Volunteer Income Tax Assistance Research Articles

The level of taxpayer’s satisfaction for services provided by the Volunteer Income Tax Assistance (VITA) site: A case study

This study aims to explore the satisfaction level of Volunteer Income Tax Assistance (VITA) taxpayers at the University of the District of Columbia (UDC) site. A survey was designed to collect data regarding three main dimensions consisting of 22 paragraphs to achieve this objective. The results reveal that on average the level of satisfaction with the services provided by the UDC VITA tax site is 92.4 percent. The regression results indicate that the current model explains 55 percent of the variation in the dependent variable. The findings of the study reveal that comfortability and experience dimensions are positively and significantly related to the level of satisfaction, whereas the technical and logistic support dimension is not correlated with the level of satisfaction. The findings of this study are crucial for enhancing the services offered by the VITA tax site to ensure customer satisfaction. This approach promotes human capital development in specific areas within the preview organization (Kryscynski & Ulrich, 2015). Moreover, the current study recommends examining the challenges and difficulties encountered by our stakeholders mainly, students and faculty within a university-level VITA tax program to delight our customers (Mittal & Kamakura, 2001).

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A Medical Financial Partnership in a Pediatric Medical Home

The Volunteer Income Tax Assistance (VITA) program is an underutilized free taxpreparation service that directly addresses poverty by maximizing tax refunds. A pediatric medical home (PMH) with an embedded VITA site provides an excellent opportunity for a medical-financial partnership. We sought to assess the knowledge, attitudes, and practices of caregivers of children who used a PMH after embedding a VITA site. We found that a PMH-VITA site was a convenient, trusted, useful, and potentially tax-filing behaviorchanging intervention. Importantly, most caregivers who did not use the PMH-VITA site had no knowledge of availability of free tax filing services but would consider using one the following year. Improved marketing is needed to increase utilization in our target population.

Implementing a service learning Volunteer Income Tax Assistance program: Recruiting college student participants and understanding the benefits to all stakeholders

Service learning for business students is an important activity for learning professionalism while adding volunteer and leadership experiences to their resume. The purposeful inclusion of in-field volunteerism in the accounting curriculum by participation in the USA’s Volunteer Income Tax Assistance (VITA) program each spring offers a host of additional benefits for students, as well as their communities and educational institutions. To better understand and identify these stakeholder benefits, the authors surveyed participants and found that students gained both career building work skills and community and social awareness, while community participants increased their personal satisfaction. Given the overall student benefits from participation, the second phase of the exploratory research examined ways to increase student participation for future VITA programs, because the success of any VITA program depends on both the strength and the presence of sufficient student volunteers. Faculty suggestions for recruiting are presented along with areas for future research.

VITA in a marketing research course: It’s not just for accounting students anymore

The IRS Volunteer Income Tax Assistance (VITA) program provides free income tax preparation and filing services for low- and moderate-income households. Accounting students from universities across the U.S. have provided these services for many years. A partnership has been in place for five years between VITA and the marketing research course at a university in which marketing students provide volunteer services supporting the research objectives of the local VITA program, which align with the course objectives. This paper provides the supporting theory, affirmative results, and pedagogical details to implement this experiential service-learning project, including adaptations during a pandemic and for similar course projects.

The Role of Instructor Due Diligence in Volunteer Income Tax Assistance (VITA): Evidence From One University-Level Program

This paper reviews the tax preparation practice of one university-level Volunteer Income Tax Assistance (VITA) program to determine the role, if any, due diligence requirements for paid preparers should have on student preparers. The due diligence requirements as outlined in Circular 230 apply to paid preparers. The Volunteer Standards of Conduct are outlined in IRS publication 4012 and apply to VITA volunteers who are often students. This study analyzes the tax challenges faced by student prepares in a VITA program, and how the increased due diligence standards required of the IRS for paid preparers would be beneficial to the students participating in a VITA program. The study models tax return data to show the financial benefit application of due diligence standards would have for the Internal Revenue Service. The goal of this paper is to show the importance of higher due diligence standards, and we contribute to the literature by providing the first review of VITA tax preparation through the lens of paid-preparer due diligence requirements.

Is There Learning in Service Learning? Measuring the Extent to Which VITA Participation Improves Student Technical Competence and Soft Skills

ABSTRACTStudents participate in the Volunteer Income Tax Assistance program (VITA) to improve both technical competence and soft skills. To date, research primarily assesses student perceptions about these outcomes. We empirically measure and test for changes in technical competence and soft skills at the beginning and end of VITA participation at one major midwestern university. Our results indicate first-time participants in VITA improve in technical competence, but students do not become better calibrated with respect to “knowing what they know” as a result of VITA participation. Importantly however, participants in the program improve in their soft skills. Further, both first-time and repeat participants improve their communication skills, although we do not find improvement in interpersonal relations or personal abilities for repeat participants. In sum, our empirical results indicate that the VITA program does deliver the hoped-for outcomes across a wide range of skills.

Accessible Reliable Tax Advice

Unsophisticated taxpayers who lack financial resources are disadvantaged by a shortage of adequate tax advice. The IRS does not have the resources to answer all questions asked, and the IRS’s informal advice comes with no guarantee as to its accuracy and offers the taxpayer no protection when it is mistaken. Furthermore, non-IRS sources of advice have not sufficiently filled the void left by a lack of satisfactory IRS guidance. These biases against unsophisticated taxpayers have been noted by existing literature. This Article contributes to existing literature by proposing several novel reform measures to assist unsophisticated taxpayers. First, with respect to certain key provisions intended to benefit low-income taxpayers, such as the earned income tax credit, Congress should act to provide unsophisticated taxpayers the protection offered by more formal types of guidance. In order to implement this first proposal, Congress should direct the IRS to verify and stand behind the accuracy of tax software that addressed key provisions, such as the earned income tax credit. The government would stand behind its guarantee of accuracy in two respects. First, if a taxpayer provided accurate information when operating the software and the software indicated, wrongly, that the taxpayer was entitled to certain tax benefits, the IRS would not later assess additional tax liability, interest, or penalties against the taxpayer. Second, if a taxpayer provided accurate information when operating the software, the software indicated, wrongly, that the taxpayer was not entitled to certain tax benefits, and the taxpayer discovered this error after the typical limitations period for filing an amended return had expired, then Congress would grant the taxpayer additional time to amend his or her tax return to claim the benefits to which he or she was, in fact, entitled. Second, this Article proposes that states should require that certified public accountants either provide a minimum number of hours of pro bono services annually or donate a minimum amount annually to support Volunteer Income Tax Assistance sites. Third, Congress should implement a new procedure for assessing penalties and interest against taxpayers whose incomes are below a certain threshold. Under this new procedure, if the taxpayer’s return was prepared by a paid preparer, any penalties and interest that would otherwise be assessed against the taxpayer should be assessed, instead, against the preparer, unless the preparer could prove either that he or she sought adequate information from the taxpayer and tax consequences were reported correctly based on the information provided by the taxpayer or that the taxpayer knowingly waived the right to have penalties and interest assessed against the preparer. In addition, if a preparer did obtain a waiver, the preparer would be precluded from offering any type of audit insurance (or, stated another way, if the preparer did offer any type of audit insurance, doing so would nullify the waiver).

Predictors of Consumers’ Health Insurance Knowledge

The objectives of this study were to assess consumer knowledge of their health insurance plan and overall financial knowledge and to identify factors associated with consumer health insurance knowledge. A sample of taxpayers who had tax returns completed at a university-based volunteer income tax assistance (VITA) program was surveyed. More than 70% of respondents perceived their health insurance plan knowledge and overall financial literacy to be fair/good on a scale where the top choices were very good, excellent, and exceptional. The results of the binary logistic regression showed that those who were more likely to have high health insurance knowledge were U.S. citizens, not single, and reviewed their health insurance coverage at least once a year.

Volunteer Income Tax Assistance: A Community Coalition for Financial Education and Asset Building

Volunteer Income Tax Assistance: A Community Coalition for Financial Education and Asset Building

Low- and Moderate-Income Tax Filers Underestimate Tax Refunds: Implications for Financial Counseling and Policy

Low- and moderate-income tax filers often receive refund and tax credit checks that easily total a fifth or more of their total annual income. This study uses data collected in 2009 and 2010 from 79 clients of a volunteer income tax assistance (VITA) program to compare filers’ estimates of their returns before the tax preparation process with their returns calculated by trained VITA volunteers. Most filers (75%) underestimated their refunds, and 52% underestimated by $500 or more. Hence, at least some portion of the refund arrives as an unanticipated windfall. Counseling and planning work with low- and moderate-income families should take these significant lump sum income events into consideration.

An Investigation of the Relationships Among Volunteer Income Tax Assistance (VITA) Participation and Ethical Judgment and Decision Making

The Pathways Commission ( http://www.pathwayscommission.org , 2012) calls on accounting educators to develop students’ skills in ethical judgment and decision making, but there is uncertainty about how best to accomplish this task. We test if participation in Volunteer Income Tax Assistance (VITA) programs is positively associated with students’ ethical judgment and decision making. Using a questionnaire administered to students participating in VITA and students not participating in VITA at seven universities, we form multiple measures of students’ ethical judgment and students’ ethical decision making. Regression analyses reveal that VITA participation is positively and significantly associated with ethical judgment and, in certain cases, is also positively and significantly associated with ethical decision making, even after controlling for other determinants including completion of ethics courses. We conclude that VITA programs can be effective educational interventions to promote ethical development in students. Our study adds to the growing literature on positive student outcomes associated with VITA participation, provides empirical evidence to support the tenets of situated learning and service-learning theories, and contributes to the development of effective ethics education.

VITA: A Comprehensive Review of the Literature and an Analysis of the Program in Accounting Education in the U.S.

ABSTRACTThis paper provides a review of the literature on the role of the Volunteer Income Tax Assistance (VITA) program in accounting education. The consensus is that the VITA program affords students an experiential learning opportunity to enhance their academic experience with real-life work exposure. However, there also seems to be a sense of underutilization of VITA as a service learning activity. Underlying that sentiment, somewhat, is the lack of an ongoing, constructive discourse on current practices. These observations provided us the impetus to develop and administer a cross-sectional survey investigating the structure of VITA programs in accounting education in the U.S. We utilize a non-sampling research design in that we reach out to the entire population of accounting programs in the U.S. The study includes an analysis of active VITA programs, an investigation into the demise of discontinued programs, and descriptive information on institutions that have never offered a program. Our goal is to energize VITA program activity in accounting education and promote future discussion and research about the program. We contribute to the literature by providing the first comprehensive literature review of VITA programs in accounting education coupled with a data-driven description of the current status of VITA.

Is Participation in the Volunteer Income Tax Assistance (VITA) Program Associated with Students' Problem-Solving Skills and Professional Commitment?

ABSTRACTThe Accounting Education Change Commission (AECC 1990, 309) states accounting students “should identify and solve unstructured problems that require the use of multiple information sources. Learning by doing should be emphasized.” The Pathways Commission (2012) also emphasizes the importance of exposing students to complex, real-world problems. Volunteer Income Tax Assistance (VITA) participation is an experiential learning opportunity with real-world problems and real clients in a professional setting. Using survey data obtained from students at seven U.S. universities, we test whether students who participate in VITA programs have greater professionalism as measured by problem-solving skills and professional commitment. Our results generally indicate participation in VITA programs is positively and significantly associated with problem-solving skills, but not with commitment to the profession. We do not find strong evidence that the association between VITA participation and problem solving differs significantly between traditional (age 25 and under) and nontraditional students (over age 25) or that the association differs significantly for students who intend to pursue tax careers and those who do not. Our study contributes to the extant literature on the effectiveness of experiential learning, to our understanding of attributes of professionalism in students, and to the specific benefits of the VITA program.

Tax‐Time Savings among Low‐Income Households in the $aveNYC Program

This article explores savings outcomes for participants in the $aveNYC tax‐time matched savings program compared with a group of New York City tax filers who were not offered the program. $aveNYC was administered at Volunteer Income Tax Assistance sites during the 2008–2010 tax seasons. The program offered taxpayers the opportunity to open a savings account with their tax refund and receive a 50% match on their initial deposit. The study's primary outcome is savings held by respondents 6–11 months after receipt of matching funds. We compare participants in the 2009 program cohort to a comparison group on the following outcomes: level of savings, having nonzero savings, and having enough savings to cover one or two months of expenses at current consumption levels. We find significant differences on savings levels, the presence of any savings, and the likelihood of having savings to meet one month's expenses.

Encouraging Low- and Moderate-Income Tax Filers to Save: Implementation and Interim Impact Findings from the SaveUSA Evaluation

SaveUSA, a voluntary program launched in 2011 in four cities (New York City, Tulsa, San Antonio, and Newark), encourages low- and moderate-income individuals to set aside money from their tax refund for savings. Tax filers at participating Volunteer Income Tax Assistance (VITA) sites can directly deposit all or a portion of their tax refund into a special savings account, set up by a bank or credit union, and pledge to save between $200 and $1,000 of their deposit for about a year. Money can be withdrawn from SaveUSA accounts at any time and for any purpose, but only those who maintain their initially pledged savings amount throughout a full year receive a 50 percent match on that amount. Account holders, irrespective of match receipt, can deposit tax refund dollars in subsequent years and become eligible to receive additional savings matches on their new tax refund deposits.This report presents findings on SaveUSA’s implementation in all four cities and its early effects on savings and other financial outcomes in two cities: New York City and Tulsa. In these latter cities, a randomly selected half of the tax filers who were interested in SaveUSA in 2011 could open accounts (the “SaveUSA group”), but the other half could not (the control group). The report compares the savings and other financial behaviors of the two groups over time to estimate SaveUSA’s effects. The findings thus suggest the effects that savings policies structured similarly to SaveUSA might have.SaveUSA’s operation and evaluation are funded through the federal Social Innovation Fund (SIF), a public/private partnership administered by the Corporation for National and Community Service. This particular SIF project is led by the Mayor’s Fund to Advance New York City and the NYC Center for Economic Opportunity (CEO) in collaboration with MDRC. Matching funds required by the SIF were provided by several foundations and organizations. CEO, with the New York City Department of Consumer Affairs Office of Financial Empowerment (OFE), which conceived and launched an early version of the model, leads SaveUSA operations; MDRC is conducting the program’s evaluation.Key Findings: SaveUSA was implemented successfully in all four cities. During the first program year, individuals in the SaveUSA group directly deposited an average of $506 of their tax refunds into SaveUSA accounts.About two-thirds of those in the SaveUSA group saved for about a year and received a first savings match, which averaged $291 among those who received it. About two-fifths of the SaveUSA group pledged to save part of their tax refund again in the program’s second year.At the 18-month follow-up point, SaveUSA had increased the percentage of individuals with any short-term savings (by 7 percentage points) and increased the total amount of savings individuals held on average (by $512), compared with what they would have saved without the program. The program also had increased the proportion of those who expressed a continued commitment to save.No effects were found on individuals’ amount of debt, material hardship, or other aspects of financial security over the 18-month follow-up period.A subsequent report in late 2015 will examine SaveUSA’s effects over 36 to 42 months and will present a much more complete assessment of whether SaveUSA can sustain savings and improve individuals’ overall financial well-being.

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The benefits of saving at tax time: Evidence from the $aveNYC evaluation

Paper presents results of an evaluation of a tax-time savings program. $aveNYC offers incentivized savings accounts to taxpayers filing their taxes at Volunteer Income Tax Assistance (VITA) sites in New York City. Participants who direct-deposited at least $200 of their refund into the account and maintained the balance for a year received 50 cents per dollar saved. A comparison group was drawn from NYC VITA sites where the program was not offered. Propensity score weighting was used to balance the two groups. Study participants (N=353) were surveyed via telephone halfway through the program, and again 8 months after the program ended. 70 percent of $aveNYC participants surveyed received the match. The majority of those who received the match continued to save some portion of the money. At the second survey, there was no significant difference between groups in savings amount; this finding may be due to measurement limitations. $aveNYC participants were less likely than comparison group members to have skipped paying bills or taken out a loan during the study period, and were more likely to have withdrawn money from savings. Findings suggest that tax-time savings programs can result in sustained emergency savings and prevent reliance on borrowing and unpaid bills.

Development Of An Award Winning Volunteer Income Tax Assistance Program: A Case Study

The Volunteer Income Tax Assistance (VITA) program, sponsored by the IRS, offers free tax services for individuals with low-to-moderate incomes, the elderly, disabled and/or those who lack English language proficiency. Although established by the IRS in 1969, it is administered by partnering community based volunteer organizations throughout U.S., like universities, schools, religious groups, credit unions or other non-profit organizations. Many VITA sites are sponsored and run by universities through their Accounting departments. The 2012 Internal Revenue Service Advisory Council Public Report indicated that in 2010 only 3% of qualifying tax returns were prepared at VITA sites, with 62% of qualifying returns being prepared by paid preparers (IRS, 2012, p.51). In addition, there are still a large number of individuals who fail to file returns at all often leaving potential tax refunds and credits unclaimed (Lim, DeJohn and Murray, 2012). The purpose of this paper is to share the best practices used at our university to create an award winning VITA program. The specific topics to be addressed are location, layout, operating hours, staffing & training, process, promotion, electronic filing, other services and things to avoid. These topics are not only what we believe to be the most important in running a successful VITA site but the American Taxation Association 2007 Best Practices Report lists these same topics as well (ATA, 2007). We will conclude the paper with a discussion of our plans for the future growth of the program.

Integrating Tax Preparation with FAFSA Completion: Three Case Models

This research compares three different models implemented in four cities. The models integrated free tax-preparation services to assist low-income families with their completion of the Free Application for Federal Student Aid (FAFSA). There has been an increased focus on simplifying the FAFSA process. However, simplification is not the only barrier that students face while completing the FAFSA. Tax preparation is also an integral part to FAFSA completion. This paper illuminates how four cities aim to integrate tax preparation and FAFSA completion through local community partners. While all four cities faced a variety of challenges reaching their target populations at a scalable level, the Campaign for Working Families in Philadelphia demonstrated a more integrated, successful tax-preparation and FAFSA completion program due to its robust Volunteer Income Tax Assistance (VITA) organization.