2024 Publication 4671.pdf

Volunteer Income Tax Assistance

VITA Grant Program Overview and Application Instructions

Helping You Help Others

Publication 4671 (Rev. 4-2023) Catalog Number 51402Q Department of the Treasury Internal Revenue Service www.irs.gov www.irs.gov

Important Contact and Website Information Grant Program Office 401 W. Peachtree Street, NW Stop 420-D Atlanta, GA 30308 E-mail address: Grant.Program.Office@irs.gov (E-mail is the preferred method of communication.)

Hours of Operation: 8:00 a.m. – 4:30 p.m. EST

VITA Grant Program on irs.gov www.irs.gov/Individuals/IRS-VITA-Grant-Program

Frequently Asked Questions (FAQ’S) – VITA Grant Program www.irs.gov/individuals/volunteer-income-tax-assistance-vita-grant-program-faqs

Become an IRS Partner to Help in Your Community www.irs.gov/Individuals/Become-an-IRS-Partner-to-Help-in-Your-Community

IRS Civil Rights Unit

202.317.6925 (not a toll-free number) E-mail: edi.civil.rights.division@irs.gov

Determination Letter from IRS (Tax Exempt and Government Entities) 877.829.5500

Federal Tax Compliance Verification (Internal Revenue Service)

877.829.5500 (tax exempt and government entity returns)

800.829.4933 (business and specialty tax returns)

866.699.4096 (excise tax and Form 2290 returns)

General IRS Information 800.829.1040 www.irs.gov

System for Award Management (SAM) www.sam.gov

Online Grant Announcement and Application Submission www.grants.gov Helpdesk: 800.518.4726 Email: Support@grants.gov

Department of Health and Human Services (HHS) Payment Management System (PMS) pms.psc.gov Helpdesk: 877.614.5533 E-mail: PMSSupport@psc.hhs.gov

Sub-award and Executive Compensation Reporting www.USASpending.gov www.fsrs.gov

Office of Management and Budget - Office of Federal Financial Management www.whitehouse.gov/omb/management/office-federal-financial-management i mailto:Grant.Program.Office@irs.gov https://www.irs.gov/Individuals/IRS-VITA-Grant-Program https://www.irs.gov/individuals/volunteer-income-tax-assistance-vita-grant-program-faqs https://www.irs.gov/Individuals/Become-an-IRS-Partner-to-Help-in-Your-Community mailto:edi.civil.rights.division@irs.gov https://www.irs.gov https://www.sam.gov https://www.grants.gov mailto:Support@grants.gov https://pms.psc.gov mailto:PMSSupport%40psc.hhs.gov?subject= https://www.USASpending.gov https://www.fsrs.gov https://www.whitehouse.gov/omb/office-federal-financial-management/

Important Reminders Please review this publication in its entirety. Failure to modify an application from a prior year’s submission may result in lower technical scores or ineligibility. Summarized below are key changes and important reminders.

Period of performance – The period of performance now covers one year - October 1 through September 30.

Detailed Budget and Matching Funds Documentation – Prepare to submit a detailed budget and matching funds documentation within 20 days from the date on the award notice. Matching funds documentation may be submitted with the application if available.

Financial Education and Asset Building (FEAB) Services – Federal funds can be used for FEAB services. FEAB expenses are limited to 10% of award amount.

Quality Reviews – Expenses incurred in support of performing a quality review are allowable.

Customers Served – VITA programs that receive a VITA grant must primarily serve low-to-moderate-income taxpayers. At least 90 percent of individuals served must not exceed the maximum income limits for Earned Income Tax Credit (EITC) eligibility for the tax year. VITA grant recipients may provide tax preparation assistance to some taxpayers with income in excess of this annual Adjusted Gross Income (AGI) limitation without jeopardizing their grantee status.

Minimum Federal Returns Expected (MRE) – Please note that actual production expected of a recipient may differ from what is proposed in your plan. IRS considers production captured in IRS systems.

Frequency of Application Announcement – The VITA Grant opportunity will be open annually. The IRS will award a grant for a three-year period. The second and third years will be funded subject to satisfactory performance, compliance with program terms, and availability of appropriated funds. Funds awarded in a subsequent year may or may not be the same as awarded in the prior year. Multi-year recipients must submit an application annually to renew their grant.

Grants.gov – All applications must be submitted using Grants.gov. Mailed applications will not be accepted. It is imperative that interested applicants ensure their access to Grants.gov is current prior to the application due date.

Return Growth Expected – Successful applicants demonstrate incremental increases in the number of federal tax returns prepared each year. All grant agreements include the minimum federal returns to be accomplished by your program.

Tax Compliance Requirement – This includes filing all required federal information and tax returns and payment of all federal tax, penalties, and interest. Don’t let failure to meet these requirements be the reason your organization is not awarded. Confirm your compliance.

Contact Information Required with Application – Applicants MUST submit a Form 14335, Contact Information for VITA and TCE Grant Programs, with every application. Make sure this form is completed in its entirety and that the person listed as the tax matters contact on the Form 14335 is a person authorized to receive and discuss the return information of the applicant.

SF 424, Application for Federal Assistance – Type of Application, Block 2 should either be checked New or Continuation. Continuation are ONLY for those grantees that have an EXISTING Multi-Year Awards and are submitting an abbreviated application during cycle year 2 or 3.

Form 13533, VITA/TCE Partner Sponsor Agreement - All applicants, new and multi-year, must submit a current signed F13533 with the VITA grant application.

ii https://www.irs.gov/pub/irs-pdf/f14335.pdf

Table of Contents

IMPORTANT CONTACT AND WEBSITE INFORMATION i

IMPORTANT REMINDERS i i

VITA GRANT OBJECTIVES 5

Measures of Success 5 Publication Overview 5

VITA GRANT PROGRAM TIMELINE 6

VITA PROGRAM OVERVIEW AND REQUIREMENTS 7

Program Overview 7 Tax Return Preparation Methods 7 Tax Preparation Software 8 Online Training 8 Computers for Volunteers 9 Administrative Requirements 9 QSR - #1 - Certification 10 QSR - #2 - Intake/Interview & Quality Review Process 10 QSR - #3 – Confirming Photo Identification and Taxpayer Identification Numbers (TIN) 10 QSR - #4 – Reference Materials 11 QSR - #5 – Volunteer Agreement 11 QSR - #6 – Timely Filing 11 QSR - #7 – Civil Rights 11 QSR - #8 – Site Identification Number (SIDN) 12 QSR - #9 – Electronic Filing Identification Number (EFIN) 12 QSR - #10 – Security 12 Customer Service Requirements 13

ELIGIBILITY REQUIREMENTS 14

How Do I Determine If I Am Eligible? 14 Eligible Organization 14 Tax Compliance 15 Cost Sharing or Matching Funds 16 Debarment or Suspension 16 Audits Under the Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards, 2 CFR Part 200 17 Timely Submission of Reports 17

BEFORE STARTING YOUR APPLICATION 17

Unique Entity Identifier (UEI) 17 System for Award Management (SAM) 18 Grants.gov Registration 18 State Review Required Under Executive Order 12372 19

WHAT TO INCLUDE IN THE APPLICATION 20

Application Components 20

APPLICATION FOR FEDERAL ASSISTANCE, STANDARD FORM 424 22

NARRATIVE 25

I. PROGRAM PLAN SECTION 26

A. Experience with Low Income and/or Return Preparation – 0-64 points 26 B. Strength of Program - 0-50 points 27 C. VITA Target Audience - 0-38 points 27 D. Ability to Partner or Collaborate with Multiple Organizations - 4 points 28 E. Sustainability and Growth Strategy - 0-4 points 29 F. Quality Control Process – 0-20 points 29 G. Program Measures – 0-20 points 29

II. CIVIL RIGHTS SECTION 30

III. FINANCIAL OPERATIONS SECTION 31

ASSURANCES AND CERTIFICATIONS 33

Civil Rights Review 33 Lobbying 33 Trafficking Victims Protection Act of 2000 34 Federal Funding Accountability and Transparency Act 34 Unique Entity Identifier and System for Award Management 35 Corporate Felony Convictions 35 Crimes Involving Fraud, Bribery, or Gratuity 35 Buy American Act 35 Other Applicable Laws and Regulations 35

SUBMITTING YOUR APPLICATION 36

WHAT HAPPENS ONCE MY APPLICATION IS SUBMITTED 36

Incomplete Applications 36

CONFIRMATION OF ELIGIBILITY 37

EVALUATION AND SELECTION PROCESS 37

Technical Evaluation 37 Grant Program Office Evaluation 37 Geographic Dispersion of Grants 38 Prior Year Grant Performance 38 Federal Tax Compliance 38 Award Recommendation 38

AWARD NOTIFICATION 38

What Happens if I’m Not Awarded 38 Appeals Process 38 Freedom of Information Act 39 What Happens After I’m Awarded 39 Budget Formulation 40 Valuing Volunteer and Paid Employee Time 40 Indirect Cost Rate Usage 42 Federal Funds as Match 43 Simplified Method for Volunteer Return Preparation Recordkeeping 44 Documentation Required for Matching Funds 45 Supporting Matching Funds Documentation 45

APPENDIX A – VITA GRANT APPLICATION COMPONENTS 47

Exhibit 1: Standard Form 424, Application for Federal Assistance - page 1 47 Exhibit 2 – List of Assurances and Certifications 58 Exhibit 3 – Form LLL, Disclosure of Lobbying Activities 60 Exhibit 4 - Standard Form 13977, VITA Grant Budget Plan 62 Exhibit 5 - Standard Form 13978, Projected Operations 67

APPENDIX B – ADDITIONAL AIDS IN APPLYING FOR A GRANT 70

Exhibit 1 – Common Allowable/Unallowable Expenses 70 Exhibit 2 – Matching Funds Supporting Documentation – Example of Letter 71 Exhibit 3 – Intergovernmental Review (SPOC List) 72

GLOSSARY/DEFINITIONS OF TERMS 75

VITA Grant Objectives In December 2007, Congress first appropriated funds to the Internal Revenue Service (IRS) to establish and administer a matching grant program for community volunteer income tax assistance. Each year since, Congress has appropriated annual funding for the program. This funding allows the Stakeholder Partnerships, Education and Communication (SPEC) organization within the IRS to provide grants to partner organizations to achieve the following program objectives:

• Enable the Volunteer Income Tax Assistance (VITA) Program to extend services to underserved popula-tions in hardest-to-reach areas, both urban and non-urban;

• Increase the capacity to file returns electronically;

• Heighten quality control;

• Enhance training of volunteers; and

• Improve significantly the accuracy rate of returns prepared at VITA sites.

The Taxpayer First Act made the VITA matching grant program permanent.

The VITA Grant program provides support to help organizations grow their existing programs. Although we may occasionally award an organization that has no experience with the VITA program, most recipients have extensive experience. Interested applicants are encouraged to gain experience prior to applying for a grant. We found that experienced organizations are more likely to successfully deliver the objectives of the grant.

Because the VITA grant is in support of the VITA Program, grant recipients are required to follow existing guidance governing VITA site operations and to file all eligible returns electronically. The IRS provides the software for filing electronically. General information about the program is included in this publication; however, the Publication 5683, VITA/TCE Handbook for Partners and Site Coordinators, provides guidance on the operation of VITA sites and should be consulted for current program requirements. Publication 5683 is available on IRS.gov.

Measures of Success

• Grant recipients are expected to achieve 100% of the return goal specified in their grant agreements.

• Grant recipients are expected to become more efficient each year with grant funds provided for their program.

• Grant recipients are expected to show incremental increases in return preparation each year.

Publication Overview This publication provides the general requirements for the VITA Program along with criteria and guidelines to help determine whether you are eligible to become a VITA grant recipient. Detailed instructions are included to assist in preparing your application. Carefully review the information contained in this publication before completing your application. Incomplete, inaccurate, and late applications will not be considered for a grant. In addition, technical ranking occurs simultaneously with Grant Program Office (GPO) evaluation. Any missing information identified by the GPO during its evaluation may not be considered by technical evaluators. It is the responsibility of the applicant to ensure all information is submitted. Incomplete applications meeting basic eligibility will be scored based on the information available at time of review. Therefore, it is extremely important that the application is complete. Note: A glossary is included to assist in understanding terms used in this publication.

The period of performance is October 1 through September 30. IRS anticipates awarding grants by October

1. The amount of each award is dependent on the applicant’s proposed program plan to reach its targeted populations and returns expected to be prepared in the program. The annual appropriation determines the total https://www.irs.gov/pub/irs-pdf/p5683.pdf amount awarded. Expenses incurred in excess of the funds awarded are not reimbursable by the IRS. It is important to note that funding is subject to congressional appropriation for the VITA Grant Program.

Applications must be submitted using Grants.gov. Interested applicants should register early and become familiar with Grants.gov requirements prior to the due date of the application. If you are awarded a grant, refer to Publication 4883, Grant Programs Resource Guide, for program expectations and reporting requirements.

Publication 4883 is located on IRS.gov.

E-mail is the preferred method of submitting questions regarding this program to the GPO.

• E-mail to Grant.Program.Office@irs.gov;

• Call at 470-639-2935

• Mail to Grant Program Office, 401 West Peachtree Street, NW, Stop 420-D, Atlanta, GA 30308

VITA GRANT PROGRAM TIMELINE

Application period May 1 - May 31

Review and evaluation June 1 - September 30

Notification of selection/non-selection October 1

Project Period/Period of Performance October 1 - September 30

Please review the VITA Grant webpage (address available on inside cover of publication) for additional information about the program. Interested applicants should also review Publication 5247, Volunteer Income Tax Assistance (VITA) Terms and Conditions, and Publication 4883, Grant Programs Resource Guide, for program requirements should an award be offered. Both publications contain important information about the terms and conditions of the grant along with information on:

• Accessing grant funds;

• Oversight of sub-recipients;

• Budget and matching funds administration;

• Reporting requirements;

• Communication; and

• Reviews.

https://www.irs.gov/pub/irs-pdf/p4883.pdf mailto:Grant.Program.Office%40irs.gov?subject= https://www.irs.gov/individuals/irs-vita-grant-program https://www.irs.gov/pub/irs-pdf/p5247.pdf https://www.irs.gov/pub/irs-pdf/p4883.pdf

VITA Program Overview and Requirements Program Overview The existing VITA Program administered by the IRS originated with the Tax Reform Act of 1969 as part of the increased emphasis on taxpayer education programs. The VITA Program offers free tax help for low to moderate income individuals (defined by the earned income tax credit (EITC) threshold), persons with disabilities, persons with limited English proficiency, Native Americans, individuals living in rural areas, members of the Armed Forces and their spouses, and the elderly. Trained VITA volunteers prepare basic income tax returns.

The growth and success of the VITA Program is attributed to a business model that leverages the resources of partners who are established in the community. The leveraging of partner resources began in 2000 with the reorganization of the IRS and the creation of the SPEC organization. In 2010, the IRS expanded services using facilitated self-assistance. This offers an alternative for sites with limited volunteer resources by offering assistance to taxpayers who wish to prepare their own returns.

The IRS established certain requirements for participation to ensure consistent treatment of taxpayers and accurate return preparation. Additional information, along with any forms mentioned, are in Publication 5683, VITA/TCE Handbook for Partners and Site Coordinators,This publication along with any forms covered in the publication are found at IRS.gov.

Each VITA Grant recipient must operate within the established guidelines and requirements of the VITA Program.

Tax Return Preparation Methods The VITA program expanded the tax return preparation methods to coincide with the advancement in technology. The methods are:

Traditional – This method involves face-to-face interaction with the taxpayer while screening, preparing, and quality reviewing the tax return. The taxpayer signs the returns before leaving the site. Generally, all activities are performed in one visit.

Virtual – This method uses two locations – an intake site and a preparation site – to assist the taxpayer. Taxpayers provide their information at the intake site where volunteers secure tax related documents and confirm the taxpayer’s identity. The information obtained at the intake site is provided to the preparation sites using mail, fax, scanned documents, or another approved method to facilitate the return preparation. The individual preparing or quality reviewing the return discusses the return with the taxpayer by phone or video. Signatures are obtained from the taxpayer by mail, fax scanned documents or another approved method before e-filing the returns. This method is often used to service remote locations; however, it can be used anywhere. It expands the opportunity to offer services to the disabled and elderly communities as well as those with transportation or other issues.

Facilitated Self-Assistance (FSA) – This method provides taxpayers the opportunity to prepare and e-file their own return using a question based return preparation software. Taxpayers can choose from a variety of online software options based on the taxpayer’s age, adjusted gross income, state of filing and other factors. Qualified taxpayers receive free federal and state filing services. Certified volunteers are available to assist the taxpayers should they have questions. Three FSA site types are in use:

• Fusion – These sites are generally located with traditional or virtual sites and offer the opportunity for taxpayers interested in avoiding long lines, extended wait time, or visiting at another time, the opportunity to prepare a return on their own. Operating from a physical site, these locations will be open certain hours/days.

• Stand-alone – These sites offer only taxpayer preparation (no traditional or virtual service provided) of returns and meet the need for taxpayers without ready access to a computer or Internet connection. Operating from a physical site, these locations will be open certain hours/days.

• Remote – These sites are internet-based. Partners place links on their website that allow taxpayers to access the online software option and prepare their own return from anywhere at any time. Assistance of certified volunteers is limited to the hours posted and contact between the volunteer and taxpayer may be by phone, web chat or email depending on the option offered by the partner.

VITA Grant recipients may count federal returns prepared using any of these three methods. Additional information on the VITA program is available on IRS.gov on the Partner and Volunteer Resource Center web page.

Tax Preparation Software The IRS provides tax preparation software for its tax preparation sites free of charge. VITA Grant funds cannot be used to purchase tax preparation software. Three products are available – desktop, online and self-preparation. Current users of desktop and new sites are strongly encouraged to consider the benefits of online software and use it when practical. Advantages of this product include:

• No installation on individual computers – Program maintained on software provider’s server. Desktop users must install the software on their own computers.

• No updates required – Program is updated by software provider. Desktop users must download and update all computers. Failure to timely install updates result in the rejection of returns.

• No need to backup and restore returns to a central computer for transmission – Data is already on the software provider’s server. Desktop users must backup and restore returns to their central computer designated for transmission since only one computer per site may transmit returns.

• Remote access to troubleshoot problems – The software provider has the ability to see what the user sees.

• Improved security

– No data stored on individual computers. Data is securely stored at the software provider’s secured facility.

Desktop users store data on individual computers.

– The software provider uses software to reduce threat of hackers and detect intrusion attempts. Desktop users don’t always have this additional layer of protection.

• Access from any computer with proper identification and broadband Internet – Product is immediately available for use. Desktop product must be shipped and installed.

• Improved design – Easier access overall to tools used for return completion. Accessing some tools using the desktop product requires more steps.

Online Training Beginning FS 2023, all volunteers must register and certify via Link & Learn Taxes. Link & Learn Taxes is the web-based training program that links volunteers to quality e-learning solutions. Link and Learn Taxes is available on IRS.

gov and can be found by using the key word search Link & Learn Taxes.This training prepares SPEC partners and volunteers to provide quality tax return preparation services in their local communities. This fun, interactive course teaches the basics to accurately prepare income tax returns for individuals AND users can obtain volunteer certification along the way at their own pace! Students will make their way through lessons that include tax topics, case studies, and interview simulations. Link & Learn Taxes uses pop-up windows to connect to forms, publications and other resource materials. Link & Learn Taxes presents tax law through a variety of adult learning strategies including graphics, real world scenarios, and interview practice. Users can review the tax law material, listen to mock interviews, and complete sample tax return preparation scenarios. There are six modules to the current application:

• Basic course includes the completion of wage-earner type returns such as simple Form 1040. Social security income and penalty on early withdrawal of savings is part of the basic course.

• Advanced course includes the completion of the full scope of returns prepared by the volunteer tax return preparation programs. It includes capital gains and losses and more complex pension issues.

• Puerto Rico course includes the completion of returns for U.S. citizens who are bona fide residents of Puerto

Rico.

• Foreign Student and Scholars course includes the completion of returns for international students and scholars.

Optional specialty courses include:

• Military course includes the completion of the full scope of returns presented by members of the Armed Forces, Reserve and National Guard. Certification at the advanced level is required before completing this course. This course covers domestic military topics. The International course is needed if preparing returns for individuals living outside the United States.

• International course includes the completion of returns for taxpayers (non-military and military) living outside the United States and served by volunteers at US Embassies and Consulates or military installations under the volunteer return preparation programs. This course includes foreign income exclusion and foreign tax credit.

Certification at the advanced level is required before completing this course.

https://www.irs.gov/Individuals/Partner-and-Volunteer-Resource-Center

Link & Learn Taxes is available 24/7 for training and certification beginning in early November. The IRS also provides volunteer training with its Publication 4491, VITA/TCE Training Guide, which is accessible on IRS.gov.

The Federal Tax Law Update Test for Circular 230 Professionals: SPEC offers a federal tax law update test that allows VITA/TCE volunteers with the professional designation of attorney, Certified Public Accountant (CPA) or Enrolled Agent (EA), to re-certify on new provisions and tax law changes. Volunteers with professional designations must have an active license and be in good standing. In addition, all volunteers are required to certify to the Volunteer Standards of Conduct (VSC) and Intake/Interview & Quality Review Test. The test is available on Link & Learn Taxes (LLT). The Federal Tax Law Update Test for Circular 230 Professionals is optional. Volunteers who would like additional training can choose the traditional certification paths (Basic, Advanced, etc.) available to all new and returning volunteers.

Computers for Volunteers Although the IRS provides a small quantity of laptops and printers for use at existing sites, new and current program sponsors are encouraged to include funding for computers and printers as a budgeted item in the grant proposal when community resources are not available.

Administrative Requirements Administrative requirements include but are not limited to the following:

• Work closely with your local SPEC Territory representative to establish a VITA Program in your community. Planning generally begins in early June.

• Provide volunteer tax preparation services free of charge.

• File all eligible returns electronically. The IRS provides the tax preparation software to use.

• Submit all required forms timely to the local territory, such as:

– Form 13715, Volunteer Site Information Sheet. This information is transferred to an IRS data base and is subsequently used to inform the public of the site location, hours of operation, and other pertinent information.

It is used to track program performance.

– Form 13206, Volunteer Assistance Summary Report. Listing of all volunteers working at VITA sites and includes the dates the volunteers received certification and their level of training.

– Form 13533, VITA/TCE Partner Sponsor Agreement. A signed commitment to serve as a partner for the VITA an TCE Programs and uphold all required standards.

• Abide by the Quality Site Requirements. An explanation of these requirements is outlined later in this publica-tion.

• Ensure volunteers are properly trained to the level of returns they prepare. The IRS provides electronic and printed training materials. Information on training availability can be found in Publication 5683 or at www.irs.gov, key-word search Link & Learn Taxes or Volunteer Training Curriculums.

• Monitor the quality and technical proficiency of your volunteers on an on-going basis.

• Conduct meetings, issue newsletters, and establish other means of communications to share tax law and other administrative information with your volunteers.

• Consider conducting quality site and return reviews to ensure sites are operating in accordance with the IRS and your established procedures. Note: This is not a requirement of the VITA Program, however, it is recommended.

For VITA Grant recipients, these reviews provide you assurance that your sites are adhering to the terms and conditions of the grant.

• Ensure appropriate record keeping is in place for completing all grant reporting including the final report narrative.

https://www.irs.gov/pub/irs-pdf/p4491.pdf http://core.publish.no.irs.gov/forms/public/pdf/f13715--2017-09-00.pdf https://www.irs.gov/pub/irs-pdf/f13206.pdf http://core.publish.no.irs.gov/forms/public/pdf/f13533--2015-10-00.pdf https://www.irs.gov

• Ensure ethical operation and implementation of the VITA Program to ensure taxpayer confidence in the program.

The IRS identified ten practices, Quality Site Requirements (QSR), to ensure taxpayers visiting volunteer sites receive quality service and accurate return preparation. Each taxpayer using the services offered through the VITA program should be confident they are receiving accurate return preparation and quality service. All volunteer tax preparation sites in the VITA program must adhere to these requirements.

QSR - #1 - Certification Volunteers must complete their certifications using the IRS electronic tests through Link & Learn Taxes (LLT).

Volunteers can use Form 6744, VITA/TCE Volunteer Assistor’s Test/Retest, as a tool to prepare for the certification tests. Volunteers’ names and addresses in LLT must match their government issued photo identification. SPEC recommends that volunteers update their My Account page in LLT with their valid name and address.

New volunteers must take the Volunteer Standards of Conduct (VSC) Training. SPEC encourages returning volunteers to review the VSC training as a refresher. Annually, all VITA volunteers must pass the VSC certification test with a score of 80% or higher prior to working at a site. The training and certification test are available on Link & Learn Taxes and in Publication 4961, VITA/TCE Volunteer Standards of Conduct - Ethics Training.

New volunteer instructors, preparers, coordinators, and quality reviewers must review Publication 5101, Intake/ Interview & Quality Review Training. SPEC encourages returning volunteers working in these same positions to review Publication 5101. Annually, all volunteer instructors, preparers, coordinators, and quality reviewers must pass the Intake/Interview & Quality Review certification test.

Volunteers who answer tax law questions, instruct tax law classes, prepare, or correct tax returns, and/or conduct quality reviews of completed tax returns must certify in tax law prior to conducting tax law related tasks. Tax law certification is an annual requirement. Volunteers who do not help with tax law related issues (for example, greeters, receptionists, equipment coordinators, etc.) are not required to certify in tax law but must still complete the VSC certification test.

All coordinators and alternate coordinators must review Publication 5088, Site Coordinator Training. Site coordinator training is an annual requirement. All coordinators and alternate coordinators must pass the Site Coordinator Test certification with a score of 80% or higher prior to performing any site coordinator duties.

Volunteers may complete their training by classroom, self-study, or Link & Learn Taxes. Refer to Publication 5683, VITA/TCE Handbook for Partners and Site Coordinators for a complete illustration of the certification process.

AARP Foundation Tax-Aide uses the information from SPEC’s training materials to create their own training materials for both Site Coordinator training and Intake/Interview and Quality Review Training. They provide all required training for volunteers who instruct, prepare and quality review tax returns. In addition to being covered during their face-to-face training sessions, all volunteers receive appropriate training materials by email and are asked to review those materials again prior to reporting to their sites.

QSR - #2 - Intake/Interview & Quality Review Process Intake and Interview - All sites must use Form 13614-C, Intake/Interview & Quality Review Sheet, for every tax return prepared by an IRS-certified volunteer. Form 13614-C guides the IRS-certified volunteer preparer through the interview with the taxpayer and allows them to gather all necessary information for correct return preparation. The volunteer quality reviewer uses the completed tax return, the taxpayer’s supporting documentation and the completed Form 13614-C, to verify the tax return is free from error. Volunteers must also verify that the tax return is within the scope of the VITA/TCE Programs and the volunteer’s certification level. If the return is out-of-scope for VITA/ TCE, the site will not be able to prepare that taxpayer’s return. The taxpayer may need to obtain the assistance of a professional preparer. Volunteers should avoid referring taxpayers to any particular paid preparer, but may provide a list of local preparers to the client.

Quality Review - Every site should ensure that a complete quality review process is used to confirm that tax law was correctly applied, and the tax return is free from error, based on the taxpayer interview and the available supporting documents. The quality reviewers should be experienced IRS tax law-certified volunteers. VITA sites conduct reviews by a designated reviewer or a peer-to-peer reviewer, as self-review is not an approved method.

https://www.irs.gov/pub/irs-pdf/p4961.pdf https://www.irs.gov/pub/irs-pdf/p5101.pdf https://www.irs.gov/pub/irs-pdf/p5088.pdf https://www.irs.gov/pub/irs-pdf/f13614c.pdf

QSR - #3 – Confirming Photo Identification and Taxpayer Identification Numbers (TIN) Coordinators must have a process in place to confirm taxpayers’ identities and Taxpayer Identification Numbers (TIN).

All volunteers must follow validation procedures prior to tax return preparation and before a taxpayer signs a VITA prepared tax return and receives a copy of the return. This process must include using acceptable documents to confirm taxpayers’ identities and TIN by reviewing:

• Photo identification (ID) for primary and secondary taxpayers; and

• Social Security Numbers (SSN) and Individual Taxpayer Identification Numbers (ITIN) for everyone listed on the tax return

QSR - #4 – Reference Materials All sites must have, in paper or electronic form, the following reference materials available for use by IRS-certified volunteers:

• Publication 17, Your Federal Income Tax (For Individuals)

• Publication 4012, Volunteer Resource Guide

• Publication 4299, Privacy, Confidentiality, and Civil Rights – A Public Trust

• Quality and Tax Alerts for IRS Volunteer Programs or CyberTax Alerts issued by Tax-Aide

Publications 17, 4012, and 4299 are available for download on IRS.gov, or by opening the VITA/TCE Publications and User Guides option on the navigation bar when signed into TaxSlayer. VTA and QSRA are available on the Site Coordinator Corner on IRS.gov. CyberTax Alerts are available on the AARP Foundation Tax-Aide website.

QSR - #5 – Volunteer Agreement All volunteers (coordinators, return preparers, quality reviewers, greeters, screeners, client facilitators, etc.) must complete the Volunteer Standards of Conduct (VSC) certification, annually. This includes signing and dating Form 13615, Volunteer Standards of Conduct Agreement –VITA/TCE Programs, agreeing to follow the VSC.

The partner’s approving official must also certify Form 13615 (sign and date). This confirms that the partner’s approving official has verified the volunteer’s identity, name, and address, using government-issued photo identification. The partner must also confirm the volunteer has passed the required IRS training certification test(s), and the volunteer has signed and dated Form 13615.

QSR - #6 – Timely Filing All coordinators must have a process in place to ensure every tax return is timely electronically filed or delivered to the taxpayer. For e-filed tax returns, Form 8879, IRS e-file Signature Authorization, is required to be signed by the taxpayer (and secondary taxpayer if married filing jointly), which gives the site permission to e-file their tax return. Actions required to guarantee tax returns are filed timely include:

• Ensuring that tax returns are submitted to IRS within three calendar days after the site has all necessary informa-tion to e-file the tax return.

• Retrieving acknowledgements timely (preferably within 48 hours of transmission).

• Promptly working rejects that can be corrected by the IRS-certified volunteer.

• Timely notifying taxpayers (attempted within 24 hours) if rejects cannot be corrected.

• Providing the taxpayer with a completed tax return along with the correct mailing address for the processing cen-ter for paper tax returns.

• Promptly notifying taxpayers if any other problems are identified with tax return processing.

https://www.irs.gov/pub/irs-pdf/p17.pdf https://www.irs.gov/pub/irs-pdf/p4012.pdf https://www.irs.gov/pub/irs-pdf/p4299.pdf https://www.irs.gov/individuals/quality-and-tax-alerts-for-irs-volunteer-programs https://assets.aarp.org/www.aarp.org_/taxaide/www.aarp.org/sk/taxaide/general.html https://www.irs.gov/pub/irs-pdf/f13615.pdf https://www.irs.gov/pub/irs-pdf/f13615.pdf https://www.irs.gov/pub/irs-pdf/f8879.pdf

QSR - #7 – Civil Rights Information about civil rights must be available to all taxpayers who seek services at all VITA sites. Taxpayers must have access to the civil rights information even if they do not have a tax return prepared.

All VITA sites are required to make available to all taxpayers who seek services at the site the current Publication 4053 (en-sp), Your Civil Rights are Protected, or a current D143, AARP Foundation Tax-Aide (poster). These posters provide volunteers and taxpayers with contact information to report discriminatory treatment. If a taxpayer or volunteer has a civil rights complaint, refer them to the contact information on Publication 4053 (EN/SP). If taxpayers request the information in writing, they can be given Publication 4454, Your Civil Rights are Protected.

All VITA sites serving Limited English Proficient (LEP) taxpayers must provide Publication 4053 if available in the taxpayers’ first languages. Please refer to IRS.gov for the availability of Publication 4053 in various languages.

QSR - #8 – Site Identification Number (SIDN) It is critical that the correct Site Identification Number (SIDN) is reported on all tax returns prepared by VITA sites. E-file administrators set tax software defaults to ensure the correct SIDN automatically appears on each tax return.

QSR - #9 – Electronic Filing Identification Number (EFIN) The correct Electronic Filing Identification Number (EFIN) is required to be used on every tax return prepared. All applicants must use the online IRS e-file application process located in E-Services to apply for an EFIN or update an application. A separate EFIN is required for each physical location. E-file administrators set the tax software defaults to ensure the correct EFIN automatically appears on Form 8879, IRS e-file Authorization.

QSR - #10 – Security Sites must follow all security, privacy, and confidentiality guidelines as outlined in Publication 4299, Privacy, Confidentiality, and Civil Rights – A Public Trust. A copy (paper or electronic) of this publication must be available at every site and used when referring to security, privacy, confidentiality, and civil rights issues. Publication 4299 is the resource document for providing guidance on securing and protecting personally identifiable information (PII) shared by taxpayers, volunteers, and partners.

All coordinators must have security procedures in place as described in Publication 4299 for the following processes:

Preparing an annual security plan to safeguard taxpayer data. (Sites can use Form 15272, VITA/TCE Security Plan, or a similar document that captures the same information.)

• Protecting all computers with passwords.

• Using a hard-wired internet connection or password protecting all wireless internet connections.

• Securing computers, printers, and all equipment after site operating hours.

• Safeguarding personally identifiable information (PII) at the site by safely storing and/or properly disposing of the information.

• Securing IRC Section 7216 consent notices as required.

• Limiting volunteer access privileges to the tax software based on assigned roles.

• Restricting volunteer access to the tax software after operating hours.

• Deactivating usernames in the tax software when volunteers quit, resign, or are no longer working at the site.

To help prevent identity theft at VITA and TCE sites, IRS-certified volunteers must identify themselves to the taxpayer’s they assist. Volunteers at in-person sites must wear or display name identification, including work identification badges, IRS name badges, and Tax-Aide name badges. At a minimum, this identification must include the full first name and first letter of the volunteer’s last name. Form 14509, Volunteer ID Insert, is an optional product developed for volunteers to display their names. Virtual sites can use electronic means to provide the volunteer’s name to the taxpayers.

https://www.irs.gov/pub/irs-pdf/p4053esp.pdf https://www.irs.gov/pub/irs-pdf/p4053esp.pdf https://assets.aarp.org/www.aarp.org_/articles/taxaide/extranet/D143.pdf https://www.irs.gov/pub/irs-pdf/p4454.pdf https://www.irs.gov/pub/irs-pdf/p4299.pdf https://www.irs.gov/pub/irs-pdf/f15272.pdf

• Publication 5683, VITA/TCE Handbook for Partners and Site Coordinators.

• Publication 5166, IRS Volunteer Quality Site Requirements

• www.irs.gov - Key word search: Quality Site Requirement

Customer Service Requirements

To establish the greatest degree of public trust all volunteers have a responsibility to provide quality customer service and uphold the highest ethical standards. All volunteers must adhere to the following standards of conduct:

1. Follow the Quality Site Requirements.

2. Not accept payment, solicit donations, or accept refund payments for federal or state tax return preparation from customers.

3. Not solicit business from taxpayers assisted or use knowledge gained (from their information) about taxpayers for any direct or indirect personal benefit for the volunteer or any other specific individual.

4. Not knowingly prepare false returns.

5. Not engage in criminal, infamous, dishonest, notoriously disgraceful conduct, or any other conduct deemed to have a negative effect on the VITA/TCE Programs.

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

Because the VITA grant is in support of the VITA Program, grant recipients are required to follow all existing guidance governing VITA site operations and shall endeavor to avoid any actions creating the appearance of violating federal laws governing voluntary tax compliance. Whether circumstances create an appearance that the law or these standards have been violated shall be determined by the perspective of a reasonable person with knowledge of the relevant facts.

Failure to comply with these standards could result in, but is not limited to, the following:

• Removal from all VITA/TCE programs and designation on the IRS volunteer registry to bar future work;

• Deactivation of the sponsoring partner’s site VITA/TCE EFIN;

• Removal of all IRS products, supplies, loaned equipment, and taxpayer information from your site;

• Termination of the sponsoring organization’s partnership with the IRS;

• Termination of grant agreement between the IRS and sponsoring partner; and

• Referral for potential Treasury Inspector General of Tax Administration (TIGTA) or criminal investigation.

Additional information on the Quality Site Requirements can be found in the following locations:

https://www.irs.gov/pub/irs-pdf/p5683.pdf https://www.irs.gov/pub/irs-pdf/p5166.pdf https://www.irs.gov

Eligibility Requirements

How Do I Determine If I Am Eligible?

To be eligible for funding under the VITA Grant Program, applicants must meet the following requirements:

• Be an eligible organization

• Be compliant with federal tax and information reporting requirements

• Provide matching funds on a dollar-for-dollar basis for all VITA funds awarded

• Be eligible to receive federal financial assistance (not be debarred or suspended or have federal debt preventing the award of federal financial assistance)

• Have an audit completed when required by 2 CFR Part 200, Subpart F - Audit Requirements

• File all required reports timely if a previous VITA or TCE grant recipient

Eligible Organization The applicant must already be classified as one of the following.

• A private or public non-profit organization that qualified for and received an IRS determination letter confirming the orga-nization’s tax exemption under section 501 of the Internal Revenue Code, including but not limited to credit unions, and faith based and community organizations

• A public, nonprofit, or proprietary (privately owned profit-making) college, university, vocational school, or other post-secondary educational institution located in the United States and Puerto Rico that has not been disqualified from participating in a student aid program administered by the U.S. Department of Education

• A local government agency

• A federally recognized Indian Tribal government, or

• A regional, statewide, or local coalition with one lead organization that meets one of the eligibility requirements noted above. The lead organization filing the application must have a substantive role in the coalition.

State government agencies and offices providing Cooperative Extension services (as established at the land-grant colleges and universities under the Smith-Lever Act of May 8, 1914) are also eligible organizations when no other eligible organizations are available.

Organizations that have applied for recognition as tax-exempt but have not received their IRS determination letter confirming the organization as exempt at the time of application are not eligible to apply for this grant. Section 501(c) (4) organizations may apply. However, if awarded a grant, federal law will prohibit your organization from lobbying.

Acceptable documentation includes one of the following based on the type of entity:

• IRS determination letter recognizing organization as exempt under IRC Section 501(c);

• Letter of academic accreditation for college, university or other institution of higher learning; or

• Letter submitted by agency or government head on its official stationery indicating it is a government entity.

Note: If you are a church, a determination letter is required to apply for this grant. If your organization is included as a subordinate in a group exemption ruling, include the current official subordinate listing approved by the central organization.

Be sure to complete block 9, Application for Federal Assistance, Standard Form 424 (SF 424), with the appropriate designation.

Note: Eligible entities may only submit one application for consideration per grant period.

The applicant that applies on behalf of a group of organizations is responsible for ensuring all participants within their coalition adhere to VITA Grant Program requirements. Effective monitoring and communication processes are required to ensure adherence to both financial management and program requirements. Grant applicants are responsible for ensuring coalition members understand the role they play in delivering a successful VITA Grant Program and the processes by which funds are requested and distributed. The applicant is the only organization that is given access to the funds if awarded. After the award is made, an agreement (contract, letter of intent or memorandum of understanding) is required between the VITA Grant recipient and its coalition members (sub-recipients) to ensure adherence to program guidelines, that monies are expended on approved purposes, and that matching funds documentation is maintained.

Note: All sub-recipient entities must have a Unique Entity Identifier (UEI).

Tax Compliance The organization submitting an application must be in compliance prior to award, during award consideration, and must remain in compliance throughout the grant period with their federal tax and information reporting requirements.

This includes filing all required federal information and tax returns and payment of all federal tax, penalties, and interest. The GPO will check the last five years of IRS records to confirm compliance on organizations recommended for award. The name shown in the application must agree with IRS records. Organizations determined to be ineligible or not recommended for award are not researched for tax compliance; therefore, existing problems with tax compliance may not be identified on all applicants during a previous application period.

Examples of non-compliance include:

• A balance due on the account

• An account with required federal information or tax returns not filed

• An Employer Identification Number (EIN) that belongs to a different entity than shown on the application

If a balance is found or a return is not filed and a filing requirement exists, we will send an email to the applicant notifying them of a potential tax related issue. The applicant is given five business days to respond. Contact phone numbers for tax compliance information are included on the inside front cover of this publication.

1. If the applicant does not respond, the organization is ineligible for consideration.

2. If the applicant agrees that there is a balance owed, the organization may be ineligible for consideration even if the balance is paid after our notification.

3. If the applicant disagrees with the balance and provides evidence showing that it is an error on the part of the Internal

Revenue Service and we agree, the organization remains eligible for consideration.

4. If the applicant provides information that they are not liable for filing a return, the organization must submit a statement; and when applicable, contact IRS to have the filing requirement corrected.

5. If the applicant is liable for filing a return, the organization is ineligible for consideration if they are unable to confirm that they previously submitted the return to the IRS.

Do not assume that you are tax compliant. Have the person in your organization responsible for filing returns (including employment tax returns) contact the IRS to check for any monies owed or returns not filed prior to submitting your application. Contact phone numbers for tax compliance verification are included on the inside front cover of this publication.

If you identify any issues with federal tax compliance, be sure to indicate this on the SF 424,…