Officials Kick Off EITC Outreach and Promote Free Tax Prep Options For Low-Wage Workers.

As taxpayers begin the February rush to file their taxes, Congressman Charles Rangel joined federal, city and community officials in urging New Yorkers to get the most out of their returns by making sure they apply for every eligible tax benefit, including the Earned Income Tax Credit (EITC).

Rangel joined Internal Revenue Service Commissioner Doug Shulman , New York City Department of Consumer Affairs Commissioner Jonathan Mintz, Manhattan Borough President Scott Stringer, Food Bank Pres. & CEO Dr. Lucy Cabrera and Food Bank Board Chairman Rev. Henry Belin Friday to discuss the EITC and the various ways low-wage earners can receive free tax preparation.

"For thirty years , a bipartisan Congress enacted the EITC and since then it has been one of our country’s most powerful anti-poverty and work support programs, " said Rangel. Chairman of the House Ways and Means Committee, Congress' major tax-writing committee. "Now more than ever, it helps provide the kind of hope that keeps people working and believing in our economic system. This is not a handout but money that people have earned through their daily labor. Money that can help struggling families through these tough times. "

The IRS estimates that about one in four eligible taxpayers fails to claim the EITC., meaning that scores of local residents could be missing out on thousands of dollars in tax refunds. In the Congressman's own 15th Congressional District, as many as 20,000 eligible taxpayers do not, losing out on an average of $2,000 in benefits.

“Many people in New York and other areas experienced some financial hardships last year. People may be eligible for EITC for the first time and really should check out their eligibility. This is a significant credit that can make their lives a little easier,” said IRS Commissioner Doug Shulman. “EITC can provide a real dollars and cents boost when it’s needed most.”

The news conference on national EITC Awareness Day also highlighted a number of local initiatives to facilitate tax preparation by the IRS and elected officials. These include a Special Saturday Service this year at 172 IRS Taxpayer Assistance Centers (including twelve New York Centers) on three upcoming Saturdays to help prepare EITC returns and an all-day Free Tax Preparation Day on Saturday Jan. 31 with Manhattan Borough President Scott Stringer and Rep. Rangel at the Harlem State Office Building starting at 9 a.m. Most Food Bank sites will also be open every Saturday until the tax filing deadline of April 15th.

“New York City sponsors the most robust EITC Coalition in the nation. Thanks to the leadership of Congressman Rangel and Mayor Bloomberg, and great partners like the IRS, the City is poised to help more New Yorkers than ever access free or low-cost tax preparation services, and boost their refunds by claiming the tax credits they’ve earned,” said Jonathan Mintz, Commissioner of the New York City Department of Consumer Affairs, whose Office of Financial Empowerment spearheads the City’s Tax Credit Campaign.

“Now more than ever, it is important to put money in the pockets of hard working New Yorkers who need it the most,” said Manhattan Borough President Scott M. Stringer. “But the EITC refund isn’t automatic. We must use every tool and program available to help spread the word and provide free assistance for every eligible taxpayer to receive this credit.”

More resources for the Earned Income Tax Credit is also included in the recovery package that passed Wednesday, Jan. 30 by the House of Representatives. H.R. 1, the American Recovery and Reinvestment Act of 2009, temporarily expands the EITC by increasing current benefits and bringing in over 650,000 new families and 1.3 million children. In the New York City metro area, more than 215,000 families will benefit from the EITC provisions in H.R. 1, according to the Metropolitan Policy Program at Brookings.

An Important Resource for New Yorkers
Nearly 24 million taxpayers across the country received nearly $48 billion from the earned income tax credit, including 1.52 million in New York who received $2.9 billion. In the Congressional 15th District, 100,000 constituents claimed $205 million in tax benefits.

More than half of the tax returns claiming the EITC are filed during the month of February. The Food Bank coordinates the largest civilian free tax assistance program in the country for low-income New Yorkers with 11 sites throughout the five boroughs.

EITC claimants are eligible for free tax preparation services provided at nearly 12,000 volunteer sites nationwide (including 54 New York City EITC Coalition sites, 11 of which are run by the Food Bank For New York City). They can also link to Free File through IRS.gov if they wish to prepare their own returns.

“The Earned Income Tax Credit and the Food Bank’s free tax preparation program are bright spots in this dark economy. The EITC brings much-needed cash to those working hard and still struggling to make ends meet. It brings federal dollars into New York City’s economy, where its stimulus effect is immediate and local,” states Dr. Lucy Cabrera, President & CEO of the Food Bank For New York City. "And In the midst of layoffs and record unemployment, the Food Bank is providing hundreds of volunteers with marketable job skills, as every trained volunteer becomes an IRS-certified tax preparer."

"Together we must find additional ways to reach out to individuals eligible for the credit who are not claiming it," said Rangel. Only five percent (5%) of the EITC claimants in my district use free tax preparation services. We must increase this percentage."

Federal, state and city officials are also working hard with local groups to ensure that residents know about their eligibility for tax benefits and to make the filing process easier. This week, Rangel and Rep. John Lewis sent out letters to their Congressional colleagues encouraging them to hold outreach activities in their districts. Locally, New York City this year has launched the innovative $aveNYC Account program, which returns eligible New Yorkers 50 cents on every dollar when they save part of their tax refund for a year. Information about all of these services are available by calling 311 or visiting Congressman Rangel's Web site starting Feb. 1.

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