CHAPTER 7: Volunteer Standards of Conduct

The integrity of the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs depends on maintaining public trust. All taxpayers using VITA/TCE services should be confident they are receiving accurate tax return preparation and quality service.

All volunteers are responsible for providing the highest quality and best service to taxpayers. Along with this responsibility, all volunteers must sign and date Form 13615, Volunteer Standards of Conduct Agreement each year, stating they will uphold the highest ethical standards and follow all Quality Site Requirements (QSR).

Furthermore, all IRS Stakeholder Partnerships, Education and Communication (IRS-SPEC) partners must sign either Form 13533, Sponsor Agreement or Form 13533-A, FSA Remote Sponsor Agreement, certifying they will adhere to the strictest standards of ethical conduct. By signing this agreement, the sponsor agrees to make certain their volunteers are aware of the standards of conduct and privacy and the key principles of confidentiality.

New volunteers must complete the Volunteer Standards of Conduct (VSC) Training. Returning volunteers are encouraged to review the VSC Training as a refresher. All VITA/TCE volunteers must pass a VSC certification test with a score of 80% or higher. The VSC Training will provide:

• An explanation of the six Volunteer Standards of Conduct defined on Form 13615

• Information on how to report possible violations.

• Consequences of failure to adhere to the program requirements.

• Examples of situation that raise question on ethical behavior.

Volunteer Standards of Conduct (VSC)

Often volunteers face ethical issues, which arise in unexpected situations requiring quick decisions and good judgment. In many cases, the volunteer will react to unusual situations and not realize until later that it was, in fact, an ethical dilemma.

The Volunteer Standards of Conduct were developed specifically for the operation of free tax preparation programs. Form 13615, Volunteer Standards of Conduct Agreement – VITA/TCE Programs, applies to all conduct and ethical behavior affecting the VITA/TCE programs. Volunteers must agree to adhere to the standards of conduct prior to working in a VITA/TCE free tax return preparation site.

All participants in the VITA/TCE programs must adhere to the following Volunteer Standards of Conduct:

VSC #1 – Follow all Quality Site Requirements (QSR).

The purpose of the Quality Site Requirements (QSR) is to ensure the quality and accuracy of tax return preparation and consistent operation of sites.

Non-adherence to any QSR becomes a violation of the VSC if volunteers refuse to follow the QSR. If the problem is corrected, it is not a violation of the VSC.

Refer to Publication 5166, VITA/TCE Volunteer Quality Site Requirements, for a full explanation of each QSR.

VSC #2 – Do not accept payment, ask for donations, or accept refund payments for federal or state tax return preparation from customers.

“Free” means we do not accept payment for our services from the clients we serve. We do not want to confuse the taxpayer by asking for donations. Donation or tip jars located in the return preparation or taxpayer waiting area are a violation of this standard. Donation or tip jars can be placed in another area at the site if that area does not give the impression that the site is collecting the funds for return preparation. Donation or tip jars cannot be in the entry, waiting, tax preparation, or quality review areas.

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A client may offer payment, but always refuse with a smile and say something like, “Thank you, but we cannot accept payment for our services.” If someone insists, recommend cookies or donuts for the site. Taxpayers can make cash donations to the sponsoring organization, but not in the tax preparation area. Refer taxpayers who are interested in making cash donations to the appropriate website or to the coordinator for more information.

Having fee-based preparation at the VITA site location while the VITA site is open is like tip jars within the preparation space. This causes confusion to the taxpayer as VITA is advertised as a free service.

You finish a time-consuming return, and the client is very grateful. On her way out, the client stops by and tries to sneak a $20 bill in your pocket, saying, “I would have paid ten times that at the preparer across the street.” Return the money and explain that you cannot accept money for doing taxes.

Taxpayers’ federal or state refunds must not be deposited into VITA/TCE volunteers’, partners’, or any associated organizations’ personal or business bank/debit card accounts. VITA/TCE sites must only request direct deposit of a taxpayer’s refund into accounts bearing the taxpayer’s name.

VSC #3 – Do not solicit business from taxpayers you help or use the information gained about them (taxpayer information) for any direct or indirect personal benefit for yourself, any other specific individual or organization.

Volunteers must properly use and safeguard taxpayers’ personal information. Volunteers may not use confidential or nonpublic information to engage in financial transactions. They cannot allow improper use of taxpayer information to further their own, another persons’ or organizations’ private interests.

SPEC encourages partnering with banks or credit unions to promote unbanked taxpayers to open bank accounts. However, sites and volunteers cannot offer clients refund anticipation loans (RAL) or refund anticipation checks (RAC) when preparing federal or state tax returns.

Below is guidance for banks or credits unions who partner with VITA/TCE:

• VITA/TCE coalitions and partners must take steps, so taxpayers clearly understand tax services remain free of cost regardless of whether they sign up for a bank or credit union membership or a refund anticipation loan.

• Bank or credit union information/enrollment tables must remain in a separate space from tax return preparation.

• Bank or credit union offerings must be announced using general terms to potential customers separate from tax return preparation.

  • Volunteers must not promote bank or credit union services by using information provided by the taxpayer to prepare a tax return (such as the taxpayer not having a bank account or the amount of the tax refund).

  • SPEC encourages VITA/TCE coalitions and partners to reach out and find additional financial institutions to offer services at VITA/TCE sites. To avoid the appearance of endorsement or preferential treatment, SPEC recommends giving other financial institutions with similar products with the same or similar terms to be present at the location separate from tax return preparation.

SPEC determined having a representative of a bank or credit union present at the same location as a VITA/TCE site but separate from the tax return preparation space is not a violation of VSC #3 even if that bank provides RACs/RALs as part of its overall business.

The partner operates a paid tax service in addition to having a VITA site in the same facility. The volunteer reviews the income documents and determine the taxpayer’s total income is above the VITA income limit. The volunteer then directs customers to their paid service for taxpayer convenience, so they do not have to seek services elsewhere. You explain that this is a violation of VSC #3. Partner used taxpayer information gained during the Intake/Interview process for direct personal benefit to their organization.

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Your primary business includes selling health insurance policies. During the interview, you find out the taxpayer lost access to health insurance in January of the current year. You cannot offer to sell the taxpayer health insurance through your business.

VSC #4 – Do not knowingly prepare false returns.

It is imperative that volunteers correctly apply tax law to the taxpayer’s situation. While it can be a temptation for a volunteer to bend the law to help taxpayers, this will cause problems down the road for the taxpayers. Volunteers must not knowingly prepare false returns.

Trust in the IRS and the local sponsoring organization is jeopardized when ethical standards are not followed. Fraudulent returns can result in unwanted taxpayer interaction with the IRS. The taxpayer may be required to pay additional tax, plus interest and penalties, resulting in an extreme burden. In addition, the taxpayer may seek damages under state or local law from the SPEC partner for the volunteer’s fraudulent actions. Even so, the IRS would still seek payment of the additional taxes, interest, and penalties from the taxpayer.

To report suspected violations or concerns which you have emailing SPEC Headquarters at wi.voltax@ irs.gov. The email should include your name, contact number, site name, and a detailed description of the incident including the individual’s full name, date the incident occurred, and the number of taxpayers affected by the violation.

A volunteer preparer told the taxpayer that cash income does not need to be reported. The return was completed without the cash income. The volunteer preparer has violated this standard. The quality reviewer simply missed this omission, and the return was printed, signed, and e-filed.

The quality reviewer missed this omission, and the return was printed, signed, and e-filed. Since the quality reviewer did not knowingly allow this return to be e-filed incorrectly, the quality reviewer did not violate this standard. Do not to confuse an unethical action with a lack of knowledge or a simple mistake.

A volunteer prepares a fraudulent return by knowingly claiming an ineligible dependent. The taxpayer received a notice from IRS disallowing the dependent and assessing additional taxes, interest, and penalties. The taxpayer may seek money from the SPEC partner, but must still pay the IRS the additional taxes, interest, and penalties.

A volunteer prepares a fraudulent return by adding Household Employee Wages that the taxpayer did not earn. The taxpayer received a notice from IRS for additional information needed about the earnings that the taxpayer did not have so the IRS corrected the tax return and began assessing additional taxes, interest, and penalties.

VSC #5 – Do not engage in criminal, infamous, dishonest, notoriously disgraceful conduct, or any other conduct considered to have a negative effect on the VITA/TCE program.

SPEC can prohibit volunteers from participating in the VITA/TCE program if they engage in criminal, infamous, dishonest, or notoriously disgraceful conduct, or any other conduct prejudicial to the government. Volunteers must take care to avoid interactions that discredit the program. A taxpayer may look to state or local law to seek money from the SPEC partner for a volunteer’s fraudulent actions.

Consequences

Volunteers performing egregious activities are barred from volunteering for the VITA/TCE program and may be added to a registry of barred volunteers.

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Allowing an unauthorized alien to volunteer at a VITA/TCE site is prohibited. An “unauthorized alien” is defined as a person not lawfully admitted into the United States for either permanent residence or em- ployment. All volunteers participating in the VITA/TCE program must legally reside in the United States. Coordinators are required to ask for proof of identity with a government-issued photo ID for each volunteer. However, coordinators or partners are not required to validate the legal status of volunteers. Therefore, by signing Form 13615, volunteers are certifying that they are legal residents of the United States.

VSC #6 – Treat all taxpayers in a professional, courteous, and respectful manner.

To safeguard public trust, Internal Revenue Service employees, partners, and volunteers must maintain the confidence and respect of the people we serve. All volunteers must conduct themselves professionally in a courteous, businesslike, and diplomatic manner.

Volunteers take pride in assisting individuals who come to VITA/TCE sites for return preparation. Taxpayers are often under a lot of stress and may wait extended periods for assistance. Volunteers may also experience stress due to the volume of taxpayers needing service. This situation can make patience run short. It is important to remain calm and create a peaceful and friendly atmosphere.

You finish a difficult return for Millie, who has self-employment income, several expenses, and very few records. In addition, her son turned 25 and moved out early in the year. She owes the IRS about $50. After you carefully explain the return, Millie sputters, “You don’t know what you’re doing. I always get a refund! My neighbor is self-employed, and she got $1,900 back.” In this situation, you should take a deep breath and courteously explain that every return is different. If necessary, involve the coordinator.

Due Diligence

By law, tax return preparers must exercise due diligence in preparing or assisting in the preparation of tax returns. IRS defines due diligence as the degree of care and caution reasonably expected from, and ordinarily exercised by, a volunteer in the VITA/TCE program. This means, as a volunteer, you must do your part when preparing or quality reviewing a tax return to ensure the information on the return is correct and complete. Doing your part includes confirming a taxpayer’s (and/or spouse, if married filing jointly) identity and providing top-quality service by helping them understand and meet their tax responsibilities.

Generally, IRS tax law certified volunteers may rely in good faith on information from a taxpayer without requiring documentation as verification. However, part of due diligence requires volunteers to ask a taxpayer to clarify information that may appear to be inconsistent or incomplete. When reviewing information for its accuracy, volunteers need to ask themselves if the information is unusual or questionable.

If at any time a volunteer becomes uncomfortable with the information provided by the taxpayer, the volunteer should not prepare the tax return. If necessary, ask the coordinator for assistance.

Failure to Comply with the Volunteer Standards of Conduct

Who enforces the standards?

The U.S. tax system is based on voluntary compliance. Most taxpayers compute their tax accurately, but at times unscrupulous taxpayers and preparers evade the system by filing fraudulent returns. For this reason, some sponsoring organizations may perform background checks on their volunteers.

The VITA/TCE program is operated by sponsoring partners and/or coalitions outside the IRS. However, IRS is responsible for providing oversight to protect the VITA/TCE programs’ integrity and to maintain taxpayer confidence. IRS recognizes the hard work volunteers contribute to the programs and does not want that overshadowed by a volunteer’s lapse in judgment.

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How are the standards enforced?

IRS-SPEC continues to revise Form 13615, Volunteer Standards of Conduct Agreement, to provide guidance to volunteers and a structure for regulating ethical standards. By signing and dating Form 13615, Volunteer Standards of Conduct Agreement, volunteers agree that they will adhere to the VSC.

If conduct violating the standards occurs at a VITA/TCE site, IRS-SPEC will recommend corrective actions. If the site cannot or will not remedy the conduct, then IRS-SPEC will discontinue its relationship and remove any government property from the site.

In cases of wrongdoing, illegal conduct, and/or management practices that violate the VSC, IRS-SPEC may terminate a VITA/TCE grant. A volunteer’s conduct could put a site or partner in jeopardy of losing its government funding.

Resolving Problems

In general, the coordinator is the first point of contact for resolving any problems that a volunteer may encounter. If a volunteer feels an ethical issue can’t be handled by the coordinator, the volunteer should email SPEC headquarters at wi.voltax@irs.gov and copy the partner and the local SPEC territory office as appropriate. The email notification should include your name, contact number, site name, and a detailed description of the incident including the individuals full name, date the incident occurred, and the number of taxpayer’s affected by the violation if applicable. The following chart lists common issues that a taxpayer may have and where they can be referred. Publication 5136, Service Guide, also may be helpful when a taxpayer has a question unrelated to tax preparation. Publication 5136 can be located at www.irs.gov/pub/irs-pdf/p5136.pdf .

For additional information on the Volunteer Standards of Conduct, refer to Publication 4961, VITA/TCE Volunteer Standards of Conduct – Ethics Training.

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