# Presentation: 483765

## 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   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   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.
-  Follow the links to
- 	“*The Resource Connection”*,
- Then “The Training Connection”,
- Then “Presentations”.

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

## Internal Revenue ServiceVolunteer Income Tax Assistance Program

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

##  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****. **

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

##  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

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

**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.

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

## How to Establish A VITA Site

- 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

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

**8 Steps**

## How to Establish A VITA Site 

- 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   Presentation: Summer 2008

## How to Establish A VITA Site 

- 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   Presentation: Summer 2008

## How to Establish A VITA Site

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

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

## 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)

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

## How to Establish A VITA Site

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

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

## 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)

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

## 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.

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

## VITA Program Key Operation Period

- _Mid-January - April 15__th_
- Depending what day the 15th falls on
- Operating schedule as resources allow

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

## What does IRS Provide?

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

- Free training
- Computers (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: Debra.Chandler@irs.gov
- For inquiries about the VITA Program, email IRS staff at: Partner@irs.gov

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

## Internal Revenue ServiceVITA Grant Program

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

## Matching Funds

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

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

## 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).

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

## To obtain an IRS VITA Grant Application via:

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

- 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

## 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/CreditUnionDevelopment/Programs/FinanceGrants.htm

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

## NCUA Resources

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

- 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