1. Introduction: What is Form 13979?

IRS Form 13979, officially titled the VITA Grant Final Expense Report (and often referred to as the VITA Grant Program Final Expense Report), is an administrative financial closeout document published by the Internal Revenue Service (IRS). The IRS operates under the United States Department of the Treasury to administer federal tax laws and manage federal grants that support community volunteer tax programs.

Rather than being used by individual taxpayers or commercial businesses, Form 13979 is an institutional accounting report. It is administered by the Stakeholder Partnerships, Education and Communication (SPEC) division within the IRS Wage and Investment Division.

Form 13979 is completed by non-profit organizations, local governments, and academic institutions that receive federal funding through the Volunteer Income Tax Assistance (VITA) Grant Program. It serves as the official year-end financial accounting report, verifying how federal grant funds were spent and proving that the organization met its mandatory non-federal matching fund commitments.

2. Purpose of the Form

When an organization receives a federal VITA grant, it submits a projected budget plan on Form 13977 outlining its expected costs. However, federal grant guidelines under Title 2 of the Code of Federal Regulations require grantees to account for every dollar of actual spending after program operations conclude.

Under federal statute, VITA grants require a strict dollar-for-dollar (1:1) non-federal match. If an organization drew down $75,000 in federal grant funds, it must prove that it contributed at least $75,000 in qualifying non-federal matching funds, such as local cash contributions, donated clinic space, or verified volunteer hours. Form 13979 exists to reconcile these expenditures and verify compliance with statutory matching ratios.

Form 13979 also ensures that federal grant dollars were used strictly for allowable operational costs. The report verifies that federal funds were not improperly used to pay tax return preparers, accounts for cost shifts between budget categories, and identifies any unspent federal funds that must be de-obligated and returned to the U.S. Treasury.

3. Who Needs to File This Form

Form 13979 is completed exclusively by organizations that received federal financial assistance under the VITA Grant Program (Assistance Listing Number 21.009). You must file this form if you represent any of the following entities:

Funded Non-Profit 501(c)(3) Organizations: Community action agencies, United Way chapters, and charitable coalitions that operated grant-funded VITA clinics.
Municipal & Local Government Agencies: City or county government departments that managed free tax preparation clinics using VITA grant awards.
Colleges & Universities: Academic institutions that received federal grant dollars to support campus or community VITA sites.
Financial Institution Coalitions: Credit unions, community development financial institutions (CDFIs), and banks managing grant-funded volunteer clinics.

The report is prepared and certified jointly by the organization’s executive director, chief financial officer, or designated grant accountant. Individual taxpayers and volunteer tax preparers never complete Form 13979.

4. Who Is Exempt / Not Required to File

Because Form 13979 is strictly a post-award financial closeout report for VITA grant recipients, most entities and individuals are exempt from filing it:

Everyday Taxpayers: Low-income community members receiving free tax preparation have no connection to this grant accounting report.
Individual Volunteers: Volunteer preparers, greeters, and quality reviewers do not file financial closeout reports; they complete Form 13615 instead.
Non-Grant Sponsoring Partners: Community organizations that operate VITA clinics without federal grant awards partner under Form 13533 and do not submit Form 13979.
Tax Counseling for the Elderly (TCE) Grantees: Organizations funded under the separate TCE grant program use Form 8654 for their final closeout reporting.
Low Income Taxpayer Clinics (LITCs): Legal clinics funded under Internal Revenue Code Section 7526 submit Form 13424-L rather than Form 13979.

5. When to File

Form 13979 is an annual closeout report tied directly to the conclusion of the federal grant operating period:

Standard Closeout Deadline: Form 13979 must be submitted within the timeframe specified in your official VITA Grant Agreement, typically within 60 to 90 calendar days following the end of the grant period.
Common Calendar Due Dates: For most standard VITA grant cycles ending in late spring or summer, the final expense report is due between July 31 and September 30.
Accompanied by Federal Reports: Form 13979 must be submitted concurrently with Standard Form 425 (SF-425, Federal Financial Report) and Form 13980 (VITA Grant Performance Measures Report).

Failing to submit your closeout report by the designated deadline can result in the immediate suspension of your federal drawdown account in the Payment Management System (PMS).

6. Where and How to File

Form 13979 cannot be submitted through consumer tax filing software like TurboTax. It is an administrative document submitted through authorized IRS grant administration portals.

Grant recipients typically upload the completed Form 13979 through the mobile-friendly web portal on IRS.gov or submit it via secure email directly to their assigned IRS VITA Grant Tax Analyst. Grantees must also ensure their companion Standard Form 425 is properly filed in accordance with federal grant management procedures.

If physical records, audited general ledgers, or sampling receipts are requested by your grant analyst, deliver materials to the specific IRS address as per instructions outlined in IRS Publication 4671. Always maintain a complete copy of the submitted report, general ledger exports, and payment receipts in your permanent grant archives.

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

Form 13979 parallels the budget categories found on your approved Form 13977. For each category, you must report the approved budget, actual federal funds spent, actual non-federal matching funds contributed, and the resulting variances. Review the table below for a line-by-line guide.

Line Item	Expense Category	Closeout Accounting Instructions
Header	Grantee Profile	Enter the organization legal name, Employer Identification Number (EIN), Federal Award Identification Number (FAIN), and grant period.
Line 1	Personnel	Report actual wages paid to eligible support staff (coordinators, IT, quality reviewers). Verify that zero federal funds were paid to tax preparers or screeners.
Line 2	Volunteer Services	Report the substantiated value of volunteer hours. Federal funds are not allowed (N/A); report figures strictly under Matching Funds.
Line 3	Fringe Benefits	Report actual employer-paid payroll taxes, medical insurance, and retirement benefits strictly for the paid positions reported on Line 1.
Line 4	Travel	Record actual travel reimbursements paid for staff and volunteers attending site training, coordination sessions, or operating mobile clinics.
Line 5	Equipment	Itemize actual capital asset purchases exceeding $5,000 that were pre-approved by your assigned IRS Tax Analyst.
Line 6	Supplies	Report actual expenditures paid for office supplies, paper, printing toner, taxpayer intake sheets, and technology under $5,000.
Line 7	Contractual	Detail payments made to independent professional contractors, specialized IT support vendors, and certified language interpreters.
Line 8	Other Expenses	Report actual rent, utilities, internet hotspots, and commercial general liability insurance allocated to the VITA program.
Line 9	FEAB Services	Report actual costs incurred delivering financial education, credit counseling, and asset-building services integrated into tax sites.
Line 10	Volunteer Recognition	Report actual expenditures for modest non-cash appreciation items—such as pins, plaques, certificates, or volunteer meals—within program caps.
Line 11	Indirect Costs	Apply your organization’s approved federal indirect cost rate (NICRA) or the 10% de minimis rate to allowable modified direct costs.
Line 12	Total Costs	Calculate the sum of Lines 1 through 11 for Federal Funds, Matching Funds, and Total Program Costs.

Reconciling Matching Funds and Explaining Variances

When finalizing Form 13979, grant accountants must ensure two critical financial conditions are satisfied:

The 1:1 Matching Requirement: Total actual Matching Funds on Line 12 must equal or exceed total actual Federal Funds drawn. If total matching contributions fall short of the federal amount expended, the organization must refund the difference to the IRS.
Written Variance Explanations: Form 13979 requires a written narrative explaining any significant deviation (typically 10% or more) between your approved budget on Form 13977 and your actual expenditures. Explain why specific categories were overspent or underspent.

8. Required Documents/Information Needed Before Filling

To ensure your Form 13979 reconciles cleanly with federal records, assemble the following accounting and operational files prior to completing the report:

General Ledger Detail Reports: Accounting software reports showing every expense transaction charged to the VITA program during the grant period.
Approved Form 13977 Budget Plan: Your official approved budget and any formal mid-season budget amendment approvals issued by the IRS.
Payment Management System (PMS) Records: Official federal transaction records showing the exact total of federal cash drawdowns made during the grant year.
Standard Form 425 (SF-425): The companion Federal Financial Report whose reported federal and matching outlays must match Form 13979 down to the penny.
Volunteer Hour Documentation: Contemporaneous volunteer time logs and hourly valuation schedules supporting the in-kind match claimed on Line 2.
Payroll and Invoicing Records: Payroll registers for paid coordinators, travel expense receipts, and paid vendor invoices.

9. Common Mistakes to Avoid

Accounting errors on Form 13979 can delay grant closeout or trigger financial recoupment demands. Avoid these frequent mistakes:

PMS and SF-425 Discrepancies: The federal funds reported on Line 12 of Form 13979 must match your federal drawdowns in the Payment Management System and your entries on Standard Form 425 exactly.
Failing to Meet the 1:1 Match: If your final matching contributions fall below the amount of federal grant funds spent, the IRS will disallow the unmatched federal portion and demand an immediate repayment.
Charging Paid Preparers to Federal Funds: Federal grant funds cannot be used to pay tax preparers or intake screeners. Violating this rule will result in immediate cost disallowance.
Omitting Variance Explanations: Shifting funds between categories without explaining the operational reasons in the narrative will cause your closeout report to be rejected.
Overvaluing Volunteer Hours: Applying unverified or excessive hourly rates to volunteer time distorts matching calculations and fails federal audit reviews.

10. Penalties for Non-Filing or Errors

Because Form 13979 is an administrative grant closeout document rather than a tax return, failing to file does not trigger personal tax fines. However, the institutional and financial consequences for the organization are severe:

Payment Management System Freezes: The IRS will place an administrative hold on your organization’s PMS account, preventing any further federal drawdowns across active grant awards.
Grant Recoupment (Clawback): If unallowable expenses are discovered or matching fund commitments are not met, the IRS will issue a formal demand letter requiring the organization to refund federal dollars to the U.S. Treasury.
Disqualification from Future Grants: Grantees that fail to submit complete, timely closeout reports will be disqualified from receiving future VITA or TCE grant awards.
Corrective Action Placement: Serious accounting discrepancies will place the organization on formal administrative probation, requiring costly third-party audits.
False Statements Liability: Intentionally inflating reported expenditures, forging volunteer time logs, or fabricating donor letters violates 18 U.S.C. Section 1001, exposing individuals and organizations to federal criminal prosecution and civil False Claims Act penalties.

11. Related Forms or Schedules

Form 13979 operates as part of the integrated VITA grant compliance and closeout suite:

Standard Form 425 (SF-425): Federal Financial Report
Form 13977: VITA Grant Budget Plan
Form 13978: Projected Operations VITA Grant Application
Form 13979-A: VITA Grant Budget and Narrative
Form 13980: VITA Grant Performance Measures Report
Form 13981: VITA Grant Agreement
Publication 4671: VITA Grant Program Overview and Application Instructions
Publication 5683: VITA/TCE Handbook for Partners and Site Coordinators

12. Frequently Asked Questions

What is the difference between Form 13977 and Form 13979?

Form 13977 is a prospective budget plan submitted during the application phase to project planned expenses. Form 13979 is the final expense report submitted after the grant period ends to account for actual dollars spent.

What happens if our organization did not spend all its federal grant money?

If you have unexpended federal grant funds at the close of the grant period, you report the unspent balance on Form 13979 and Standard Form 425. Unspent funds cannot be carried over to the next grant year; the IRS will de-obligate the remaining balance.

Can unspent VITA grant funds be transferred to another program?

No. Federal VITA grant funds are legally restricted to approved VITA program activities. They cannot be transferred to general operating funds, used for other charitable projects, or shifted to another federal grant.

What happens if our matching funds fell short of the federal funds spent?

If your non-federal matching expenditures do not equal or exceed your federal grant expenditures, you have violated the statutory 1:1 match rule. The IRS will reduce your allowable federal grant to match your actual non-federal contributions and require you to refund the difference.

Does Form 13979 need to be filed with Standard Form 425?

Yes. Form 13979 and Standard Form 425 (SF-425) are submitted concurrently as your complete financial closeout package. The federal expenditures and matching fund totals must reconcile between both forms.

How long must an organization retain financial records after submitting Form 13979?

Under federal grant guidelines (2 CFR Part 200), organizations must retain all financial ledgers, receipts, payroll records, and volunteer time logs for at least three years from the date the final expenditure report is submitted.

13. Conclusion: Key Takeaways Summarized

IRS Form 13979 is the final financial accountability checkpoint for federal VITA grant recipients. Managing your closeout carefully protects your organization’s reputation and preserves future grant eligibility. Remember these primary takeaways:

Final Expense Accounting: Use Form 13979 to report actual federal grant outlays and non-federal matching funds spent across all approved budget lines.
Verify the 1:1 Match: Ensure that total non-federal matching expenditures equal or exceed the total federal grant funds drawn during the grant year.
No Paid Preparers: Confirm that zero federal grant funds were used to pay wages for tax preparers or intake screeners.
Reconcile with PMS and SF-425: Double-check that all federal outlays match your Payment Management System drawdowns and Standard Form 425 entries down to the penny.
Submit via Approved Channels: Upload your completed closeout report through the web portal on IRS.gov or deliver materials directly to your assigned IRS Tax Analyst as per instructions in Publication 4671.

IRS Form 13979 Guide: VITA Grant Final Expense Report Rules