[Congressional Record Volume 164, Number 62 (Tuesday, April 17, 2018)]
[House]
[Pages H3373-H3375]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




MAKING PERMANENT VOLUNTEER INCOME TAX ASSISTANCE MATCHING GRANT PROGRAM

  Mr. CURBELO of Florida. Madam Speaker, I move to suspend the rules 
and pass the bill (H.R. 2901) to amend the Internal Revenue Code of 
1986 to make permanent Volunteer Income Tax Assistance matching grant 
program, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2901

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

     SECTION 1. RETURN PREPARATION PROGRAMS FOR LOW-INCOME 
                   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 LOW-INCOME 
                   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 low-income 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 low-income 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 low-income 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 low-income 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) Low-income taxpayers.--The term `low-income 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 
     3 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) VITA grantee referral.--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,

[[Page H3374]]

     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 of such Code is amended by inserting after the item 
     relating to section 7526 the following new item:

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

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Florida (Mr. Curbelo) and the gentleman from Illinois (Mr. Danny K. 
Davis) each will control 20 minutes.
  The Chair recognizes the gentleman from Florida.


                             General Leave

  Mr. CURBELO of Florida. Madam Speaker, I ask unanimous consent that 
all Members have 5 legislative days to revise and extend their remarks 
and include extraneous material on H.R. 2901, currently under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  There was no objection.
  Mr. CURBELO of Florida. Madam Speaker, I yield myself such time as I 
may consume.
  Madam Speaker, I rise in strong support of H.R. 2901, the Volunteer 
Income Tax Assistance Permanence Act, that I am grateful to see brought 
before the House today.
  The Volunteer Income Tax Assistance program is a matching grant 
program administered by the IRS where the Federal Government partners 
with the local community to provide free professional tax preparation 
services to individuals with an annual income of less than $54,000 and 
for those with a limited proficiency in English.
  Today, April 17, is tax day, the deadline for filing returns. As 
Americans all across the country work to complete their returns, we are 
reminded of the dangers associated with tax return preparer fraud. 
Filing your return can be confusing, and unscrupulous preparers seek to 
take advantage of this confusion for their own profit.
  They bring in business by promising larger refunds, refunds they are 
able to obtain by claiming inflated expenses, false deductions, or 
unreliable credits on their clients' returns. Some fraudulent preparers 
even siphon off refunds to their own accounts. However, when the IRS 
detects the false return, it is the taxpayer, and not the return 
preparer, who is then liable for any additional taxes and/or penalties.
  Unfortunately, it is low-income and underserved populations, such as 
those with limited English, who are the primary targets of fraudulent 
preparers. It is a threat that my district in south Florida is all too 
familiar with.
  Thankfully, the VITA program allows taxpayers to fill out and submit 
their returns accurately without the fear of being scammed--all free of 
charge. The VITA preparers are IRS certified, and at 94 percent, have 
among the highest accuracy rates of all preparers.
  This program has enjoyed strong support in the past, regardless of 
administration or the party in the majority. H.R. 2901 would 
permanently authorize the VITA grant program while ensuring that VITA 
preparers continue to maintain their high-accuracy rates.
  I want to thank Representative  Danny Davis for partnering with me on 
this legislation. I am appreciative of the work and leadership Chairman 
Brady and Subcommittee Chairwoman Lynn Jenkins, as well as the staff of 
the Oversight Subcommittee and the other House Committees on Ways and 
Means staff for their efforts on this important legislation.
  Madam Speaker, this will help some of the most vulnerable people in 
our country, people who want to comply with the Tax Code. It will make 
sure that individuals who are eligible for certain benefits under the 
Tax Code are able to obtain them.
  In short, this will improve quality of life for lower- and middle-
income people in our country, especially in my south Florida district.
  I encourage all of my colleagues to vote in favor of H.R. 2901, the 
Volunteer Income Tax Assistance Permanence Act, and support the VITA 
program, which helps our constituents file their taxes confidently and 
accurately.
  Madam Speaker, I reserve the balance of my time.
  Mr. DANNY K. DAVIS of Illinois. Madam Speaker, I yield myself such 
time as I may consume.
  Madam Speaker, as we recognize tax day today, I applaud this body for 
advancing H.R. 2901, the Volunteer Income Tax Assistance Permanence 
Act.
  I want to thank my colleague and commend him for his leadership in 
bringing this legislation to the floor. It has been good working with 
the gentleman from Florida (Mr. Curbelo), and I look forward to 
continuing to do so.
  This crucial program provides high-quality tax assistance to 
hardworking families to help those who can benefit from a program that 
is designed to help.
  The Volunteer Income Tax Assistance program, or VITA, offers free tax 
services to people who make less than 250 percent of the poverty level, 
and to underserved taxpayers, including persons with disabilities, the 
elderly, and limited-English speakers.
  It is a prime example of smart Federal investment because each 
Federal dollar is matched by the private sector. The demand for VITA 
services is great. The number of tax returns prepared by the VITA 
program doubled between 2014 and 2016. In 2016, VITA grantees filed 
more than 3.8 million returns, helping families claim about $1.1 
billion in earned tax benefits. In Illinois, over 23,000 returns were 
filed for almost $32 million in refunds.
  With the new tax law, these high-caliber, in-person services are 
needed even more, especially in States like Illinois, affected by the 
SALT limitation. VITA services are top-notch. The Internal Revenue 
Service reported that VITA preparers have a 94 percent accuracy rate 
nationally on returns claiming the earned income tax credit.
  Further, VITA services make a real difference for individuals and 
families. VITA sites are skilled at ensuring that taxpayers get all of 
the tax benefits for which they are eligible. These savings, coupled 
with the savings of hundreds of dollars in tax preparation costs, put 
more money in my constituents' pockets to cover the essential costs 
like rent, groceries, and medical care.
  H.R. 2901 makes important changes to the VITA program. For example, 
in addition to permanently authorizing VITA, the bill allows the 
Secretary to fund the VITA grants up to $30 million. We have fully 
exhausted the recent appropriations of $15 million. The IRS estimates 
that 70 percent of Americans are eligible to file their taxes for free.

  Given the high demand and need, H.R. 2901 recognizes that the IRS 
should put taxpayers first by giving them access to high-quality free 
services, doubling our Federal investment via this quality matching 
grant program.
  Madam Speaker, I want to acknowledge and recognize the wonderful VITA 
sites in Chicago--the Center for Economic Progress, City-Wide Tax 
Assistance Program via Ladder Up, and I am especially pleased that the 
United Way of Metropolitan Chicago helps champion this program in my 
hometown.
  As these programs do, many VITA sites provide additional programs to 
increase financial stability for families, and I am grateful for their 
presence in Chicago and other places throughout the country.
  Madam Speaker, I also want to thank Ranking Members Neal and Lewis, 
Chairmen Brady and Jenkins, Senators Brown and Heller, former 
Representative Mike Honda, former Representative Xavier Becerra, the 
United Way, and Prosperity Now for their leadership in providing the 
permanence of this program.
  And as I know people are struggling and running trying to get there 
fast before the deadline expires to file their returns, I am glad to 
know that those who needed it were able to get help.
  Madam Speaker, I urge support for this program, and I reserve the 
balance of my time.
  Mr. CURBELO of Florida. Madam Speaker, having no other speakers, I am 
prepared to close, and I reserve the balance of my time.
  Mr. DANNY K. DAVIS of Illinois. Madam Speaker, I yield myself such 
time as I may consume.
  Again, I want to thank my colleague, the gentleman from Florida (Mr. 
Curbelo), for his tremendous leadership on this issue. If one talks to 
someone who has used this service to convey their earnest sense of 
relief and gratitude for something that is called

[[Page H3375]]

``free,'' they save not only the cost of paying a tax preparer, but 
they also know that they have got all of the benefits for which they 
were entitled.
  I represent thousands of low-income taxpayers, and the earned income 
taxpayer credit that they are able to get oftentimes lights up their 
life when it is time to file. Some of them are able to get benefits 
that they didn't think they were going to have, and so they give a real 
bit of thanks to those who helped them prepare and to know.
  There are many adviser volunteers and I want to thank them--
individuals who give of their time, their energy, their knowledge, 
their expertise, and their effort to make sure that low-income 
taxpayers are provided all of the assistance that they need.
  Madam Speaker, I am pleased to have had the opportunity to work on 
this bill, and I urge all of my colleagues to support it.
  I yield back the balance of my time.
  Mr. CURBELO of Florida. Madam Speaker, I yield myself such time as I 
may consume.
  Madam Speaker, I want to first thank my colleague, the gentleman from 
Illinois (Mr. Danny K. Davis), for his hard work on this bill. Dr. 
Davis is someone who has committed his career to Americans who are 
struggling the most, and he is willing to work with anyone in this 
Congress who wants to help our communities get ahead, especially those 
who are struggling and who most need our help. It has been a true honor 
to collaborate with him on this legislation.
  Madam Speaker, I want to remind my colleagues once again what the 
VITA program is all about.
  Every tax filing season, unscrupulous preparers try to take advantage 
of underserved populations by filing fraudulent returns on their 
behalf.

                              {time}  1615

  The taxpayer and not the preparer is then liable for the fraudulent 
return. This happens way too often, Madam Speaker, in south Florida and 
throughout the country.
  The VITA program goes a long way to mitigate the threat preparer 
fraud poses to vulnerable communities by providing free tax preparation 
services administered by IRS-certified preparers.
  Taxpayers who just want to comply with the Tax Code should not have 
to fear additional taxes or penalties because of a fraudulently 
repaired return. The VITA program gives these taxpayers a place to go 
where they can rest assured their tax returns will be filed accurately 
and at no cost.
  I encourage my colleagues to join me in supporting this commonsense 
program and vote to permanently reauthorize the VITA grant program.
  I want to thank, Madam Speaker, so many volunteers at the United Way, 
at branches in South Dade, who every tax season help hundreds and 
hundreds of lower and middle-income Americans get through this 
difficult process.
  Madam Speaker, I encourage all my colleagues to support this 
legislation, and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Florida (Mr. Curbelo) that the House suspend the rules 
and pass the bill, H.R. 2901, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________