[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 797 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                 S. 797

   To amend the Internal Revenue Code of 1986 to make permanent the 
        Volunteer Income Tax Assistance matching grant program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 30, 2017

 Mr. Brown (for himself and Mr. Heller) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to make permanent the 
        Volunteer Income Tax Assistance matching grant program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Volunteer Income Tax Assistance 
Permanence Act of 2017''.

SEC. 2. RETURN PREPARATION PROGRAMS FOR LOW-INCOME TAXPAYERS.

    (a) In General.--Chapter 77 is amended by inserting after section 
7526 the following new section:

``SEC. 7526A. RETURN PREPARATION PROGRAMS FOR LOW-INCOME TAXPAYERS.

    ``(a) Volunteer Income Tax Assistance Matching Grant Program.--
            ``(1) Establishment of program.--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 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.
            ``(2) Matching grants.--
                    ``(A) In general.--The Secretary may, subject to 
                the availability of appropriated funds, 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.
                    ``(B) Application.--
                            ``(i) In general.--Subject to clause (ii), 
                        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.
                            ``(ii) Accuracy review.--In the case of any 
                        qualified return preparation program which was 
                        awarded a grant under this section and was 
                        subsequently subject to a field site visit by 
                        the Internal Revenue Service (including through 
                        the Stakeholder Partnerships, Education, and 
                        Communication office) in which it was 
                        determined that the average accuracy rate for 
                        preparation of tax returns through such program 
                        was less than 90 percent, such program shall 
                        not be eligible for any additional grants under 
                        this section unless such program provides, as 
                        part of their application, sufficient 
                        documentation regarding the corrective measures 
                        established by such program to address the 
                        deficiencies identified following the field 
                        site visit.
                    ``(C) Priority.--In awarding grants under this 
                section, the Secretary shall give priority to 
                applications--
                            ``(i) demonstrating assistance to low-
                        income taxpayers, with emphasis on outreach to 
                        and services for such taxpayers,
                            ``(ii) demonstrating taxpayer 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
                            ``(iii) demonstrating specific outreach and 
                        focus on one or more underserved populations.
                    ``(D) Duration of grants.--Upon application of a 
                qualified return preparation program, the Secretary is 
                authorized to award a multi-year grant not to exceed 3 
                years.
            ``(3) Aggregate limitation.--Unless otherwise provided by 
        specific appropriation, the Secretary shall not allocate more 
        than $30,000,000 per fiscal year (exclusive of costs of 
        administering the program) to carry out the purposes of this 
        section.
    ``(b) Use of Funds.--
            ``(1) In general.--Qualified return preparation programs 
        receiving a grant under this section may use the grant for--
                    ``(A) 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--
                            ``(i) for wages or salaries of persons 
                        coordinating the activities of the program,
                            ``(ii) to develop training materials, 
                        conduct training, and perform quality reviews 
                        of the returns for which assistance has been 
                        provided under the program, and
                            ``(iii) for equipment purchases and 
                        vehicle-related expenses associated with remote 
                        or rural tax preparation services,
                    ``(B) outreach and educational activities described 
                in subsection (a)(2)(C)(ii), and
                    ``(C) services related to financial education and 
                capability, asset development, and the establishment of 
                savings accounts in connection with tax return 
                preparation.
            ``(2) Use of grants for overhead expenses prohibited.--No 
        grant made under this section may be used for overhead expenses 
        that are not directly related to any qualified return 
        preparation program.
    ``(c) Promotion and Referral.--
            ``(1) Promotion.--The Secretary shall promote the benefits 
        of, and encourage the use of, tax preparation through qualified 
        return preparation programs through the use of mass 
        communications, referrals, and other means.
            ``(2) Internal revenue service referrals.--The Secretary 
        may refer taxpayers to qualified return preparation programs 
        receiving funding under this section.
            ``(3) VITA grantee referral.--Qualified return preparation 
        programs receiving a grant under this section are encouraged to 
        refer, as appropriate, to local or regional Low Income Taxpayer 
        Clinics individuals who are eligible to receive services at 
        such clinics.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified return preparation program.--The term 
        `qualified return preparation program' means any program--
                    ``(A) which provides assistance to individuals, not 
                less than 90 percent of whom are low-income taxpayers, 
                in preparing and filing Federal income tax returns,
                    ``(B) which is administered by a qualified entity,
                    ``(C) 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
                    ``(D) which uses a quality review process which 
                reviews 100 percent of all returns.
            ``(2) Qualified entity.--
                    ``(A) In general.--The term `qualified entity' 
                means any entity which--
                            ``(i) is an eligible organization (as 
                        described in subparagraph (B)),
                            ``(ii) is in compliance with Federal tax 
                        filing and payment requirements,
                            ``(iii) is not debarred or suspended from 
                        Federal contracts, grants, or cooperative 
                        agreements, and
                            ``(iv) agrees to provide documentation to 
                        substantiate any matching funds provided under 
                        the VITA grant program.
                    ``(B) Eligible organization.--
                            ``(i) In general.--Subject to clause (ii), 
                        the term `eligible organization' means--
                                    ``(I) 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,
                                    ``(II) 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,
                                    ``(III) a local government agency, 
                                including--
                                            ``(aa) a county or 
                                        municipal government agency, 
                                        and
                                            ``(bb) an Indian tribe, as 
                                        defined in section 4(13) of the 
                                        Native American Housing 
                                        Assistance and Self-
                                        Determination Act of 1996 (25 
                                        U.S.C. 4103(13)), including any 
                                        tribally designated housing 
                                        entity (as defined in section 
                                        4(22) of such Act (25 U.S.C. 
                                        4103(22))), tribal subsidiary, 
                                        subdivision, or other wholly 
                                        owned tribal entity, or
                                    ``(IV) a local, State, regional, or 
                                national coalition (with one lead 
                                organization which meets the 
                                eligibility requirements of subclause 
                                (I), (II), or (III) acting as the 
                                applicant organization).
                            ``(ii) Alternative eligible organization.--
                        If no eligible organization described in clause 
                        (i) is available to assist the targeted 
                        population or community, the term `eligible 
                        organization' shall include--
                                    ``(I) a State government agency, 
                                and
                                    ``(II) a Cooperative Extension 
                                Service office.
            ``(3) Low-income taxpayers.--The term `low-income taxpayer' 
        means a taxpayer who has income for the taxable year which does 
        not exceed an amount equal to the completed phaseout amount 
        under section 32(b) for a married couple filing a joint return 
        with three or more qualifying children, as determined in a 
        revenue procedure or other published guidance.
            ``(4) Underserved population.--The term `underserved 
        population' includes populations of persons with disabilities, 
        persons with limited English proficiency, Native Americans, 
        individuals living in rural areas, members of the Armed Forces 
        and their spouses, and the elderly.''.
    (b) Clerical Amendment.--The table of sections for chapter 77 is 
amended by inserting after the item relating to section 7526 the 
following new item:

``7526A. Return preparation programs for low-income taxpayers.''.
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