PGHIMC - Pittsburgh Independent Media Center

IRS Attacks Poor Working Families
by Kristie Weiland Friday, Jun. 27, 2003 at 3:03 PM
jhkristie@stargate.net (email address validated) 412-431-8960 16 Terminal Way, Pittsburgh, PA 15219

The IRS will subject 45,000 Earned Income Tax Credit recipients to an audit before they even file their taxes for 2003. This wil deter a lot of eligible low-income workers from receiving the credit they have earned. You can help by submiting comments to the IRS.

Low-income workers were hit twice this spring by the tax policy of the Bush administration. You have probably heard about the cruel and intentional elimination of low-income workers from the Child Tax Credit increase. The second strike, this one on the Earned Income Tax Credit (EITC), has received less attention but is potentially much more harmful to low-income workers.

The EITC is a federal tax credit that supports work and helps low- and moderate-income families and individuals. Working families with children were eligible for a refundable tax credit of up to $4,140 in 2002 if they earned less than $34,178. The EITC lifts more people out of poverty than any other federal program and helped more than 19 million households last year.

The IRS has developed an initiative, with virtually no congressional or public input, under which substantial numbers of EITC recipients will be subject to audit-like procedures before they complete their tax returns. This August, 45,000 single fathers and relative caregivers such as grandmothers caring for grandchildren will receive letters requiring them to "pre-certify" by obtaining and filing affidavits from authorities such as landlords, doctors, or pastors to prove their eligibility for the EITC. In three years, up to five million taxpayers will be required to "pre-certify" each year.

The pre-certification requirements are unnecessarily burdensome and will keep many eligible people from filing for the EITC because they will not understand the requirements or be able to obtain the documentation. It is also unfair to subject low-income taxpayers to strict documentation requirements when the IRS loses significantly more money to corporate fraud than to EITC overpayments each year.

Advocates of the EITC won a small victory in June when the IRS announced that they would allow for public comments and reduced some of the documentation requirements. Marriage and birth certificates to prove a child's relationship to the taxpayer will no longer be requested this summer. Public comments on the pre-certification process and the requirement for proof that the child lives in the taxpayer's home will be accepted until July 16th.

Contact Kristie at Just Harvest at 412-431-8960 to get involved in the campaign to protect the EITC or to learn how you can send the IRS your comments about the pre-certification plan.

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local campaign
by Evan W. Saturday, Jun. 28, 2003 at 12:44 PM

Could you provide our readers with more information on the local campaign?

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local campaign
by Kristie Weiland Monday, Jun. 30, 2003 at 1:19 PM
jhkristie@stargate.net 412-431-8960

Just Harvest has been contacting local organizations to submit public comments, send letters to Senator Specter, circulate a petition, encourage client involvement, participate in meetings with Congresspeople, or participate in direct action.

Individuals are welcome to get involved as well!

I can provide sample letters, comments, and petitions now and will let you know when we plan meetings or direct action.

We are also working on getting more media coverage so letters to the editor would be helpful as well.

Specter is of particular importance because he is on the Appropriations committee and he is one of the few Senators, and definitely the only Republican, who has agreed to oppose pre-certification. He committed to sending a letter to the IRS about 6 weeks ago but unfortunately we haven't been able to get him to act.

It is also important to submit public comments to the IRS because that will show that many people are concerned. We're waiting for answers about how they are going to respond to the comments.

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