Stakeholder Partnerships, Education and Communication (SPEC)

1. Stakeholder Partnerships, Education and Communication (SPEC) Partnering to Build Real Economic Impactfor Americans with Disabilities CFED September 11, 2008

2. “To assist taxpayers in satisfying their tax responsibilities by building and maintaining partnerships with key stakeholders, seeking to create and share value by informing, educating, and communicating with our shared customers.” SPEC Mission Statement

3. What is SPEC? • Outreach and Education function of IRS Wage & Investment Division • Individual Income Taxes • Administer the VITA (Volunteer Income Tax Assistance) and TCE (Tax Counseling for the Elderly) programs

4. SPEC Key Customers • Low to Moderate Income (<$40,000) • Older Americans (>60 years of age) • Limited English Proficient (LEP) • Native Americans • People with Disabilities

5. Community Based Partnership Awareness and Education Tax Preparation Awareness and Education Community- Based Partnership AssetBuilding

6. Media Employers Non-profits Social Service Agencies Awareness and Education Outreach and Education

7. Outreach Accomplishments(People with Disabilities) Included fliers; posters; media events; radio/TV promotions; press releases; Mayors proclamations special event days; tax blitzes; and newsletters. 2006 - 342,554 outreach in 30 cities 2007 - 1,001,042 outreach in 54 cities 2008 - 2,016,165 outreach in 62 cities

8. What is the Earned Income Tax Credit (EITC)? The largest federal aid program benefiting working individuals and families: • EITC is approximately equal to Temporary Assistance for Needy Families (TANF) and Food Stamp Programs combined (in total dollars) • Ten times the size of the Community Development Block Grant (CDBG) program • $43 billion paid out in 2007 to over 22 million Individuals and Families

9. EITC Statistics EITC is the most effective anti-poverty tool for working individuals and families: • Lifts over 5 million individuals out of poverty each year, including 2.6 million children • Unfortunately, studies (Brookings, GAO) show that up to 25% do not claim the EITC leaving Billions of dollars unclaimed each year

10. EITC for 2007 The maximum amount of EITC is: • $4,716 if you have more than one qualifying child • $2,853 if you have one qualifying child • $428 if you do not have a qualifying child

11. Impact of EITC on Benefits Not considered employment income Generally EITC not counted as resources during the month received & the following month Not included as income for determining eligibility for other federal public benefits

12. Tax Preparation Free Tax Preparation Volunteer Tax Prep Sites Electronic Filing Earned Income Tax Credit Child Tax Credit Free Tax Preparation Volunteer Income Tax Sites

13. Free Tax Preparation • Total Volunteer Prepared Returns - 3,247,298 • Refunds exceeding $3Billion • 2,877,863 Electronically Filed (88.6%) • All Volunteers are IRS Certified • 100% of Volunteer prepared returns are reviewed • Free Tax Preparation saved approx. $650 Million in Tax Fees & Refund Anticipation Loans

14. Free Tax Preparation(People With Disabilities) Local Returns Refunds YearCitiesPartnersPreparedReceived 2005 11 ---- 7,600 $6,840,000 2006 30 200 17,223 $15,300,000 2007 54 355 36,275 $32,647,000 2008 62 555 90,653 >$81,000,000

15. Why Are Free Tax Preparation Services Important? • Complexity of tax law • Tax preparation fees erode the value of refunds • Must file if they have earned income to receive refunds of credits and/or withholding • Opportunity to link to asset building strategies

16. Asset Building Individual Development Accts Home Ownership Program Savings/Checking Account Financial Literacy Training Financial Institutions AssetBuilding

17. Disabilities and Poverty 33% Of adults with disabilities live in households with total income of <$15,000 compared to only 12% of those without disabilities 54% of people with disabilities have no savings accounts and 69% do not have a checking account 58% of people with disabilities are asset poor (do not have enough resources to live at the federal poverty level for 3 months) Sources: 2004 N.O.D/Harris Poll & 2000 U.S. Population Census

18. Current Asset Building Strategies Financial Education Free Checking/Savings Accounts Free Tax Filing Assistance Debt and Credit Counseling Individual Development Accounts (IDAs) Home Ownership Programs Money Smart Program-FDIC

19. IRS Hiring Initiative • IRS Commissioner took proactive approach to hiring people with disabilities • Goals – Fiscal Year 2008 and 2009: • 69 was goal in W&I, 195 hired as of June 30 • 71 is the goal for 2009… • IRS – 2% of workforce will be a person with disabilities

20. What Can You do to Help? • Join Existing Coalition Efforts • Become Part of The Disability Workgroup • Take a Leadership Role • Educate Clients • Educate Employees • Become a Free Tax Preparation Site • Sponsor an IDA account program that offers matching funds.

21. Resources • www.reitour.org (Real Economic Impact Tour) • www.ndi-inc.org (NDI website) • www.irs.gov (Keyword “disabilities” - IRS Partner page for those that work with people with disabilities) • www.irs-eitc.info/SPEC (SPEC Toolkit for EITC) • www.fdic.gov/consumers/consumer/moneysmart(FDIC Money Smart) • www.cbpp.org/eic2008 (Center on Budget and Policy Priorities site and Access to EITC Toolkit)

22. Richard Keeling – Senior Tax Analyst Internal Revenue Service 401 West Peachtree Street NW STOP-WI-50 Atlanta, GA 30308 404-338-8814 Richard.Keeling@irs.gov www.irs.gov(Keyword “Community Network”) Contact Information