BACKGROUND

The Internal Revenue Service (IRS) sponsors the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. Since the implementation of the VITA program in 1969, thousands of volunteers have provided free tax assistance and prepared millions of federal and state returns. The targeted population for VITA services includes individuals with low to moderate income (defined by the Earned Income Tax Credit [EITC] threshold), persons with disabilities, elderly, and those with limited English proficiency (LEP). The VITA program is vital to delivering service to those taxpayers who most need tax assistance and cannot afford the services of a paid preparer.

The TCE program offers free tax assistance to individuals who are age 60 or older. §163 of the Revenue Act of 1978, Public Law No. 95-600, 92 Stat. 2810, November 6, 1978, authorizes this cooperative agreement. This Act authorizes the IRS to enter into agreements with private or nongovernmental public non-profit agencies and organizations, exempt under §501 of the IRC, which will provide training and technical assistance to volunteers who provide free tax counseling and assistance to elderly individuals in the preparation of their federal income tax returns.

The Virtual VITA/TCE approach uses the same process as traditional VITA/TCE except that the IRS-certified preparer and/or quality reviewer and the taxpayer may not always be face-to-face. Technology is used to connect the volunteer preparer and the taxpayer. Although suitable for rural environments where it is difficult to build a traditional VITA site, this approach can also be used in urban settings to provide a free alternative to qualified taxpayers.

To help more taxpayers while increasing taxpayer education and promoting self-sufficiency, SPEC now also captures returns prepared through a Facilitated Self-Assistance (FSA) Model. FSA uses a certified volunteer to assist taxpayers in the preparation of their own tax return. Since the volunteer acts as a facilitator, each volunteer can assist multiple taxpayers at one time. This approach allows sites to offer alternative filing methods by helping taxpayers prepare their own simple returns. Partners can use any software that captures the site identification number (SIDN).

The goal of the VITA/TCE program is to make voluntary adherence easier by:

• Promoting tax understanding and awareness

• Preparing free and accurate tax returns for eligible taxpayers

• Encouraging Financial Education and Asset Building (FEAB) through tax incentives

• Incorporating taxpayer feedback or viewpoints

• Improving issue resolution processes in all interactions with taxpayers

• Providing taxpayers with timely guidance and outreach

• Strengthening partnerships with tax practitioners, tax preparers, and other third parties to ensure effective tax administration

6 SPEC MISSION