[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1875 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 1875
To amend the Internal Revenue Code of 1986 to facilitate nationwide
availability of volunteer income tax assistance for low-income and
underserved populations.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 26, 2019
Mr. Danny K. Davis of Illinois (for himself and Mr. Wenstrup)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to facilitate nationwide
availability of volunteer income tax assistance for low-income and
underserved populations.
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 2019'' or as the ``VITA Permanence Act of 2019''.
SEC. 2. RETURN PREPARATION PROGRAMS FOR APPLICABLE TAXPAYERS.
(a) In General.--Chapter 77 of the Internal Revenue Code of 1986 is
amended by inserting after section 7526 the following new section:
``SEC. 7526A. RETURN PREPARATION PROGRAMS FOR APPLICABLE TAXPAYERS.
``(a) Establishment of Volunteer Income Tax Assistance Matching
Grant Program.--The Secretary shall establish a Community Volunteer
Income Tax Assistance Matching Grant Program under which the Secretary
may, subject to the availability of appropriated funds, make grants to
provide matching funds for the development, expansion, or continuation
of qualified return preparation programs assisting applicable taxpayers
and members of underserved populations.
``(b) Use of Funds.--
``(1) In general.--Qualified return preparation programs
may use grants received under this section for--
``(A) ordinary and necessary costs associated with
program operation in accordance with cost principles
under the applicable Office of Management and Budget
circular, including--
``(i) wages or salaries of persons
coordinating the activities of the program,
``(ii) developing training materials,
conducting training, and performing quality
reviews of the returns prepared under the
program,
``(iii) equipment purchases, and
``(iv) vehicle-related expenses associated
with remote or rural tax preparation services,
``(B) outreach and educational activities described
in subsection (c)(2)(B), and
``(C) services related to financial education and
capability, asset development, and the establishment of
savings accounts in connection with tax return
preparation.
``(2) Requirement of matching funds.--A qualified return
preparation program must provide matching funds on a dollar-
for-dollar basis for all grants provided under this section.
Matching funds may include--
``(A) the salary (including fringe benefits) of
individuals performing services for the program,
``(B) the cost of equipment used in the program,
and
``(C) other ordinary and necessary costs associated
with the program.
Indirect expenses, including general overhead of any entity
administering the program, shall not be counted as matching
funds.
``(c) Application.--
``(1) In general.--Each applicant for a grant under this
section shall submit an application to the Secretary at such
time, in such manner, and containing such information as the
Secretary may reasonably require.
``(2) Priority.--In awarding grants under this section, the
Secretary shall give priority to applications which
demonstrate--
``(A) assistance to applicable taxpayers, with
emphasis on outreach to, and services for, such
taxpayers,
``(B) taxpayer outreach and educational activities
relating to eligibility and availability of income
supports available through this title, including the
earned income tax credit, and
``(C) specific outreach and focus on one or more
underserved populations.
``(3) Amounts taken into account.--In determining matching
grants under this section, the Secretary shall only take into
account amounts provided by the qualified return preparation
program for expenses described in subsection (b).
``(d) Program Adherence.--
``(1) In general.--The Secretary shall establish procedures
for, and shall conduct not less frequently than once every 5
calendar years during which a qualified return preparation
program is operating under a grant under this section, periodic
site visits--
``(A) to ensure the program is carrying out the
purposes of this section, and
``(B) to determine whether the program meets such
program adherence standards as the Secretary shall by
regulation or other guidance prescribe.
``(2) Additional requirements for grant recipients not
meeting program adherence standards.--In the case of any
qualified return preparation program which--
``(A) is awarded a grant under this section, and
``(B) is subsequently determined--
``(i) not to meet the program adherence
standards described in paragraph (1)(B), or
``(ii) not to be otherwise carrying out the
purposes of this section,
such program shall not be eligible for any additional grants
under this section unless such program provides sufficient
documentation of corrective measures established to address any
such deficiencies determined.
``(e) 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 applicable taxpayers,
in preparing and filing Federal income tax returns,
``(B) which is administered by a qualified entity,
``(C) in which all 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,
``(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
pursuant to the grant program under this
section.
``(B) Eligible organization.--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. 1002), 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) and exempt from tax under section
501(a),
``(iii) a local government agency,
including--
``(I) a county or municipal
government agency, and
``(II) 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,
``(iv) a local, State, regional, or
national coalition (with one lead organization
which meets the eligibility requirements of
clause (i), (ii), or (iii) acting as the
applicant organization), or
``(v) in the case of applicable taxpayers
and members of underserved populations with
respect to which no organizations described in
the preceding clauses are available--
``(I) a State government agency, or
``(II) an office providing
Cooperative Extension services (as
established at the land-grant colleges
and universities under the Smith-Lever
Act of May 8, 1914).
``(3) Applicable taxpayers.--The term `applicable taxpayer'
means a taxpayer whose income for the taxable year 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.
``(f) Special Rules and Limitations.--
``(1) 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.
``(2) 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 grants under this section.
``(g) Promotion of Programs.--
``(1) In general.--The Secretary shall promote tax
preparation through qualified return preparation programs
through the use of mass communications and other means.
``(2) Provision of information regarding qualified return
preparation programs.--The Secretary may provide taxpayers
information regarding qualified return preparation programs
receiving grants under this section.
``(3) Referrals to qualified low-income taxpayer clinics.--
Qualified return preparation programs receiving a grant under
this section are encouraged, in appropriate cases, to--
``(A) advise taxpayers of the availability of, and
eligibility requirements for receiving, advice and
assistance from qualified low-income taxpayer clinics
receiving funding under section 7526, and
``(B) provide information regarding the location
of, and contact information for, such clinics.''.
(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:
``Sec. 7526A. Return preparation programs for applicable taxpayers.''.
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