1. Introduction: What is Form 13979-A?

IRS Form 13979-A, officially titled the VITA Grant Budget and Narrative, is an administrative grant management document published by the Internal Revenue Service (IRS). The IRS operates as a bureau of the United States Department of the Treasury, administering the federal tax code and overseeing grant programs that support free community tax preparation.

Unlike personal tax returns or business income schedules, Form 13979-A is an institutional budgeting and narrative justification document. It is administered by the Stakeholder Partnerships, Education and Communication (SPEC) division within the IRS Wage and Investment Division.

Form 13979-A is completed by non-profit organizations, local governments, and academic institutions that have been selected to receive a federal grant under the Volunteer Income Tax Assistance (VITA) Grant Program. It serves as the official post-award budget document where grantees align their proposed spending with their approved award amount and provide comprehensive written explanations for every projected cost.

2. Purpose of the Form

When organizations apply for a VITA grant in May using Form 13977, they request an estimated funding amount. However, the IRS rarely awards the exact dollar amount requested, as congressional funding levels and competitive scoring dictate final allocations announced in the fall.

Under federal grant rules outlined in Title 2 of the Code of Federal Regulations (2 CFR Part 200), federal grant dollars must be proven reasonable, necessary, and directly allocable to the program. A simple table of dollar figures is insufficient for federal compliance; the government requires a detailed narrative explaining the math, job duties, and community necessity behind every proposed expenditure.

Form 13979-A exists to solve this accountability requirement during the award acceptance phase. It allows successful applicants to adjust their numbers to match their actual Notice of Award, justify every expense line with a written explanation, detail any sub-awards of $1,000 or more, and prove they have secured the mandatory dollar-for-dollar (1:1) non-federal match before federal funds are released.

3. Who Needs to File This Form

Form 13979-A is completed exclusively by organizations that have received an official Notice of Award under the VITA Grant Program (Assistance Listing Number 21.009). You need to file this form if you represent any of the following entities:

Newly Awarded VITA Grantees: 501(c)(3) non-profit organizations, United Way chapters, and community action agencies accepting an initial VITA grant award.
Municipal & County Government Recipients: Local government bodies operating free tax preparation clinics under a newly approved VITA grant.
Colleges & Universities: Academic institutions awarded federal funds to support student-run community tax clinics.
Returning Multi-Year Grantees: Grantees entering year two or year three of an approved multi-year award cycle submitting their annual continuation acceptance package.
Active Grantees Requesting Budget Amendments: Funded organizations that require significant operational budget modifications during the grant year.

The form is prepared and signed by the organization’s executive director, finance director, or lead grant administrator. Individual taxpayers and volunteer tax preparers never complete Form 13979-A.

4. Who Is Exempt / Not Required to File

Because Form 13979-A is strictly a post-award acceptance and narrative form for approved VITA grantees, most organizations and individuals do not need to file it:

Individual Taxpayers: Community members receiving free tax assistance have no connection to this grant administration form.
Individual Tax Volunteers: Volunteer preparers, greeters, and quality reviewers certify their individual participation on Form 13615, not Form 13979-A.
Non-Grant Sponsoring Partners: Organizations that host VITA clinics without receiving federal cash grants partner under Form 13533 and do not submit budget narratives.
Tax Counseling for the Elderly (TCE) Recipients: Organizations funded under the separate TCE grant program submit a TCE-specific budget narrative alongside Form 8653.
Unsuccessful Grant Applicants: Organizations that applied for a VITA grant but were not selected for funding do not complete post-award documents.

5. When to File

Form 13979-A operates under a strict post-award acceptance deadline governed by IRS Publication 4883:

Strict 20-Day Acceptance Deadline: Form 13979-A must be completed and submitted within 20 calendar days from the date printed on your official Notice of Award (typically issued in late September or early October).
Period of Performance: The budget and narrative submitted on Form 13979-A govern spending across the federal grant operating period running from October 1 through September 30.
Mid-Year Reallocations: If operational shifts require moving funds between budget categories during the filing season, an amended Form 13979-A must be submitted to your assigned IRS Grant Analyst before funds are spent.

Failing to return your completed award acceptance package within the 20-day window can result in the IRS rescinding the grant offer and reallocating the funds to another applicant.

6. Where and How to File

Form 13979-A cannot be submitted through consumer tax preparation software. It is an administrative document submitted through official IRS grant management channels.

Grantees typically submit Form 13979-A electronically as a completed PDF via secure email directly to their assigned IRS VITA Grant Tax Analyst. Alternatively, it can be submitted to the general IRS Grant Program Office inbox at Grant.Program.Office@irs.gov or uploaded through the mobile-friendly web portal on IRS.gov as directed in your award notification letter.

If physical records, audited financial statements, or original signatures are requested by your grant analyst, deliver materials to the specific IRS address as per instructions outlined in IRS Publication 4883. Always retain an executed copy of Form 13979-A, your Notice of Award, and all matching fund commitment letters in your permanent grant archives.

7. Step-by-Step Instructions to Fill the Form

Form 13979-A combines a two-column financial budget table with detailed written narrative blocks for every expenditure category. Review the table below for a section-by-section guide.

Line Item	Budget Category	Required Narrative & Classification Rules
Header	Grantee Profile	Enter the organization legal name, Employer Identification Number (EIN), Federal Award Identification Number (FAIN), and assigned Tax Analyst.
Line 1	Personnel	List allowable paid support positions (coordinators, IT, quality reviewers). Explain hourly rates and hours. Never budget federal funds for tax preparers or screeners.
Line 2	Volunteer Services	Report the value of volunteer hours strictly under Matching Funds (Federal = N/A). Detail volunteer counts, projected hours, and the hourly valuation method.
Line 3	Fringe Benefits	Detail employer-paid taxes, medical insurance, and retirement benefits strictly for the paid staff listed on Line 1. Provide the percentage calculation.
Line 4	Travel	Itemize staff and volunteer mileage, transit, and lodging for site visits and training. Explain the business purpose and confirm adherence to federal per diem caps.
Line 5	Equipment	Itemize capital assets exceeding $5,000 with a useful life over one year. Note: Computers, printers, and copiers must never be listed here.
Line 6	Supplies	Itemize general office supplies, paper, toner, and intake sheets. Crucial rule: All computers, laptops, printers, and copiers must be budgeted here.
Line 7	Contractual	Detail payments to third-party contractors, independent audit services, IT support vendors, and certified language translation providers.
Line 8	Other Expenses	Detail facility rent, utilities, internet hotspots, and liability insurance. Provide the square-footage or staff allocation formula used.
Line 9	FEAB Services	Describe financial education, credit coaching, and asset-building services integrated into tax sites, justifying all associated costs.
Line 10	Volunteer Recognition	Itemize modest non-cash appreciation items—such as pins, certificates, plaques, or volunteer meals—confirming compliance with program caps.
Line 11	Indirect Costs	Apply your organization’s approved federal indirect cost rate (NICRA) or elect the standard 10% de minimis rate on modified direct costs.

Critical Classification Rules Unique to Form 13979-A

When preparing your narrative and budget allocations, pay strict attention to several unique VITA grant requirements:

The Computer & Hardware Rule: While general federal grants place items over $5,000 in Equipment, VITA grant rules mandate that all computers, laptops, printers, and copiers must be budgeted under Supplies (Line 6), regardless of their unit cost. Placing computer equipment on Line 5 will cause the IRS to reject the package immediately.
The Personnel Restriction: By federal statute, VITA is an unpaid volunteer program. Federal grant dollars on Line 1 may only pay for operational support roles (such as Program Coordinators, Site Coordinators, Quality Reviewers, or IT specialists). Federal funds can never be used to pay tax return preparers or intake screeners.
Sub-Awards of $1,000 or More: If your organization distributes cash sub-awards of $1,000 or more to partner agencies, you must list each entity’s legal name, active SAM.gov Unique Entity Identifier (UEI), and sub-award dollar amount directly in the narrative.

8. Required Documents/Information Needed Before Filling

Before completing Form 13979-A, assemble the following operational and financial records:

Official Notice of Award: The formal award letter from the IRS specifying your approved federal grant amount.
The Original Form 13977 Budget: Your initial application budget submitted in May, used as a reference to adjust figures to the final award amount.
SAM.gov Registration & UEIs: Proof of active SAM.gov registration for your organization and the verified Unique Entity Identifier for any sub-recipients receiving $1,000 or more.
Written Job Descriptions: Position summaries and hourly wage calculations for all paid personnel listed on Line 1.
Matching Fund Letters of Commitment: Formal letters, grant agreements, or bank statements proving your organization has secured 100% non-federal matching funds.
Indirect Cost Rate Agreement: A copy of your current negotiated federal indirect cost rate agreement (NICRA), if claiming an indirect rate above the 10% de minimis rate.

9. Common Mistakes to Avoid

Errors on Form 13979-A can stall your award processing and delay the disbursement of federal funds. Avoid these frequent mistakes:

Budgeting Technology Under Equipment: Placing laptops, desktop computers, or commercial printers on Line 5 instead of Line 6 (Supplies) is the most frequent reason the IRS returns Form 13979-A for correction.
Budgeting Paid Tax Preparers: Using federal grant money to pay wages to individuals who prepare returns or screen taxpayers violates federal program guidelines.
Missing the 20-Day Cutoff: Failing to submit Form 13979-A within 20 calendar days of receiving your Notice of Award can result in the forfeiture of your grant.
Omitting Sub-Recipient UEI Numbers: Listing cash sub-awards to partner organizations without providing their verified SAM.gov Unique Entity Identifiers causes administrative compliance holds.
Mismatched Table and Narrative Figures: The dollar amounts discussed in your written narrative must match the figures in the budget table down to the exact dollar.
Failing the 1:1 Matching Requirement: Total matching funds must equal or exceed total federal grant funds; submitting a budget with an unmatched federal balance will result in rejection.

10. Penalties for Non-Filing or Errors

Because Form 13979-A is an administrative award acceptance document, there are no civil tax fines for failing to file it. However, the institutional and operational consequences are immediate:

Rescission of Grant Award: If you fail to submit Form 13979-A within the 20-day acceptance window, the IRS can cancel your award and reallocate the funds to another organization.
Payment Management System Holds: The IRS will not authorize your account in the federal Payment Management System (PMS), preventing you from drawing down grant funds to cover clinic operating expenses.
Cost Disallowances: If an organization incurs expenses that were not justified in the approved Form 13979-A narrative, the IRS will disallow those costs during year-end closeout, forcing the grantee to repay the funds.
Loss of Multi-Year Award Status: Grantees that fail to maintain compliant budgeting records risk losing automatic funding for years two and three of a multi-year award.
False Claims Act Sanctions: Intentionally fabricating matching fund commitments, forging sub-recipient records, or submitting false expense narratives violates 18 U.S.C. Section 1001, exposing individuals and organizations to criminal fines and civil fraud penalties.

11. Related Forms or Schedules

Form 13979-A operates as part of the integrated VITA grant compliance and management family:

Form 13977: VITA Grant Budget Plan (initial application budget)
Form 13978: Projected Operations VITA Grant Application (operational plan)
Form 13979: VITA Grant Final Expense Report (year-end financial closeout)
Form 13980: VITA Grant Performance Measures Report
Form 13981: VITA Grant Agreement
Form 13533: VITA/TCE Partner Sponsor Agreement
Standard Form 424: Application for Federal Assistance
Standard Form 425: Federal Financial Report
Publication 4883: Grant Programs Resource Guide for VITA and TCE
Publication 5247: VITA Grant Terms and Conditions
Publication 5376: VITA Grant Reporting Requirements

12. Frequently Asked Questions

How does Form 13979-A differ from Form 13977?

Form 13977 is the initial budget plan submitted in May during the competitive application phase. Form 13979-A is the finalized budget and detailed narrative submitted in October during the award acceptance phase to align spending with the actual funding awarded by the IRS.

Why must computers and printers be budgeted under Supplies instead of Equipment?

IRS VITA grant guidelines establish an explicit administrative rule that all computer technology—including desktop computers, laptops, monitors, printers, and copiers—must be categorized under Supplies (Line 6), regardless of unit cost, to streamline federal asset inventory tracking.

Can our organization pay tax return preparers using federal grant funds?

No. Under federal statutory guidelines, VITA is an unpaid volunteer program. Federal grant funds on Line 1 may only pay for operational support personnel, such as site coordinators, IT specialists, and quality reviewers. Tax preparers and intake screeners must be volunteers.

What details are required for sub-awards of $1,000 or more?

In the narrative section, you must list the legal entity name of the sub-recipient, their active SAM.gov Unique Entity Identifier (UEI), and the exact dollar amount of the cash sub-award. Non-cash assistance (such as purchasing supplies for a partner site) does not need to be reported as a sub-award.

Can an organization modify its approved Form 13979-A during the year?

Yes. If operational needs shift during the tax season, you can submit an amended Form 13979-A to your assigned IRS Grant Analyst. Significant reallocations across categories require written approval before funds are spent.

What happens if our organization cannot secure the required matching funds?

Because the VITA grant requires a strict 1:1 match, your federal award will be reduced to match the actual non-federal funds you are able to document. You cannot receive federal grant dollars that exceed your verified matching contributions.

13. Conclusion: Key Takeaways Summarized

IRS Form 13979-A is the critical financial bridge between winning a VITA grant award and receiving federal funds. Ensuring your budget and narrative are fully compliant protects your organization’s award. Remember these primary takeaways:

Award Acceptance Requirement: Submit Form 13979-A within 20 calendar days of receiving your official Notice of Award.
Detailed Written Narratives: Provide clear mathematical calculations and operational justifications for every single expense line.
Follow Technology Rules: Categorize all computers, laptops, and printers under Supplies (Line 6), never under Equipment.
Respect Personnel Limits: Use federal funds only for allowable support staff; tax preparers and screeners must remain unpaid volunteers.
Maintain 100% Match: Ensure that your non-federal matching contributions equal or exceed the total federal grant funds awarded.
Submit via SPEC Channels: Deliver your completed form and narrative directly to your assigned IRS Grant Analyst as per instructions in Publication 4883.

IRS Form 13979-A: Complete VITA Grant Budget & Narrative