Sec. 4. Grants to facilitate nationwide availability of volunteer income tax assistance for low-income and underserved populations
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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 section referred to as the VITA grant program ). Except as otherwise provided in this section, the VITA grant program shall be administered in the same manner as 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 section, 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 section, the Secretary shall give priority to applications— demonstrating assistance to low-income taxpayers, with emphasis on outreach to and services for persons with an income at or below 250 percent of the Federal poverty level, as determined in accordance with criteria established by the Director of the Office of Management and Budget, 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 section 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, 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 subparagraph (B), a grant awarded under this section shall be for a period of 1 year and shall not be renewed other than through an application under paragraph (2). The Secretary may award a grant under this section for a period of not more than 3 years to any qualified return preparation program which— received a grant under this section for the preceding year, and received a score of 90 percent or better on a technical evaluation. 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 section. Qualified return preparation programs receiving a grant under this section 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 2017, 2018, 2019, 2020, and 2021, there are authorized to be appropriated $30,000,000 to carry out the purposes of this section.
From the funds appropriated under paragraph
(1)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 paragraph
(1)shall remain available without fiscal year limitation until expended.