Opportunity to Provide Free Tax Assistance to Consumers

The FDIC encourages financial institutions to develop relationships with local IRS VITA and TCE sites. Tax-filing season presents a great opportunity for unbanked households to open a bank account to receive their tax refunds. For many households, including those receiving the Earned Income Tax Credit (EITC), and other tax credits, the tax refund may represent the largest payment they receive in a given year.

VITA and TCE sites can help taxpayers get their refunds quickly and at no cost by using e-file and setting up direct deposit, which may mean more money in taxpayers bank accounts.

Promoting volunteer opportunities at VITA and TCE sites can provide a fulfilling and unique community service experience that benefits people. Staff members can sign up to volunteer by contacting VITA/TCE sites in their local communities, or using the IRS volunteer page

Financial institutions partnering with the VITA program may be eligible for favorable consideration under the CRA regulations for qualifying VITA-related activities. They may also develop new business by promoting financial education, banking products, and other financial services to underserved low- and moderate-income taxpayers.

Many low-income filers may receive significant tax credits and refunds worth thousands of dollars with the assistance of VITA and TCE.

A financial institution may maximize its opportunities to be involved in the VITA program by contacting the IRS or VITA program coordinators before the start of the tax preparation season.

Financial institutions that partner with VITA sites may be eligible for favorable consideration for VITA-related activities under the CRA regulations².

Financial institutions can participate in the IRS VITA program in various ways, including:

• Notifying staff of opportunities to be VITA volunteers.
• Co-sponsoring a VITA program.
• Donating old computer equipment for use in preparing returns.
• Hosting a VITA site at a bank branch.
• Promoting the EITC and VITA program to bank customers, such as by displaying a poster in the lobby or adding a message to bank statements.
• Offering taxpayers the opportunity to begin the process of opening a bank account at a VITA site, whether online or with staff on-site.
• Offering banking products responsive to the needs of VITA clients, whether online or with staff on-site.
• Partnering with the local VITA program to make financial education available to consumers at VITA sites.

Generally, under the CRA regulations, financial institutions can receive favorable consideration for qualifying VITA-related activities.³ See the FDIC’s Banker Resource Center on CRA.

² Similar information in this section previously appeared in FDIC Financial Institution Letters (FIL-97-2007), (Nov. 6, 2007). 

³On October 24, 2023, the FDIC, FRB, and OCC issued a final rule to strengthen and modernize regulations implementing the CRA to better achieve the purposes of the law. 

Note: The FDIC continues to assess banks’ CRA performance under the 1995 regulatory framework

• Promote VITA volunteer opportunities with your staff by sharing information about the IRS Volunteer Page — IRS-certified Volunteers help millions of hard-working taxpayers get their refunds quickly at no cost. Learn about volunteer opportunities.
• Share these links so qualifying taxpayers can access free tax assistance
   
  • Find free IRS-certified tax preparers in your community
  • Obtain free tax assistance from a nearby AARP® Foundation Tax-Aide location
  • Use GetYourRefund for IRS-certified preparers from the VITA program to prepare your tax return prepared for free online
  • Prepare your tax return for free using the United Way’s myfreetaxes.com with free assistance from IRS-certified tax preparers
  • Direct deposit is a safe, fast, and convenient way to keep more of your refund. Contact us at (your company and contact information) or find an account right for you at FDIC Get Banked! (English), or Abre Una Cuenta (Spanish)
  • See the Consumer Financial Protection Bureau’s (CFPB) resources for tax preparers