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
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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
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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”.
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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.
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Presentation: Summer 2008
Internal Revenue Service
Volunteer Income Tax Assistance Program
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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.
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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
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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
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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.
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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
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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)
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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
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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.
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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.
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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)
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How to Establish A VITA Site
5. Schedule Training.
Generally lasts one week
Usually conducted in December
Classroom or Web-based (Link & Learn)
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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)
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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.
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VITA Program
Key Operation Period
Mid-January - April 15th
Depending what day the 15th falls on
Operating schedule as resources allow
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What does IRS Provide?
Free training
Computers (based on availability)
Software (TaxWise)
Technical Support (Tax Law)
Computer Support
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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
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Internal Revenue Service
VITA Grant Program
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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.
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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.
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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
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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.
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Matching Funds
Dollar-for-dollar (1:1) match
Received by October 2008
Expended by September 2009
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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.
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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.
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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
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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).
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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
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Contact the IRS Directly
For inquiries about the VITA Grant Program, email
IRS staff at:
Grant.Program.Office@irs.gov
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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
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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/CreditUnionDevelo
pment/Files/Programs/Grants/2009/NCUA6052.pdf
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NCUA Resources
For inquiries about this presentation:
Webcast@ncua.gov
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/CreditUnionDevelo
pment/Files/Programs/Grants/2009/NCUA6052.pdf
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