July 2014

Acknowledgments
The National Community Tax Coalition (NCTC) NFP and the Center for Economic
Progress (CEP) are truly grateful to the JPMorgan Chase Foundation for funding
the Virtual Volunteer Income Tax Assistance (VITA) pilot program. We also thank all
the volunteers and staff of United Way of Tucson and Southern Arizona and Asset
Independence Coalition and Michigan Capital-Area United Way, as well as all CEP staff
members and volunteers who worked to improve how we serve working families.
Photos are courtesy of the Asset Independence Coalition & Michigan Capital Area United Way.
Copyright 2014, Center for Economic Progress. All rights reserved.
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VITA partners recognize the need to nd more cost-effective ways to meet
growing demand as resources continue to shrink. Despite serving more than
three million tax lers in 2013, more than 50 million taxpayers who qualied
for Volunteer VITA were not served primarily due to the spatial mismatch
between location and capacity.
At the national level, an expanding model may prove to address this issue:
Virtual VITA. In the Virtual VITA model, technology connects a ler with an off-
site VITA tax preparer. The lers intake documents are scanned and securely
stored, and depending on the service delivery, the tax return either is then
completed in real time or dropped off for pick up by the client at a later
date.
Compared to traditional VITA, Virtual VITA can require fewer frontline
resources to implement. Also, among key ndings from the Head Start
Virtual VITA pilot in New York, the average cost per return completed for the
Virtual VITA program was half the average cost per return completed for
the traditional VITA program.
Though more work is needed to build Virtual VITA to a scalable solution, the
model offers a promising way to deliver free tax preparation, expand the
program to a wider group of social service providers, and successfully meet
community needs.
Introduction
The Virtual Volunteer Income Tax Assistance (VITA) pilot program
used technology to connect low- and-moderate-income taxpayers
with critical tax preparation services free of charge, without
requiring them to be present with the preparer and wait hours at
a traditional community-based VITA site.
This report highlights ndings from the program. The grant
recipient was the National Community Tax Coalition (NCTC).
NCTC was a limited liability company and a subsidiary of CEP
until October 1, 2013, upon which NCTC NFP became its own
entity.
Tucson, Ariz., and Lansing, Mich., were chosen as the pilot
program locations. Respectively, the United Way of Tucson
and Southern Arizona (UWTSA) and the Asset Independence
Coalition (AIC) administered the program.
Background
Community organizations that provide free tax preparation serve a
crucial role in meeting the needs of thousands of low-income families
and individuals each year.
Independent of NCTC, CEP also administered a
Virtual VITA pilot. One of the nations largest and most
established providers of free VITA services to low-
wage families, CEP has operated under the auspices
of the IRS VITA program for 20 years. Since 1994,
CEP has prepared more than 350,000 tax returns,
helping Illinois residents receive over $530 million in
tax refunds and credits.
The most common free tax preparation
service is the traditional VITA model of
one-on-one in-person ling assistance.
Despite reliance largely on unpaid
volunteers, the traditional VITA model can
be costly, requiring rented or donated
space, additional paid staff, computers, and
supplies. Moreover, funding to support this
model has constricted in recent years.
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Models
Asset Independence Coalition &
Michigan Capital Area United Way
The sub grantee serves families in very rural areas of Michigan who live in
tax prep deserts and would not otherwise have access to free or low cost
tax and nancial services.
Launched mid-way through the 2014 tax season (on March 1), the initial
concept was that the income tax preparation appointment would be virtual
but happen in real time with the client. The idea was to alleviate volunteer
availability and capacity issues and also help the client understand more
about the return because they could watch the preparation, while bringing
additional free tax preparation resources to areas that desperately need
them.
Accounting students who were certied VITA volunteers at Northern
Michigan University (NMU), in Marquette, Mich., served as the intake site.
Accounting students who were certied VITA volunteers at Michigan State
University (MSU), in Lansing, and Olivet College, located in Olivet, served
as the tax preparers.
By April 1, the Asset Independence Coalition (AIC) only served 14
clients through the Virtual VITA program. It was discovered:
Potential clients were put off by the Virtual VITA consent form and
did not like the idea of their return being prepared by volunteers in a
different city.
Some clients thought they would have to do their own return (despite
volunteers assurance to the contrary).
Clients preferred to wait (sometimes for more than an hour) rather than
have their returns prepared virtually.
The word virtual was a huge stumbling block and created anxiety,
misunderstanding and distrust with our clients.
As a result, AIC took action and changed strategy, immediately converting
to a drop-off program. The intake interview and documents scanning
occurred at NMU, and the returns were prepared at MSU and/or Olivet,
but no longer in real time. Other changes included:
Having clients sign the Virtual VITA release form when they picked up
their taxes, rather than before.
Not using the word virtual in our interactions with the clients.
Once the change
took place, the
program gained
traction. By the
end of the 2014
tax season, a
total of 78 tax
returns were
completed and led (61 were federal
returns and the rest were credit only,
prior year or City only). The goal of 200
returns set by NCTC was not reached;
however, that number was ambitious
from the outset, given the extremely
rural area with a small population and
late start date.
Considering the initial challenges, the
sub grantee was pleased with what
was accomplished after changing the
program mid-season. The IRS Territory
Manager recognized the program as an
innovative model and it was presented
at the statewide VITA learning exchange
to rave reviews.
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Number of Clients 78
Number of Federal
Returns Prepared 61
Federal Returns w/ EITC 49



Value of Federal EITC $94,262
Average Adjusted Gross Income $22,719

Total Refund Value $231,422
Asset Independence Coalition & Michigan Capital Area United Way
Models
United Way of Tucson and
Southern Arizona (UWTSA)
UWTSA facilitates and leads the VITA Task Force of Arizona, a collaborative that operates
VITA in 10 of Arizonas 15 counties and is the single largest tax preparer in the state.
The previous paper-based, drop-off model (taxpayers original documents were collected
at the intake site for preparation at a different physical location) was not well received and
ultimately unsuccessful for a number of reasons:
There was a lack of condence in the model due to the need for taxpayers to leave
documents with volunteers and confusion surrounding the word virtual.
There was a lack of the human element associated with the traditional, in-person
preparation model.
As a result, the model was reworked and rebranded for the 2014 tax season:
It was strategically renamed Valet VITA to avoid confusion with the previous model,
eliminate the negative connotation related to the word virtual, associate the service
with a positive experience, and help convey the process.
A new volunteer position, Interview Specialist, was created to allow for more taxpayer
interaction and reintroduce the human element.
New scanning equipment and secure cloud technology were utilized to allow taxpayers
to leave the intake site with their documents in hand, thereby increasing a sense of
security and trust.
Valet VITA was offered at ten VITA sites throughout Southern Arizona during the 2014 tax
season. Of those, two offered Valet VITA exclusively. A total of 271 returns were completed
and led. The majority were e-led.
Despite that success, three new concerns arose:
The length of time needed to prepare returns through the Valet VITA model. Due to
overwhelming response, the 7-10 day turnaround often could not be maintained. Also,
clients at hybrid sites (offering both traditional and Valet VITA) frequently preferred
waiting to le their return that same day.
The considerable amount of monitoring of the cloud storage technology required to
maintain quality service.
Effective communication between taxpayers and volunteers/staff regarding the
Valet VITA process. It was found that once the intake process was complete, many
taxpayers contacted VITA volunteers or staff with follow-up questions that could have
been easily answered and addressed during intake.
Its Valet VITA model,
piloted in 2014,
aimed to ensure
that no eligible
taxpayer would be
turned away due to
time constraints or
volunteer availability.
Valet VITA was
conceptualized in
response to negative
feedback concerning
a former Virtual VITA
model that was
introduced during the
2013 tax season.
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Models Center for Economic Progress (CEP)
CEP is one of the nations largest and most established organizations providing free tax preparation and nancial
services to low-wage families under the auspices of the IRS VITA program. Recognized as a model program nationally,
its free tax services reach approximately 17,000 households per year in throughout the Chicago area, collar counties,
and in select downstate locations. Services are offered to individuals earning up to $25,000 and families earning up to
$50,000.
During the 2014 tax season, CEP piloted real-time virtual VITA at three
of its traditional VITA sites and drop-off virtual VITA at two other sites.
CEP prepared a total of 306 returns (211 through the real-time virtual
VITA and 95 through drop-off).
For sites offering real-time virtual VITA services, CEP established a tax
preparation site at its downtown headquarters- operating similarly to
a traditional VITA sitewith a dedicated site manager and trained and
IRS-certied volunteers preparing returns for qualifying households
however, the site was used solely to process returns remotely. At its
three participating community sites (chosen due to their relatively low
volunteer turnout), the intake specialist informed clients of the remote
preparation option when volunteer capacity was reached.
Sites were equipped with laptops and high-capacity scanners and
printers to receive, scan, and transmit tax documents for remote
processing. Cloud services were used to securely transmit documents
between clients and the volunteer preparers.
CEP screened clients based on a set of basic criteria to ensure the
return was appropriate for this type of preparation, and the client
interview was conducted with the intake specialist at the site. The
clients tax documents were scanned and sent to the remote site,
where the return was completed and reviewed by a quality reviewer
while the client waited. If necessary, the tax preparer could contact the
intake specialist with questions to get any additional information from
the client. The return was printed on-site and reviewed again with the
client.
CEP also offered virtual VITA drop-off services at two sites chosen due
to their extremely high level of client demand. Drop-off services were
offered in partnership with Dominican Universitys accounting program,
whose students were trained and certied to prepare all dropped-off
returns. As part of their class requirement, 15 to 20 students each
logged at least 15 hours of traditional, on-site VITA experience and
committed an additional 15 hours to preparing dropped-off returns.
At participating sites, CEP
screened clients for complexity
and ensured clients understood
the process. Clients went
through the normal intake
process on-site, including an
interview. When a client elected
to use the drop-off service,
the intake specialist scanned
the clients tax documents and
placed them in a queue for
return preparation. Dominican
University students then
completed the return off-site.
Clients then came back at up to
a week later to review, sign, and
obtain copies of their returns.
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Number of Clients 288
Number of Federal
Returns Prepared 306
Center for Economic Progress
Federal Returns w/ EITC 101



Value of Federal EITC $187,886
Average Adjusted Gross Income $18,100

Total Refund Value $491,155
DROP OFF
YOUR TAXES
Pressed for time?
Notify the intake staff that you want
to drop off your tax documents.
Complete the intake forms and
submit documents to intake staff.
Return in a week to review, sign
and pick up your return.
Figure 1. Real-Time Virtual VITA Model with Center for Economic Progress (CEP)
Figure 2. Promotion of Drop-off
Virtual VITA Model with Center for
Economic Progress (CEP)
For the 2015 tax season, CEP plans
to focus its efforts on expanding the
drop-off service to all its tax sites.
The real-time tax preparation required
signicantly more resources and
coordination hiring site staff for the
remote-only site, and additional planning
of logistics between the remote and
intake staff; whereas the drop-off
service allowed CEP to better match
and coordinate client demand with
volunteer capacity while still providing
an alternative option to clients.
Clients
Traditional
VITA Site
Neighborhood
A
Traditional
VITA Site
Neighborhood
B
Remote Tax Prep Site
Downtown Location
Houses tax preparers
No client walk ins
Provides added tax prep capacity
Traditional
VITA Site
Neighborhood
C
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Lessons Learned
Its all in the brand name.
Client perception of the word virtual created a barrier. In Michigan, using the word virtual in marketing
and explanations to clients backred. Also, pairing rural clients and technology wasnt a good t. In Arizona,
there was confusion surrounding the word virtual.
Real-Time vs. Drop-off
All three organizations found clients receptive to the drop-off service, especially when it was clearly a more
convenient alternative to longer wait times or returning to wait again another day. At CEP, clear, simple
signage helped promote and explain the drop-off service to clients and increased participation rates.
Building off of each of their programs successes, next year the three organizations will integrate the
promotion of their model of the drop-off service into their site marketing materials and implement more
rigorous organizational best-practices to ensure a positive client experience.
The right volunteer is key.
Technology skills were important, but so was the ability to interact and provide customer service, answer
questions and respond to concerns especially at the intake stage.
Turn-around time must be consistent.
For a drop-off program, technology and stafng must match demand in order to turn returns around within
the promised timeframe and maintain the trust of clients.
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*Based on Center for Economic Progress cost analysis
Average
cost per
return*
Traditional VITA Site
$
70
.37
Virtual VITA
$
35
.61
Much was learned through this endeavor not only about
Virtual VITA but about innovation in the volunteer tax
assistance eld, in general.
Investments such as this one by the JPMorgan Chase
Foundation help practitioners to better serve their clients
through innovation.
Given the risk of continued erosion of public funding for
volunteer tax assistance even as demand has increased
year after year, such investments and support are critical
not only to the elds growth but also its survival.
Likewise, practitioners have a responsibility to continually
develop promising practices and new structures for
service delivery particularly those that improve
operational efciency and cost-effectiveness. Through
pilot programs like this one, we improve the lives of
those we serve while improving our own chances for
sustainability.

Conclusion
Virtual VITA offers
opportunities to
provide more people
with improved
service. To promote
success, VITA partners
must adopt the
marketing, design
and implementation
guidelines highlighted
by this pilot.
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