IRS SPEC Rural Strategy Initiative in Pennsylvania

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IRS SPEC Rural Strategy Initiative in Pennsylvania
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What is the Rural Strategy Initiative?

• Initiative designed to expand SPECs programs
  and services to underserved geographic rural
  areas

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Free Tax Preparation to Targeted Populations

• Low income
• Elderly
• Disabled
• Limited English Proficient
• Rural

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Demographic Research

• In 2007, 3.4 million people lived in
  Pennsylvanias 48 rural counties.
• Among rural households, 29 had incomes below
  25,000.
• 15 of the rural population is considered elderly
  (age 65 or older)
• About 5 of Pennsylvanias rural population
  speaks a language other than English at home.
• About 18 of rural Pennsylvanians have some sort
  of disability.
• Nine percent of working-age rural Pennsylvanians
  (16 to 64) have a work disability

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What is Rural?

• SPEC uses US Office of Management and Budget
  (OMB) definition
• Any county or counties that do not have a
  principal city with a population of 50,000 or
  more.
• Center for Rural Pennsylvania uses population
  density definition
• A county is rural when the number of persons per
  square mile within the county is less than 274.

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Why a Rural Initiative?

• Higher of low-income residents in rural areas,
• but
• Lower of free tax preparation

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• 18 rural Pennsylvania counties do not have VITA
  sites.

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PA Volunteer Tax Preparation Sites
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Comparison of Volunteer Prepared Returns TY 2006
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Conclusions

• Lower of EITC returns prepared by volunteers
  in PAs rural counties than statewide and
  nationwide.
• Even lower in rural counties that do not have
  VITA sites.

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Barriers to free tax preparation in rural areas

• Lack of volunteer sites
• Lack of certified volunteers
• Transportation issues
• Weather conditions
• Lack of technology

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PA Rural Strategy

• Expand services provided by traditional VITA
  sites
• Mobile sites
• Ad Hoc Sites
• Special Events
• Use SPEC Alternative Rural Policy

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Mobile Sites

• Volunteer takes laptop and goes to specific
  location or TPs home
• Volunteers go to location with high speed
  internet access
• Mobile Van
• Louisiana
• W VA

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Ad Hoc Sites

• One day or infrequent basis events
• Large employers
• Schools
• Community Centers
• Churches
• Supermarkets
• Etc

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Special Events/Days

• National EITC Awareness Day
• Jan. 29, 2009
• Super Saturday
• EITC Bingo
• Alaska
• Holidays
• Valentines Day

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Alternative Rural Policy

• May be used when use of a traditional VITA site
  is not practical and/or not possible.
• Referred to as Non-face-to-face preparation.
• TP is not physically present when the return is
  prepared.
• Collaboration of two organizations/sites.

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Alternative Rural Policy

• Collaboration consists of 2 components
• Intake Site
• Preparation Site

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Intake sites can have

• IRS-certified
• Or
• Non-IRS certified
• volunteers

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Intake site volunteer

• Verifies the taxpayers identity
• Sends Intake and Interview sheet (Form 13614-c)
  and tax documents by mail,
• e-mail, fax, or scanner to the preparation
  site

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Preparation site

• Receives Intake Sheet and tax documents
• IRS certified volunteer conducts an interview
  with TP via
• Phone
• Webcam
• Minnesota
• IRS certified volunteer prepares the tax return
  using software

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Once the tax return is completed

• It is quality reviewed
• Sent back to the TP, along with signature
  document (F 8879)
• The signed F 8879 is returned to the preparation
  site.
• Tax return is electronically transmitted.

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Alternative Rural Policy has

• successfully worked in
• Alaska
• Iowa
• Minnesota
• Montana
• Utah

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Helping rural taxpayers receive EITC, other tax
benefits, and free tax preparation offers great

• Challenges
• Commitment
• Opportunities
• Progress

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How can your agency help?

• Start a traditional VITA site
• Partner with an existing site, using SPECs
  alternative rural policy
• Become a return preparation hub for remote
  intake sites.
• Expand on your current VITA services
• Go mobile
• Have an ad hoc site
• Sponsor a special event

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QuestionsCommentsOther Ideas or Suggestions
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Thank you.

• For more information, please contact
• Evelyn R Fisher
• Rural Initiative Coordinator
• IRS-SPEC
• 1000 Liberty Ave., Room 309
• Pittsburgh, PA 15222
• 412-395-6636
• Evelyn.R.Fisher_at_irs.gov