Establishing A Volunteer Income Tax Assistance (VITA) Site How by barto

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									              Establishing A
Volunteer Income Tax Assistance (VITA) Site:
              How and Why

   By the National Credit Union Administration
             in partnership with the
          U.S. Internal Revenue Service




                Establishing a VITA Site: How and Why
                                                        1
                      Presentation: Summer 2008
                Quick Reference
        TOPIC                                            SLIDE #
•   Purpose of Presentation                                  3
•   Objectives of Presentation                               4
•   VITA Program                                             5
•   IRS VITA Grant Program                                  22
•   NCUA Resources                                          35



                 Establishing a VITA Site: How and Why
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                       Presentation: Summer 2008
     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”.




           Establishing a VITA Site: How and Why
                                                   3
                 Presentation: Summer 2008
        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.
              Establishing a VITA Site: How and Why
                                                      4
                    Presentation: Summer 2008
        Internal Revenue Service
Volunteer Income Tax Assistance Program




             Establishing a VITA Site: How and Why
                                                     5
                   Presentation: Summer 2008
          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.


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

                 Establishing a VITA Site: How and Why
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                       Presentation: Summer 2008
          Why Establish A VITA Site?
               Benefits of Participation


 For Members & Community                       For Credit Union
 Free Tax Preparation                   No/ Minimal Cost
 Electronic Filing                      Training for Volunteers
                                         Free tax preparation
 Education & Outreach                    software
 Financial Literacy                     Potential to Increase
 Asset Building                          Member Services (deposits,
                                          loans, etc.)
                                         Opportunity to Increase
                                          Community Involvement
                 Establishing a VITA Site: How and Why
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                       Presentation: Summer 2008
              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.



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




                 Establishing a VITA Site: How and Why
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                       Presentation: Summer 2008
             How to Establish A VITA Site
                           8 Steps

1.   Review IRS guide on VITA             4.       Recruit Volunteers
     Sites                                5.       Schedule Training
2.   Contact Local IRS Office             6.       Select Site Location
     thru IRS Senior Tax                  7.       Select Site Coordinator
     Analyst Debra Chandler,
     who is national office               8.       Market VITA Site
     coordinator
3.   Obtain an Electronic Filing
     Identification Number
     (EFIN)
                       Establishing a VITA Site: How and Why
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                             Presentation: Summer 2008
            How to Establish A VITA Site
1. Obtain and review Publication 1084,
   an informational guide on VITA Sites.

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




                Establishing a VITA Site: How and Why
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                      Presentation: Summer 2008
              How to Establish A VITA Site
2. Contact local IRS office.
   Email Ms. Chandler at: debra.chandler@irs.gov
    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.

                     Establishing a VITA Site: How and Why
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                           Presentation: Summer 2008
         How to Establish A VITA Site

3. Obtain an Electronic Filing Identification
   Number (EFIN).
   Approximately six weeks to obtain EFIN.




                Establishing a VITA Site: How and Why
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                      Presentation: Summer 2008
           How to Establish A VITA Site

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)

                Establishing a VITA Site: How and Why
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                      Presentation: Summer 2008
         How to Establish A VITA Site

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




               Establishing a VITA Site: How and Why
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                     Presentation: Summer 2008
          How to Establish A VITA Site

6. Select site location with consideration to:

   Preferably in low- to moderate-income
    neighborhoods
   High-Speed internet capabilities
   Reasonable accommodations (e.g.,
    privacy, accessibility)

                 Establishing a VITA Site: How and Why
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                       Presentation: Summer 2008
         How to Establish A VITA Site

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.


                Establishing a VITA Site: How and Why
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                      Presentation: Summer 2008
               VITA Program
              Key Operation Period

           Mid-January - April 15th

Depending what day the 15th falls on
Operating schedule as resources allow




                Establishing a VITA Site: How and Why
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                      Presentation: Summer 2008
       What does IRS Provide?


Free training
Computers (based on availability)
Software (TaxWise)
Technical Support (Tax Law)
Computer Support




            Establishing a VITA Site: How and Why
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                  Presentation: Summer 2008
               Contact the IRS directly.

To locate and obtain information from your
 local IRS Office, email IRS Senior Tax Analyst
 Debra Chandler at:
 Debra.Chandler@irs.gov

For inquiries about the VITA Program, email
 IRS staff at: Partner@irs.gov



                 Establishing a VITA Site: How and Why
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                       Presentation: Summer 2008
Internal Revenue Service
   VITA Grant Program




     Establishing a VITA Site: How and Why
                                             22
           Presentation: Summer 2008
     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.



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

               Establishing a VITA Site: How and Why
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                     Presentation: Summer 2008
                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 501
OR
 Any regional, statewide, or local VITA
   coalition with one lead organization

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

                   Establishing a VITA Site: How and Why
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                         Presentation: Summer 2008
               Matching Funds


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




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

                  Establishing a VITA Site: How and Why
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                        Presentation: Summer 2008
               Evaluation Criteria
Strength of program standards
Geographic coverage
Prior performance in IRS volunteer program
Ability to partner or collaborate with multiple
 organizations
Quality of organization’s sustainability and
 growth strategy
Quality control process
Infrastructure to measure program
 effectiveness
                 Establishing a VITA Site: How and Why
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                       Presentation: Summer 2008
                 Selection Process
Three 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).

                   Establishing a VITA Site: How and Why
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                         Presentation: Summer 2008
                 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                             9/30/2009

                     Establishing a VITA Site: How and Why
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                           Presentation: Summer 2008
              Contact the IRS Directly



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

           Grant.Program.Office@irs.gov




                Establishing a VITA Site: How and Why
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                      Presentation: Summer 2008
To obtain an IRS VITA Grant Application via:


 Internet: www.irs.gov
  use keyword “Community Network”
 Telephone: 1-800-829-1040 (toll free)
 E-mail: Grant.Program.Office@irs.gov
 Mail: Grant Program Office 401 West Peachtree
  Street, NW, mail stop 420-D, Atlanta, GA 30308
 Grants.gov website: www.grants.gov




                Establishing a VITA Site: How and Why
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                      Presentation: Summer 2008
              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/CreditUnionDevelopme
nt/Programs/FinanceGrants.htm
               Establishing a VITA Site: How and Why
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                     Presentation: Summer 2008
              NCUA Resources


 For inquiries about this presentation:
  Webcast@ncua.gov
 To learn about additional resources for credit
  unions visit:
  www.ncua.gov/ResourceConnection.com
 To learn about NCUA’s VITA Grants visit:
  www.ncua.gov/CreditUnionDevelopment



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

								
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