Rangel, IRS & Local Leaders Urge New Yorkers to File For Earned Income Tax Credit

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

Call 311 or access list of free service sites, determine EITC eligibility

Free online tax prep software available from the IRS 24/7 at www.freefile.irs.gov

NEW YORK, NY - Food Bank For New York City hosted the Computer & Communications Industry Association (CCIA) at a press conference today with guest speaker Congressman Charles Rangel at the Food Bank Community Kitchen & Food Pantry of West Harlem (252 West 116 Street) to remind New York City residents that many of them may be eligible to get free tax return preparation and electronic filing in person at 14 sites citywide operated by the Food Bank’s Tax Assistance Program and online through the IRS and New York State Free File Alliance programs. 

The Food Bank is the first free tax assistance program in the country to offer taxpayers two IRS programs for preparing their returns for free.  An IRS-trained Volunteer Income Tax Assistance (VITA) volunteer or Food Bank staff member prepares the tax return or, the  taxpayer  prepares the federal, state and city returns for free on his/her own using brand-name commercial software available through the IRS and New York State Free File Alliances with coaching from tax experts and trained volunteers.  As the February tax rush begins, Congressman Rangel – joined by federal, city and community officials – urged 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).

 "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. I want to thank to all those who staff these VITA sites, companies that partner with the IRS, as well as non-profits like the Food Bank For New York City, which is the first organization to leverage both the IRS' VITA and Free File tax assistance programs. Thank you for your creative innovation in connecting New Yorkers to Free File Alliance and for preparing the largest volume of returns in the country.  Not only has the Food Bank saved New Yorkers thousands of dollars in tax preparation and refund anticipation loan fees, they have dramatically increased the likelihood that our families and friends will qualify for EITC."

The EITC is the largest poverty-reduction program in the nation. The IRS estimates that, nationally, about 75 percent of all eligible taxpayers receive EITC – meaning that approximately 25 percent do not claim the credit they deserve simply because they are unaware that they are entitled to it. New for tax year 2009, are the additional EITC and income thresholds for a third qualifying child and changes to the uniform definition of a child.  For tax years 2008 and 2010, the American Recovery and Reinvestment Act created a new category three or more children, which will provide larger credits to larger families.

“Potentially, scores of local residents could be missing out on thousands of dollars in tax refunds – money that lower income working people could use to pay bills, purchase food for their families, and start saving for their futures,” said Rev. Henry Belin, Board Chairman for the Food Bank For New York City.  He encouraged all New York City taxpayers to take advantage of the high-quality, free tax preparation options offered by Food Bank throughout New York City. “There are multiple ways for taxpayers to find out if they are eligible for free tax assistance: call 311, go to the Food Bank’s website (www.foodbanknyc.org) to use the EITC calculator, or visit one of our sites in person.”
 
“The IRS understands that 2009 was a difficult year for many families. EITC has been expanded to help people as part of the economic recovery efforts,” said IRS Commissioner Doug Shulman. “Today, more than ever, hard-working individuals and families can use a little extra help. EITC can make the lives of working people a little easier.”

Ed Black, President and CEO of CCIA, the event sponsor, thanked the IRS, Food Bank and all the community leaders attending, stating his national association wants to “support Food Bank and the Harlem community for how you have embraced the IRS Free File Alliance, one of the most innovative public/private/not-for-profit partnerships the technology industry has ever been a part of.”  Free File gives millions of taxpayers – 70% of all filers – a choice of using one of 20 different tax software products to prepare and file their tax returns online for free.  “These are the same products you and I can buy at stores or on the web.  But through Free File these services are donated; free and clear; no strings attached,” Black explained.  “In an era where every tax dollar counts and the Federal budget is under enormous pressure, Free File has saved the government and the American people many hundreds of millions of dollars.  It’s a win-win-win for all.”

Joining Mr. Black was Brad Smith, President and CEO of Intuit Inc.  Intuit, a member of Black’s association, is one of 20 software companies donating online tax preparation and filing products in the IRS Free File Alliance and 20 state Free File programs, including New York’s. Intuit’s Financial Freedom Foundation partners with the Food Bank to make its Free File product offering – TurboTax® Freedom Edition – available at Food Bank’s VITA sites.  Smith told the audience “Our participation in Free File and our work with Food Bank are core to who Intuit is as a company.  We believe that taxpayers of all income levels benefit when they are fully engaged in preparing their own returns and learn how to claim the credits and deductions they are lawfully owed, especially the EITC.  It’s a cornerstone of financial empowerment.”

For the 2008 tax year, 1.5 million New Yorkers received $3.1 billion in total EITC tax credits and obtained an average EITC refund of $2,700.  Last year, VITA sites helped more than 77,000 New Yorkers file their taxes for free.

New York City’s first Free Tax Assistance Program launched in 2002 at the Community Kitchen and Food Pantry of West Harlem.  Since that time, the program has served 241,200 filers and low income New Yorkers have received $476.5 million in tax refunds, EITC, Child Tax Credits and economic stimulus payments.  More than half of the tax returns claiming EITC are filed during the month of February. Today, the IRS recognizes the Food Bank For New York City as the largest coordinator of civilian tax assistance in the country.  And last year alone, through a partnership with the Intuit Financial Freedom Foundation, Food Bank also helped 1,400  taxpayers prepare and file their own returns with TurboTax Freedom Edition, Intuit’s free offering through the IRS and New York State Free File Alliance programs.

Also on site were two groups of student volunteers from the Frederick Douglass Academy and Rice High School to demonstrate how they and others students help taxpayers use TurboTax Freedom Edition at Food Bank’s sites throughout tax season as a service to the community.

Taxpayers can access free online tax software at www.freefile.irs.gov

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About the Food Bank For New York City: Food Bank For New York City recognizes 26 years as the city’s major hunger-relief organization working to end food poverty throughout the five boroughs.  The Food Bank works to increase access to affordable, nutritious food for low-income New Yorkers through a range of programs and services that focus on food sourcing and distribution, education and nutrition, financial empowerment, disaster relief and policy and research.
 
Food Bank For New York City sources and distributes food to a network of approximately 1,000 food assistance programs citywide, helping to provide 300,000 free meals a day to New Yorkers in need. The Food Bank strengthens the impact of our network through food safety and capacity-building workshops; offers a hands-on nutrition education program to New York City public schools, reaching over 14,000 children, teens and adults; conducts food stamp prescreening and outreach; operates a soup kitchen and food pantry; coordinates the largest civilian Earned Income Tax Credit (EITC) program in the country; and develops policy and conducts research to inform community and government efforts to end food poverty throughout New York City. Every dollar donated to the Food Bank helps provide five meals to New Yorkers in need. For additional information, visit foodbanknyc.org.

About CCIA: CCIA is a nonprofit membership organization for a wide range of companies in the computer, Internet, information technology, and telecommunications industries, represented by their senior executives. Created over three decades ago, CCIA promotes open markets, open systems, open networks, and full, fair, and open competition. CCIA serves as an additional, and sometimes the only, eyes, ears, and voice, in Washington for our members. Our goal is to proactively protect and promote their legitimate interests, and to advance the broad common interests of our industries.

About Intuit Financial Freedom Foundation: The Intuit Financial Freedom Foundation is dedicated to programs and projects that promote financial literacy and independence among disadvantaged, lower income individuals, small businesses, and the nonprofit organizations that serve them.  By donating Intuit software and online services, the Foundation helps people and organizations master their finances and bridge the digital divide. The Foundation’s signature programs are the Intuit Tax Freedom Project through which Intuit donates TurboTax online tax preparation and filing services through the IRS Free File Alliance and 20 state Free File programs; the Quicken and QuickBooks Product Donation Programs; and sponsorship of California First Lady Maria Shriver’s We Connect Campaign (www.weconnect.net).  For more information, please visit, www.IntuitEmpowers.com