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For Immediate Release
January 21, 2006

Children's Defense Fund Finds Tax Refund Loans Cost Low-Income D.C. Workers $2.6 Million

Children's Defense Fund Opens Free Tax Filing Sites to Aid Low-Income Taxpayers

Contact:  David Ruffin, (202) 662-3613, druffin@childrensdefense.org, or
Jodi Reid, (202) 662-3602, jreid@childrensdefense.org

Washington, D.C. The Children’s Defense Fund is initiating a campaign to alleviate an income tax-filing issue that has plagued millions of low-income American workers each year, including tens of thousands here in our nation’s capital. Low- to moderate-income D.C. working families lost $2.6 million of their earned refunds during the 2004 tax season in exchange for collecting those refunds about 10 days sooner in some instances.

As tax season approaches, many of the country’s working poor are unaware that they are eligible for the Earned Income Tax Credit (EITC), a refundable federal tax credit for people who work full- or part-time but earn low wages. The EITC, which can be worth up to $4,400, enables workers to use their refunds to cover such expenses as rent, utilities, food and childcare, thereby improving their families’ lives while directly reducing poverty levels. Knowing about the EITC for low-income workers, some unscrupulous tax preparers target these individuals, offering them “rapid refunds” through Refund Anticipation Loans (RALs), deceptive high-interest loans that typically carry exorbitant preparation fees and are secured by the taxpayers’ refund.

Beginning tomorrow morning and continuing until April 14, Children’s Defense Fund’s partner organization, Perry Community Services Center, will operate a free tax-filing site in conjunction with Perry Community Services Center, a community based comprehensive social services, economic empowerment and youth development organization in Washington, DC.

When: January 21, 2006 through April 14, 2006
Monday-Friday, 10 am 6 pm
Saturdays, 9:30 am 3:30 pm
Where: Perry Community Services Center
128 M St., NW
202.312.7142 
Why: The EITC is one of the most effective anti-poverty programs nationwide and in the District. Through CDF’s local faith and-community-based organizations and coalitions last year, more than 3,500 low-income D.C. residents were able to collectively receive over $4.7 million in refunds.
 
What: Volunteer Income Tax Assistance (VITA) sites are managed by volunteers who receive training in both tax law and TaxWise software and offer free tax preparation to any individual making $15,000 or less per year and families making $38,000 or less .
 
Contact: To schedule an interview with Mike Danielson, CDF’s EITC representative and Program Associate, please contact Lauren Lawson at (202) 662-3592 or at llawson@childrensdefense.org
 

To sign up as a tax preparer for one of CDF’s partner sites, go to: www.takethemoneydc.org/volunteer