Tax Counseling For The Elderly
INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
Revenue Act of 1978, Section 163, Public Law 95- 600, 92 Stat. 2810.
To authorize the Internal Revenue Service to enter into agreements with private or public nonprofit agencies or organizations; to establish a network of trained volunteers to provide free income tax information and return preparation assistance to elderly taxpayers.
Types of Assistance
Uses and Use Restrictions
Funding may be used for reimbursing volunteers for their out-of-pocket expenses including transportation, meals, and other expenses incurred by them in providing tax counseling assistance at locations convenient to the taxpayers.
Tax Counseling for the Elderly sponsors must be private or public nonprofit organizations with experience in coordinating volunteer programs. Federal, State, and local governmental agencies and organizations are not eligible to sponsor a program.
Elderly taxpayers, 60 years or older.
None. This program is excluded from coverage under OMB Circular No. A-87.
Application and Award Process
None. This program is excluded from coverage under E.O. 12372 and OMB Circular No. A-102.
Each Tax Counseling for the Elderly applicant must complete a Tax Counseling for the Elderly application package. This program is subject to the provisions of OMB Circular No. A-110.
IRS reviews applications and selects Tax Counseling for the Elderly Program sponsors based on their evaluative score and prior performance (if returning sponsor).
Applications are generally available in June and due to IRS 60 days after the date the program is announced in the Federal Register.
Range of Approval/Disapproval Time
Applicants whose proposals are accepted will generally be notified of award decisions by October 1st or as soon as Congress has appropriated TCE funds. The IRS will advise those who were not selected or did not qualify based on their application package.
Formula and Matching Requirements
Length and Time Phasing of Assistance
Cooperative Agreements expire on September 30 of each year unless an earlier date is set in the Cooperative Agreement.
Post Assistance Requirements
Form 8654, Tax Counseling for the Elderly Quarterly/Final Program Report is required to be submitted to the IRS quarterly.
Audit requirements applicable to grant sponsors are described in OMB Circular A-133, 62 FR 35278-35302 (June 30, 1997). If you expend less than $500,000 a year in total Federal awards, no audit requirements are applicable. If you expend $500,000 or more a year in Federal awards, you must provide IRS with a copy of your Single Audit Report. You must arrange for an audit by an independent auditor in accordance with the Government Auditing Standards developed by the Comptroller General of the United States.
Organizations must maintain records on expenses volunteers incur and for which they are reimbursed.
FY 07 $3,950,000; FY 08 $4,004,000; and FY 09 est $3,950,000.
Range and Average of Financial Assistance
Last year, nearly 60 sponsors shared $3.95 million and assisted nearly 1.5 million taxpayers.
Regulations, Guidelines and Literature
Regulations are published each year in the Federal Register (June 1st).
Regional or Local Office
Tax Counseling for the Elderly, Internal Revenue Service, 401 West Peachtree Street NE, Atlanta, GA 30308. Attention: Elizabeth Blair; Telephone: (404) 338-8424.
Web Site Address
Examples of Funded Projects
Criteria for Selecting Proposals
(1) Quality of Programs and Services for age 60 and over (i.e., qualifications of employees, time devoted to the program, employee/volunteer training, publicity, hours of operation, site location convenient to target elderly taxpayers 60 years and above and ensure elderly taxpayers are given priority services). The maximum number of points will be awarded to an organization whose programs focus/serve elderly taxpayers. (30 points); (2) Geographic coverage and extent of coverage for age 60 and over (i.e., the number of proposed assistance sites, number of volunteers, number of Federal income tax returns to be prepared and e-filed for elderly taxpayers, and other assistance to be provided) (20 points); (3) Electronic Filing services for age 60 and over (i.e., the proposed number of Federal income tax returns to be prepared and electronically filed for elderly taxpayers). Returning sponsors prior year e-file volume will be reviewed and the maximum number of points will be awarded for organizations that exceed 50 percent e-file for senior taxpayers. (20 points); (4) Prior experience in Federal Tax Return Counseling and Tax Preparation (10 points); (5) Quality of Cooperative Agreement Administration and Internal Accounting Procedures (i.e., experience in providing volunteer service and services to the elderly, organizational structure, experience in managing federal grant programs, reasonableness of proposed budget (70 percent of grants funds should be used for reimbursement expenses and 30 percent should be used for administrative expenses) and qualifications of the TCE management staff) (10 points); and (6) Past performance of a returning sponsor (10 points).