Sec. 201. Programs for the benefit of low-income taxpayers
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The Secretary, through the Internal Revenue Service, shall establish a Community Volunteer Income Tax Assistance Matching Grant Program (hereinafter in this subsection referred to as the VITA grant program ). Except as otherwise provided in this subsection, the VITA grant program shall be administered in a manner which is substantially similar to the Community Volunteer Income Tax Assistance matching grants demonstration program established under title I of division D of the Consolidated Appropriations Act, 2008.
The Secretary shall make available grants under the VITA grant program to provide matching funds for the development, expansion, or continuation of qualified return preparation programs assisting low-income taxpayers and members of underserved populations. In order to be eligible for a grant under this subsection, a qualified return preparation program shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may reasonably require for each fiscal year.
In awarding grants under this subsection, the Secretary shall give priority to applications— demonstrating assistance to low-income taxpayers, with emphasis on outreach to and services for such taxpayers, demonstrating taxpayer outreach and education around available income supports and refundable credits such as the earned income tax credit under section 32 of the Internal Revenue Code of 1986, and demonstrating specific outreach and focus on one or more underserved populations.
Qualified return preparation programs receiving a grant under this subsection may use the grant for— ordinary and necessary costs associated with program operation in accordance with Cost Principles Circulars as set forth by the Office of Management and Budget, including— for wages or salaries of persons coordinating the activities of the program, to develop training materials, conduct training, and perform quality reviews of the returns, and for equipment purchases and vehicle-related expenses associated with remote or rural tax preparation services, outreach and educational activities relating to eligibility and availability of income supports available through the Internal Revenue Code of 1986, such as the earned income tax credit, and services related to financial education and capability, asset development, and the establishment of savings accounts in connection with tax return preparation.
Except as provided in clause (ii), a grant awarded under this subsection shall be for a period of 1 year and shall not be renewed other than through an application under subparagraph (B). The Secretary may award a grant under this subsection for a period of not more than 3 years to any qualified return preparation program which— received a grant under this subsection for the preceding year, and received a score of 90 percent or better on a technical evaluation. No grant made under this subsection may be used for overhead expenses that are not directly related to any qualified return preparation program.
The Secretary shall promote the benefits of, and encourage the use of, tax preparation through the Volunteer Income Tax Assistance program through the use of mass communications, referrals, and other means. The Secretary may refer taxpayers to qualified return preparation programs receiving funding under this subsection. Qualified return preparation programs receiving a grant under this subsection are encouraged to refer, as appropriate, to local or regional Low Income Tax Clinics individuals who are eligible to receive services at such clinics.
For each of fiscal years 2016, 2017, 2018, 2019, and 2020, there are authorized to be appropriated $30,000,000 to carry out the purposes of this subsection. From the funds appropriated under subparagraph
(A)for any fiscal year, the Secretary shall reserve not more than 3 percent for administration of the program. Amounts appropriated pursuant to the authority of subparagraph
(A)shall remain available without fiscal year limitation until expended. There is hereby established the National Center to Promote Quality, Excellence, and Evaluation in Volunteer Income Tax Assistance (hereinafter in this subsection referred to as the Center ). The Center shall— promote the adoption of a universally accessible volunteer training platform for the preparation of Federal income tax returns, provide capacity-building technical assistance to qualified return preparation program managers, identify and disseminate best practices related to tax site management emerging from States, community-based organizations, nonprofit providers, and local government entities, support outreach and marketing efforts to encourage the use of qualified return preparation programs receiving funding under subsection (a), and provide evaluation of programs and activities funded under this section, including— identification, both in aggregate and disaggregate, of gaps in services for low-income taxpayers and underserved populations, and independent evaluation of progress toward program objectives, as defined by the Secretary. The Secretary shall— designate, through a competitive process, one qualified entity to be the lead national organization, and provide an annual grant to the lead national organization designated under subclause (I). The lead national organization shall use funds provided through the grant in clause (i)(II) to— carry out the purposes of the Center, and make subgrants as provided in paragraph (2). The lead national organization shall make available subgrants to eligible organizations to facilitate specialized technical assistance in reaching one or more underserved populations. For purposes of this paragraph, the term eligible organization means any organization which— is described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code, has, to the satisfaction of the lead national organization, demonstrated expertise and evidenced-based practices in specialized outreach to, and service of, one or more underserved populations, and has, to the satisfaction of the lead national organization, demonstrated expertise in the provision of specialized technical assistance relating to qualified return preparation programs for one or more targeted underserved populations. In order to be eligible for a subgrant under this paragraph, an eligible organization shall submit an application to the lead national organization at such time, in such manner, and containing such information as the lead national organization may reasonably require for each fiscal year. An eligible organization which receives a subgrant under this paragraph shall assist the Center by— providing technical assistance to qualified return preparation programs with targeted outreach and assistance to one or more underserved populations, and including strategies for the provision of technical assistance targeting individuals and families with annual household earnings at or below 250 percent of the poverty line within the underserved populations served by the subgrant. Each year, the lead national organization shall make available subgrants which, in the aggregate, do not exceed 40 percent of the grant received under paragraph (1). Of the amount of subgrants provided under clause (i)— not less than 25 percent shall be dedicated to specialized technical assistance in serving taxpayers with disabilities, not less than 25 percent shall be dedicated to specialized technical assistance in serving limited English speaking taxpayers, and not less than 25 percent shall be dedicated to specialized technical assistance in serving Native American taxpayers. A subgrant awarded under this paragraph shall be for a period of 1 year and shall not be renewed other than through an application under subparagraph (C). For each of fiscal years 2016, 2017, 2018, 2019, and 2020, there are authorized to be appropriated $5,000,000 to carry out the purposes of this subsection. Amounts appropriated pursuant to the authority of subparagraph
(A)shall remain available without fiscal year limitation until expended. As used in subsections
(a)and (b): The term qualified return preparation program means any program— which provides assistance to individuals, not less than 90 percent of whom are low-income taxpayers, in preparing and filing Federal income tax returns, including schedules reporting sole proprietorship or farm income, which is administered by a qualified entity, in which all of the volunteers who assist in the preparation of Federal income tax returns meet the training requirements prescribed by the Secretary, and which uses a quality review process which reviews 100 percent of all returns. The term qualified entity means any entity which— is described in subparagraph (B), is in compliance with Federal tax filing and payment requirements, is not debarred or suspended from Federal contracts, grants, or cooperative agreements, and agrees to provide documentation to substantiate any matching funds provided under the VITA grant program. An entity is described in this subparagraph if such entity is— an institution of higher education which is described in section 102 (other than subsection (a)(1)(C) thereof) of the Higher Education Act of 1965 ( 20 U.S.C. 1088 ), as in effect on the date of the enactment of this section, and which has not been disqualified from participating in a program under title IV of such Act, an organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code, a State or local government agency, including— a county or municipal government agency, an Indian tribe, as defined in section 4(12) of the Native American Housing Assistance and Self-Determination Act of 1996 ( 25 U.S.C. 4103(12) ), including any tribally designated housing entity (as defined in section 4(21) of such Act ( 25 U.S.C. 4103(21) )), tribal subsidiary, subdivision, or other wholly owned tribal entity, and a State government agency, but only if no other eligible organization is available to assist the targeted population or community, a local, State, regional, or national coalition (with one lead organization which meets the eligibility requirements of clause (i), (ii), or
(iii)acting as the applicant organization), or a Cooperative Extension Service office, but only if no other eligible organization is available to assist the targeted population or community. The term low-income taxpayer means a taxpayer who has an income which does not exceed 250 percent of the poverty line (as defined in section 2110(c)(5) of the Social Security Act ( 42 U.S.C. 1397jj(c)(5) )). The term underserved population includes populations of persons with disabilities, persons with limited English proficiency, Native Americans, individuals living in rural areas, and the elderly. The term lead national organization means an organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code which has demonstrated, to the satisfaction of the Secretary— capacity in a minimum of 15 States, territories, or tribal areas, expertise in the provision of tax preparation services to low-income taxpayers and underserved populations, an ability to train program leadership and staff, capacity to disseminate information throughout the United States, and capacity to— maintain a Web site through which information is disseminated in an easily accessible manner, and provide technical assistance and training through Web-based technologies. The term Secretary means the Secretary of the Treasury or the Secretary’s delegate. Paragraph
(1)of section 7526(c) is amended by striking $6,000,000 and inserting $20,000,000 . Section 7526(c) is amended by adding at the end the following new paragraph: No grant made under this section may be used for overhead expenses that are not directly related to the clinic. . Section 7526(c)(5) is amended— by inserting qualified before low-income , and by striking the last sentence. Section 7526 is amended by adding at the end the following new subsection: The Secretary is authorized to promote the benefits of and encourage the use of qualified low-income taxpayer clinics through the use of mass communications, referrals, and other means. . Subsection
(c)of section 7526 , as amended by paragraph (2)(A), is amended by adding at the end the following new paragraph: Notwithstanding any other provision of law, the Secretary may refer taxpayers to specific qualified low-income taxpayer clinics receiving funding under this section. . Section 7526(b)(1)(B)(i) is amended by striking poverty level, as determined in accordance with criteria established by the Director of the Office of Management and Budget and inserting poverty line (as defined in section 2110(c)(5) of the Social Security Act ( . 42 U.S.C. 1397jj(c)(5) )) Subsection
(a)of section 6212 is amended by inserting , as well as notice regarding the availability of low-income taxpayer clinics and information about how to contact them before the period at the end. Subsection
(a)of section 6320 is amended by adding at the end the following new sentence: Such notice shall include a notice to the taxpayer of the availability of low-income taxpayer clinics and information about how to contact them. . Paragraph
(3)of section 6330(a) is amended by adding at the end the following flush sentence: Such notice shall include a notice to the taxpayer of the availability of low-income taxpayer clinics and information about how to contact them. . The amendments made by this section shall take effect on the date of the enactment of this Act.
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