HomeMy WebLinkAboutNot funded Aging Not Funded per KK - RSVP-VITA Volunteer Income Tax Assistance Grant Program 08-19-08 4aaORANGE COUNTY
• BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: August 19, 2008
Action Ager~c~a
Item No. (•~~flQQ
SUBJECT: RSVP-VITA Volunteer Income Tax Assistance Grant Pro ram
DEPARTMENT: Aging PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
INFORMATION CONTACT:
Jerry M. Passmore, 245-2000
Kathy Porter, RSVP Project Director, 968-2054
PURPOSE: To seek authorization to submit an application for IRS federal funding in the
amount of $30,000 to support the VITA (Volunteer Income Tax Assistance) free tax service
• operated by the Department on Aging Retired & Senior Volunteer Program (RSVP).
BACKGROUND: Through the 2008 Treasury Appropriations Act, the first ever VITA grant
opportunity has been offered in support of existing and prospective programs that qualify. Eight
million dollars has been authorized for a community VITA matching grant program. No
limitations are set for award amounts, but a 100% match is required. The application due date
is September 2"d. The IRS grant objectives are:
• Enable VITA programs to extend services to underserved populations in hard-to-
reach areas (The undi~rserved are low-income taxpayers. [income of $39,783 or less],.
those with limited English proficiency, and the elderly, disabled, homebound, and
rural)
• Increase the capacity to file returns electronically
• Heighten quality control
• Enhance training of volunteers
• Significantly improve the accuracy rate of returns prepared by VITA sites
The Orange County RSVP-VITA free tax preparation program has served Orange County for 25
years and is the 2"d largest VITA Program in .North Carolina. Many low-income residents have
difficulty paying the fees charged by private tax preparers costs of $80-$230 for simple returns.
Charges increase based on the number of dependents and number of forms regardless of
income.
• FY2007-08 Results: Orange County RSVP-VITA's 103 volunteers served over 7,000 hours
assisting close to 2,600 clients with tax preparation and counseling. RSVP-VITA has increased
by nearly 5% (100 clients) each year. The increase for FY2007-08 was 16% (400 clients) due
to the Economic Stimulus Payment Program. There has been a surge of those who usually do
not have to file in order for them to receive the payment. The tax season has been extended to
October 15 to make sure that all who qualify are aware and receive this benefit.
Training: RSVP coordinates tax law and computer training using IRS training materials.
Preparation: Taxes are prepared on computers using software provided by the IRS and
transmitted electronically through the RSVP office.
Ongoing assistance: The program continues year-round to assist those needing to file prior
year returns and amendments.
Target population: low- to middle- income ($50,000 or less)
• Exceptions are made for the elderly and those with higher incomes based on the number
of dependents.
• IRS offered VITA services as a benefit for the employees of the local VITA sponsors-
employees of Orange County Government and the towns of Chapel Hill and Carrboro (no
income limitations, only restricted by level of difficulty).
• Limited number of clients limited by transportation or mobility including the homebound
and employees of Orange Enterprises
Tax Sites:
• RSVP operates 4 permanent sites in Orange County
• Partners with Chatham County Council on Aging and the IRS to assist with 2 permanent
sites in Chatham County
• Orange Enterprises and the homebound upon request
Equipment: Taxes are prepared using computers, not paper. RSVP-VITA has been able to re-
use computers donated by individuals, businesses and county government. IRS loans some
laptop computers.
• Laptops used at some sites but mainly desktop computers, which are 10 years old.
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• The IRS has a limited number of laptops to loan. Used where storage is a problem
(Chatham and UNC Hospital sites). IRS laptops also used for short-term needs. 20
desktop computers are used for 3 of 6 permanent sites (Carrboro, Chapel Hill and
Hillsborough). Each site uses 5-6 desktop computers and share 2-3 printers. Many
RSVP senior volunteers are most comfortable with or restricted to using desktop
computers due to physical limitations.
• Orange County RSVP VITA began electronic return preparation over 15 years ago
when it was offered through the IRS.
• Training: laptop and LCD projector
• Other equipment: switch boxes, external floppy drives, replacement monitors,
keyboards, mice, power strips
If the grant is received, it is proposed that the funding be utilized to replace seventeen 10 year-
old computers used for tax preparation and to cover operational expenses.
FINANCIAL IMPACT: No additional County funds are required. No additional staff is needed
to administer the grant. Funding for the VITA seasonal non-permanent position and the value
of volunteer tax preparation time will be used to meet the required local match.
RECOMMENDATION(S): The Manager recommends that the Board authorize the Orange
County RSVP to submit an application and required assurances for VITA funding to purchase
equipment and for program operational expenses. •