Get Wise: TaxWise Knowledge Enhancement Conference Call
Conference call on mobilizing volunteers for advocacy
Quality issues noted at tax sites
Affiliates publicize their programs through the media  
Program Profile: United Way of King County
Update on IRS Refund Freezes
New resources

Get Wise: TaxWise Knowledge Enhancement Conference Call 

This is an opportunity for free tax preparation programs to hear an overview of the TaxWise software for the 2006 filing season. Additionally, Universal Tax Systems and Internal Revenue Service experts will address questions and concerns highlighted by the field. Register now.

Date: Wednesday, February 8, 2006
Time: 1:30 p.m. - 3 p.m. Eastern; 12:30 p.m. - 2 p.m. Central; 11:30 a.m. - 1 p.m. Mountain; 10:30 a.m. - 12 p.m. Pacific

Conference call on mobilizing volunteers for advocacy

We would like to hold a call with those of you interested in engaging tax preparation volunteers in advocacy to promote the EITC.

We are holding a conference call for groups who may pilot such an initiative this year, to share ideas and lessons and thus to be able to roll out a broader National Community Tax Coalition initiative next year. If you are interested, contact Don Wedd, (312) 630-0264).

Quality issues noted at tax sites
Barbara DelBene, Senior Training Specialist at the Center for Economic Progress,provides nuggets and hints gleaned from recent experiences at the tax preparation sites. Topics are: Schedule EIC Worksheet on TaxWise, Tuition Payment Statements, how kids older than 18 still could be dependents, and Claiming Yourself is Not Option. Read her full comments.

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Getting your message out to taxpayers is an essential component of a free tax preparation program. Many affiliates made effective use of free publicity through print and broadcast media. Following is a sampling of some of the stories that ran in the past few weeks.

Free Tax Preparation for Low Income Households

In its fourth year, the Gateway EITC Community Coalition (GECC) is again ready to help citizens in St. Louis City and County with a household income of $35,500 or less in 2005 to prepare their income taxes for free and get more of their money back for them. Story in KSDK.

 

Center offering free help on income taxes

Low- and moderate-income Illinois families will have access to free tax preparation services offered by the non-profit Center for Economic Progress, which vows to help ensure families get refunds they're entitled to following recent news the IRS has been improperly freezing refunds. Story in Chicago Sun-Times.

 

Free tax preparation centers opening this week

The Nashville Wealth Building Alliance will open 12 free tax assistance and preparation sites this week to help those eligible for the Earned Income Tax Credit get the tax refund they're eligible to receive. Story in Nashville Business Journal

 

Free tax preparation

Tax day is quickly approaching and some local agencies are helping low-income families keep what they've earned. The "Building My Future" program kicks off this month in Winston-Salem. It's a free tax preparation site in the Health Plaza at Baptist Medical Center.

Several non-profit agencies, including the Forsyth Working Families Partnership, Davidson County Tax Coalition, Volunteer Income Tax Assistance Program and Asset Building Counselors for Connection to Community Resources, jumped on board to fund the program. Story in WFMY.

 

City Helps Low-Income Earners during Tax Season

As Apr. 15, the deadline for filing taxes, approaches, the city is doing what it can to make sure the day isn't too taxing for many low-income New Yorkers.

Last week, Mayor Michael R. Bloomberg launched the fourth year of New York City's Earned Income Tax Credit (EITC) campaigns by announcing the opening of more than 40 free tax preparation centers and an expanded partnership with the nation's two largest paid tax preparers, H&R Block and Jackson Hewitt. Story in The Epoch Times.

 

Free tax preparation for low wage earners
Once again this year, low-income families can have their 2005 income taxes prepared for free.

On Friday, Community Tax Centers will open six different locations around the Austin area where qualifying individuals can have their taxes done. Story in News 8.

 

Free tax preparation available for qualifying households

Families that earn less than $37,000 annually are eligible for state and federal earned income tax credits (EITC) that could put as much as $4,400 back in their pockets.

Nehemiah Gateway Community Development Corp. Executive Director Mary Dupont announced that the agency has trained more than 400 volunteers to work at 23 sites throughout the state. Story in Cape Gazette.

 

Free Tax Preparation Offered

Cherokee Nation Community Services will be working with the U.S. Internal Revenue Service (IRS) to offer free tax preparation throughout the Cherokee Nation. Story in Sequoyah County Times.

 

Lubbock Group Offers Free Tax Preparation Services

You now have less than three months to file your income tax returns. Local volunteers are helping ease the burden. The Coalition of Community Assistance is offering free tax help to low income families. Story in KCBD.

 

Tax Time: Partnership works to help working poor get credit

Benita Barber settled in a chair beside volunteer Shirley Abdullah yesterday to file her taxes as part of the "Building My Future" campaign. Story in Winston-Salem Journal.

 

Free income-tax aid gearing up

With income-tax season kicking into gear, free tax preparation help will be available in the Tucson area beginning Saturday, the United Way announced this week.

The program offers help to low-income people who want to know what credits they can obtain to reduce their taxes, said Patrick Jordan, director of community development for the United Way of Tucson and Southern Arizona. The program will operate at 15 locations throughout the Tucson area. Story in Arizona Daily Star.

 

Millions in Tax Credits Available to Eligible Nebraskans

Nebraskans lost millions of dollars in federal tax credits last year because they didn’t ask for them. If a person had a paying job in 2005, either full or part-time, or children under 17, he/she might qualify.

HHSS partners are the American Association of Retired Persons’ Tax-Aide program, Community Action Nebraska, EITC Coalition (Omaha), EITC Coalition (Lincoln), Human Services Federation, the Internal Revenue Service, Lincoln EITC Coalition, the Nebraska Children and Families Foundation, the Nebraska Mexican American Commission, and the United Way of the Midlands. Story in Southwest Nebraska News.

 

Finance coalition trying to raise awareness about Earned Income Tax Credit

For low- to moderate-income workers with a Social Security card and limited investment earnings, there could be tax credits worth thousands of dollars from the federal government waiting to be claimed.

The Heart of Texas Financial Literacy Coalition is trying to spread that message with its kick-off event this Saturday, featuring free food, door prizes, and games to test attendees' money management skills. Now in its fourth year, the coalition is encouraging low- and moderate-income workers to take advantage of the Earned Income Tax Credit when they file their tax returns, which the coalition will help them prepare free of charge. Story in Waco Tribune.

 

Free tax services available in Contra Costa Co.

With the kick-off of the "Earn It! Keep It! Save it!" campaign last weekend, Contra Costa County is offering free tax preparation services for its disadvantaged residents through April 15. Story in CBS5.

 

Group helps working poor to get back more tax dollars

Nita Schmellick has seen too many families struggling to make ends meet only to be knocked further off their feet by circumstances.

As president of P-3 Community Foundation, a local nonprofit aimed at advancing philanthropy, Schmellick roped in other organizations to form the Campaign for Working Families. Story in Daytona Beach News Journal.

 

Tax credit unclaimed by many

Last year, Summit County low and moderate-income residents claimed $562,000 in refunds from the Earned Income Tax Credit, but $19 million is going unclaimed in the county,according to the most recent statistics.

On Monday, Akron-Summit Community Action will begin helping low-income workers file their tax returns and claim the benefit. The maximum refund possible is $4,400. It's not charity. Story in Akron Beacon Journal.

 

You've earned the money

More than $30 million of earned income credit money went unclaimed in the Tampa Bay area last year, according to the Internal Revenue Service.

But it's a financial lifeline too few people are grabbing in the Bay area. That's why the Prosperity Campaign of Hillsborough and Pinellas counties is promoting the tax credit and financial education so families can get ahead. Story in BayNews9.

 

United Way launches 2006 tax return services for low-income families

United Way of the Bay Area announced on Tuesday the launch of its 2006 ``Earn it! Keep it! Save it! Bay Area'' program that assists low-income families in filing their tax returns. Story in The Mercury News.

 

 

 

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United Way of King County serves as lead agency for the King County EITC Campaign. Last year the free tax preparation campaign expanded its reach and turned into a countywide effort. The Campaign did over 4,500 returns in 2005, nearly tripling the number from the preceding year. Clients received six million dollars in refunds, two million of which were Earned Income Tax Credit (EITC). Read the full story.

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Update on IRS Refund Freezes

When the IRS proposed a “precertification” audit initiative of 1-2 million taxpayers per year three years ago, members of the public and Congress strongly objected and the program was scaled back to 25,000 audit “tests”. It seems the IRS has developed a back-door mechanism to audit this many EITC taxpayers – thus thwarting the intent of Congress to prevent such targeting.

Seventy-five percent of the estimated1.6 million Americans who had their refunds secretly over the last five years (as reported in January by the National Taxpayer Advocate) were EITC taxpayers; the median income of all those targeted was $13,330 and their median refund was $3,519. The hundreds of thousands of secret refund of EITC freezes annually are in addition to nearly half a million audits of EITC taxpayers by the Wages &Investment examination unit, 300,000 “automated underreporting of income” audits, and 60,000 special EITC audit “tests”. Thus the number of annual EITC audits is likely over 1,000,000 per year.

The Center for Economic Progress is strongly opposing the refund freeze program, with the following talking points:

• The program is abusive towards taxpayers and should be immediately suspended.
• This constitutes something akin to racial profiling, what we’d call income profiling.
• The program as it is should be ended and any refund freeze function should be moved into Examinations. Criminal Investigation should not be freezing refunds.

We’ll be sending more information about what you can do, and state-by-state data on the refund freezes later this week. For an excellent mention of this issue in a recent speech by John Edwards, click here.

If you wish to join a new administrative advocacy mailing group, please email Don Wedd.

 

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Hurricane Relief

IRS Disaster Services Referral Guide & Instructions for its Use [posted 1/13/05]
A one-stop source for disaster-related tax filing services and information. Designed to assist volunteer preparers in providing assistance and guidance to hurricane impacted taxpayers. If the volunteer preparer is not trained to meet the taxpayer's needs, the guide provides referral options.

Hurricane Disaster Flowchart [PDF, 30KB, posted 1/24/06]
This flowchart is directed toward taxpayers who may not have all the required documents to complete their Tax Year 2005 returns because they were affected by Hurricanes Katrina, Rita, or Wilma. The flowchart directs them to the appropriate resources. Free tax preparation programs may use this form to screen clients at intake. Provided by the National Community Tax Coalition.

Hurricane Training Package for Volunteers [posted 1/31/06]
A collection of resources for training VITA volunteers. Provided by the IRS.

Casualty Loss Aid Sheet [DOC, 50KB, posted 1/31/06]
Explanation of rules for determining the value of property losses due to the hurricanes that can be tax deductible. Provided by the National Community Tax Coalition.

Fact Sheet for Practitioners [DOC,70KB, posted 1/31/06]
A summary of important facts and useful links for tax practitioners assisting hurricane-affected taxpayers. Provided by the National Community Tax Coalition.

 

Other

Highlights for Practitioners [DOC, 70KB, posted 1/31/06]
Summary of important tax law changes relevant to free tax preparation programs. Provided by the National Community Tax Coalition.

Free Tax Preparation Flyer - English and Spanish [PDF, 120, 300KB, posted 1/18/06]
Flyers promoting free tax preparation services and bank accounts. Provided by Bethex Federal Credit Union.

IRS Quality Review Approaches for VITA Sites, 2006 [DOC, 130KB, posted 1/23/06]
A description of the site review, return review and "secret shopper" reviews that the IRS and TIGTA will conduct at VITA sites during the Tax Filing Season 2006. Provided by the National Community Tax Coalition.

ITIN Acceptance Agent Procedures [DOC, 40KB, posted 1/24/06]
ITIN Acceptance Agents can assist immigrants in obtaining ITINs from the IRS. This document describes the new procedures for applying to become an Acceptance Agent. Many free tax preparation sites already assist immigrants to fill out W-7 forms to apply for an ITIN: having an Acceptance Agent on site makes the process much easier for clients.

Integrating Free Credit Reports at VITA Sites [PDF, 140KB, posted 1/18/06]
A handbook on how to itegrate free credit reports with free tax preparation. Provided by Fiscal Progress.

Comparison of Stored Value Cards Available for 2006 [XLS, 99KB, posted 1/13/06]
An interactive tool to compute fees and features of several cards. Modelling by Sabrina Su of FoodChange and by the Center for Economic Progress.

 

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