Alaskans And Millions Of Other Americans Get Free Tax Help. They Could Soon Be Frozen Out.

President Trump and Elon Musk’s Plan to Cut the IRS Budget: Why Volunteer Tax Services Should Be Spared

In the remote town of Kotzebue, Alaska, a middle-aged woman found herself facing a daunting expense of nearly $2,000 to file her taxes. This cost included a 547-mile flight to Anchorage, a $500 tax preparation fee, and a hotel stay while she waited for her tax preparer to review her return. Her story highlights the challenges faced by many Americans, particularly those in rural and underserved areas, in accessing affordable tax preparation services. However, this year, she discovered a lifeline: volunteers from the lower 48 states offering free tax preparation services through the Volunteer Income Tax Assistance (VITA) program.

The Threat to the IRS Budget and the Impact on Taxpayer Services

Meanwhile, in Washington, D.C., rumors are swirling about significant cuts to the IRS budget and workforce proposed by President Trump and Elon Musk’s Department of Government Efficiency (DOGE). These cuts have already begun, with the IRS hiring freeze resulting in the layoff of 7,000 probationary workers. The first wave of cuts targeted employees hired under the 2021 Inflation Reduction Act to strengthen auditing and collection efforts, particularly from wealthy tax avoiders. Additionally, there are plans to close over 110 IRS offices that serve as Taxpayer Assistance Centers, which could reduce the IRS workforce by half. These reductions would severely impact taxpayer services, leaving many without access to the help they need to navigate the complex tax system.

The Alaska Volunteer Experience and the Importance of VITA

In early 2023, three tax attorneys, including myself, volunteered in Kotzebue, Alaska, to provide free tax preparation services. Our journey was not without challenges; we spent significant time and resources traveling to remote villages, often under harsh conditions, to reach taxpayers who have no access to tax professionals. Our efforts were supported by the VITA program, which is funded by grants from the IRS. In 2025, the IRS awarded $53 million to 315 VITA organizations and 41 groups participating in the Tax Counseling for the Elderly (TCE) program, helping to file over 2.1 million tax returns in 2023 alone.

Unique Tax Challenges Faced by Alaskans and Their Broader Implications

Alaska presents unique tax challenges, such as reporting dividends from the Alaska Permanent Fund (APF) and navigating the complexities of tax filing for families with multiple dependents. For instance, children receiving dividends must file their own tax returns, leading to multiple filings per family. These challenges are not isolated to Alaska; many families across the U.S. face similar issues, such as understanding eligibility for credits like the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC). VITA volunteers play a crucial role in helping these families navigate the tax system and claim the refunds they are entitled to.

TheValue of VITA and the Human Side of Tax Filing

The work of VITA volunteers extends beyond just filing taxes; it involves addressing complex issues like name changes, injured spouse relief, and correcting prior year errors. We encountered a taxpayer who had misreported rental income, leading to lost deductions, and another who was grappling with tax issues after the loss of a spouse. These stories illustrate the emotional and financial impact of tax filing challenges and the vital role volunteers play in providing support. The human connection and guidance offered by VITA volunteers often mean the difference between a taxpayer receiving a much-needed refund or facing financial hardship.

The Future of VITA and Why It Matters

As the IRS faces potential budget cuts, the future of programs like VITA remains uncertain. These programs are not just a convenience; they are essential for ensuring voluntary tax compliance, which is the backbone of our tax system. Without VITA, many taxpayers would struggle to file their returns accurately and claim their rightful refunds. The dedication of volunteers and the VITA program underscores the importance of maintaining funding for these services, not just for the benefit of individual taxpayers but for the overall health of the U.S. tax system. As one Alaskan taxpayer succinctly put it, “My taxes are my civic duty.” Ensuring that all Americans can fulfill this duty should remain a priority, even in times of budget constraints.