February 27, 2003

 

Take Advantage of Volunteer Income Tax Assistance

Nearly 70 percent of earned income credit filers are paying commercial tax professionals to prepare their returns, according to Debra Pankow, North Dakota State University extension family economics specialist.

A study by the Brookings Institution and the Progressive Policy Institute estimates that $1.75 billion a year in EIC benefits are taken from workers’ families for tax preparation fees and high-interest refund anticipation loans. Why? Most workers are unaware of alternative free tax help within their communities.

The Internal Revenue Service’s Volunteer Income Tax Assistance Program (VITA) offers free tax help to those who cannot afford professional assistance. Volunteers help prepare basic tax returns for taxpayers with special needs, including but not limited to people with disabilities, non-English speaking people and elderly taxpayers. Volunteers also provide assistance and return preparation for prior year federal income tax returns, as well as the earned income and advanced earned income tax credit.

VITA volunteers are located at community and neighborhood centers, libraries, schools, shopping malls and other convenient locations. In North Dakota, there are currently 46 sites available.

VITA reduces tax-filing errors, protecting workers from IRS penalties. In addition, VITA sites can be equipped to file tax returns electronically, which reduces the time it takes to receive refunds.

For more information about VITA in your community, contact the IRS at 1-800-829-1040.

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Source: Debra Pankow, (701) 231_8593, dpankow@ndsuext.nodak.edu
Writer: Teresa Oe, (701) 231_8371, teresa.oe@ndsu.nodak.edu
Editor: Rich Mattern, (701) 231_6136, richard.mattern@ndsu.nodak.edu