P R I N T

 PART IV 

Free or Low-Cost Tax
Preparation

Offering free tax preparation services to EITC-eligible residents not only helps ensure that working families actually claim the credit, but also helps them get the full value of the EITC.

Many EITC filers do not feel comfortable completing their own tax returns and turn to the commercial tax service industry for assistance. In fact, more than 68 percent of taxpayers who claim the EITC pay a commercial tax preparation agency to do their returns.

While there is a strong need for commercial tax preparers, most charge low-income filers high fees to do uncomplicated returns and many push high interest refund anticipation loans (RALs) to taxpayers in order to provide the filer with a faster return. These fees and RALs can take a significant percentage out of a low-income working family’s refund.

This section discusses the models for offering free and low-cost tax assistance and the logistical considerations related to site locations, operations, staffing, and marketing.

Free or Low-Cost Tax Preparation: Key Roles for City Officials

Recruit volunteers by speaking at business and membership clubs (e.g. the Chamber of Commerce, the Rotary Club)

Ask employers to sponsor sites

Approach universities for student and faculty volunteers

Advertise & market sites through the city’s website

Hold press events at tax sites to kick off the season

Report progress throughout, and at the end of, the tax season through speeches and public events

Host an appreciation event for volunteers, donors, and partners and publicly recognize their contributions

City Best Advice

Start with a limited number of sites and grow

Timing is crucial - start early and plan for waves of customers

Consult with other EITC campaigns

Value quality over quantity

Establish back up plans for technical difficulties

Assess performance of each site throughout the campaign

Publicly thank volunteers, donors, and partners

Create a strategy to help filers post-season

Ask volunteers and staff for input on what went well and what needs to be changed

For related resources, see Appendix A.
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