HAMILTON, N.Y., Jan. 27 (AScribe Newswire) -- In spite of recent IRS reports that a significant portion of tax fraud cases may involve the Earned Income Tax Credit (EITC), the program should not be scrapped anytime soon, according to Colgate University tax expert and economics professor Nicole Simpson.
Simpson has worked with numerous families in the Central New York region who need the EITC to pay their rent and bills.
"This initiative has been more effective than any other at getting people off of the welfare rolls in this country," said Simpson, who has directed or participated in Colgate's Volunteer Income Tax Assistance (VITA) program since its inception in 2003.
"If the current administration or the next continues to talk about revamping the tax system in this country, I urge them to keep the EITC.
The tax preparation process should be streamlined, especially for households who qualify for EITC, so that tax fraud is more easily detected."
Many working low-income families don't receive the EITC for which they qualify because they cannot afford the assistance necessary to complete the complicated forms.
Through Colgate's VITA initiative, undergraduates offer free tax-preparation services to low-income individuals and families living in the communities surrounding the university.
It was the first student-staffed program of its kind in New York state.
Last spring alone, 30 students prepared paperwork for 235 families at VITA locations in the Central New York area, and returned more than $500,000 to local communities.
Average refunds totaled $2,500 per household, with the largest refund topping out at $7,700.
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