The Internal Revenue Service (IRS) announced Monday that it has awarded $53 million in grants to hundreds of organizations that provide taxpayer-funded federal tax preparation services for seniors, lower-income families, and underserved communities.
The IRS said in a Dec. 2 release that 315 grants have been awarded to applicants participating in the Volunteer Income Tax Assistance (VITA) program, along with 31 grants provided to organizations under the Tax Counseling for the Elderly (TCE) program. The agency noted that the grants aim to expand access to critical tax preparation services, helping more Americans navigate an increasingly complex tax code.
The complexity of America’s tax code was recently criticized by the X account of the Department of Government Efficiency (DOGE), a to-be-established entity that President-elect Donald Trump has tasked with restructuring federal agencies—including potentially the IRS—as well as cutting government expenditures, slashing regulations, and rolling back government bureaucracy.
The IRS noted in its Monday announcement that both programs—VITA and TCE—rely on a network of trained volunteers who work at locations such as libraries, community centers, and schools to deliver these services. Grant funds are used to recruit and retain volunteers, develop promotional materials, and cover operational costs such as equipment and supplies. The agency noted it had received 445 applications requesting $82.9 million in funding under the two programs for the 2025 grant cycle.
The VITA program, which was established in 1969, focuses on assisting low- and moderate-income taxpayers, individuals with disabilities, and those with limited English proficiency. By providing free tax preparation and electronic filing services, VITA helps members of these communities access tax credits and refunds.
The TCE program, created in 1978, serves individuals aged 60 and older, addressing the specific tax challenges faced by seniors, including retirement income, pensions, and health-related deductions. The program supports eligible organizations through cooperative agreements, allowing them to reimburse volunteers for expenses like transportation and meals while assisting elderly taxpayers.
Alongside its announcement of $53 million in grants for free tax preparation programs, the IRS on Monday launched its ninth annual National Tax Security Awareness Week, urging taxpayers to remain vigilant during the holiday shopping season. The week-long campaign, a joint effort between the IRS, state tax agencies, and industry partners, highlights the risks of identity theft and offers practical tips to protect sensitive information.
