[Congressional Record Volume 157, Number 84 (Monday, June 13, 2011)]
[Extensions of Remarks]
[Pages E1068-E1069]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      INTRODUCTION OF THE VITA ACT

                                 ______
                                 

                         HON. MICHAEL M. HONDA

                             of california

                    in the house of representatives

                         Monday, June 13, 2011

  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

[[Page E1069]]

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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