Volunteer Income Tax Assistance (VITA) Certification Practice Test

What should a volunteer do if they encounter an out-of-scope tax situation?

1. Prepare the return anyway

2. Refer the taxpayer to a paid preparer

3. Inform the taxpayer they cannot help

4. Report the taxpayer to the IRS

The correct answer is: Inform the taxpayer they cannot help

When a volunteer encounters an out-of-scope tax situation, the appropriate action is to inform the taxpayer they cannot help. This ensures compliance with the VITA program's guidelines, which specify that volunteers should only assist with tax situations they are trained and certified to handle. By letting the taxpayer know that their issue falls outside the scope of the services offered at VITA, the volunteer maintains the integrity of the program and protects both the taxpayer and themselves from potential errors or liabilities that may arise from providing incorrect assistance. It is crucial for VITA volunteers to recognize their limitations and direct taxpayers toward appropriate resources for their specific tax needs rather than attempting to address issues beyond their qualifications.