,,ii #aaeth ,,congress #ast ,session ,s4 #aic ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #bc1 #bjag,mr4 ,brown 7for himself and ,mr4 ,coons7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to facilitate nationwide availability of volunteer income tax assistance for low-income and underserved populations1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,volunteer ,income ,tax ,assistance 7,,vita7 ,act4 #b4 ,findings ,congress makes the following findings3 7#a7 ,community ,volunteer ,income ,tax ,assistance 7,,vita7 programs offer tax preparation and related financial services1 free of charge1 to middle- and low-income individuals and families4 ,the majority of individuals served by ,,vita programs have annual household earnings below #ed1jjj4 7#b7 ,during the #bjaf ,federal income tax filing season1 ,,vita programs filed more than #c1hjj1jjj ,federal income tax returns4 ,this included more than #gad1jjj returns for the earned income tax credit 7,,eitc71 helping program recipients claim approximately #a1ajj1jjj1jjj in earned income tax credits on their ,federal tax refunds4 ,one in every five taxpayers who were eligible to claim the ,,eitc failed to do so4 7#c7 ,,vita programs assist underserved taxpayers1 including low-wage workers1 persons with disabilities1 the elderly1 ,native ,americans1 rural populations1 and taxpayers with limited ,english proficiency4 7#d7 ,in #bjaf1 clients of ,,vita programs electronically filed their tax returns at a much higher rate 7#if4e percent7 than the general population 7#hf4d percent74 7#e7 ,electronic returns cost the ,internal ,revenue ,service considerably less to process 7#j4bb per return7 than paper returns 7#d4ji per return74 7#f7 ,the high rate of electronic filing by ,,vita programs saves the ,internal ,revenue ,service millions of dollars each year4 7#g7 ,an ,internal ,revenue ,service survey has shown that very low-income taxpayers are twice as likely as the general population to visit a ,taxpayer ,assistance ,center and half as likely to use the ,internal ,revenue ,service ,web site4 ,volunteer tax preparation programs serve as an accessible and cost-effective alternative to other ,internal ,revenue ,service channels4 7#h7 ,internal ,revenue ,service estimates from fiscal year #bjje found that the volunteer preparation program cost #ab4ja per contact1 while ,taxpayer ,assistance ,centers and assisted toll-free calls averaged #bh4gc and #ai4df per contact1 respectively4 7#i7 ,the number of tax returns prepared by the ,,vita program increased #ajj percent between the #bjad 7#a1ijj1jjj returns7 and #bjaf 7#c1hjj1jjj returns7 tax filing seasons4 7#aj7 ,during tax filing season #bjaf1 #bih organizations applied to the ,internal ,revenue ,service seeking more than #bd1cjj1jjj in grant funding through the ,,vita program1 an amount which was more than double the available resources1 and #baj organizations received grants at a median grant of approximately #dj1jjj4 #c4 ,definitions ,as used in this ,act3 7#a7 ,qualified return preparation program ,the term qualified return preparation program means any program-- 7,a7 which provides assistance to individuals1 not less than #ij percent of whom are low-income taxpayers1 in preparing and filing ,federal income tax returns1 including schedules reporting sole proprietorship or farm income1 7,b7 which is administered by a qualified entity1 7,c7 in which all of the volunteers who assist in the preparation of ,federal income tax returns meet the training requirements prescribed by the ,secretary1 and 7,d7 which uses a quality review process which reviews #ajj percent of all returns4 7#b7 ,qualified entity 7,a7 ,in general ,the term qualified entity means any entity which-- 7i7 is described in subparagraph 7,b71 7ii7 is in compliance with ,federal tax filing and payment requirements1 7iii7 is not debarred or suspended from ,federal contracts1 grants1 or cooperative agreements1 and 7iv7 agrees to provide documentation to substantiate any matching funds provided under the ,,vita grant program4 7,b7 ,entity described ,an entity is described in this subparagraph if such entity is-- 7i7 an institution of higher education which is described in section #ajb 7other than subsection 7a77#a77;,c7 thereof7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhh71 as in effect on the date of the enactment of this ,act1 and which has not been disqualified from participating in a program under title ,,iv of the ,higher ,education ,act of #aife1 7ii7 an organization described in section #eja7;c7 of the ,internal ,revenue ,code of #aihf and exempt from tax under section #eja7;a7 of such ,code1 7iii7 a ,state or local government agency1 including-- 7,i7 a county or municipal government agency1 7,,ii7 an ,indian tribe1 as defined in section #d7ac7 of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #dajc7ac771 including any tribally designated housing entity 7as defined in section #d7bb7 of such ,act 7#be ,u4,s4,c4 #dajc7bb7771 tribal subsidiary1 subdivision1 or other wholly owned tribal entity1 and 7,,iii7 a ,state government agency1 but only if no other entity described in this subparagraph is available to assist the targeted population or community1 7iv7 a local1 ,state1 regional1 or national coalition 7with one lead organization which meets the eligibility requirements of clause 7i71 7ii71 or 7iii7 acting as the applicant organization71 or 7v7 a ,cooperative ,extension ,service office1 but only if no other entity described in this subparagraph is available to assist the targeted population or community4 7#c7 ,low-income taxpayers ,the term low-income taxpayer means a taxpayer who has an income which does not exceed #bej percent of the poverty level1 as determined in accordance with criteria established by the ,director of the ,office of ,management and ,budget4 7#d7 ,underserved population ,the term underserved population includes populations of persons with disabilities1 persons with limited ,english proficiency1 ,native ,americans1 individuals living in rural areas1 and the elderly4 7#e7 ,lead national organization ,the term lead national organization means an organization described in section #eja7;c7 of the ,internal ,revenue ,code of #aihf and exempt from tax under section #eja7;a7 of such ,code which has demonstrated1 to the satisfaction of the ,secretary-- 7,a7 capacity in a minimum of #ae ,states1 territories1 or tribal areas1 7,b7 expertise in the provision of tax preparation services to low-income taxpayers and underserved populations1 7,c7 an ability to train program leadership and staff1 7,d7 capacity to disseminate information throughout the ,united ,states1 and 7,e7 capacity to-- 7i7 maintain a ,web site through which information is disseminated in an easily accessible manner1 and 7ii7 provide technical assistance and training through ,web-based technologies4 7#f7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury or the ,secretary's delegate4 #d4 ,grants to facilitate nationwide availability of volunteer income tax assistance for low-income and underserved populations 7a7 ,in general ,the ,secretary1 through the ,internal ,revenue ,service1 shall establish a ,community ,volunteer ,income ,tax ,assistance ,matching ,grant ,program 7hereinafter in this section referred to as the ,,vita grant program74 ,except as otherwise provided in this section1 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 ,act1 #bjjh4 7b7 ,matching grants 7#a7 ,in general ,the ,secretary shall make available grants under the ,,vita grant program to provide matching funds for the development1 expansion1 or continuation of qualified return preparation programs assisting low-income taxpayers and members of underserved populations4 7#b7 ,application ,in order to be eligible for a grant under this section1 a qualified return preparation program shall submit an application to the ,secretary at such time1 in such manner1 and containing such information as the ,secretary may reasonably require for each fiscal year4 7#c7 ,priority ,in awarding grants under this section1 the ,secretary shall give priority to applications-- 7,a7 demonstrating assistance to low-income taxpayers1 with emphasis on outreach to and services for persons with an income at or below #bej percent of the ,federal poverty level1 as determined in accordance with criteria established by the ,director of the ,office of ,management and ,budget1 7,b7 demonstrating taxpayer outreach and education around available income supports and refundable credits such as the earned income tax credit under section #cb of the ,internal ,revenue ,code of #aihf1 and 7,c7 demonstrating specific outreach and focus on one or more underserved populations4 7#d7 ,use of funds ,qualified return preparation programs receiving a grant under this section may use the grant for-- 7,a7 ordinary and necessary costs associated with program operation in accordance with ,cost ,principles ,circulars as set forth by the ,office of ,management and ,budget1 7,b7 outreach and educational activities relating to eligibility and availability of income supports available through the ,internal ,revenue ,code of #aihf1 such as the earned income tax credit1 and 7,c7 services related to financial education and capability1 asset development1 and the establishment of savings accounts in connection with tax return preparation4 7#e7 ,duration of grants 7,a7 ,in general ,except as provided in subparagraph 7,b71 a grant awarded under this section shall be for a period of #a year and shall not be renewed other than through an application under paragraph 7#b74 7,b7 ,extended grants ,the ,secretary may award a grant under this section for a period of not more than #c years to any qualified return preparation program which-- 7i7 received a grant under this section for the preceding year1 and 7ii7 received a score of #ij percent or better on a technical evaluation4 7c7 ,promotion and referral 7#a7 ,promotion ,the ,secretary shall promote the benefits of1 and encourage the use of1 tax preparation through the ,volunteer ,income ,tax ,assistance program through the use of mass communications1 referrals1 and other means4 7#b7 ,internal revenue service referrals ,the ,secretary may refer taxpayers to qualified return preparation programs receiving funding under this section4 7#c7 ,,vita grantee referral ,qualified return preparation programs receiving a grant under this section are encouraged to refer1 as appropriate1 to local or regional ,low ,income ,tax ,clinics individuals who are eligible to receive services at such clinics4 7d7 ,authorization of ,appropriations 7#a7 ,in general ,for each of fiscal years #bjag1 #bjah1 #bjai1 #bjbj1 and #bjba1 there are authorized to be appropriated #cj1jjj1jjj to carry out the purposes of this section4 7#b7 ,reservation ,from the funds appropriated under paragraph 7#a7 for any fiscal year1 the ,secretary shall reserve not more than #c percent for administration of the program4 7#c7 ,availability ,amounts appropriated pursuant to the authority of paragraph 7#a7 shall remain available without fiscal year limitation until expended4 #e4 ,national center ,to promote quality1 excellence1 and evaluation in volunteer income tax assistance 7a7 ,national center ,to promote quality1 excellence1 and evaluation in volunteer income tax assistance 7#a7 ,establishment ,there is hereby established the ,national ,center to ,promote ,quality1 ,excellence1 and ,evaluation in ,volunteer ,income ,tax ,assistance 7hereinafter in this section referred to as the ,center74 7#b7 ,purpose ,the ,center shall-- 7,a7 promote the adoption of a universally accessible volunteer training platform for the preparation of ,federal income tax returns1 7,b7 provide capacity-building technical assistance to qualified return preparation program managers1 7,c7 identify and disseminate best practices related to tax site management emerging from ,states1 community-based organizations1 nonprofit providers1 and local government entities1 7,d7 support outreach and marketing efforts to encourage the use of qualified return preparation programs receiving funding under section #d1 and 7,e7 provide evaluation of programs and activities funded under this ,act1 including-- 7i7 identification1 both in aggregate and disaggregate1 of gaps in services for low-income taxpayers and underserved populations1 and 7ii7 independent evaluation of progress toward program objectives1 as defined by the ,secretary4 7#c7 ,administration 7,a7 ,in general ,the ,secretary shall-- 7i7 designate1 through a competitive process1 one qualified entity to be the lead national organization1 and 7ii7 provide an annual grant to the lead national organization designated under clause 7i74 7,b7 ,duties of lead national organization ,the lead national organization shall use funds provided through the grant in subparagraph 7,a77ii7 to-- 7i7 carry out the purposes of the ,center1 and 7ii7 make subgrants as provided in subsection 7b74 7b7 ,subgrants 7#a7 ,in general ,the lead national organization shall make available subgrants to eligible organizations to facilitate specialized technical assistance in reaching one or more underserved populations4 7#b7 ,eligible organization ,for purposes of this subsection1 the term eligible organization means any organization which-- 7,a7 is described in section #eja7;c7 of the ,internal ,revenue ,code of #aihf and exempt from tax under section #eja7;a7 of such ,code1 7,b7 has1 to the satisfaction of the lead national organization1 demonstrated expertise and evidenced-based practices in specialized outreach to1 and service of1 one or more underserved populations1 and 7,c7 has1 to the satisfaction of the lead national organization1 demonstrated expertise in the provision of specialized technical assistance relating to qualified return preparation programs for one or more targeted underserved populations4 7#c7 ,application ,in order to be eligible for a subgrant under this subsection1 an eligible organization shall submit an application to the lead national organization at such time1 in such manner1 and containing such information as the lead national organization may reasonably require for each fiscal year4 7#d7 ,use of funds ,an eligible organization which receives a subgrant under this subsection shall assist the ,center by-- 7,a7 providing technical assistance to qualified return preparation programs with targeted outreach and assistance to one or more underserved populations1 and 7,b7 including strategies for the provision of technical assistance targeting individuals and families with annual household earnings at or below #bej percent of the poverty line within the underserved populations served by the subgrant4 7#e7 ,subgrant amount 7,a7 ,in general ,each year1 the lead national organization shall make available subgrants which1 in the aggregate1 do not exceed #dj percent of the grant received under subsection 7a74 7,b7 ,underserved populations ,of the amount of subgrants provided under subparagraph 7,a7-- 7i7 not less than #be percent shall be dedicated to specialized technical assistance in serving taxpayers with disabilities1 7ii7 not less than #be percent shall be dedicated to specialized technical assistance in serving limited ,english speaking taxpayers1 and 7iii7 not less than #be percent shall be dedicated to specialized technical assistance in serving ,native ,american taxpayers4 7#f7 ,duration of subgrants ,a subgrant awarded under this subsection shall be for a period of #a year and shall not be renewed other than through an application under paragraph 7#c74 7c7 ,authorization of ,appropriations 7#a7 ,in general ,for each of fiscal years #bjag1 #bjah1 #bjai1 #bjbj1 and #bjba1 there are authorized to be appropriated #e1jjj1jjj to carry out the purposes of this section4 7#b7 ,availability ,amounts appropriated pursuant to the authority of paragraph 7#a7 shall remain available without fiscal year limitation until expended4 #f4 ,national service programs to provide tax preparation assistance 7a7 ,,vista ,section #ajc7;a7 of the ,domestic ,volunteer ,service ,act of #aigc 7#db ,u4,s4,c4 #diec7;a77 is amended-- 7#a7 in paragraph 7#ab71 by striking and at the end2 7#b7 in paragraph 7#ac71 by striking the period and inserting 2 and2 and 7#c7 by adding at the end the following3 7#ad7 in connection with tax preparation assistance programs for low-income and older individuals and families1 particularly ,volunteer ,income ,tax ,assistance and ,tax ,counseling for the ,elderly programs4 4 7b7 ,national ,service ,senior ,corps ,section #bbe7;b7 of the ,domestic ,volunteer ,service ,act of #aigc 7#db ,u4,s4,c4 #ejbe7;b77 is amended by adding at the end the following3 7#ag7 ,programs that promote financial literacy and financial empowerment1 such as through providing tax preparation assistance to low-income or elderly individuals4 4 7c7 ,ameri,corps ,section #abb7;a77#e77;,b7 of the ,national and ,community ,service ,act of #aiij 7#db ,u4,s4,c4 #abegb7;a77#e77;,b77 is amended-- 7#a7 in clause 7x71 by striking and at the end2 7#b7 by redesignating clause 7xi7 as clause 7xii72 and 7#c7 by inserting after clause 7x7 the following3 7xi7 carrying out tax preparation assistance programs for low-income and older individuals and families1 particularly ,volunteer ,income ,tax ,assistance and ,tax ,counseling for the ,elderly programs2 and 4 7d7 ,national ,civilian ,community ,corps ,section #aeg7;a77#a7 of the ,national and ,community ,service ,act of #aiij 7#db ,u4,s4,c4 #abfag7;a77#a77 is amended by striking urban and rural development and inserting rural and urban development1 including improving financial capabilities of urban residents through tax assistance programs4 7e7 ,social innovation funds pilot program ,section #aih,k7f77#c7 of the ,national and ,community ,service ,act of #aiij 7#db ,u4,s4,c4 #abfeck7f77#c77 is amended-- 7#a7 in subparagraph 7,g71 by striking or at the end2 7#b7 in subparagraph 7,h71 by adding or at the end2 and 7#c7 by adding at the end the following3 7,i7 financial literacy for low-income and older individuals and families1 particularly through assisting low-income and older individuals and families with tax preparation2 4 7f7 ,notification from the ,internal ,revenue ,service 7#a7 ,in general ,the ,secretary of the ,treasury1 acting through the ,commissioner of ,internal ,revenue1 shall provide notification to any eligible organization 7as defined in paragraph 7#c771 at such time and in such manner as is determined appropriate by the ,secretary1 that such organization may be eligible for additional assistance through programs which are administered by the ,corporation for ,national and ,community ,service1 including-- 7,a7 the ,national ,service ,trust program under subtitle ,c of title ,i of the ,national and ,community ,service ,act of #aiij 7#db ,u4,s4,c4 #abega et seq472 7,b7 the ,national ,civilian ,community ,corps ,program under subtitle ,e of title ,i of the ,national and ,community ,service ,act of #aiij 7#db ,u4,s4,c4 #abfaa et seq472 7,c7 the ,volunteers in ,service to ,america program under part ,a of title ,i of the ,domestic ,volunteer ,service ,act of #aigc 7#db ,u4,s4,c4 #diea et seq472 7,d7 the ,social ,innovation ,funds grant program under part ,,iii of subtitle ,h of title ,i of the ,national and ,community ,service ,act of #aiij 7#db ,u4,s4,c4 #abfeck72 7,e7 the ,volunteer ,generation ,fund program under section #aih,p of the ,national and ,community ,service ,act of #aiij 7#db ,u4,s4,c4 #abfecp72 and 7,f7 the ,national ,senior ,service ,corps programs1 including the ,retired and ,senior ,volunteer ,program1 under title ,,ii of the ,domestic ,volunteer ,service ,act of #aigc 7#db ,u4,s4,c4 #ejjj et seq474 7#b7 ,notification ,the notification described in paragraph 7#a7 shall provide resources for eligible organizations to apply to programs described in such paragraph and direct such organizations to materials available on the public website of the ,corporation for ,national and ,community ,service4 ,the ,chief ,executive ,officer of the ,corporation for ,national and ,community ,service 7or the ,chief ,executive ,officer's designee7 shall prepare those resources and materials4 7#c7 ,eligible organization ,the term eligible organization means-- 7,a7 a qualified entity which administers a qualified return preparation program that receives or has received a grant from the ,commissioner of ,internal ,revenue2 or 7,b7 an organization which enters into or has entered into an agreement with the ,secretary of the ,treasury under section #afc of the ,revenue ,act of #aigh 7#bf ,u4,s4,c4 #ghjd note7 to provide tax counseling assistance for elderly individuals in the preparation of their ,federal income tax returns4 7g7 ,matching funds requirements ,section #aba7;e77#b7 of the ,national and ,community ,service ,act of #aiij 7#db ,u4,s4,c4 #abega7;e77#b77 is amended by striking laws7 and inserting laws1 but including funds made available under the ,community ,volunteer ,income ,tax ,assistance ,matching ,grant ,program established under section #d of the ,volunteer ,income ,tax ,assistance 7,,vita7 ,act44