Pro-bono tax services: the role of tax academics and students.

• Author: Nellen, Annette

One of the long-standing pro-bono services provided in the tax area has been through the efforts of accounting students and their professors, working with the IRS and state tax agencies, to establish and operate sites for the Volunteer Income Tax Assistance (VITA) program. The VITA program is a great opportunity for tax advisers to volunteer their services to help low-income taxpayers. Interested practitioners and faculty can contact their local university accounting department and local IRS office to learn about training and service opportunities.

Program Basics

The VITA program is a national program that provides free return preparation assistance to individuals with low-to-moderate income (under $36,000), and those who are elderly and/or disabled or have limited English proficiency. These individuals are frequently discouraged and frustrated by the tax law's complexities and do not file returns, even though they may be entitled to a refund. Often, they cannot afford commercial tax preparers and CPAs. For them, the VITA program offers confidential and quality tax consultations. It is particularly important at a time when the IRS is reducing services at its Taxpayer Assistance Centers (TACs).

In 2004, 1.9 million returns were prepared by more than 70,000 volunteers working at 14,000 sites through the VITA program; this number increased in 2005. From 1999-2005, volunteer return preparation doubled, from roughly 1 million to 2 million returns. In the same period, VITA-prepared e-filed returns increased from 41% to 80.2%.

The VITA program is diverse; its sites are sponsored by educational institutions, community organizations, military groups and those dedicated to serving special-needs taxpayers (such as the elderly). VITA program sites generally operate from mid-January until April 15. The program is overseen by the IRS's Stakeholder Partnership, Education and Communication (SPEC) function.

Academia's Involvement

Service-minded faculty: The ATA recently surveyed its members about their involvement in the VITA program; see ATA Pro-Bono Tax Services Taskforce--March 5, 2005, Executive Summary of Survey Results, at www.aaahq.org/ata/tax-policy/reports/reports.htm. The group's approximately 800 members consist of tax academicians and others interested in tax education and research. Over 100 members responded to the survey. Seventy-nine of these are faculty involved in pro-bono tax work; in 2004, they assisted in completing more than 30,000 Federal and state returns. Approximately half of the services were provided oil campus, the other half at community sites. The off-campus venues included not-for-profit agencies, houses of worship, libraries, prisons, malls and senior and community centers. A majority of the services were aimed at low-income taxpayers, followed by international students, then other college students.

A majority of the respondents have had a long-term commitment to the VITA program; over 35% have been involved for over 10 years and an additional 25% for over five years. Only 35% receive recognition and/ or support from their universities for their efforts. Despite the lack of institutional rewards (such as course release, merit pay or other recognition)...