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 Department of the Treasury Internal Revenue Service awarded Community Action Agency $100,000 under the Volunteer Income Tax Assistance (VITA) Matching Grant Program (CFDA 21.009) on October 1, 2025, to support free tax return preparation and filing services for low- to moderate-income taxpayers in Michigan.

The VITA grant funds activities to extend services to underserved populations, increase electronic return filing capacity, heighten quality control, enhance volunteer training, and improve return preparation accuracy. Community Action Agency must ensure at least 90% of returns prepared serve taxpayers with income equal to or below the earned income tax credit threshold, file all eligible returns electronically, achieve 100% of return production goals, and demonstrate incremental increases in return preparation annually. Intended beneficiaries include low- to moderate-income individuals, persons with disabilities, those for whom English is a second language, Native Americans, individuals in rural areas, members of the armed forces and their families, and the elderly.

The grant operates as a matching award with a performance period from October 1, 2025, through September 30, 2026. Sub-recipients may deliver key program elements and must adhere to grant guidelines. Community Action Agency, a Jackson, Michigan-based tax-exempt nonprofit, operates as a multi-program federal grant recipient with a combined obligated portfolio of $287.4 million across housing, early childhood education, and supportive services across Michigan.

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.