CARDS

When you choose to issue a card, simply go to the “Issue Loyalty Cards” screen in the Client Management Center. Enter the envelope number (the 13 digit number showing through the envelope window) to be issued, the dollar amount to be placed on the card ($25, 50, or $100), and taxpayer identification information (Social Security number, name, address. Our system will print a thank-you note that can distribute along with the card. After you enter this transaction, the card will be active and funds will be available instantly.

When Can You Start Issuing Cards

The date the program is first available to you will depend on whether or not you a returning ERO. For returning EROs, the program is generally available starting December 15. Otherwise, the program is available beginning the first day the IRS begins accepting tax returns. The amount of loyalty rewards you are able to issue at any time will depend on several factors, and will generally increase as the filing season gets closer, The amount will generally also increase as you file additional tax returns.


Who Can Receive a Card?

You get to choose who you give a card to. The recipient is not required to have already filed a tax return.

How Do Your Customers Use the Card?

Your customer can use the card to make purchases at stores that accept debit cards, such as Walmart or other retailers, without a transaction fee. Additionally, taxpayers may be able to withdraw the funds in cash through an ATM machines, however ATM fees may apply.

How Do You Pay for the Value of the Rewards Issued?

Once you begin to receive preparation fees through our refund disbursement service, we will withhold a portion of those fees to repay the amounts placed on the loyalty cards.

Can the Taxpayer Use this Same Card to Receive their Refund Proceeds?

For ultimate convenience, the taxpayer should consider using their loyalty cash reward card for their refund proceeds. To use any FasterMoney™ card for either the loyalty program, or for the regular refund program, you will need the 13-digit card envelope number. Ordinarily, this is not a problem, since the card envelope number is printed on the sealed envelope containing the card, and is easily available to you when you first issue the card to the customer. However, if you have issued the card to the customer under the loyalty cash reward program in advance of the filing season, the customer may no longer have the envelope number available to you once they return to file their tax return. In such a case, you can look up the envelope number through the Loyalty Cash Reward Portal by entering the customer’s SSN.


Printing Checks & Check Handling Procedures

PREPARING FOR TAX SEASON

Prior to tax season, we recommend that you contact a local bank to arrange for the cashing of your refund checks. For more information, please see “Check Cashing Arrangements” on page 11.

Prior to the start of tax season, we will send you blank check stock for use in your printer when printing the taxpayer checks. As explained in “Check Storage and Security” on page 31, you must keep this check stock in a secure location, and in check number order.

PREPARING TO PRINT CHECKS We will release checks to your location (or any other approved location of your choice) for printing. After you have printed a check, if you determine that a check was mutilated, printed incorrectly, or otherwise not printed, you can reprint that check. (See “Reprinting a Previously Printed Check” on page 30.)

There are a number of ways to determine whether you have any checks available for printing:

1. The first option is to set up your account so that you are automatically emailed whenever new checks are available for printing under My Account > Account Options.

2. Second, you can simply go to your TFS Menu inside your TaxSlayer Pro Software E-file menu, then to Check Printing. The system will display how many checks you have ready to print.

3. Third, you can log in to the Client Management System at www.taxslayerfs.com to view the checks available to print.

As a client of TFS, you have two options for printing checks:

1. The first option is to print checks from your TaxSlayer Pro Tax Software. From the Main Menu on your transmitting computer, select E-File, then Check Printing.

2. The second option is to print checks from the Client Management System at www.taxslayerfs.com. This can be performed at any computer that has internet access and has the TFS check printing license installed.

STEPS FOR CHECK PRINTING

1. Choose CHECK PRINTING > PRINT CHECKS from the E-File menu in your TaxSlayer Pro Tax Software.

2. You will be told how many checks are available for you to print. Choose whether you want to print these checks, or a sample test check instead. Then click CONTINUE.

3. TFS allows you to print to any printer available at your workstation. Choose which printer you want to print your checks. Your default printer will be first on the list. Next, choose the order in which you would like your checks to print and click CONTINUE.

TIME SAVING TIP: If the printer you use to print your checks is not first in the listing, change that printer to your default printer through your Windows control panel. It will then be listed first.


4. You will be presented with a list of checks available for printing. You can print any or all of these checks. To select a particular check for printing, click the checkbox next to that check. Or, to select all checks for printing, simply click SELECT ALL.

Your blank check stock will feed from your printer paper tray either from the top or bottom, depending on your printer. The check printing software will assume that your checks will feed in ascending order. If this is not the case, you can change the CHECK FEED ORDER to DESCENDING. You can permanently change the default check feed order by changing your default choice under MY OPTIONS in the Client Management Center menu. For more information on this topic, click HELP for more detailed information.

Next, enter the starting check number. If you have previously printed checks, the next available check number will automatically appear in this box. You must verify that this number is correct before you click PRINT CHECKS. This is the check number that will feed first in your printer as you begin printing your checks. Click PRINT CHECKS when you are ready to start printing.

5. Your checks will now be sent to your printer for printing. After your checks have printed, examine

each one. For each check, you must:

a. Make certain that the check number you entered prior to printing matches the actual check number preprinted on the check stock.

To do this, look at the CHECK NUMBER CONTROL BOX at the top right-hand corner of the printed page. The control box contains two numbers: 1) The actual preprinted check number; and, 2) The number identified by you as belonging to this taxpayer based on the starting check number you previously entered. If the numbers in the Control Box are different, this check must be reprinted. It is very important that the proper check number be identified with each check. Failure to do this may delay or prevent the cashing or clearing of your checks.

b. Make certain that the check printed properly (i.e., it was not torn in the printer or otherwise mutilated). If this check did not properly print, you must reprint this check.

If you need to reprint a check for either reason listed above, select the check box pertaining to that check and continue with Step 5 above. If all your checks printed properly, congratulations… you’re done.

REPRINTING A PREVIOUSLY PRINTED CHECK If, after printing a check and leaving the PRINT NEW / REISSUED CHECKS option, you later determine that the check printed incorrectly, you can visit the Client Management Center to reprint that check. Simply click REPRINT A CHECK to reprint a previously printed check. Checks are available for reprinting for up to 24 hours after the initial printing of the check (subject to a limit of 3 reprints per check). When a check is reprinted, the previous check is no longer valid. You must write VOID on the previous check.

If a check becomes lost, or is otherwise destroyed after 24 hours, please contact Customer Support. We will release a replacement check that will be available to you when you choose PRINT NEW / REISSUED CHECKS. See “Handling Lost, Damaged or Forged Checks” on page 32 for complete instructions for obtaining replacement checks.


DISTRIBUTING A CHECK TO A TAXPAYER When a check is printed at your location, you should notify the taxpayer that a check is available for them to pick up. Please note that when a taxpayer arrives to pick up a check, the taxpayer must sign where indicated on the top portion of the check form (called the Check Disbursement Receipt) to confirm that they have picked up the check. When a taxpayer arrives to pick up a check, you must perform the following:

1. Verify the ID of the person receiving the check to make certain you hand the check to the proper taxpayer.

2. Have the taxpayer sign the Check Disbursement Receipt that is attached to the check. This receipt prints with the check. Then, you should initial the “employee initial” line next to the taxpayer’s signature.

3. Separate the signed Check Disbursement Receipt from the actual check and check stub. The printed check form is divided into three portions. You give the taxpayer the bottom two portions (the check and the check stub) and retain the top portion (the Check Disbursement Receipt) by tearing along the upper-most perforation line. You must maintain the Check Disbursement Receipt in your files. The signature on this receipt is your proof that the taxpayer received this check and the attached check stub.

4. You will notice that the printed check contains a toll-free number through which checks can be verified by a check casher. For enhanced security, each check can be verified only once. As a result, you should instruct the taxpayer not to call this number. Likewise, your office must not call this number to see whether a check is verified.

Once a check is printed, that check is immediately available for verification by the institution cashing the check – either through the toll-free number or our check verification web site. In order to provide for proper check security, checks will expire 60 days after the date the check is printed. If a taxpayer has not cashed a check within that 60-day time period, please call TFS for assistance.

CHECK STORAGE AND SECURITY There are certain security requirements that you are required to have in place to protect the check stock that has been issued to you. Specific physical security requirements are found on page 31. The following list outlines the minimum care required surrounding your check stock.

1. Checks must be stored in a secure area under lock and key, just as you would store cash or personal checks. Access should be allowed to authorized personnel only.

2. A voided and damaged check log must be maintained on a daily basis by the ERO. A sample voided and damaged check log is available by clicking FORMS AND MATERIALS in the Client Management Center. Entries are required each time check stock is damaged, destroyed, voided or is discovered to be missing. If a check is discovered to be missing, you must notify TFS Customer Support immediately.

3. Because check sequence ranges are tracked for each location, you should not transfer check stock between your physical locations without first obtaining permission by calling TFS Customer Support.

4. If you run low on check stock, please contact Customer Support to request additional check stock, allowing 1 to 2 weeks for delivery.

Upon the request of TFS, the ERO must provide a listing of voided, damaged, canceled, destroyed and remaining check stock. Misused or unaccounted check stock is the responsibility of the ERO; this can result in the ERO’s direct financial responsibility for check stock that is improperly used or secured, as well as


termination from the program. At the conclusion of the tax season, unused check stock must be shredded (or returned to TFS, if instructed).

HANDLING LOST, DAMAGED, OR FORGED CHECKS

From time to time, special situations may arise due to lost, stolen or damaged checks. Instructions on how to handle these situations are outlined below. For checks within your possession:

If a check is damaged or used out of sequence (meaning the incorrect check number has been assigned to this check, and therefore the check number pre-printed in the Control Box does not match the check number assigned by the system), use the following procedure.

1. Write “VOID” across the face of the actual check (not the check stub) and enter this check sequence in your check control log as a voided check. The actual check is only the bottom third portion of the page. You should write void across the bottom third portion only, as shown below to the left.

CORRECT INCORRECT

2. If you discover that a check has been damaged or used out of sequence within 24 hours of first printing the check, you are able to reprint this check through the Client Management Center by choosing the REPRINT A CHECK option.

3. If more than 24 hours has elapsed since you initially printed the check, complete a Check Reissue Form, which is available under FORMS AND MATERIALS in the Client Management Center. On the form, you will find instructions on how to complete the form. Once we have received the completed form, we will reissue the check and make the check available for you to print again.

For checks not in your possession that have not been cashed:

In cases where a taxpayer has lost a check after disbursement to the taxpayer, additional procedures must be followed.

1. The ERO should immediately contact Customer Support to request a stop payment be placed on the lost check, and then complete the top portion of an Indemnification Bond. The Indemnification Bond form is available on the Client Management Center under FORMS AND MATERIALS.

2. The taxpayer (and spouse, if filing a joint return) must complete and sign the bottom portion of the Indemnification Bond. The ERO will act as a witness. The ERO acting as the witness must be the owner of the EFIN. In the event this individual is not available, a Notary Public may be used instead.

3. The ERO should fax a copy of the completed Indemnification Bond form to TFS at (888) 284-4032.

4. Next, make a copy of the form to keep for your records. The ERO should mail the original Indemnification Bond form to TFS at: TFS, P.O. Box 20427, Louisville KY 40250.

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5. TFS will contact the taxpayer and verify that the lost check has not been cashed. TFS will stop payment on the original check and reissue a replacement check to the ERO for printing after allowing for sufficient time to verify that the original check has not entered the banking system. Please note that it may take up to 60 days for this process to be completed and a replacement check issued.

For lost or stolen checks that have been cashed with a forged endorsement:

In rare cases where a taxpayer has lost a check and this check has been cashed by another party through a forged endorsement, the following procedures must be followed:

1. In cases where it is determined that a lost or stolen check has cleared through our bank, and the taxpayer claims that the check had not been endorsed by them, a claim process is then started. Please instruct the taxpayer to call TFS directly and request to speak to the Risk Management Department.

2. Risk Management will provide specific instructions to the taxpayer and send them an Affidavit of Forgery form, which must be completed as instructed and returned to TFS. When completing this form, the taxpayer is essentially claiming that he or she did not endorse the check in question and requests that a replacement check be issued.

3. Depending on the specific situation, a police report is usually required in order to investigate and establish the facts behind the forgery. The taxpayer will be asked to report the circumstances of the loss or theft of the check and the names of any individuals who had access to the check.

4. We will then present the Affidavit of Forgery to the bank that cashed the check originally. The ‘cashing’ bank will often be the institution with which the check casher actually responsible for originally cashing the check has its banking relationship.

5. The ‘cashing’ bank will investigate the claim.

6. If approved, the ‘cashing’ bank will forward payment of the forged check to our bank. Unfortunately, this process is lengthy, and often can take several months. This process cannot be accelerated.

7. Upon receipt of payment from the ‘cashing’ bank, we will issue a replacement check directly to the taxpayer. We are able to issue a replacement check only in cases where we receive payment from the cashing bank.


Bank Deposit Handling Procedures

A BANK DEPOSIT SENT TO AN INCORRECT BANK ACCOUNT

When a taxpayer applies for a Bank Deposit, you provide the taxpayer’s personal bank account information to TFS. If an incorrect bank or account number is provided, please notify us immediately.

Payments to incorrect accounts will usually reject from the receiving financial institution. When and if the funds are returned, payment will be released to the taxpayer through your office in the form of a check. In cases where the receiving bank posts the payment to this incorrect account (because the account number is actually a valid account at that financial institution), we can request that the payment be returned. Depending on the financial institution, there may be a fee associated with this request; if so, we will notify you of the charge and debit that amount from your account.

If an error was made by the ERO and there are insufficient funds to retrieve the refund from the incorrect account or if that account has been closed, the ERO is responsible for making restitution to the taxpayer. If the taxpayer provided an incorrect account and there are insufficient funds to retrieve the refund from the incorrect account, the taxpayer bears responsibility for this error.

TAXPAYER FRAUD AND THE BANK DEPOSIT An unscrupulous taxpayer may intentionally provide you with an incorrect bank account for a Bank Deposit. The account may be in the name of a friend or relative. Later, the taxpayer may tell you that the direct deposit was sent to the wrong bank account and expect you to make it good, even though there may be no way to retrieve the funds. This is why the bank account number for the Bank Deposit is listed on the taxpayer application. By signing the application, the taxpayer accepts responsibility for the bank account number listed on the application. It is your responsibility to make sure the taxpayer signs the application. If the taxpayer fails to sign the application, you are responsible. The IRS now limits the number of Bank Deposits that can be made to a single account.


Prepaid Card Handling Procedures If you are participating in our Prepaid Card program, taxpayers can choose to have their refund proceeds deposited onto a prepaid card. The prepaid card can then be used by the taxpayer to access cash at ATM machines or used to make purchases at Point of Sale (POS) terminals, such as at Walmart or other retailers. The prepaid card may be used at any location containing the VISA logo. Advise the customer to refer to the cardholder agreement, which is included in the envelope containing the card, for additional information regarding usage and fees.

The FasterMoney TM

Prepaid Card issued by MetaBank is a premier card in the industry. With some of the

lowest fees in the industry, this card is not only convenient for the customer at tax time, but also all year round. By adding a cash load or a direct deposit onto the card, the customer will qualify for fee free ATMs (in network) and no monthly fee if $500 or more is deposited onto the card during the month. For more information on the card, please visit www.myfastermoney.com. When a taxpayer chooses the Prepaid Card option, they are requesting that all disbursements to them be loaded on the card. Taxpayer refund proceeds are placed on the prepaid card the same day they are received from the IRS. The advantage of the prepaid card is that you will not need to spend time printing checks and calling the taxpayer, and the taxpayers will not have to return to your office to pick up a check. They can sign up for email or text alerts so they are notified the instant the funds are loaded onto the card! For instant-issue cards, the card remains active for 36 months from the day the taxpayer receives the card. Additionally, every taxpayer who receives an instant-issue card through your office will also automatically receive a personalized card from MetaBank. If they wish, your client can simply activate their personalized card, and the money on the instant issue card will automatically transfer to the personalized card. The instant issue card is immediately closed and no longer available for use. The personalized card provides an added layer or security for your customers as it has their name on the front of the card. In order to offer enhanced card features, we have partnered with MetaBank this year. MetaBank has issued over 500 million prepaid cards and is the leader in the prepaid marketplace. As a result of this change in card issuer, any prepaid cards remaining from the 2015 filing season should be securely discarded. Participating offices will receive new card shipments for use in 2016. If you have any of the new 2016 cards remaining at the end of the season, you should retain them for use in 2017. IMPORTANT NOTE: If the taxpayer is not approved by the card processing company to receive a card, the taxpayer’s refund proceeds will be released by check, with the check printing in your office.

HOW TO PARTICIPATE Because the Prepaid Card program requires extra disclosures and materials, you are not automatically enrolled in this program. In addition, the Prepaid Card program may not be available in all areas. If available, you can opt into the Prepaid Card Program by going to PROGRAM OPT INS in the Client Management Center, and then selecting the Prepaid Card Program from the list of optional programs. EROs participating in our card program can offer personalized cards to your taxpayers. A personalized card is one that contains the taxpayer’s name directly on the card. When a taxpayer selects a personalized card, the card is mailed directly to the taxpayer by the bank. In addition, EROs may also be eligible to issue instant-issue cards, in which case you will receive a shipment of instant-issue cards prior to the start of tax season. Each instant-issue card is contained within a “card envelope.” It is this card envelope that contains the actual card and other disclosure materials - It should only be opened by the taxpayer. You will need to input into the tax software the “card envelope number” to


activate the card, then just hand the envelope to the taxpayer who has requested an instant-issue card. Please note that our supply system tracks your usage of instant-issue cards and will automatically ship you additional instant-issue cards based on your level of card usage throughout the tax season. If necessary, you can manually order cards though the “Order Supplies” screen in the Client Management Center. Your state may have specific state laws related to the offering of cards in your state. You are responsible to ensure your compliance with any applicable state laws. If you are in a state that requires a wall display or other information to be disclosed to the consumer, the card processing company will provide you with these materials when you receive your initial card-related supplies. You are responsible to post and provide any required disclosure materials and follow applicable state laws.

PROCEDURE FOR OFFERING THE PREPAID CARD If a taxpayer is interested in the Prepaid Card option, allow the taxpayer to review the terms and conditions associated with the card. The fees and terms are available at https://www.myfastermoney.com/cardholder-agreement-ra. If the taxpayer selects this disbursement method, follow these instructions below. Instant-Issue Cards: If you have instant-issue card stock in your office, your taxpayers can apply for a new instant-issue or personalized card. For taxpayers applying for an instant-issue card, follow the instructions below:

1. Every taxpayer interested in the card option must have the opportunity to review the cardholder fees and terms before they sign the taxpayer application. The fees and terms are shown at https://www.myfastermoney.com/cardholder-agreement-ra.

2. If the taxpayer accepts the card terms, give the taxpayer a card envelope (which contains the card and related disclosure materials) and then select “FasterMoney™ Visa® Prepaid Card (obtained from your Tax Preparer)” on page 2 of the Taxpayer Application.

3. Enter that card envelope number printed on the outside of the envelope into the Taxpayer Application. If you enter an invalid number, we will be unable to load the funds onto the card, and a check will be printed in your office for the amount due the taxpayer.

4. Have the taxpayer sign the Prepaid Card Pickup Log to indicate their receipt of the appropriate card. A sample Prepaid Card Pickup Log Form is available by choosing FORMS AND MATERIALS from the Client Management Center.

Personalized Card Program: Regardless of whether or not you have instant-issue cards in your office, you are able to offer personalized cards to your taxpayers. A personalized card is one which contains the taxpayer’s name. For taxpayers who have requested a personalized card, follow the instructions below:

1. Give the taxpayer a copy of the card terms and conditions, which is available at https://www.myfastermoney.com/cardholder-agreement-ra. Every taxpayer interested in the card option must have the opportunity to read the cardholder terms and fees before they sign the taxpayer application.

2. If the taxpayer accepts the card terms, select “Personalized Prepaid Card” when entering the taxpayer application into your tax software or into the Client Management Center. This will show as “FasterMoney™ Visa® Prepaid Card (obtained from your Tax Preparer)” on page 2 of the Taxpayer Application.

CARD STORAGE AND SECURITY Instant-issue Cards are shipped to you prior to the start of the tax season. The following is required in order to maintain adequate care over the card stock:


1. Card envelopes (the envelopes which contain the actual cards) must be stored in a secure area under lock and key, just as the ERO would store cash or personal cards. Access should be allowed to authorized personnel only.

2. A Card Log should be maintained on a daily basis by the ERO. Entries will be required each time a card is removed from storage or added to storage. If a card envelope is discovered to be missing, the ERO must notify TFS Customer Support immediately. During the tax season, our Audit Department may ask you to fax us the Card Log.

3. TFS will track specific card envelope numeric ranges for each site. For this reason, you cannot transfer card envelopes from one site to another.

4. We will tracks your usage of instant-issue cards and will automatically ship you additional instant-issue cards based on your level of card usage throughout the tax season. Due to the high cost of cards, we may be unable to send you large quantities of cards. You can track card shipments by choosing ORDER SUPPLIES from the Client Management Center menu.

5. At the end of the season upon our request, the completed Card Log must be mailed back to TFS. The log will provide an accounting for all cards issued, voided, canceled, destroyed or remaining unused. Misused or unaccounted card stock is the responsibility of the ERO; this can result in the ERO’s direct financial responsibility for card stock that is improperly used or secured, as well as termination from the TFS program.

TAXPAYER FRAUD AND THE INSTANT-ISSUE PREPAID CARD

When a taxpayer chooses an instant-issue prepaid card for their disbursement method, you must give the taxpayer the card envelope when their taxes are prepared and filed, rather than when their refund is released by the IRS. If you wait to give the taxpayer the card envelope when their refund is received, you are opening yourself up to fraud. An unscrupulous taxpayer may send someone in their place to pick up the card. Later, the taxpayer will call and say they never picked up their card, expecting you to give them a new card containing their refund. But, by this point, the funds have been withdrawn from the card you inadvertently gave to the impersonator. You will be responsible if this occurs. One suggestion is to take a picture of a taxpayer and place it in their file. That way, you will always know who you are dealing with.

HANDLING LOST CARDS

If a taxpayer loses a prepaid card, the customer should follow the directions in the Cardholder Agreement and/or report the lost card to TFS immediately. We will block that card so that no additional funds can be removed from that card.


Reporting Features

Our reports give you access to the information you want! The choices available to you in the taxpayer report appear to the right.

You choose which items you want to include in your report.

You choose the order in which you want your information displayed.

You pick which information you want displayed.

If you manage a group of offices, you can choose which location(s) to include in the report.

Taxpayer Status Information & Reports CHECKING A TAXPAYER’S STATUS The Client Management Center is continually updated with up-to-the-minute information on the status of each of your taxpayer clients. Choose the VIEW TAXPAYER’S STATUS option from the Client Management Center menu to obtain detailed status information on your taxpayer’s refund and disbursements made to the taxpayer.

Use this option to view information on:

1. The taxpayer’s refund status, application history, and other personal information

2. The taxpayer’s check and product history

3. The taxpayer’s fee history and related information You can look up a taxpayer by: SSN, Last Name, or Check Verification ID. The Verification ID appears on the right-hand side of each check. This number is useful in cases when you have a check, but are unable to determine the SSN of the taxpayer belonging to this check. Once you have displayed the taxpayer status page, you can click MORE INFO for additional information.

REPORTS TFS uses advanced reporting technology, allowing you to obtain customized reports containing up-to-the-minute information. To view a report, choose CURRENT YEAR REPORTS from the Client Management Center menu. Choose the type of report you would like to view. Then, pick the information you want to appear on your report, the order in which you want your listing sorted, and you’re ready to view or print your report. Nowhere else can you so easily get so much information so quickly.

For your convenience, all of our reports can also be exported to an Excel file. To export a file to Excel, simply click the export link after selecting your report from the Client Management Center menu.

If you have multiple offices, you can also create reports on any or all of your sub-offices. When creating your reports, simply choose which of your locations you would like to include in the report, or select “All My Locations” to include all of your offices.


Below is a summary of the various reports available through TFS. TIP: Also, please remember that for many of our reports you may sort the report by PTIN or Individual Preparer ID. To view a report sorted by Individual Preparer ID, simply sort the report by Individual Preparer ID, and put a check box next to the “Individual Preparer ID” to cause this value to appear on the report.

Check and Other Disbursements

New Disbursements: Ordinarily, this report automatically pops up when you log into the Client Management Center. This report lists new disbursements that have not been previously reported to you. If you open this report through the report center, you will view a list of the most recent disbursements. Checks Printed Report: This report gives you a list of all checks released to your location. Use this listing to view information related to these disbursements, including the check history of each of your checks. This report includes all checks released to your location, regardless of whether they have been printed. Like all of our reports, you can customize your report to include the information you want.

Unprinted Checks Available for Printing: This report lists checks that have been released to your location for printing, but have not yet been printed.

Disbursement Listing: This report lists disbursements to your taxpayer clients. You can choose which type of disbursement (check, direct deposit, and prepaid card) you want to include in your report.

Refund Reports

Advance Notification Report: Sometimes, we receive advance notification of refunds to be funded. When this occurs, we are able to give you a list of which refunds or checks are expected in advance of the checks actually being released. You can use this report to estimate how many checks you can expect to print on a given day. Please note that because we receive data throughout the day, this report is updated throughout the day based on new information received. Unfunded Federal Refunds: This report lists taxpayers who applied for a Refund Transfer whose federal refund has not yet been received. Depending on your tax software, this report may also include unfunded state refunds.

Refund Offsets (partial refunds): This report lists taxpayers whose refund has been partially offset by the IRS. Refunds may be offset by the IRS for any of a number of reasons. Usually, this is because the taxpayer owes money to the IRS, or for back child support or student loans.

Refund Money Received: This report lists taxpayer refunds that have been received, either from the IRS or the State.

Fee Reports

Fees Still Due You: This report lists taxpayers with unpaid fees. Use this report to get a quick look at who still owes you money.

Fees Earned: Use this report to view a report of fees that have been withheld from taxpayers’ refunds on your behalf. To include the identification number of the tax preparer associated with the tax return, click ‘Individual Preparer ID’ from the list of information to be included on the report. Fees that have been withheld from the taxpayer’s refund will be remitted to you daily on the day after the refund is received. Each business day, a report detailing fees remitted to you is created and is available to you by clicking the FEE DEPOSIT HISTORY from the Client Management Center menu. See ‘Fee Deposit History Report’ on page 41 for more information.


Group Management Reports (available to the home office of multi-office groups)

Group Enrollment Report: This report summarizes the enrollment status of all EROs in your group.

Group Training Report: Use this report to see which of your offices have completed the required compliance training.

Product Count Report: This report displays volume information on your offices. If you are the home office of a group of offices, this report will also list information on each office in your group. Optional Programs Taxpayer Advance Report: This report lists the status of each taxpayer advance, and any remaining unpaid balance released to each advance. Loyalty Cash Reward Report: You can keep track of the activity through the reporting functions in our Client Management Center. Other Reports

Taxpayer Listing: This report displays taxpayers who have applied for a tax refund product. Use this listing to produce a mailing list or other information on your clients.

Application Errors: This report lists taxpayer applications you have submitted to us that contain errors or other problems. Applications containing errors cannot be processed by us. This report provides instructions on what you can do to correct these errors so that the taxpayer application can be processed.


Fee Payments

FEE PAYMENT OVERVIEW When you enrolled in TFS, you provided your personal banking information for the purpose of receiving fees withheld on your behalf from taxpayer refunds. As explained on page 42, you can update your banking information any time by choosing MY ACCOUNT INFORMATION from the Client Management Center menu.

Each business day, fee payments due you are remitted to the account specified in the Client Management Center. For example, if the taxpayer application related to a particular taxpayer shows fees due you of $100, we will withhold $100 from the taxpayer’s refund when it is received.

All fees due you are distributed through the Automated Clearing House (ACH) system. To minimize delays, we will validate your banking information with your local bank prior to the start of the tax season. For this reason, it is important that you provide your banking information to us prior to the start of the tax season.

On all products, fees withheld from the proceeds of taxpayers’ refunds will be paid to you upon the receipt of the IRS or state refund. Fee payments are processed and paid to you daily. You should allow up to two business days for your funds to appear in your bank account due to the nature of the ACH system. IMPORTANT NOTE: Pursuant to the ERO Agreement, we are not responsible if an incorrect account or routing number is provided to us. In addition, we may debit, freeze, offset or withhold ERO fees upon suspicion of fraud and for expenses or costs resulting from ERO’s failure to use reasonable due diligence and fraud prevention measures.

FEE DEPOSIT HISTORY REPORT Select FEE DEPOSIT HISTORY from the Client Management Center to view a history of the amounts paid to you through TFS. To view the detail (by taxpayer) behind any particular day’s deposit, simply select that deposit from the listing and click VIEW DETAILS.

Because fees are remitted to you once each business day, fees withheld from taxpayers on your behalf may not immediately appear within the FEE DEPOSIT HISTORY REPORT. Fee reports are created once each business day, and are generally available by 5 P.M. eastern time. For a report detailing fees withheld from taxpayers’ refunds (even before they appear on a Fee Deposit History Report), please select the FEES EARNED report from the report menu in the Client Management Center menu, as explained on page 39.


Account Configuration We give you choices you’ll find nowhere else! Using our Client Management Center, you can tailor your experience to make your business more successful and your experience more enjoyable than ever before. Although we recommend that you configure your account prior to tax season, you can make changes any time you like, day or night. Our Client Management Center is always open.

For security purposes, we will send an automated e-mail to you when changes are made to any of your account settings through the Client Management Center.

TIP: For maximum security, you should password protect the ability to change your account configuration. We recommend password protecting these options if other individuals in your office will also be using the TFS Client Management Center.

CHANGING YOUR ACCOUNT OPTIONS To make changes to your account options, click MY OPTIONS from the Client Management Center menu. We give you the ability to change your settings at any time.

Choose whether you want to automatically receive an e-mail or text message when new checks are released to your account for printing.

Password protect sensitive options and reports within TFS to control access.

Choose whether you want a receipt to print each time a taxpayer’s refund is received, but fully applied to pay fees. These receipts are sometimes referred to as “zero dollar checks.”

Select the default number of copies of the application that should print when you use the Client Management Center to print an application.

Choose whether you want your taxpayers to be sent a client retention postcard.

Advertise on your check stock.

CHANGING YOUR ACCOUNT INFORMATION Select MY ACCOUNT INFORMATION in the Client Management Center to update your banking information, or to update your contact and shipping information. We will remit your fees to the banking account specified here.

Update the bank and account number to which your fees are sent.

Update your office mailing and shipping addresses.

Update your e-mail address and other contact information.

View your EFIN and business ownership information.

View and/or update the contact name(s) listed on your accounts. Our system allows you to specify a primary and an alternate contact for each location. These should be the persons that we contact to resolve any problems or obtain any needed information for that location. The contact name should not be someone located at a group office who would be unable to handle these situations.

View or Update the Tax ID used for reporting purposes.

In order to ensure proper reporting of your income to the government on required 1099-MISC forms, please be sure that your EFIN ownership information is correct. If an EIN is present here, we will use that number and the Business Name associated with that EIN for reporting purposes. Otherwise, we will use the EFIN owner’s name and SSN for reporting purposes.


PROGRAM OPT INS Select PROGRAM OPT INS in the Client Management Center to view various optional programs that may be available to you, including our Prepaid Card program and Fee Assist program. Use this option to opt in to one or more of our various optional programs.

ORDERING SUPPLIES You can view and track orders for marketing materials, checks and prepaid cards, through the Client Management Center. Simply click ORDER SUPPLIES under the MANAGE MY ACCOUNT section of the Client Management Center menu. You will receive a starter pack of check stock (and prepaid cards if applicable). The amount you receive is based on your expected usage. You can place additional orders for checks or cards through the ORDER SUPPLIES option. Please note that, due to the high cost of prepaid card materials, we may be unable to send you high quantities of card stock prior to the start of the season. As a result, our supply system tracks your usage of cards and will automatically ship you additional prepaid card stock based on your level of card usage throughout the tax season. Out-of-season orders (orders placed after March 31) are typically not filled until the following November or December. If you need an out-of-season order filled immediately, please call us to let us know.


ERO Business Practices and Procedures As a business owner, you are required to understand and follow applicable federal law and regulations that affect your business, including the Gramm-Leach-Bliley Act (also known as the 1999 Privacy Act), and the Federal Trade Commission Act. Additionally, you must use responsible business practices in the operation of your business.

We are required to perform periodic reviews to ensure you follow these procedures, as well as other procedures outlined in this User’s Guide. This may include visits to your office to review refund product documents, various office procedures, and your security practices and procedures. If you are found not to be following the guidelines, we may be forced to suspend you from the program.

IRS and federal regulators randomly visit ERO locations. They will expect that you follow proper procedures, as well as applicable law.

Remember that YOU are responsible to ensure that your business practices comply with any applicable federal or state laws. The information provided in this section is not intended to be an all-inclusive list of applicable laws or regulations. You may wish to obtain outside counsel to ascertain that your business practices are in compliance with applicable laws.

ERO SECURITY REQUIREMENTS

As required by the Gramm-Leach-Bliley Act (also known as the 1999 Privacy Act), you must protect all Confidential Customer Information from loss, damage, unauthorized access or use, and from alteration. Confidential Customer Information that must be protected includes, but is not limited to, refund product applications and copies of IDs, your customers’ names, Social Security numbers, dates of birth, addresses, phone numbers, financial information, tax information and employer information.

Confidential information is contained in both printed and electronic form. You must take all necessary measures to protect that information by utilizing proper physical and electronic storage and access methods. Only the customer and persons authorized by the customer may have access to Confidential Customer Information.

Your information-safeguarding program must ensure the security and confidentiality of Confidential Customer Information, protect against any anticipated threats or hazards to the security or integrity of Confidential Customer Information, and protect against unauthorized access to or use of Confidential Customer Information.

In order to protect Confidential Customer Information, you must follow the following minimum security requirements:

Document Storage Requirements

1. Current-year customer documents MUST be stored in a locked room and/or locked filing cabinet when not in use.

2. Previous-year customer documents MUST be stored in a locked room and/or locked filing cabinet.

3. Check stock and prepaid cards MUST be stored in a locked area (e.g., cabinet, safe or locked drawer).

Physical Security Requirements

1. All office and access doors MUST be locked when no employees are onsite.

2. ONLY you and your authorized employees should have access to customer documents and information. No public access may be permitted.


3. When no longer needed, Confidential Customer Information MUST be disposed of in a safe manner, such as shredding. (Note: Taxpayer Application and customer identification documents must be retained in a locked area for five years.)

Data Security Requirements

Computers used in the preparation of customer tax returns often store Confidential Customer Information. For this reason, we require the following:

1. All computers used in the preparation of customer tax returns MUST require users to login with a unique user ID and password before gaining access to the computer.

2. All computers used in the preparation of customer tax returns MUST run a regularly updated anti-virus software program (e.g., Symantec or McAfee)

3. All computers used in the preparation of customer tax returns MUST be protected by a firewall (e.g., Microsoft Windows Firewall or Zone Alarm by Check Point)

4. If a computer containing Confidential Customer Information is sold or donated, you should first have the data information removed by a process called “DOD7 wiping”. This process wipes information off of the hard drive.

ERO COMPLIANCE WITH OTHER FEDERAL LAWS

There are various federal laws that impact the offering of our tax refund disbursement service and taxpayer advances.

USA PATRIOT Act & Bank Secrecy Act

In order to combat the funding of terrrorism and “money laundering” to disguise money from illegal activities, the federal government has instituted a series of requirements for financial institutions. One of the requirements is to develop a Customer Identification Program (CIP), in order for the financial institution to form a reasonable belief that it knows the true identity of its customers. Because we do not have direct contact with the customers, we must rely on you to meet many of the CIP reequirements.

Appendix A of this manual is the BSA/AML and OFAC Compliance Program Guideline for Electronic Return Originators (EROs). This document provides full details on the CIP rules that you must observe. As part of the required compliance training, you must certify that you have read this document and agree to follow the requirements it contains.

Federal Trade Commission Act

Section 5 of the Federal Trade Commission Act (FTC Act) prohibits deceptive acts or practices in the conduct of business. The omission of information may also violate the act if it is considered to be an unfair omission. This means that you must practice responsible business practices when discussing a possible tax refund product with a customer.

In your discussions with a customer, you must provide a full disclosure of all the ways a customer may receive an IRS refund. You must include the following points in your discussions with customers:

Present all tax refund options to the taxpayer beginning with IRS options, followed by the tax refund product options from least expensive to most expensive.

Tell the taxpayer that they are not required to apply for a tax refund product, but may elect to receive a refund directly from the IRS.

Present the costs and fees that will be deducted from the refund amount if a tax refund product is selected. Please note that when setting your fees, you CAN NOT charge higher tax preparation or


electronic filing fees based on whether or not a taxpayer chooses to apply for a tax refund product. Federal regulations prohibit you from basing your fees on the size of a refund or whether or not a taxpayer receives a tax refund product.

The taxpayer must be given adequate time to review all documents, including the application and all forms.

You must allow adequate time for the taxpayer to ask questions, and you must provide honest, factual answers.

Marketing materials you use to advertise or market any tax refund products must meet certain requirements. Additionally, any materials you develop yourself must be approved by us in writing. This includes but is not limited to: point-of-sale materials, direct mail pieces, newsletters, radio & television scripts/media, newspaper/magazine advertisements, Internet websites or advertisements, and/or announcements. Before you use any internally developed materials, please contact TFS to obtain necessary written approval. For more information on marketing materials, please see ERO MARKETING MATERIALS REQUIREMENTS below.

Equal Credit Opportunity Act (Regulation B) The Equal Credit Opportunity Act protects loan applicants from illegal discrimination by prohibiting lenders from considering certain factors, called “prohibited bases,” when making a decision to lend or extend credit. Factors that may not be considered are: Race, Color, Religion, National Origin, Sex, Marital Status, Age, receipt of public assistance income, or good faith exercise of rights under Consumer Protection laws. This means that you (and your employees and tax preparers) are strictly prohibited from asking questions about these factors and from having any information in writing in your files about these factors. All applicants for a Refund Advance should be given the same level of assistance.

Truth In Lending Act (Regulation Z)

You are required to provide every Refund Advance recipient with a Truth-In-Lending Act (TILA) Form. This form will print along with the Disclosure and Conditional Agreement for the Refund Advance. The TILA form provides the taxpayer with the annual percentage rate (APR) and other information about their loan.

CUSTOMER COMPLAINTS

If you receive a taxpayer complaint or problem report related to any of our products or services, ask the taxpayer to call our Customer Service Center at 1-888-284-4031. Depending upon the nature of the problem, they

may be transferred to our Risk Department for further assistance.

ERO MARKETING MATERIALS REQUIREMENTS

Please note that any marketing or advertising materials you develop that mention tax refund products must be submitted to TFS for approval. Like other tax refund product programs, we are required by federal guidelines to verify that the materials adhere to certain standards and to provide you written approval prior to your use of the materials. This includes but is not limited to: point-of-sale materials, direct mail pieces, newsletters, radio & television scripts/media, newspaper/magazine advertisements, Internet websites/advertisements, and/or announcements.

In compliance with federal guidelines, any materials you develop promoting the offering of a tax refund product must state that it is a fee-based product, or that additional fees will apply. This requirement is generally satisfied with a disclaimer that “additional fees will apply” or similar language.


Federal guidelines also require that you do NOT use any misleading statements about tax refund products. For example, your materials may NOT make any type of representation that a tax refund product can “speed” up a refund or that a tax refund product is the actual refund. Some statements that are considered misleading include: “instant tax money” or “rapid refund.”

Materials you develop may be sent to us at [email protected]. Once submitted, please allow two business days for us to review your materials and respond back to you. We ask that you submit materials to us prior to December 15.

You can order marketing materials that have been developed by TFS in compliance with federal guidelines by choosing ORDER SUPPLIES from the Client Management Center menu.

DISQUALIFICATION AND SUSPENSION OF EROs

Like other tax refund product providers, we continually monitor EROs for compliance with our guidelines and applicable consumer laws. As a result, you may be selected to participate in a correspondence audit, or an on-site audit where we visit you at your location. After the completion of an audit, you will be provided with a log of what was performed. You should maintain a copy of this documentation for your records. If a government regulator visits your office, you may be asked to provide a copy of this documentation.

If we receive a high number of customer complaints concerning a particular ERO or if it comes to our attention that an ERO is operating in violation of the law, in breach of the ERO Agreement, committing fraud in the conduct of their business, or engaging in unacceptable practices, we may immediately suspend the ERO from the program in accordance with the ERO Agreement and/or restrict the ability of the ERO to print checks at their location. Prior to suspending or restricting the ERO, we will attempt to contact the ERO to discuss the situation. If the situation cannot be resolved to the satisfaction of TFS, the ERO will be inactivated.

You should note that IRS Agents and criminal investigators visit paid preparers identified as filing highly questionable EITC claims to discuss remedies, responsibilities and possible civil or criminal penalties. Agents also will conduct traditional on-site compliance reviews of your records. Please remember that you are responsible for your actions and the actions of your employees and contractors.


Appendix A

MetaBank

BSA/AML and OFAC

Compliance Program Guideline for Electronic

Return Originators (EROs)

The BSA/AML AND OFAC Compliance Program Guideline for EROs addresses the parameters of

the following obligations for participating EROs: the Bank Secrecy Act/Anti-Money Laundering

Program, the Customer Identification Program, and the Office of Foreign Assets Control.

Appendix A BSA/AML page 2

Table of Contents

Table of Contents .......................................................................................................................................... 2

BSA/AML AND OFAC Compliance Program Guideline for EROs ................................................................... 3

Overview ................................................................................................................................................... 3

Acronyms .................................................................................................................................................. 3

Definitions ................................................................................................................................................. 4

Bank Secrecy Act/Anti-Money Laundering Program .................................................................................... 6

The Basics of Money Laundering .............................................................................................................. 6

Placement ............................................................................................................................................. 7

Layering ................................................................................................................................................. 7

Integration ............................................................................................................................................. 8

The Basics of Terrorist Financing .............................................................................................................. 8

Customer Identification Program (CIP) ......................................................................................................... 8

Documentary Verification ............................................................................................................ 9

Regarding Addresses ................................................................................................................. 10

Regarding Identification Numbers .............................................................................................. 10

Record Retention Requirements ................................................................................................ 11

Unusual or Suspicious Activity .................................................................................................................... 12

Office of Foreign Assets Control.. ............................................................................................................... 12


BSA/AML AND OFAC Compliance Program Guideline for EROs

Overview

MetaBank, doing business as Meta Payment Systems (Meta), is strongly committed to preventing the use

of its operations for money laundering, terrorist financing, and other criminal purposes. Meta is also

committed to cooperating, as appropriate, with enforcement and prosecution efforts to prevent the

misuse of the financial services industry by criminal elements.

The first step in fulfilling this commitment is to ensure that Meta personnel and our participating EROs

have the necessary guidance and training. In that context, Meta’s Board of Directors and Senior

Management have adopted, implemented, and continually reinforce the maintenance of comprehensive

BSA/AML and OFAC Policies to comply with the following:

The Bank Secrecy Act and its implementing regulations.

The USA PATRIOT Act.

Various other laws and regulations that are designed to assist in the control of these crimes.

Sanctions administered by the Office of Foreign Asset Control (OFAC).

This BSA/AML and OFAC Compliance Program Guideline for EROs (BSA/AML Program or Compliance

Program) is intended to promote compliance with all BSA/AML laws and requirements, to emphasize the

importance of knowing a customer’s identity, and to design reasonable practices that result in the

detection and reporting of suspicious activity.

The Compliance Program is also a supplement to Meta’s overall and inclusive BSA/AML and OFAC

Programs and is provided to our participating EROs as our commitment to ensure compliance with Meta’s

BSA/AML and OFAC Programs.

All of Meta’s participating EROs are required to complete the BSA/AML Program training provided by Meta,

which will also conduct periodic, risk-based compliance reviews to evaluate its participating EROs’

adherence to the requirements of this BSA/AML Compliance Program. Meta requires each ERO to

acknowledge that he/she has received, read, and will comply with the Compliance Program, as

well as having attended the training annually.

Acronyms

Term Description

AML Anti-Money Laundering

ATM Automated Teller Machine

BSA Bank Secrecy Act

CDD Customer Due Diligence

CIP Customer Identification Program


CTF Counter Terrorist Financing

CTR Currency Transaction Report

EIN Employee Identification Number

FATF Financial Action Task Force

FinCEN Financial Crimes Enforcement Network

HIDTA High Intensity Drug Trafficking Area

HIFCA High Risk Money Laundering and Related Financial Crimes Area

ID Identification

IR Investigation Report

ITIN Individual Tax Payer Identification Number

MIS Management Information System

Meta Meta Payment Systems

MSB Money Services Business

OFAC Office of Foreign Assets Control

ONDCP Office of National Drug Control Policy

POA Power of Attorney

POS Point of Sale

SAR Suspicious Activity Report

SDN Specially Designated Nationals and Blocked Entities list

SSN Social Security Number

USAPA USA PATRIOT Act

Definitions

Term Description

Anti-Money Laundering

Program (AML)

Legal controls that require financial institutions and other regulated

businesses to prevent, detect, and report money laundering activities.

Bank Secrecy Act

(BSA)

U.S. government legislation that was created in 1970 to prevent financial businesses from being used as tools by criminals to hide or transfer money derived from their illegal activity. This is achieved by requiring financial institutions to report cash transactions in excess of $10,000 and to provide documentation on suspicious activity.

Customer Identification

Program (CIP)

Section 326 of the USA PATRIOT Act requires each bank to implement a

written CIP to enable the bank to form a reasonable belief that it knows

the true identity of each customer.


Counter Terrorist Financing

(CTF)

A U.S. term used to refer to the fight against terrorist financing. Other

jurisdictions may use similar terms include Combating the Funding of

Terrorism, Combating Terrorist Financing, etc.

Currency Transaction

Report

(CTR)

A report required by the Bank Secrecy Act: a form that financial

businesses are required to file for any currency transactions of more

than $10,000 made in any one day by any person or made on behalf of

another person.

This is not a confidential document.

Federal Financial

Institutions Examination

Council (FFIEC)

A collaboration of financial institution examiners, including the Board

of Governors of the Federal Reserve System, the Federal Deposit

Insurance Corporation, the National Credit Union Administration, the

Office of the Comptroller of Currency, the Office of Thrift Supervision,

the Financial Crimes Enforcement Network, and the Conference of

State Bank Supervisors.

Financial Crimes

Enforcement Network

(FinCEN)

A bureau of the U.S. Department of the Treasury that collects and

analyzes information about financial transactions in order to combat

money laundering, terrorist financing, and other financial crimes.

High Intensity Drug

Trafficking Area (HIDTA)

These areas are required to be identified and published by the Anti-

Drug Abuse Act of 1988 and The Office of National Drug Control Policy

(ONDCP) Reauthorization Act of 1998.

The Director of ONDCP is authorized to designate areas within the U.S.

that exhibit serious drug trafficking problems as an HIDTA.

The HIDTA program provides federal resources to the designated areas

to help eliminate or reduce drug trafficking and its harmful

consequences. A listing can be found at:

www.whitehousedrugpolicy.gov/hidta/index.html.

High Risk Money

Laundering and Related

Financial Crimes Area

(HIFCA)

Certain parts of the United States that have been jointly designated by

the U.S. Treasury and Justice departments as high intensity for drug

trafficking and/or high risk for financial crimes.

A listing can be found at: www.fincen.gov/hifcaregions.html.

Investigation Report (IR)

A confidential form used to report unusual activity to Meta. It is

evaluated to determine whether a Suspicious Activity Report should be

filed.

http://www.whitehousedrugpolicy.gov/hidta/index.html

http://www.fincen.gov/hifcaregions.html


Meta Payment Systems

(Meta)

MetaBank doing business as Meta Payment Systems; Meta is a

federally chartered savings association located in Sioux Falls, SD.

Money Services Business

(MSB)

A person wherever located doing business, whether or not on a regular

basis or as an organized or licensed business concern, wholly or in

substantial part within the United States, in one or more of the

following capacities: dealer in foreign exchange; check casher; issuer,

seller, or redeemer of money orders or travelers checks; provider or

seller of prepaid access; or money transmitter.

Office of Foreign Assets

Control (OFAC)

An office of the U.S. Treasury that enforces economic and trade

sanctions against countries and groups of individuals involved in

terrorism, narcotics, and other disreputable activities.

Program A product or series of products that are of the same type, are

distributed to a similar market via the same distribution methods, and

have the same features.

Suspicious Activity Report

(SAR)

A report required by the Bank Secrecy Act: a confidential form used to

report suspicious activity and known or suspected violations of law.

Used by law enforcement for investigations of money laundering,

terrorist financing, or other criminal cases.

Specially Designated

Nationals and Blocked

Entities list (SDN list)

A publication of the Office of Foreign Assets Control, which lists

individuals and organizations whose properties are blocked by the

various sanctions programs that the Office administers.

Uniting and Strengthening

America by Providing Appropriate

Tools Required to Intercept and

Obstruct Terrorism Act or 2001

USA PATRIOT Act (USAPA)

An act of Congress signed into law in 2001 after the September 11th

attacks, which amends the Back Secrecy Act. This Act targets terrorism

and those who finance terrorism.

Bank Secrecy Act/Anti-Money Laundering Program

Meta requires participating EROs to adhere to Meta’s BSA/AML and OFAC Program Guidelines. If an ERO is a

Money Services Business (MSB) or agent of another MSB, it may also have an independent obligation to

develop a BSA/AML Program for the sale or service of its other products.

The Basics of Money Laundering

Money laundering involves disguising financial assets so they can be used without detection of the illegal activity that produces them. Through money laundering, the criminal transforms the monetary proceeds derived from criminal activity into funds with an apparently legal source: turns dirty money into seemingly


clean money. Money is laundered to conceal illegal activity, and the end result is that illegally-gained money is being introduced into the nation’s legitimate financial systems.

Money laundering is usually associated with drug trafficking, armed robbery, tax evasion, smuggling, prostitution, arms dealing, fraud, forgery, counterfeiting, bribery, and corruption. Money laundering involves a series of complex transactions that include the following three steps: Placement, Layering, and Integration.

Placement

Placement is the initial introduction of the illegal proceeds into the financial system, and it is the most vulnerable step in the washing cycle for criminals. Many money launderers are familiar with the dollar thresholds that require recordkeeping and reporting. Therefore, in order to remain anonymous and avoid the detection of law enforcement partners, they will structure their transactions so that the recordkeeping or reporting requirements will not be triggered.

Structuring

Breaking up a potentially large transaction into several smaller ones.

Example: Breaking up large sums of cash and making multiple payments

A customer, Sam Madison, approaches a clerk stating he wants to pay bills totaling more than $10,000. In this instance, the clerk will ask to see the customer’s identification so the Currency Transaction Report can be completed. However, Sam then says he doesn’t want to pay all the bills, and instead pays half of the amount ($5,000) and returns the next day to pay the remaining amount ($5,000): Sam does this to avoid showing identification and avoid reporting.

Layering

The second step in the money-laundering process is called Layering.

Layering

Occurs when funds are moved around to create complex layers of financial transactions that will

confuse the audit trail and disguise the source and ownership of funds.

Examples:

John makes many payments to various accounts within a 5-day period, at different payment

centers.


Integration

The third and final step is called Integration.

Integration

Involves placing the now clean money back into the economy to create the perception of

legitimacy: this may include the purchase of automobiles, businesses, or real estate.

Example: Using the example above, the funds that were layered before settling in a single bank account are then used to fund investments and mortgages or to purchase goods and services.

The Basics of Terrorist Financing

Terrorist financing differs from money laundering in that most funds are used for a specific purpose (funding

of terroristic activities), rather than to conceal profits of a crime. Many times, terrorist funds are not derived

from illegal means. One instance where a terrorist funding scheme differs from a traditional money

laundering scheme is the use of charitable funds for terrorist purposes.

Generally, terrorist financing will use the same methods described under money laundering in order to

move money, maintain the secrecy of transactions, and access funds.

Customer Identification Program (CIP)

Knowing your customers is Meta’s and the EROs’ most effective weapon against money laundering. For

certain products and services, the BSA and USA PATRIOT Act require a business to adopt formal customer

identification and verification policies and procedures. In combination, these are referenced as the

Customer Identification Program (CIP).

In keeping with the commitment to know our customers, Meta has adopted a Customer Identification

Program (CIP) to meet the requirements of Section 326 of the USA PATRIOT Act (USAPA). These

requirements relate to the identification and verification of any new customer that opens a new

account, which includes handling tax refunds through a refund product. The provisions of Section 326 of

the USA PATRIOT Act are intended to facilitate the prevention, detection, and prosecution of money

laundering, as well as the financing of terrorism.

Meta does not require EROs to establish the accuracy of every piece of identifying information obtained

from a prospective Customer (a taxpayer applying for a refund product). However, Meta requires that EROs

must confirm enough Customer information so that they may form a reasonable belief that they and Meta

know the true identity of the Customer.


Every attempt must be made to adequately verify Customer identity at the time a Customer initiates

account opening. If, despite attempts to verify a prospective Customer’s identity, EROs cannot form a

reasonable belief that he/she knows the true identity of the Customer, the Account cannot be opened and

the refund product cannot be processed.

CIP requirements include obtaining the following information from the Customer prior to opening an

Account and retaining this information for 5 years:

Legal name (first and last).

Address

Date of birth (day, month, and year).

Identification number

Documentary Verification

EROs will use the documentary method of verification for prospective Customers, Meta requires the Customer to provide at least one (1) of the following forms of non-expired identification:

State Driver’s License (U.S. or foreign)

U.S. State-issued ID

U.S. Military ID

Mexican Consular ID

Tribal ID Card

Resident Alien Card (green card, visa)

Passport (U.S. or foreign)

Voter Registration Card (if photo included)

Medicaid/Medicare Card (if photo included)

Veteran’s ID Card (if photo included)

Any other valid, unexpired government issued ID card that bears a photograph or other biometric

identifier

For any document not included in the categories above, it must be approved by Meta prior to use for documentary verification purposes.


Verification using documentary methods must consist of the following requirements, which apply to all documents used for verification purposes:

All IDs must appear valid: that is, not altered, counterfeit, or forged.

All IDs must also be current: that is, not expired.

Any photograph and/or physical description on an ID must be consistent with the appearance of the

prospective Customer.

Each piece of information provided by the prospective Customer verifies against information listed

on the ID.

o All identifying information (name, address, date of birth, and identification number) must be

consistent among all forms of identification presented.

Regarding Addresses

A residential street address is required (a Post Office Box Number is not acceptable). However, if the prospective Customer does not have a residential street address, one of the following may be acceptable:

A business street address.

An Army Post Office (APO) box number.

A Fleet Post Office (FPO) box number.

The residential or business street address of the prospective Customer’s next of kin or another

contact individual.

If none of the above are available, a description of the prospective Customer’s physical location.

Regarding Identification Numbers

For a prospective Customer that is a U.S. person (i.e., a U.S. citizen), a Taxpayer Identification Number (TIN) 1 (i.e., SSN or ITIN) is required. For non-U.S. persons, at least one of the following government-issued identification numbers is required:

A TIN (i.e., SSN or ITIN).

A passport number and country of issuance.

An alien identification card number.

The number and country of issuance of any other government-issued document evidencing

1 A Taxpayer Identification Number (TIN) is defined by Section 6109 of the Internal Revenue Code of 1986 and the IRS

regulations implementing that section as a Social Security Number (SSN), Individual Taxpayer Identification Number

(ITIN) or an Employer Identification Number (EIN).


nationality or residence and bearing a photograph or other biometric identifier, such as a fingerprint

or retinal scan.

U.S. driver’s license number and state of issuance.

The other government-issued identification numbers listed above are only acceptable for non-U.S. persons without SSNs (or ITINs). In certain instances, Meta may open an account for a customer who has applied for, but has not yet

received, a TIN if a copy of the application filed is obtained prior to account opening. The customer must

obtain a TIN within thirty (30) days of account opening. If the customer does not obtain a TIN within sixty

(60) days of account opening, the account must be closed.

Record Retention Requirements

Meta requires that EROs adhere to Meta’s CIP for all tax refund products, including creating and retaining specific CIP records regarding each Customer. These records must contain the following information:

Identifying information obtained from the Customer: name, address, date of birth, and identification

number.

Retention Time Frame This information must be retained for no less than five (5) years after the date the Account is closed.

When possible, the ERO must make a copy of the identification document(s). If a copy cannot be made, the ERO should make a record of the description of any document(s) relied on for verification, including the following (as applicable):

o From an unexpired, government-issued photo ID:

Type of ID: for example, a driver’s license or passport. ID number. Place of issuance: for example, State of South Dakota or country of Mexico. Date of issuance, if any. Expiration date, if any.

o From any other types of documentation:

Type of ID: for example, SSN card. ID number, if any: for example, SSN, account number or license number. Issuer: for example, the SSA, Minnehaha County, or MetaBank. Date of issuance or document date, if any. Expiration date, if any.


Unusual or Suspicious Activity

As Meta is required to file Suspicious Activity Reports (SARs) according to BSA/AML requirements, EROs will

need to:

Promptly report any unusual or suspicious activity involving a Meta product or service by calling

the TFS Financial Compliance Department. You should use your regular contact number.

Cooperate f u l l y with any information requests from Meta or law enforcement in relation to

Meta-issued products.

One key goal of a BSA/AML Program is identifying, recording, and reporting suspicious transactions or

activity. However, there is no clear cut definition of suspicious activity. What may appear or seem suspicious

for one Customer may be normal and appropriate for another. This is why it is important for a participating

ERO to understand his/her Customers, and their normal use of financial services.

Meta prohibits EROs from informing the customer that a referral was made. Meta is prohibited from

informing the EROs whether or not a SAR was filed based on the referral given.

Office of Foreign Assets Control and Prohibited Countries

Meta complies with the requirements and sanctions programs established by the Office of Foreign

Assets Control (OFAC). OFAC is a division of the U.S. Treasury that enforces economic and trade sanctions

based on U.S. foreign policy and national security goals against targeted foreign countries, terrorists,

international narcotics traffickers, and those engaged in the activities related to the proliferation of

weapons of mass destruction.

OFAC maintains lists of sanctioned countries, as well as entities and individuals prohibited from engaging in

transactions with the U.S.

OFAC regulations apply to all U.S. persons and businesses and require certain actions to be taken when

dealing with sanctioned countries or individuals.

Appendix B Product Summaries page 1

Appendix B – Product Summaries and Reminders

Following are summaries to use as guides for your discussion with taxpayers. These summaries can help

you provide a consistent message about our products, as well as ensure that you remember to address

critical points with the taxpayers.


Refund Advances Important Points For Your Discussions With Taxpayers:

The refund advance is an optional tax-refund related loan product.

The refund advance is a $500.00 loan, not the taxpayer’s actual tax refund.

The refund advance product is offered by MetaBank.

There is no cost to the borrower/taxpayer for the advance (no interest, no incremental fees for the Refund Transfer disbursement service or your tax preparation.)

The only method for repayment is the tax refund.

The amount of the advance will be deducted from tax refunds and reduce the amount that is paid directly to the taxpayer.

If the refund is insufficient to repay the advance, the borrower/taxpayer owes nothing, and there is no collection activity.

Availability is subject to satisfaction of identity verification, eligibility criteria, and underwriting standards.

We will use certain underwriting criteria to evaluate the advance application. Advance applications that don’t meet the pre-defined criteria will not be approved.

The advance is separate from the Refund Transfer disbursement service, and it’s not connected to the Refund Transfer fee.

The taxpayer’s ability to file taxes or use the Refund Transfer service is not dependent on applying for a refund advance.

You must avoid using language such as “Instant tax money,” “Get your refund fast,” or “Rapid refund.”

Important Reminders For You:

You must not discriminate based on any of these factors, as required by federal law:

• Race or color

• Religion

• National origin

• Sex

• Marital status

• Age (provided the applicant has the capacity to contract)

• The applicant’s receipt of income derived from any public assistance program

• The applicant’s exercise, in good faith, of any right under the Consumer Credit Protection Act

You should not express opinions to taxpayer/borrowers about whose advance application will be approved or declined.

Marketing for the advance must meet the MetaBank/TFS guidelines.

For any taxpayer requesting an advance, you cannot charge fees above the amount that you would have otherwise charged them without an advance. This includes increasing your tax preparation fees or passing through the fees charged to you by TFS.

If you cannot answer questions about the Refund Advance, refer borrower to the terms. If there is still an unanswered question, contact TFS customer service.


Refund Transfer Disbursement Service Important Points For Your Discussions With Taxpayers:

A Refund Transfer is not the taxpayer’s actual tax refund.

The Refund Transfer disbursement service is a deposit product offered by a bank.

The taxpayer is not obligated to use the Refund Transfer service.

The taxpayer may choose to receive their tax refund(s) directly from the federal and/or state governments at no additional cost.

There may be a cost to the taxpayer for the Refund Transfer, depending on the services selected and the method of disbursement.

The taxpayer’s ability to file taxes is not dependent on using the Refund Transfer service.

You must avoid using language such as “Instant tax money,” “Get your refund fast,” or “Rapid refund.”

Important Reminders For You:

Marketing for the Refund Transfer must meet the TFS guidelines.

For any taxpayer using the Refund Transfer disbursement service, you cannot charge fees above the amount that you would have otherwise charged them without the RT. This includes increasing your tax preparation fees.

If you cannot answer questions about the Refund Transfer, refer the taxpayer to the terms. If there is still an unanswered question, contact TFS customer service.

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