Orange County NC Website
ORANGE COUNTY <br />• BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: August 19, 2008 <br />Action Ager~c~a <br />Item No. (•~~flQQ <br />SUBJECT: RSVP-VITA Volunteer Income Tax Assistance Grant Pro ram <br />DEPARTMENT: Aging PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />INFORMATION CONTACT: <br />Jerry M. Passmore, 245-2000 <br />Kathy Porter, RSVP Project Director, 968-2054 <br />PURPOSE: To seek authorization to submit an application for IRS federal funding in the <br />amount of $30,000 to support the VITA (Volunteer Income Tax Assistance) free tax service <br />• operated by the Department on Aging Retired & Senior Volunteer Program (RSVP). <br />BACKGROUND: Through the 2008 Treasury Appropriations Act, the first ever VITA grant <br />opportunity has been offered in support of existing and prospective programs that qualify. Eight <br />million dollars has been authorized for a community VITA matching grant program. No <br />limitations are set for award amounts, but a 100% match is required. The application due date <br />is September 2"d. The IRS grant objectives are: <br />• Enable VITA programs to extend services to underserved populations in hard-to- <br />reach areas (The undi~rserved are low-income taxpayers. [income of $39,783 or less],. <br />those with limited English proficiency, and the elderly, disabled, homebound, and <br />rural) <br />• Increase the capacity to file returns electronically <br />• Heighten quality control <br />• Enhance training of volunteers <br />• Significantly improve the accuracy rate of returns prepared by VITA sites <br />The Orange County RSVP-VITA free tax preparation program has served Orange County for 25 <br />years and is the 2"d largest VITA Program in .North Carolina. Many low-income residents have <br />difficulty paying the fees charged by private tax preparers costs of $80-$230 for simple returns. <br />Charges increase based on the number of dependents and number of forms regardless of <br />income. <br />• FY2007-08 Results: Orange County RSVP-VITA's 103 volunteers served over 7,000 hours <br />assisting close to 2,600 clients with tax preparation and counseling. RSVP-VITA has increased <br />by nearly 5% (100 clients) each year. The increase for FY2007-08 was 16% (400 clients) due <br />