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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

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Establishing A Volunteer Income Tax Assistance (VITA) Site: How and Why

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  1. 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

  2. Quick Reference TOPICSLIDE # • 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

  3. 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

  4. 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

  5. Internal Revenue ServiceVolunteer Income Tax Assistance Program Establishing a VITA Site: How and Why Presentation: Summer 2008

  6. 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

  7. 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

  8. Why Establish A VITA Site? Benefits of Participation 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

  9. 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

  10. 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

  11. 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 8 Steps Establishing a VITA Site: How and Why Presentation: Summer 2008

  12. 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

  13. 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

  14. 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

  15. 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

  16. 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

  17. 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

  18. 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

  19. VITA Program Key Operation Period Mid-January - April 15th • Depending what day the 15th falls on • Operating schedule as resources allow Establishing a VITA Site: How and Why Presentation: Summer 2008

  20. What does IRS Provide? Free training Computers (based on availability) Software (TaxWise) Technical Support (Tax Law) Computer Support Establishing a VITA Site: How and Why Presentation: Summer 2008

  21. 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

  22. Internal Revenue ServiceVITA Grant Program Establishing a VITA Site: How and Why Presentation: Summer 2008

  23. 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

  24. 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

  25. 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

  26. 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

  27. 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

  28. 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

  29. 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

  30. 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

  31. 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

  32. VITA Grant Program Key Dates – 2008 Funding Establishing a VITA Site: How and Why Presentation: Summer 2008

  33. 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

  34. To obtain an IRS VITA Grant Application via: • 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 Establishing a VITA Site: How and Why Presentation: Summer 2008

  35. 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/Resources/CreditUnionDevelopment/Files/Programs/Grants/2009/NCUA6052.pdf Establishing a VITA Site: How and Why Presentation: Summer 2008 35

  36. NCUA Resources • For inquiries about this presentation: Webcast@ncua.gov • To learn about additional resources for credit unions visit: http://ncua.gov/Resources/CreditUnionDevelopment/ResourceConnection/index.aspx • To learn about NCUA’s VITA Grants visit: http://www.ncua.gov/Resources/CreditUnionDevelopment/Files/Programs/Grants/2009/NCUA6052.pdf Establishing a VITA Site: How and Why Presentation: Summer 2008 36

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