Page 1Page 2Page 3Page 4Page 5Page 6Page 7Page 8Page 9Page 10Page 1143Global Perspectives on Accounting EducationVolume 5, 2008, 43-53INCOME TAX SERVICE LEARNINGOPPORTUNITIES: A LOOK ATALTERNATIVE MODELSDennis W. PriceBrock School of BusinessSamford UniversityBirmingham, AlabamaUSADouglas L. SmithBrock School of BusinessSamford UniversityBirmingham, AlabamaUSAABSTRACTDuring two recent academic years, the authors explored various aspects of the United States InternalRevenue Service’s (IRS) Volunteer Income Tax Assistance (VITA) program. They served asvolunteers in three separate VITA programs, each operating under different models. Based on theirexperiences, VITA programs are an under-utilized source of service learning opportunities forstudents. The number and diversity of programs, the flexibility in each program, and the availabilityof quality educational, technological, and mentoring support, make it possible to design a servicelearning opportunity for any student population. Recent program enhancements make the experienceparticularly meaningful for accounting students interested in public practice. This paper overviewsthe VITA program and describes: 1. three program models; 2. the pros and cons of each model asthe basis for a service learning opportunity; and 3. the critical need to carefully consider objectiveswhen designing a VITA program-based service learning opportunity. While individual income taxesmay not exist in some countries or may be less complex than in the United States, the VITA modelspresented in this paper may be relevant example models of ways to structure opportunities for otheraccounting student learning activities.Key words: Service learning, VITA44 Price and SmithINTRODUCTIONThe impact on the accounting profession of the increasing numbers of corporate scandals hasbeen tremendous. The increased pressure for accurate financial reporting has increased thedemand in both public and corporate arenas for all areas of accounting, including auditing,reporting, tax, and accounting systems. The demand for new accountants appears to exceed thesupply being produced by business schools. Exposure to the public accounting profession can serveas a recruitment tool for prospective students. This paper presents the individual income tax area asone service opportunity to acquaint students with accounting work activities.The body of literature on service learning in the business context is small. Andrews (2007)stated that the number of service learning activities in the accounting discipline is fewer than insome other disciplines such as marketing, management, and information systems. Strupeck andWhitten (2004) provided a review of the service learning literature in accounting and addressedopportunities and experiences arising out of the Volunteer Income Tax Assistance (VITA) program.The existing literature focuses on service learning opportunities related to school or universitysponsored VITA sites. Discussion exists regarding the relative advantages and disadvantages ofdifferent university sponsored site models. Strupeck and Whitten (2004) compare and contrast therelative practical and pedagogical advantages and disadvantages of two university sponsored sitemodels differing primarily on the following three characteristics: whether the volunteer activity wasa non-course credit or three-hour course credit activity; whether the site schedule was a weekdayschedule or a Saturday schedule; and whether or not the site offered e-filing. Their work describesthe advantages and disadvantages associated with various characteristics of site models, e.g., sitelocation, publicity sources and frequency, and targeted clients. They concluded that, while differentmodels offer both benefits and challenges, the major objective should be to provide a forum forpractical application of the classroom theory.This paper adds to the existing literature on service learning by specifically addressingservice learning opportunities, and related issues, arising from student participation in third-party(i.e., non school or university) sponsored VITA programs. Additionally, this paper describes recentVITA program enhancements that can make a VITA program-based service learning experiencemeaningful for accounting students who may have an interest in public practice, but who have notyet decided whether to pursue a career in public or corporate accounting, and within publicaccounting, whether to pursue tax or auditing.The remainder of this paper includes an overview of the VITA program and three differentmodels in which the authors participated. A conclusion is presented following these sections. Whileindividual income taxes may not exist in some countries or be less complex than in the UnitedStates, readers may identify other accounting activities that offer opportunities for student learning,through building on the VITA models presented.OVERVIEW OF VITAThe VITA program started in the late 1960s as an Internal Revenue Service (IRS)coordinated effort to educate and assist taxpayers with regard to their federal income tax complianceresponsibilities. The IRS, which resides organizationally in the Department of the Treasury, ischarged with responsibility for carrying out the United States tax laws (Hoffman et al., 2008). Whilecoordinated by the IRS, assistance was, and is, provided through partnering volunteers. Successfulfrom its beginning, the VITA program expanded rapidly through the efforts of volunteers fromsponsoring religious, educational, social, non-profit, military, and other organizations – includingIncome Tax Service Learning Opportunities 45the IRS. Statistics indicate that, in a recent year, approximately two million taxpayers were assistedby 40,000 volunteers, operating from approximately 6,000 VITA sites.The VITA program has evolved responsively to changes in the legal, social, andtechnological environments. While the VITA program’s principal focus has always been low incometaxpayers, including those eligible for the earned income credit, programs have evolved targetingtaxpayers not fluent in English (the “English as a second language [ESL]” program) and the elderly(the “Tax Counseling for the Elderly [TCE]” program). The ESL and TCE programs merely extendthe VITA program’s education and compliance missions to the specified groups.The descriptions of the VITA and TCE programs from the IRS website are presented below.The IRS website also states that the AARP (American Association