IRS allocates $53 million to enhance free tax assistance programs

On December 2, 2024, the Internal Revenue Service (IRS) announced a significant step towards improving accessible tax preparation services across the United States with the allocation of $53 million in grants. These funds will support hundreds of organizations involved in taxpayer-funded federal tax preparation services aimed primarily at seniors, low-income families, and underserved communities. The announcement highlighted that grants were awarded to 315 organizations participating in the Volunteer Income Tax Assistance (VITA) program and 31 organizations under the Tax Counseling for the Elderly (TCE) program, showing a concerted effort to reach vulnerable populations who often encounter challenges navigating the complexities of tax regulations. The VITA program, established in 1969, focuses particularly on assisting low- and moderate-income individuals, including people with disabilities and those who struggle with limited English proficiency. Meanwhile, the TCE program, which began in 1978, provides specialized support to individuals aged 60 and older. This program addresses common tax-related concerns for seniors, including issues surrounding retirement income, pensions, and health-related deductions, thereby ensuring elderly citizens receive tailored assistance. The IRS's funding aims to expand existing resources and enhance the capabilities of these programs, enabling them to reach a broader audience. Grant funds will specifically facilitate the recruitment and retention of volunteers, the development of promotional materials, and cover operating expenses such as equipment and supplies. In total, the IRS received 445 requests for funding under both programs, amounting to $82.9 million, indicating a much higher demand than the agency was able to meet. In tandem with the grant announcements, the IRS also kickstarted its ninth annual National Tax Security Awareness Week. This initiative is designed to inform taxpayers about the potential risks of identity theft, especially as they prepare for the holiday season. The week-long campaign, a collaborative effort with state tax agencies and industry partners, emphasizes the necessity for taxpayers to remain vigilant and proactive in protecting sensitive personal information from theft and fraud during this busy time of year.