establishing a volunteer income tax assistance (vita) site: how and why

Establishing A Volunteer Income Tax Assistance (VITA) Site:

How and Why

By the National Credit Union Administrationin partnership with the

U.S. Internal Revenue Service

Establishing a VITA Site: How and Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 11

Quick Reference

TOPIC SLIDE #• Purpose of Presentation 3• Objectives of Presentation 4• VITA Program 5• IRS VITA Grant Program 22• NCUA Resources 35


Purpose of Presentation

This PowerPoint presentation was developed for credit unions and accompanies a video of the same title.

The video may be accessed from the NCUA website at: www.ncua.gov.

1. Follow the links to“The Resource Connection”,

2. Then “The Training Connection”,3. Then “Presentations”.


http://www.ncua.gov/

Objectives of Presentation

Inform credit unions of VITA Program and the IRS VITA Grant Program.

Encourage credit union participation in the IRS programs.

Provide detailed information to accompany the “Establishing A VITA Site: How and Why” video.

Inform credit unions of the Community Development Revolving Loan Fund VITA Grant Program.


Internal Revenue ServiceVolunteer Income Tax Assistance Program


What is the VITA Program?

1. Free, income tax preparation for low-to-moderate income consumers provided by volunteers.

2. Volunteers are trained through program to prepare basic tax returns.

3. Returns are completed at community-based organizations approved by IRS (VITA sites). Credit unions can be VITA sites.


Purpose

Addresses the needs of consumers of modest means by targeting Earned Income Tax Credit (EITC) eligible individuals and households, such as:• Low-to-moderate income individuals & families• Persons with disability• Those with “Limited English Proficiency”• Native Americans• Residents of rural communities


Why Establish A VITA Site?

For Members & Community Free Tax Preparation Electronic Filing Education & Outreach Financial Literacy Asset Building

For Credit Union No/ Minimal Cost Training for Volunteers Free tax preparation software Potential to Increase Member

Services (deposits, loans, etc.) Opportunity to Increase

Community Involvement


Benefits of Participation

Why Establish A VITA Site? Successful Results

Credit union participation has grown from 64 to 246.

97 credit unions in coalitions

NCUA & IRS encourages participation.


Why Establish A VITA Site? 2007 STATISTICS

Returns filed by credit unions thru VITA:

19,474 returns filed Over $20 million in total refunds $8.9 million in EITC dollars


How to Establish A VITA Site

1. Review IRS guide on VITA Sites

2. Contact Local IRS Office thru IRS Senior Tax Analyst Debra Chandler, who is national office coordinator

3. Obtain an Electronic Filing Identification Number (EFIN)

4. Recruit Volunteers5. Schedule Training6. Select Site Location7. Select Site Coordinator8. Market VITA Site


8 Steps


1. Obtain and review Publication 1084, an informational guide on VITA Sites.

By Email: www.irs.gov By Phone: (800) 829-1040


http://www.irs.gov/


2. Contact local IRS office. Email Ms. Chandler at: [email protected]

to request information regarding the IRS local office.

Determine if the credit union will be a host or part of a coalition.• If coalition, work with coalition.• Refer to Steps 3 – 8 (on the following screens) for

credit unions wishing to host a stand alone site.


mailto:[email protected]


3. Obtain an Electronic Filing Identification Number (EFIN).

Approximately six weeks to obtain EFIN.



4. Recruit Volunteers – Recommended resources:

High Schools; post secondary schools United Way-Volunteer Centers Professional and Civil Associations Rural Volunteer Organizations (e.g., 4-H

Club, County Extension Services)



5. Schedule Training. Generally lasts one week Usually conducted in December Classroom or Web-based (Link & Learn)



6. Select site location with consideration to:

Preferably in low- to moderate-income neighborhoods

High-Speed internet capabilities Reasonable accommodations (e.g.,

privacy, accessibility)



7. Select a Site Coordinator. Responsible for day-to-day site operation

8. Market VITA Site. Recommended to increase impact,

particularly to encourage nonmembers to become members.


VITA Program Key Operation Period

Mid-January - April 15th

Depending what day the 15th falls onOperating schedule as resources allow


What does IRS Provide?


Free trainingComputers (based on availability)Software (TaxWise)Technical Support (Tax Law)Computer Support

Contact the IRS directly.

To locate and obtain information from your local IRS Office, email IRS Senior Tax Analyst Debra Chandler at: [email protected]

For inquiries about the VITA Program, email IRS staff at: [email protected]




Internal Revenue ServiceVITA Grant Program


What is the IRS VITA Grant Program?

A new funding initiative for the VITA Program.In 2007, Congress appropriated $8 million in

funds for this program.Initial funding is for one-year. Funds available until September 1, 2009.


Purposes of the Grant

Expand services to underserved populations and hard-to-reach areas.

Increase capacity to file returns electronically.

Enhance training of volunteers. Improve accuracy rate of returns prepared

by VITA sites.


Eligibility Criteria

One of the following:– Private or public Non-Profit 501(a) tax exempt

organization (Credit unions are eligible under this provision.)

– State or Local government agency (includes Native American Tribal governments)

– Educational Institution under IRS Section 501OR Any regional, statewide, or local VITA

coalition with one lead organization


Eligibility Criteria Also Must: Comply with:– Applicable civil rights requirements– OMB guidance– Federal regulations– Federal tax and payment requirements

Have capacity to electronically file returns. Demonstrate matching funds contributions (refer

to next slides). Obtain Data Universal Numbering Systems (DUNS)

number.


Matching Funds

Dollar-for-dollar (1:1) match Received by October 2008 Expended by September 2009


Matching Funds Acceptable forms of match:– Cash– Third party in-kind contributions (donated

property or services- some restrictions apply)– Computer hardware (depreciable value) and

software Match may be a combination of the types

listed above.

See page 5 of the grant application for more information.


Matching Funds

Ineligible Sources Funds from other federal government

agencies, including NCUA grants. Services of students to satisfy academic

requirements. Expenses not directly related to VITA

Program. Cost of tax preparation software.


Evaluation Criteria

Strength of program standardsGeographic coveragePrior performance in IRS volunteer programAbility to partner or collaborate with multiple

organizationsQuality of organization’s sustainability and

growth strategyQuality control processInfrastructure to measure program

effectivenessEstablishing a VITA Site: How and Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 3030

Selection ProcessThree tier review process: 1. Initial review by the grant office. 2. IRS Ranking Panel will rank score the applications

based on:– Background narrative– Internal data reports– Applicants program plan – Geographic diversity

3. Final approval by the Director of Stakeholder, Partnership, Education, and Communication (SPEC).


VITA Grant Program Key Dates – 2008 Funding

Application Accepted 7/1/2008-9/2/2008

Application Deadline 9/2/2008

Review and Ranking 9/2/2008-10/3/2008

Notification to Recipients

10/30/2008

Funds Available for Draw

12/2008

Mid-Year Grantee Report 4/30/2009

Annual Grantee Report 9/30/2009Establishing a VITA Site: How and Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 3232

Contact the IRS Directly

For inquiries about the VITA Grant Program, email IRS staff at:

[email protected]



To obtain an IRS VITA Grant Application via:


Internet: www.irs.govuse keyword “Community Network”

Telephone: 1-800-829-1040 (toll free) E-mail: [email protected] Mail: Grant Program Office 401 West

Peachtree Street, NW, mail stop 420-D, Atlanta, GA 30308

Grants.gov website: www.grants.gov

http://www.irs.gov/

NCUA Resources

NCUA’s Community Development Revolving Loan Fund Program VITA Grant Program provides financial assistance for eligible low-income designated credit unions wishing to offer VITA services to their members and community. For more information, visit the NCUA’s website at: http://www.ncua.gov/Resources/CreditUnionDevelopment/Files/Programs/Grants/2009/NCUA6052.pdf


NCUA Resources


For inquiries about this presentation: [email protected]

To learn about additional resources for credit unions visit:http://ncua.gov/Resources/CreditUnionDevelopment/ResourceConnection/index.aspx

To learn about NCUA’s VITA Grants visit:http://www.ncua.gov/Resources/CreditUnionDevelopment/Files/Programs/Grants/2009/NCUA6052.pdf

establishing a volunteer income tax assistance (vita) site: how and why

Documents

credit unions of vita

irs vita sites

objectives of presentation

irs vita grant program

income tax preparation

moderate income consumers

basic tax returns

irs programs