Introduction of the VITA Act

Floor Speech

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* Mr. HONDA. Mr. Speaker, I rise today upon the introduction of the VITA Act of 2011. This legislation would permanently authorize the Community Volunteer Income Tax Assistance (VITA) Matching Grant Program that has been funded through the annual appropriations process since Fiscal Year 2008.

*The availability of free tax education and assistance programs in local communities helps many low-income individuals avoid having to depend upon paid tax return preparers and refund anticipation loans in order to successfully file their annual federal income tax returns. Currently, the Community VITA Program is a federally-supported taxpayer education and assistance program funded through the Internal Revenue Service, aimed at supporting low-income individuals and targeted subpopulations during the tax preparation process.

* VITA programs offer free tax assistance to low-to-moderate income individuals who cannot afford professional assistance. More than 75,000 VITA volunteers prepare basic tax returns for low income taxpayers with a focus on at least one specific underserved group with special needs, including persons with disabilities, non-English speaking persons, Native Americans, rural taxpayers, and the elderly. The continued federal support has enabled community VITA programs to reach more underserved low-income taxpayers, and resulted in more families accessing vital tax credits, such as the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). During the 2009 filing season, VITA centers prepared over 1.2 million tax returns and brought back over $1.6 billion in tax returns to working families.

* The VITA Act of 2011 would authorize $30 million in matching grants to eligible Community VITA Programs to be used for program operation, taxpayer outreach, and related financial services. The legislation would also establish a National Center to Promote Quality, Excellence, and Evaluation in VITA with a $5 million authorization to disseminate best practices, facilitate technical assistance, coordinate program outcomes, and ensure continuation of service to underserved taxpayers for the 4,500 VITA sites operating nationwide.

* The benefits of this community-based approach are abundant. First, VITA centers offer taxpayers a free, community-based alternative to commercial tax preparation chains, some of which steer low-income taxpayers into Refund Anticipation Loans, essentially borrowing their own money at high interest rates. Second, considerable evidence demonstrates that VITA centers significantly increase taxpayer compliance. Finally, VITA centers ensure that taxpayers not only claim the benefits of which they are entitled, but that they are also exposed to a variety of financial literacy tools and savings strategies aimed at helping them build assets for the future.

* For these reasons, I have joined Senator Sherrod Brown in introducing the Volunteer Income Tax Assistance Act of 2011, which is focused on expanding the original successes of the VITA program and ensuring the program is brought to a national scale. I urge all my colleagues to join me in this bill, which saves the Federal Government money, pumps money into our communities and gives a fair deal to our working families.

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