As our community tax preparation veterans know, each new year and each filing season bring unique challenges, and this year is no different. Confronting changes like the expansion of the Earned Income and Child Tax Credit (EITC), advanced payments and beyond, VITA volunteers nationwide are prepared to clear any hurdles that arise. In partnership with the Citi Foundation, Prosperity Now will support five sites in a VITA pilot focused on serving first-time or lapsed filers. We are excited to introduce you to these amazing organizations:

1. Branches | Miami, FL
2. Connecticut Association for Human Services | Hartford, CT
3. Koreatown Youth Community Center | Los Angeles, CA
4. MassCAP | Boston, MA
5. United Way Bay Area | San Francisco, CA

Each program brings years of VITA expertise. As part of this pilot, we will collect data with a “tax nerd” focus on three questions this pilot can help us answer: 

1. What About Our Newest and Lapsed Filers?

Both Prosperity Now and the Citi Foundation identified a need to reach more lapsed and first-time filers, in part because more tax credit benefits are available this filing season. Our VITA partners will spend their off-season and filing season developing tactics and resources focused on these filers, who can fall through the gaps at tax time. Each grantee will focus on enhanced strategies to incorporate more first-time and lapsed filers, including mailings, direct service organization partnerships and more.

1. At Branches, they are streamlining services to become a one-stop shop for people who have never filed by offering Individual Taxpayer Identification Number (ITIN) services as well as partnering with local high schools.
2. In Massachusetts, MassCAP is partnering with their sites across the Commonwealth to provide unique outreach strategies while publicizing the impact of the expanded tax credits for low-income households.
3. Staff at Connecticut Association of Human Services (CAHS) are working with local reentry organizations to help returning citizens file their taxes with trusted partners.
4. Koreatown Youth Community Center is supplementing its virtual and hybrid tax preparation format with language support and translation. In addition, they are providing an emergency matched savings initiative for clients who have never previously filed.
5. Finally, United Way Bay Area is providing tax services all year to ensure late filers always receive the high quality of services expected at VITA sites.

This pilot offers a unique opportunity for all VITA programs to examine what types of outreach work with different populations and how to incorporate these tactics into their planning processes.

2. What Strategies Work Best for Outreach and Filing?

The expansion of tax credits will create confusion for taxpayers as they get ready to file--even for first-time or lapsed filers who are entitled to more generous benefits. Luckily, our VITA partners are working with technical assistance providers to make sure they can handle questions and concerns from these taxpayers. As the improvements to alternative service delivery, such as drop-off and fully virtual tax preparation, accelerate, our cohort is well positioned to explore these strategies.  Maximizing convenience and efficiency is crucial to ensuring each client can utilize the free, quality and no-cost services that VITA is known for. Prosperity Now is excited to see how these strategies can provide economic empowerment for the new and lapsed filers beyond the tax-time moment.

3. What are the Implications of Alternative Tax Preparation for our Partners and Clients?

Given the continuing challenges and overall devastating impact of the COVID-19 pandemic, our VITA partners are continuing to adjust their programming to ensure the safety and well-being of their volunteers and clients by offering hybrid and remote service options. Knowing how these services work for the communities that are accessing VITA, and particularly for first-time or lapsed filers, is crucial. To gather these data, Prosperity Now will conduct surveys and qualitative interviews with clients to ensure that feedback and experience is centered as we identify best practices and lessons learned. These surveys and interviews will examine who is being served by the VITA process and the impact of these services. At the end of this pilot, expect a distillation of actionable lessons learned that can be used at your VITA site.

Researching and analyzing these questions will create paths for long-term success and prosperity for the community tax preparation field. Ultimately, we are seeking to ensure that all who are entitled to EITC benefits obtain them. By answering these questions, our partners will get us closer to this universal goal. We are excited to add to the field’s body of knowledge to help you identify the best way to serve the millions of households who use VITA nationwide. We encourage you to stay tuned to Prosperity Now to follow this pilot!