The services are designed to assist seniors, low-income families, and underrepresented communities in navigating the increasingly intricate tax code.
On Monday, the Internal Revenue Service (IRS) announced the allocation of $53 million in grants to numerous organizations that offer taxpayer-funded federal tax preparation services targeting seniors, low-income families, and underserved communities.
In a release dated Dec. 2, the IRS revealed that 315 grants have been awarded to participants in the Volunteer Income Tax Assistance (VITA) program, along with 31 grants for organizations under the Tax Counseling for the Elderly (TCE) program. The agency highlighted that these grants aim to enhance access to essential tax preparation services, helping a greater number of Americans navigate the increasingly complicated tax code.
The complexity of the U.S. tax code has recently been
criticized by the X account of the Department of Government Efficiency (DOGE), a soon-to-be-established body that President-elect Donald Trump has
tasked with restructuring federal agencies—
including potentially the IRS—while also aiming to reduce government spending, deregulate, and minimize bureaucratic processes. Additionally, there has been
media speculation suggesting that DOGE, led by Elon Musk and Vivek Ramaswamy, may be considering the development of a free app for tax filing.
In its announcement on Monday, the IRS noted that both the VITA and TCE programs depend on a network of trained volunteers who provide services at locations such as libraries, community centers, and schools. The grant funds are utilized for recruiting and retaining volunteers, creating promotional materials, and covering operational expenses such as equipment and supplies. The agency reported receiving 445 applications requesting $82.9 million in funding for the 2025 grant cycle.
The VITA
program, established in 1969, is dedicated to assisting low- and moderate-income taxpayers, individuals with disabilities, and those with limited English proficiency. By offering free tax preparation and electronic filing services, VITA helps these communities access tax credits and refunds.
The TCE
program, launched in 1978, caters to individuals aged 60 and older, addressing specific tax issues faced by seniors, including retirement income, pensions, and health-related deductions. The program supports eligible organizations through cooperative agreements, enabling them to reimburse volunteers for expenses like transportation and meals while aiding elderly taxpayers.
In conjunction with the $53 million grant announcement for free tax preparation initiatives, the IRS also
launched its ninth annual National Tax Security Awareness Week on Monday, encouraging taxpayers to be vigilant during the holiday shopping period. This week-long campaign, a collaborative effort between the IRS, state tax agencies, and industry partners, emphasizes the risks of identity theft while providing practical advice for safeguarding sensitive information.
