A longtime free tax preparation program serving elderly residents across western Kentucky has been canceled this year, leaving hundreds of seniors without assistance and feeling the local impact of broader federal funding cuts early last year.
The Tax Counseling for the Elderly (TCE) program, operated through Pennyrile Allied Community Services, did not receive its annual Internal Revenue Service grant for the 2025 tax season, according to a longtime volunteer.
Barbara Morris, who has worked with the program for more than two decades, said the loss of funding has halted services across multiple counties.
The program historically served residents in Christian, Trigg, Muhlenberg and Hopkins counties, focusing primarily on seniors and low-income taxpayers who rely on free assistance to file returns.
Grant denial halts longtime service
The TCE program operates on a yearly federal grant cycle administered by the IRS. Local agencies apply in the spring and typically learn whether they’ve been approved by October.
Morris said PACS was notified in early October that its grant application had been denied.
According to Morris, the IRS cited multiple reasons for the denial, including a determination that the program failed to meet its requirement to serve at least 50% taxpayers over age 60 — a claim she disputes.
She also pushed back on claims the program failed to grow or advertise.
Appeals were not an option.
Federal cuts and staffing changes
While the IRS has not publicly detailed the PACS decision, Morris pointed to staffing changes within the agency that followed broader federal workforce reductions.
“When they did the changes and reduced the employment in IRS, they pulled two individuals from another department, and they both reviewed it,” she said.
Those staffing shifts align with wider federal actions tied to the administration’s Department of Government Efficiency, which reduced staffing and funding across agencies and eliminated or scaled back grants to local organizations.
The cuts have affected hundreds of millions of dollars in federal funding to Kentucky programs, particularly those supporting community services, aging populations and low-income residents.
A cascading local impact
The loss of the TCE program shows how federal policy changes can ripple through state and local systems.
The causal chain is straightforward:
- Federal funding and staffing reductions disrupt grant programs and oversight
- State and nonprofit partners lose support and administrative capacity
- Local agencies are forced to scale back or eliminate services
- Residents lose access to essential assistance
Programs like TCE are especially vulnerable because they are seasonal, grant-funded and dependent on coordination between federal agencies and local nonprofits.
At PACS, the result is a complete halt to tax preparation services for 2025.
Seniors face higher costs, risk of errors
Without the free program, many elderly residents must now either pay for tax preparation or attempt to file on their own.
She said that creates a barrier for seniors living on fixed incomes and increases the likelihood of filing errors.
“People, when they’re doing their own taxes, they’re making mistakes,” she said, describing one case where a taxpayer was incorrectly told she owed state taxes due to a missed exemption.
Loss of free filing options
Morris also said changes to IRS-supported free filing systems have added to the problem.
“Before this, they had a program where you could go into IRS and do it all free. Well, then when the new president came in, that changed,” she said. “So we don’t have that service now either.”
Without access to IRS software used by certified volunteers, she said she cannot continue helping clients independently.
“I don’t have a program. I would have to go into a paid program to do their taxes,” she said.
Community demand remains
Despite the cancellation, demand for the service has not diminished.
“I get so many calls from the people that I’ve done… they’re saying, can’t you do my taxes?” Morris said.
At 87, she said this is the first year she has not prepared taxes — even her own.
“This is the first year in my life that I have not done my own taxes,” she said. “It really hurts… not financially, but mentally.”
Uncertain future
Morris said PACS will reapply for funding for next year, but there is no guarantee the program will return.
In the meantime, she expects pent-up demand could create further strain if funding is restored.
“A lot of these people will save this year’s taxes and want to come in next year,” she said. “They’ll have two years for us to do.”
Broader implications
The loss of the TCE program in the Pennyrile points to a broader national trend as federal funding reductions reshape the availability of local services.
For rural communities in particular, where nonprofit agencies serve as vital service hubs, even a single grant denial can eliminate programs that residents have relied on for decades.
“It’s really hits the people in this community, in the Pennyrile,” Morris said.
