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 Establishing a VITA Site: How and Why Presentation: and Why Presentation: Summer 2008 Summer 2008 1
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Establishing A Volunteer Income Tax Assistance (VITA) Site: How and Why
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. Quick Reference. TOPIC SLIDE # Purpose of Presentation 3 Objectives of Presentation 4 - PowerPoint PPT Presentation
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Establishing A Volunteer Income Tax Assistance (VITA) Site:
How and Why
By the National Credit Union Administrationin partnership with the
U.S. Internal Revenue Service
Establishing a VITA Site: How and Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 11
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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 22
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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 33
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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 44
Internal Revenue ServiceVolunteer Income Tax Assistance Program
Establishing a VITA Site: How and Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 55
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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 66
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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 77
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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 88
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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 99
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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 1010
How to Establish A VITA Site
1. Review IRS guide on VITA Sites
2. Contact Local IRS Office thru IRS Senior Tax Analyst Debra Chandler, who is national office coordinator
3. Obtain an Electronic Filing Identification Number (EFIN)
4. Recruit Volunteers5. Schedule Training6. Select Site Location7. Select Site Coordinator8. Market VITA Site
Establishing a VITA Site: How and Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 1111
8 Steps
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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 1212
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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 1313
Establishing a VITA Site: How and Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 2222
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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 2323
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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 2424
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 501OR Any regional, statewide, or local VITA
coalition with one lead organization
Establishing a VITA Site: How and Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 2525
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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 2626
Matching Funds
Dollar-for-dollar (1:1) match Received by October 2008 Expended by September 2009
Establishing a VITA Site: How and Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 2727
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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 2828
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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 2929
Evaluation Criteria
Strength of program standardsGeographic coveragePrior performance in IRS volunteer programAbility to partner or collaborate with multiple
organizationsQuality of organization’s sustainability and
growth strategyQuality control processInfrastructure to measure program
effectivenessEstablishing a VITA Site: How and Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 3030
Selection ProcessThree 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 Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 3131
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 9/30/2009Establishing a VITA Site: How and Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 3232
Contact the IRS Directly
For inquiries about the VITA Grant Program, email IRS staff at:
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/CreditUnionDevelopment/Files/Programs/Grants/2009/NCUA6052.pdf
Establishing a VITA Site: How and Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 3535
NCUA Resources
Establishing a VITA Site: How and Establishing a VITA Site: How and Why Presentation: Summer 2008Why Presentation: Summer 2008 3636