(8) Internal Revenue Service estimates from fis-
cal year 2005 found that the volunteer preparation 
program cost $12.01 per contact, while Taxpayer 
Assistance Centers and assisted toll-free calls aver-
aged $28.73 and $19.46 per contact, respectively. 
(9) The number of tax returns prepared by the 
VITA program increased 155 percent between the 
2004 (500,000) and 2009 (1,200,000 returns) tax 
filing seasons. 
(10) The demand on this integral community 
service continues to rise due to the current economic 
downturn and VITA programs are experiencing 
strained resources and limited capacity. 
(11) During the 2009 tax filing season, tax-
payers applied for 9,900,000 refund anticipation 
loans and spent an estimated $733,000,000 in fees. 
Refund anticipation loans are especially prevalent 
among low- and extremely low-income taxpayers. 
Free tax preparation programs serve over 3,000,000 
taxpayers each year, thereby reducing reliance on 
these other costly alternatives. 
(12) In fiscal year 2009, 379 organizations ap-
plied to the Internal Revenue Service for over 
$30,000,000 in grant funding through the VITA 
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program, and 147 received grants at a median grant 
of $35,000. 
SEC. 3. DEFINITIONS. 
As used in this Act: 
(1) QUALIFIED
RETURN
PREPARATION
PRO-
GRAM.—The term ‘‘qualified return preparation pro-
gram’’ means any program— 
(A) which provides assistance to individ-
uals, not less than 90 percent of whom are low- 
income taxpayers, in preparing and filing Fed-
eral income tax returns, including schedules re-
porting sole proprietorship or farm income, 
(B) which is administered by a qualified 
entity, 
(C) in which all of the volunteers who as-
sist in the preparation of Federal income tax 
returns meet the training requirements pre-
scribed by the Secretary, and 
(D) which uses a quality review process 
which reviews 100 percent of all returns. 
(2) QUALIFIED ENTITY.— 
(A) IN GENERAL.—The term ‘‘qualified en-
tity’’ means any entity which— 
(i) is described in subparagraph (B), 
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(ii) is in compliance with Federal tax 
filing and payment requirements, 
(iii) is not debarred or suspended 
from Federal contracts, grants, or coopera-
tive agreements, and 
(iv) agrees to provide documentation 
to substantiate any matching funds pro-
vided under the VITA grant program. 
(B) ENTITY DESCRIBED.—An entity is de-
scribed in this subparagraph if such entity is— 
(i) an institution of higher education 
which is described in section 102 (other 
than subsection (a)(1)(C) thereof) of the 
Higher Education Act of 1965 (20 U.S.C. 
1088), as in effect on the date of the en-
actment of this section, and which has not 
been disqualified from participating in a 
program under title IV of such Act, 
(ii) an organization described in sec-
tion 501(c) of the Internal Revenue Code 
of 1986 and exempt from tax under sec-
tion 501(a) of such Code, 
(iii) a State or local government agen-
cy, including— 
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(I) a county or municipal govern-
ment agency, 
(II) an Indian tribe, as defined in 
section 4(12) of the Native American 
Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 
4103(12)), including any tribally des-
ignated housing entity (as defined in 
section 4(21) of such Act (25 U.S.C. 
4103(21))), tribal subsidiary, subdivi-
sion, or other wholly owned tribal en-
tity, and 
(III) a State government agency, 
but only if no other eligible organiza-
tion is available to assist the targeted 
population or community, 
(iv) local, State, regional, or national 
coalition (with one lead organization which 
meets the eligibility requirements of clause 
(i), (ii), or (iii) acting as the applicant or-
ganization), or 
(v) a Cooperative Extension Service 
office, but only if no other eligible organi-
zation is available to assist the targeted 
population or community. 
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(3) LOW-INCOME TAXPAYERS.—The term ‘‘low- 
income taxpayer’’ means a taxpayer who has an ad-
justed gross income which does not exceed 250 per-
cent of the poverty level, as determined in accord-
ance with criteria established by the Director of the 
Office of Management and Budget. 
(4) UNDERSERVED
POPULATION.—The term 
‘‘underserved population’’ includes populations of 
persons with disabilities, persons with limited 
English proficiency, Native Americans, individuals 
living in rural areas, and the elderly. 
(5) LEAD NATIONAL ORGANIZATION.—The term 
‘‘lead national organization’’ means an organization 
described in section 501(c) of the Internal Revenue 
Code of 1986 and exempt from tax under section 
501(a) of such Code which has demonstrated, to the 
satisfaction of the Secretary— 
(A) capacity in a minimum of 15 States, 
territories, or tribal areas, 
(B) expertise in the provision of tax prepa-
ration services to low-income taxpayers and un-
derserved populations, 
(C) an ability to train program leadership 
and staff, 
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(D) capacity to disseminate information 
throughout the United States, and 
(E) capacity to— 
(i) maintain a Web site through which 
information is disseminated in an easily ac-
cessible manner, and 
(ii) to provide technical assistance and 
training through Web-based technologies. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury or the Secretary’s del-
egate. 
SEC. 4. GRANTS TO FACILITATE NATIONWIDE AVAIL-
ABILITY OF VOLUNTEER INCOME TAX ASSIST-
ANCE FOR LOW-INCOME AND UNDERSERVED 
POPULATIONS. 
(a) IN GENERAL.—The Secretary, through the Inter-
nal Revenue Service, shall establish a Community Volun-
teer Income Tax Assistance Matching Grant Program 
(hereinafter in this section referred to as the ‘‘VITA grant 
program’’). Except as otherwise provided in this section, 
the VITA grant program shall be administered in the 
same manner as the Community Volunteer Income Tax 
Assistance matching grants demonstration program estab-
lished under title I of division D of the Consolidated Ap-
propriations Act, 2008. 
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(b) MATCHING GRANTS.— 
(1) IN GENERAL.—The Secretary shall make 
available grants under the VITA grant program to 
provide matching funds for the development, expan-
sion, or continuation of qualified return preparation 
programs assisting low-income taxpayers and mem-
bers of underserved populations. 
(2) APPLICATION.—In order to be eligible for a 
grant under this section, a qualified return prepara-
tion program shall submit an application to the Sec-
retary at such time, in such manner, and containing 
such information as the Secretary may reasonably 
require for each fiscal year. 
(3) PRIORITY.—In awarding grants under this 
section, the Secretary shall give priority to applica-
tions— 
(A) demonstrating assistance to low-in-
come taxpayers, with emphasis on outreach to 
and services for persons with an adjusted gross 
income at or below 250 percent of the Federal 
poverty level, as determined in accordance with 
criteria established by the Director of the Office 
of Management and Budget, 
(B) demonstrating taxpayer outreach and 
education around available income supports and 
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refundable credits such as the earned income 
tax credit under section 32 of the Internal Rev-
enue Code of 1986, and 
(C) demonstrating specific outreach and 
focus on one or more underserved populations. 
(4) USE OF FUNDS.—Qualified return prepara-
tion programs receiving a grant under this section 
may use the grant for— 
(A) ordinary and necessary costs associ-
ated with program operation in accordance with 
Cost Principles Circulars as set forth by the Of-
fice of Management and Budget, 
(B) outreach and educational activities re-
lating to eligibility and availability of income 
supports available through the Internal Revenue 
Code of 1986, such as the earned income tax 
credit, and 
(C) services related to financial literacy, 
asset development, and the establishment of 
savings accounts in connection with tax return 
preparation. 
(5) DURATION OF GRANTS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), a grant awarded under this 
section shall be for a period of 1 year and shall 
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not be renewed other than through an applica-
tion under paragraph (2). 
(B) EXTENDED
GRANTS.—The Secretary 
may award a grant under this section for a pe-
riod of not more than 3 years to any qualified 
return preparation program which— 
(i) received a grant under this section 
for the preceding year, and 
(ii) received a score of 90 percent or 
better on a technical evaluation. 
(c) PROMOTION AND REFERRAL.— 
(1) PROMOTION.—The Secretary shall promote 
the benefits of, and encourage the use of, tax prepa-
ration through the Volunteer Income Tax Assistance 
program through the use of mass communications, 
referrals, and other means. 
(2) INTERNAL
REVENUE
SERVICE
REFER-
RALS.—The Secretary may refer taxpayers to quali-
fied return preparation programs receiving funding 
under this section. 
(3) VITA GRANTEE REFERRAL.—Qualified re-
turn preparation programs receiving a grant under 
this section are encouraged to refer, as appropriate, 
to local or regional Low Income Tax Clinics individ-
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uals who are eligible to receive services at such clin-
ics. 
(d) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN
GENERAL.—For each of fiscal years 
2012, 2013, 2014, 2015, and 2016, there are au-
thorized to be appropriated $30,000,000 to carry 
out the purposes of this section. 
(2) RESERVATION.—From the funds appro-
priated under paragraph (1) for any fiscal year, the 
Secretary shall reserve not more than 3 percent for 
administration of the program. 
(3) AVAILABILITY.—Amounts appropriated pur-
suant to the authority of paragraph (1) shall remain 
available without fiscal year limitation until ex-
pended. 
SEC. 5. NATIONAL CENTER TO PROMOTE QUALITY, EXCEL-
LENCE, AND EVALUATION IN VOLUNTEER IN-
COME TAX ASSISTANCE. 
(a) NATIONAL CENTER TO PROMOTE QUALITY, EX-
CELLENCE, AND EVALUATION IN VOLUNTEER INCOME 
TAX ASSISTANCE.— 
(1) ESTABLISHMENT.—There is hereby estab-
lished the National Center to Promote Quality, Ex-
cellence, and Evaluation in Volunteer Income Tax 
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Assistance (hereinafter in this section referred to as 
the ‘‘Center’’). 
(2) PURPOSE.—The Center shall— 
(A) promote the adoption of a universally 
accessible volunteer training platform for the 
preparation of Federal income tax returns, 
(B) provide capacity-building technical as-
sistance to qualified return preparation pro-
gram managers, 
(C) identify and disseminate best practices 
related to tax site management emerging from 
States, community-based organizations, non-
profit providers, and local government entities, 
(D) support outreach and marketing ef-
forts to encourage the use of qualified return 
preparation programs receiving funding under 
section 4, and 
(E) provide evaluation of programs and ac-
tivities funded under this Act, including— 
(i) identification, both in aggregate 
and disaggregate, of gaps in services for 
low-income taxpayers and underserved pop-
ulations, and 
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(ii) independent evaluation of progress 
toward program objectives, as defined by 
the Secretary. 
(3) ADMINISTRATION.— 
(A) IN GENERAL.—The Secretary shall— 
(i) designate, through a competitive 
process, one qualified entity to be the lead 
national organization, and 
(ii) provide an annual grant to the 
lead 
national 
organization 
designated 
under clause (i). 
(B) DUTIES OF LEAD NATIONAL ORGANI-
ZATION.—The lead national organization shall 
use funds provided through the grant in sub-
paragraph (A)(ii) to— 
(i) carry out the purposes of the Cen-
ter, and 
(ii) make subgrants as provided in 
subsection (b). 
(b) SUBGRANTS.— 
(1) IN GENERAL.—The lead national organiza-
tion shall make available subgrants to eligible orga-
nizations to facilitate specialized technical assistance 
in reaching one or more underserved populations. 
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(2) ELIGIBLE ORGANIZATION.—For purposes of 
this subsection, the term ‘‘eligible organization’’ 
means any organization which— 
(A) is described in section 501(c) of the 
Internal Revenue Code of 1986 and exempt 
from tax under section 501(a) of such Code, 
(B) has, to the satisfaction of the lead na-
tional organization, demonstrated expertise and 
evidenced-based practices in specialized out-
reach to, and service of, one or more under-
served populations, and 
(C) has, to the satisfaction of the lead na-
tional organization, demonstrated expertise in 
the provision of specialized technical assistance 
relating to qualified return preparation pro-
grams for one or more targeted underserved 
populations. 
(3) APPLICATION.—In order to be eligible for a 
subgrant under this subsection, an eligible organiza-
tion shall submit an application to the lead national 
organization at such time, in such manner, and con-
taining such information as the lead national organi-
zation may reasonably require for each fiscal year. 
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(4) USE OF FUNDS.—An eligible organization 
which receives a subgrant under this subsection shall 
assist the Center by— 
(A) providing technical assistance to quali-
fied return preparation programs with targeted 
outreach and assistance to one or more under-
served populations, and 
(B) including strategies for the provision 
of technical assistance targeting individuals and 
families with annual household earnings at or 
below 250 percent of the poverty line within the 
underserved populations served by the subgrant. 
(5) SUBGRANT AMOUNT.— 
(A) IN GENERAL.—Each year, the lead na-
tional organization shall make available sub-
grants which, in the aggregate, do not exceed 
40 percent of the grant received under sub-
section (a). 
(B) UNDERSERVED POPULATIONS.—Of the 
amount of subgrants provided under subpara-
graph (A)— 
(i) not less than 25 percent shall be 
dedicated to specialized technical assist-
ance in serving taxpayers with disabilities, 
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(ii) not less than 25 percent shall be 
dedicated to specialized technical assist-
ance in serving limited English speaking 
taxpayers, and 
(iii) not less than 25 percent shall be 
dedicated to specialized technical assist-
ance in serving Native American taxpayers. 
(6) DURATION
OF
SUBGRANTS.—A subgrant 
awarded under this subsection shall be for a period 
of 1 year and shall not be renewed other than 
through an application under paragraph (3). 
(c) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN
GENERAL.—For each of fiscal years 
2012, 2013, 2014, 2015, and 2016, there are au-
thorized to be appropriated $5,000,000 to carry out 
the purposes of this section. 
(2) AVAILABILITY.—Amounts appropriated pur-
suant to the authority of paragraph (1) shall remain 
available without fiscal year limitation until ex-
pended. 
Æ 
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