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IRS​‍​‌‍​‍‌​‍​‌‍​‍‌ Awards $53 Million in Grants to Support Free Tax Assistance Programs for Elderly and Underserved Communities
7 Min read Mohit GuptaFebruary 4th, 2026

IRS​‍​‌‍​‍‌​‍​‌‍​‍‌ Awards $53 Million in Grants to Support Free Tax Assistance Programs for Elderly and Underserved Communities

The Internal Revenue Service has decided to make a substantial investment in community-based tax assistance by awarding $53 million in grants to support two essential programs: Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA). These funds, released on January 30, 2026, will allow organizations all over the country to deliver free federal tax return preparation services to the most needy. In a period of rising tax intricacies, these programs are a vital source of help for millions of Americans.

The IRS received 479 applications totalling over $79 million in requests, which is a clear indication of the great need and desire for these services. In the end, only 48 TCE and 315 VITA applicants received a grant so that the help will be available in communities all over the country.

What Are the TCE and VITA Programs

Tax Counselling for the Elderly (TCE)

The TCE program was initiated back in 1978 to offer free tax counselling and federal return preparation to senior citizens of 60 years of age and older. This part of the population typically has very individual tax situations in respect of their income from retirement, pension, Social Security benefits, and withdrawals from retirement accounts. Volunteers are specially trained so that they understand these issues and can provide their services close to the seniors, such as at senior centers, libraries, and places of worship.

Volunteer Income Tax Assistance (VITA)

VITA is an even older program, established in 1969 in order to help certain groups in the community: low- to moderate-income individuals, persons with disabilities, limited English proficient taxpayers, and other underserved communities. VITA recipients who are given grants prepare and electronically file federal tax returns free of charge for eligible taxpayers. The program is aimed at helping these groups of people gain access to professional tax help and be saved from being misled or taken advantage of by predatory tax preparers.

Both programs are run through a network of partners in the community that include non-profit organizations, faith-based organizations, community centers, and big employers. The IRS is a facilitating partner providing tax law training, volunteer certification, and program oversight to make sure that return preparation is done correctly.

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Benefits for Communities and Eligible Taxpayers

Frank J. Bisignano, IRS Chief Executive Officer, spoke about the importance of the investment: “With these grants, VITA and elderly tax-counselling programs will have enough money to help thousands of people who visit local centers in the whole country. The IRS knows well and values the work of these organizations, and we salute their efforts.”

These programs serve their eligible taxpayers in the following ways:

  • Saving Money: Sometimes it can cost hundreds of dollars to have professional tax preparation done. This will not be a problem when using these programs.
  • Precision and Safety: Volunteers are trained and certified by the IRS, which is a good way of minimizing the risk of making mistakes that can result in an audit or the delay in receiving a tax refund. Moreover, the security of the taxpayer is ensured as the risk from the less reputable preparers, which sometimes happens, is avoided.
  • Taking Advantage of Tax Credits: A large number of eligible taxpayers fail to recognize the benefits of tax credits, such as the Earned Income Tax Credit (EITC), because they don’t file for taxes. However, VITA volunteers have the skill to spot these situations and help the taxpayers take advantage of them.
  • Reliable Help: On top of it all, elderly taxpayers greatly appreciate the kindness of a volunteer who is not only a specialist but also willing to be patient with them and to protect them from abuse.

Ways in Which Organizations and Volunteers Can Get Involved

The IRS on its website IRS.gov provides extensive details about how to apply for both the TCE and VITA programs, which is a useful resource for the organizations that want to participate in the next round of grants. The specific pages to visit are:

  • Tax Counselling for the Elderly program information
  • IRS VITA Grant Program details

The list of current grant recipients will be published on these pages by January 31, 2026, thus enabling taxpayers to find the free assistance that is closest to them.

The IRS also recommends that individuals think about volunteering. There is no need for the volunteer to have previous tax experience since the IRS offers comprehensive training and all the necessary resources. Those who want to embark on this interesting journey can get information from IRS Tax Volunteers.

Relia…their role in tax assistance.

The idea is that the IRS community tax assistance programs must rely on reliable technology infrastructure ever more as their performances are increasingly dependent on such technological support. Currently, a good number of locations have adopted the use of online intake forms, document management, and virtual assistance. Those VITA and TCE grantees must have dependable technical foundations if they want to run their taxpayer services efficiently and securely.

This is where specialized service providers can really make a difference. A secure and stable hosting environment ensures that the online aspects of these vital programs – whether that is the volunteer management system, the portal for taxpayer data, or the organizational website – do not become inaccessible or vulnerable. As these programs extend their scope with a particular focus on disadvantaged communities, their technological requirements will have to be rationalized on par with their volunteer and funding needs.

What the Future Holds: Building a Stronger Taxpayer Support Network

The sum of $53 million allocated to the TCE and VITA programs is not just a matter of money; these are the encoded words and the encoded letters of an investment in the empowerment of communities, improvement of financial literacy, and equitable access to vital services. One of the main challenges the programs will face in the near future is that tax laws keep evolving. Therefore, the importance of these programs in the role of assisting the vulnerable groups to understand their obligations and receive benefits will multiply.

If you are a taxpayer possibly qualifying for these services, then take this message with you: there are free and qualified helpers in your vicinity. If you are an organization or volunteer, then the chance to make a difference in people’s lives has never been more supported. To the wider ecosystem that supports these initiatives, from the IRS to the technology providers, the key to success is collaboration so that every taxpayer, regardless of age, income, or background, can confidently and with dignity fulfil their tax obligations.

*Grants were awarded for the 2026 cycle, but the work of these vital programs continues throughout the ​‍​‌‍​‍‌​‍​‌‍​‍‌year. To learn more about accessing free tax help or becoming part of this essential network, visit the IRS website at www.irs.gov.*

If you need tax software hosting, including Drake hosting, you can securely host your software with Sagenext for reliable cloud access.

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