The volunteer income tax assistance (vita) grant was established as a matching grant program to provide funding for organizations who support community volunteer income tax assistance

The Internal Revenue Service awarded $200,000 to United Way Of The Bluegrass, Inc., on October 1, 2025, through the Volunteer Income Tax Assistance (VITA) Matching Grant Program (CFDA 21.009) to support free tax return preparation and electronic filing services for low-to-moderate income individuals and other underserved populations in Kentucky.

United Way Of The Bluegrass delivers free tax return preparation and filing services targeting persons with disabilities, non-English speakers, Native Americans, rural residents, military members and families, and elderly taxpayers. The organization must ensure that at least 90 percent of returns prepared serve individuals whose income does not exceed Earned Income Tax Credit thresholds, file all eligible returns electronically, and achieve annual return production goals with incremental increases in volume year-over-year.

The period of performance runs from October 1, 2025, through September 30, 2026. As a condition of the matching grant structure, the recipient must provide non-federal matching funds equal to the $200,000 federal award amount and maintain comprehensive record-keeping in accordance with Generally Accepted Accounting Principles for a minimum of three years following final report submission. This is the most recent in a series of annual awards to the recipient under the VITA program dating to 2021.

Activities

The vita grant program provides financial support to organizations who 1) extend services to underserved populations in hardest to reach areas both urban and non-urban; 2) increase the capacity to file returns electronically; 3) heighten quality control; 4) enhance training of volunteers; and 5) significantly improve the accuracy rate of returns prepared at vita sites. End goal/expected outcomes: vita grant recipients are expected to 1) follow existing guidance governing vita site operations; 2) ensure at least 90% of returns prepared are for individuals whose income is equal to or less than the maximum earned income tax credit (eitc) thresholds; 2) file all eligible returns electronically; 3) achieve 100% of their return production goals; 4) become more efficient with grant funds; and 5) show incremental increases in return preparation each year.

Intended beneficiaries

Taxpayers who are low to moderate income individuals, persons with disabilities, those for whom english is a second language, native americans, individuals living in rural areas, members of the armed forces and their families, and the elderly.

Subrecipient activities

Subrecipients may be utilized by grant recipients to help deliver key elements of the program and must adhere to grant program guidelines. Broadband: specific activities relating to broadband usage are not known at the time of award.