Tax Policy Documents

Topics

Materials About the EITC
IRS Services
IRS Tax Enforcement
President's Tax Reform Panel
Tax Credits

For practical documents on free tax preparation and financial services, go to our Resource Library.

Materials About the EITC

This material includes information on EITC receipt in your district and state, EITC Talking Points, and how to engage your member of Congress in EITC Campaigns.

Review of San Francisco Working Families Credit [posted 5/23/06]
A review of the first year of the San Francisco Working Families Credit, a local version of the EITC. The report discusses how the credit was enacted, designed, and implemented, and includes a review of is performance and some lessons for other jurisdictions that may be interested in pursuing a similar initiative. Provided by the Brookings Institution and SFWorks.

Native Financial Education Coalition Policy Brief [PDF,110KB, posted 6/5/06]
Lists financial education policy priorities for partnership between the federal goverment and Native American communities. Provided by the Native Financial Education Network.

Review of San Francisco Working Families Credit [posted 5/23/06]
A review of the first year of the San Francisco Working Families Credit, a local version of the federal EITC. The report discusses how the credit was enacted, designed, and implemented, and includes a review of its performance in the first year and some lessons for other jurisdictions that may be interested in pursuing a similar initiative. Provided by The Brookings Institution and SFWorks.

Credit Where It's Due: The Earned Income Tax Credit in Ohio [posted 4/03/06]
A recent report by PolicyMatters Ohio recommends that the state establish an EITC for working families. It provides data about the numbers of people claiming the EITC, using a paid tax preparer, and taking out Refund Anticipation Loans. This report details how an Ohio EITC credit and better regulation on loans would further help families receive their full refunds.

The EITC at Age 30 [PDF, 400KB, posted 2/14/06]
The report provides an accessible literature review that we hope many of you will find useful as you describe the importance of the EITC for families and communities. Provided by the Brooking Institution Metropolitan Policy Program.

The Earned Income Tax Credit at Age 30: An Overview [PDF, 560KB, posted 2/14/06]
Alan Berube of the Brookings Institution discusses how the EITC works, whom it benefits, what effects it has on work and poverty, and what issues surround the credit as it enters its 31st year.

Find EITC data for your state and Congressional District for 2003 and 2004 [XLS, 120KB, revised 2/13/06]

Find historical EITC data for your Congressional district for 2000—2003 tax years, from The Brookings Institution. [XLS, posted 2/13/06]

Find EITC data for your town, county, zip code for 1997 - 2002 tax years, from The Brookings Institution [ posted 2/16/05]

Tips to Engage Members of Congress in Your Free Tax Assistance Campaign [Word, 109KB]

Letter Inviting Your Member of Congress to a Free Tax Preparation Site [Word, 116 KB, posted 2/18/05]

The Basics of the EITC [Word, 120 KB, posted 2/9/05]

EITC Talking Points [DOC, posted 12/30/05]

EITC Fact Sheet from the Center on Budget and Policy Priorities [Word, 174KB]

Child Tax Credit Fact Sheet from the Center on Budget and Policy Priorities [Word, 187KB]

IRS Services

Low-Income Taxpayers and the Modernized IRS: A View From the Trenches, by Janet Spragens and Nancy Abramowitz [PDF,1.7 MB, posted 12/20/05]
This article examines the continuing effects on low-income taxpayers of the 1998 IRS reorganization and computer modernization of the agency. The authors believe that the net result for many taxpayers has been the trading of fairness for administrative efficiency and the contraction — and often denial — of taxpayer prepayment rights. Published in Tax Analysts, Jun. 14, 2005

TIGTA On VITA [posted 12/30/05]
In a November 4 report, the Treasury Inspector General for Tax Administration said IRS oversight of the Volunteer Income Tax Assistance program has improved, but that "challenges remain for an effective quality assurance process."  TIGTA says that the IRS has made some improvements to VITA oversight, but has a ways to go to limit error by VITA preparers. 

IRS Tax Enforcement

National Taxpayer Advocate's 2005 Annual Report to Congress [posted 1/11/06]

Tax refunds sought by 1.6 million poor Americans over the last five years were secretly frozen and their returns labeled fraudulent, although the vast majority appear to have done nothing wrong, the Internal Revenue Service's Taxpayer Advocate told Congress on last Monday. Read the full story in the New York Times by David Cay Johston, keynote speaker at our September 2005 conference.

The National Taxpayer Advocate's office will hold a conference call for Coalition affiliates on the report and its implications for low-income taxpayers soon.

The Taxpayer Advocate's report also cited concerns in the areas of:

• Problem #1:  Fewer resources to taxpayer services, and reductions in face-to-face services.
• Problem #2:  Refund Freezes
• Problem #4:  Private Debt Collection
• Problem #8:  Refund Anticipation Loans

EITC taxpayers constituted three-fourths of those whose refunds were frozen, with an average income of just over $13,000.

The National Community Tax Coalition has advocated since its inception against the highly disproportionate targeting of EITC taxpayers for audits, exams and freezes. EITC error accounts for a tiny fraction of the 300-billion-plus dollar tax gap, yet EITC taxpayers are the targets of 48 percent of audits, despite constituting only 17 percent of taxpayers.

2005 Annual Report to Congress, Executive Summary
2005 Annual Report to Congress, Volume 1, Section 1 of 3 - Preface, Table of Contents and Most Serious Problems.
2005 Annual Report to Congress, Volume 1, Section 2 of 3 - Legislative Reccommendations.
2005 Annual Report to Congress, Volume 1, Section 3 of 3 - Most Litigated Issues, Case and Systemic Advocacy and Appendices.
2005 Annual Report to Congress, Volume 2 - Criminal Investigation Refund Freeze Study.

President's Tax Reform Panel

With the release of the President's Advisory Panel on Tax Reform's report (which you can find here), groups from all over the ideological spectrum have shared their views on what the report means. For a sampling, visit the following:

• Cato Institute
• Economic Policies Institute
• Freedom Works (Dick Armey's PAC)
• Heritage Foundation 
• Jack Kemp's Human Events PAC 
• Urban Institute/Brooking

Five Easy Pieces Scorecard [PDF, posted 11/29/05]
Assessment of the success of the conservatives in implenting their goals for tax reform. Written by John S. Irons, published by the Center for American Progress.

Tax Complexity: By the Numbers [PDF, posted 11/29/05]
Examines the complexity of the tax system, which is seen as eroding the perceived fairness of the system. Written by John S. Irons and Michael Power , published by the Center for American Progress.

Tax Credits

Senator John Kerry of Massachusetts has introduced a bill to improve and expand the Earned Income Tax Credit. For more information on the bill, click here. [posted 12/30/05]

Senator Ron Wyden of Oregon and Congressman Rahm Emanuel of Illinois' Fifth District have introduced a "family-friendly" simplifed tax reform plan. For the text of the legislation, click here. [posted 12/30/05]

Senators Olympia Snowe of Maine and Barack Obama of Illinois have introduced a bill to expand the Child Tax Credit. To view the bill, click here. [posted 12/30/05]

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