For many U.S. households, their tax refund may be the largest payment they will receive all year. Tax time can be a “bankable moment” that presents an opportunity for many consumers to open an insured account and start saving.
Learn more about creating partnerships with organizations providing free tax assistance to consumers. >
The Federal Deposit Insurance Corporation (FDIC) continues to partner with the Internal Revenue Service (IRS), and we want banks and other financial institutions to know about the benefits of free IRS-certified tax assistance. IRS Volunteer Income Tax Assistance (VITA) sites, as well as Tax Counseling for the Elderly (TCE), through AARP® Foundation Tax-Aide sites, offer an opportunity for financial institutions to provide financial services to underserved low- and moderate-income consumers.1
See takeaways and insights from the FDIC’s Survey of Volunteer Income Tax Assistance (VITA) Providers to better understand potential opportunities to help unbanked clients of VITA sites open insured accounts to direct deposit their tax refunds.
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.