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

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Establishing A Volunteer Income Tax Assistance
(VITA) SiteHow and Why

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

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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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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.
• Follow the links to
• The Resource Connection,
• Then The Training Connection,
• Then Presentations.

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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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Internal Revenue ServiceVolunteer Income Tax
Assistance Program
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What is the VITA Program?

• Free, income tax preparation for low-to-moderate
  income consumers provided by volunteers.
• Volunteers are trained through program to prepare
  basic tax returns.
• Returns are completed at community-based
  organizations approved by IRS (VITA sites).
  Credit unions can be VITA sites.

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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
• 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

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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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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

• Review IRS guide on VITA Sites
• Contact Local IRS Office thru IRS Senior Tax
  Analyst Debra Chandler, who is national office
  coordinator
• Obtain an Electronic Filing Identification Number
  (EFIN)

• Recruit Volunteers
• Schedule Training
• Select Site Location
• Select Site Coordinator
• Market VITA Site

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How to Establish A VITA Site

• Obtain and review Publication 1084,
• an informational guide on VITA Sites.
• By Email www.irs.gov
• By Phone [phone]

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How to Establish A VITA Site

• Contact local IRS office.
• Email Ms. Chandler at debra.chandler_at_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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How to Establish A VITA Site

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

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How to Establish A VITA Site

• 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

• 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

• 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

• Select a Site Coordinator.
• Responsible for day-to-day site operation
• 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_at_irs.gov
• For inquiries about the VITA Program, email IRS
  staff at Partner_at_irs.gov

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Internal Revenue ServiceVITA 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 (11) 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 organizations sustainability and
  growth strategy
• Quality control process
• Infrastructure to measure program effectiveness

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Selection Process

• Three tier review process
• Initial review by the grant office.
• IRS Ranking Panel will rank score the
  applications based on
• Background narrative
• Internal data reports
• Applicants program plan
• Geographic diversity
• Final approval by the Director of Stakeholder,
  Partnership, Education, and Communication (SPEC).

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VITA Grant Program Key Dates 2008 Funding
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Contact the IRS Directly

• For inquiries about the VITA Grant Program,
  email IRS staff at
• Grant.Program.Office_at_irs.gov

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To obtain an IRS VITA Grant Application via

• Internet www.irs.gov
• use keyword Community Network
• Telephone [phone] (toll free)
• E-mail Grant.Program.Office_at_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

• NCUAs 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 NCUAs website at
  http//www.ncua.gov/Resources/CreditUnionDevelopme
  nt/Files/Programs/Grants/2009/NCUA6052.pdf

Establishing a VITA Site How and Why
Presentation Summer 2008
35
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NCUA Resources

• For inquiries about this presentation
  Webcast_at_ncua.gov
• To learn about additional resources for credit
  unions visit
• http//ncua.gov/Resources/CreditUnionDevelopment/
  ResourceConnection/index.aspx
• To learn about NCUAs VITA Grants visit
• http//www.ncua.gov/Resources/CreditUnionDevelopm
  ent/Files/Programs/Grants/2009/NCUA6052.pdf

Establishing a VITA Site How and Why
Presentation Summer 2008
36