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The Internal Revenue Service (IRS) has announced that it is seeking individuals to volunteer with the Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.
The volunteers in these no-cost tax programs have helped millions of individuals prepare their tax returns, including modest income taxpayers, seniors and individuals with disabilities. The volunteers range from high school students to retired individuals. The IRS encourages anyone who is interested to sign up to become a VITA or TCE volunteer.
There are many benefits for VITA and TCE volunteers. Here are key points to keep in mind if you are considering signing up:
Many volunteers benefit from the IRS education programs. These programs include a "Link & Learn Taxes" volunteer certification test. Each year, the IRS prepares a new Link and Learn certification testing website. There is also an extensive Practice Lab resource for individuals. The IRS offers both a Basic course and an Advanced course on taxes.
The Practice Lab is available at VITA.taxslayerpro.com/IRSTraining. To access the lab, there is a generic password "TRAINPROWEB" to view the courses and you will be prompted to create an account. There are additional specialized courses for specific categories. After taking the Basic and Advanced courses, individuals who are serving in the MilTax program may take the Military course.
Individuals who are interested in volunteering may go to IRS.gov/volunteers and sign up. The IRS will thereafter send you a list of the local VITA and TCE sites and an invitation to a virtual orientation.
At the Senate Committee on Finance Hearing on Examining the Taxation of Digital Assets, CPA Annette Nellen testified on behalf of the American Institute of CPAs (AICPA) as chair of AICPA’s Digital Assets Tax Task Force.
Nellen discussed a number of issues relating to cryptocurrency. One recommendation she suggested was to modify the requirement for an appraisal under Section 170(f)(11) for a charitable gift of cryptocurrency.
This section already includes cash, qualified vehicles, certain intellectual property and public securities as "readily valued property." Charitable gifts of readily valued property do not require a qualified appraisal. However, this appraisal exception does not apply to actively traded digital assets.
AICPA suggests that Section 170(f)(11) be amended so that "actively traded fungible digital assets” are included as “readily valued property” and will not require appraisals.
The appraisal exception for public securities is because they are traded on established exchanges. While there are many different types of digital assets, the current IRS rule applies to charitable gifts of assets even when there are available market quotations. For example, under current rules, Bitcoin gifts worth more than $5,000 require an appraisal. However, a gift of Apple stock over $5,000 does not require an appraisal, even though both Bitcoin and Apple are actively traded on public exchanges.
AICPA advocates that "similarly situated taxpayers" should be treated the same as a matter of basic fairness. AICPA noted that this would facilitate charitable contributions of cryptocurrency.
It will be necessary to create "clear and certain guardrails" around any new provisions. A logical solution is to clearly define the digital assets and the exchanges that would be qualified. The exception would be limited to digital assets that are actively traded. Non-fungible tokens would not qualify for the exception because they are less likely to have an active market.
Regulation 1.1092(d)-1 already has a definition of "actively traded." The cryptocurrency exception could define specific exchanges that are regulated in the U.S. Other factors could include a minimum level of trading volume or trade frequency and sufficient liquidity to ensure that the exception is appropriate. Finally, because digital assets may be transferred instantaneously to a nonprofit, there should be clarification of when the date of transfer is deemed to occur. Such clarification will help to establish the correct value for charitable purposes.
AICPA concludes, "Legislation that addresses the application of existing tax principles to digital assets would give industry and taxpayers the necessary tools to operate effectively in the digital assets market."
All federal agencies are required to have a contingency plan that is implemented during a government shutdown. The IRS is using the remaining funds from the Inflation Reduction Act (IRA) to cover a contingency plan. There will be full services for five business days. While there has been a clawback of most IRA funds by Congress, the available remaining funds will be used to maintain IRS programs.
The Office of Management and Budget notified the IRS that there could be a potential reduction in force. Commentators have expressed concern that the IRS needs to continue preparations for the filing season in early 2026. In addition, there are multiple requirements for IRS guidance to implement portions of the One Big Beautiful Bill Act.
AICPA expressed concern about the impact on the IRS from the government shutdown. There are business returns due October 15, tax-exempt returns due November 17 and expatriate returns due December 15. If the shutdown continues for an extended period, the IRS may start to limit operations.
The Senate continues to attempt to find a compromise to end the shutdown. Senate Majority Leader John Thune (R-SD) has been holding votes on a House-passed measure to extend government funding until November 21. Democratic Senators have proposed extending the enhanced premium tax credit and reversing some of the Medicaid cuts.
In a recent vote, three Democratic Senators joined 53 Republicans to approve the House Bill. However, passage requires a vote in favor of the bill by 60 Senators.
The enhanced premium tax credit is scheduled to expire on December 31. Senator Thune has stated Republicans are open to discussing an extension of the tax credit. However, the two parties differ on timing for that extension discussion. With the current impasse, the government shutdown may continue for an extended period of time.
Stock markets frequently are reasonably stable during shutdowns. A major finance firm notes that the average loss during a shutdown was 1.6%. However, in a 1979 shutdown, the market declined 6.1%. During the three-month period after a government shutdown, the average market return was 2.9%.
The IRS has announced the Applicable Federal Rate (AFR) for October of 2025. The AFR under Sec. 7520 for the month of October is 4.6%. The rates for September of 4.8% or August of 4.8% also may be used. The highest AFR is beneficial for charitable deductions of remainder interests. The lowest AFR is best for lead trusts and life estate reserved agreements. With a gift annuity, if the annuitant desires greater tax-free payments the lowest AFR is preferable. During 2025, pooled income funds in existence less than three tax years must use a 4.0% deemed rate of return. Charitable gift receipts should state, “No goods or services were provided in exchange for this gift and the nonprofit has exclusive legal control over the gift property.”
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