ANSWERS: 1
  • Volunteer Income Tax Assistance Services (VITA) is a cooperative effort between the IRS and various states. The program seeks to assist certain groups of taxpayers in preparing their annual returns.

    Function

    The function of the VITA program is to provide free tax-return preparation for low-income and elderly individuals. In some cases, free electronic filing of the tax return is also available.

    Benefits

    The benefits of the VITA program are free-tax return preparation for those otherwise unable to seek assistance with their returns. In addition, volunteers can help constituents communicate with the IRS, if necessary.

    Potential

    Those who can take advantage of the VITA program---either because of their income level or their age---will have access to credible tax return preparation. This could mean that these individuals will receive hundreds or thousands of dollars in tax benefits that they otherwise would not have received.

    Exclusions

    VITA will not prepare 1040 schedules C, D, or E. They also won't fill out Form SS-5, 2106, 3903, 8606, or 8615. This means that people with a small business, investment income, rental income, or those that have unreimbursed employee expenses, moving expenses, and non-deductible IRAs will not be able to use the VITA program.

    Warning

    You ultimately remain responsible for the information on your tax return. If you give fraudulent information to your VITA professional, he isn't responsible for the fraudulent return, and you will be the one to pay the price, which is punishment including fines and/or imprisonment.

    Source:

    Washington Department of Revenue

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