Media Release
| For Immediate Release | Contact | Phone |
| January 31, 2007 | Phyllis Salowe-Kaye | 973-643-8800 ext. 14 |
New Jersey Citizen Action Opens Free Tax Preparation Center in Newark
Service Targets Working Families Eligible for Federal and State Earned Income Tax Credit; Eligible Newark Taxpayers Failed to Claim $16 Million in EITC Benefits Last Year
Trenton, NJ — New Jersey Citizen Action (NJCA) opened a Free Tax Preparation Center at 24 Clinton Street, Newark 07102 today where trained tax specialists will prepare returns four days a week from 11 AM to 8 PM and Saturday 9 AM to 4 PM. The street-level office will be open every day but Wednesday and Sunday through the tax season. No appointment is necessary.
Anyone is eligible to apply for the Earned Income Tax Credit (EITC) who worked anytime during 2006 and earned less than $40,000 – even if the earnings would not otherwise be taxable. Tax returns are electronically filed at no cost for any persons earning less than $40,000 whether eligible for EITC or not. Families who use the free Citizen Action Center will be able to open bank accounts that will allow direct deposits of their tax refunds. If filers have a bank account and apply for direct deposit, their refund will arrive more quickly – as early as a week or less.
Citizen Action's major goal is to increase public awareness and participation in the Earned Income Tax Credit (EITC), both federal and state programs that provide a special tax refund for low and moderate-income wage earners and are particularly beneficial to working families with children. IRS records show that last year alone eligible Newark taxpayers lost $16 million in refunds not claimed.
"The EITC is the most effective anti-poverty program in the United States," said Phyllis Salowe-Kaye, Executive Director of Citizen Action. "If you earned less than $40,000 in 2006 the IRS may owe you as much as $5,443. Not only does EITC put money into the pockets of working families, it also boosts the local economy. "
Sponsors of the Citizen Action Center include the Sovereign Bank Endowment Fund and the Independence Community Foundation that provided seed funding that enabled the renting and staffing of the storefront center. Wachovia Foundation was the other lead sponsor. Other funding came from major foundations, financial institutions and corporations.
Joining Ms. Salowe-Kaye were Mayor Cory Booker, Public Advocate Ron Chen, representing Governor Jon Corzine, Senator Ron Rice, Ray Ocasio of La Casa de Don Pedro, Dick Barber of state NAACP, Rev. Reginald Jackson, NJ Black Minister's Council, Joseph Della Fave, Ironbound Community Corp., Sovereign Bank's Alan H. Fishman and Jack Killen, the bank's CRA Officer, Marilyn Gelber of Sovereign Endowment Fund, Lydia Hernandez Velez of Wachovia, Jon Shure of New Jersey Policy Perspective.
"This program helps Newark residents who cannot afford the high fees professional tax preparers charge, obtain the assistance they need in order to minimize their tax burdens and maximize their refunds," said Mayor Booker. "Working families often have the least amount of resources to address their income tax issues, so it is incumbent upon us as a society to provide them with the greatest assistance. I urge all qualifying Newark residents to take advantage of this program."
Reverend Reginald Jackson, Executive Director of New Jersey's Black Ministers Council, urged local working families to take advantage of this free qualified tax help. "Each year billions of tax credit dollars go uncollected simply because millions of families are unaware that they are eligible for this credit. In addition, millions of dollars are also lost when low-income taxpayers pay out high fees and for high cost loans to paid taxpayer services."
In a related consumer protection activity, Citizen Action joined consumer groups from California, North Carolina, Chicago, IL and New York January 16 to demand return of $74 million in profits Jackson Hewitt made from high cost Refund Anticipation Loans (RALS) nationally. They left a check for the CEO Michael Lister to sign at Jackson Hewitt's headquarters in Parsippany. Tight security prevented the group from entering the headquarters of the nation's second largest provider of tax services and RALS. Citizen Action asked the New Jersey Attorney General and the Public Advocate to request a formal investigation into the predatory practices of Jackson Hewitt.
Ron Chen, Public Advocate agreed, "There is clearly a great risk of exploitation of economically vulnerable New Jersey residents as a result of such lending practices." Chen referred the matter to Attorney General Stuart Rabner and "his staff advised me that they have taken this matter under review."
Alan H. Fishman, speaking on behalf of the Sovereign Bank Endowment Fund, said, "Our bank has been a leader in promoting the EITC benefit on a community level in Newark over the past four years and we are delighted to support this Citizen Action initiative to expand that commitment." Marilyn Gelber, Executive Director of the Independence Community Foundation, said. "By joining with Sovereign to provide $250,000 for this new EITC center in Newark, we are hopeful that Citizen Action will create an effective statewide model for other urban areas of New Jersey."
Lydia Hernandez Velez, Senior Vice President of Wachovia Bank – lead sponsor of the Tax Prep Center, reported, "The Earned Income Tax Credit is a valuable wealth building resource to communities. We urge all eligible taxpayers to use New Jersey Citizen Action's exceptional resource to obtain their tax credit. It is a great program to make real individual dreams such as home ownership and education come true. Wachovia Bank is proud to support this effort."
Jon Shure, Executive Director of New Jersey Policy Perspective, released a report last Wednesday showing that New Jersey's state EITC shortchanges low-income working families because it cuts them off when their income reaches $20,000. Every other state with an EITC uses the federal standards, which last year meant a family of four making $38,222 could still get benefits. NJPP President Jon Shure said, "Fewer than half the people getting the federal EITC in New Jersey get the state EITC. Not because they don't need it, but because New Jersey won't give it to them. Some people with income below the federal poverty line can't get the New Jersey EITC. It needs to be strengthened to help people help themselves."
New Jersey Citizen Action will be working actively to change the New Jersey EITC law so that New Jersey EITC eligibility will conform to the Federal standard as every other state in the nation.
Taxpayers can call for an appointment for the free service by dialing New Jersey Citizen Action at 1-888-T-A-X-E-S-11 but walk-ins are encouraged during business hours 11 Am to 8 PM Monday, Tuesday, Thursday, Friday and 9 AM to 4 PM Saturday.
Additional sponsors of the Citizen Action Free Tax Center are Bank of America, Citigroup, Commerce Bank, HSBC Bank USA NA, JPMorgan Chase, New Jersey Citizen Action Education Fund, North Fork Bank, PNC Foundation, PSE&G, TD Banknorth Charitable Foundation, Verizon and Washington Mutual as of January 2007.
###
New Jersey Citizen Action is the state's largest citizen watchdog coalition, representing more than 60,000 family members and over 110 affiliated groups.
