CU offers free tax help
LGFCU and SECU partner with IRS to help North Carolina’s underserved.
9/12/2007
Local Government Federal Credit Union (LGFCU), State Employees’ Credit Union (SECU) and the Internal Revenue Service (IRS) recently announced 215 SECU branches statewide will serve as Volunteer Income Tax Assistance (VITA) sites in 2008.
The VITA program offers free tax assistance to people with low to moderate incomes. LGFCU and SECU estimate more than 400,000 of their members are eligible to receive these no-cost services.
Maurice Smith, President/CEO of Local Government Federal Credit Union, said, “LGFCU is pleased to partner with SECU and the IRS to provide this much needed service to North Carolinians. The extensive statewide branch network gives us the ability to reach many of our State’s citizens with these free services—citizens who would otherwise be forced to pay excessive fees. Collectively, we feel this is the right thing to do and an initiative that can make a huge financial difference in North Carolina.”
Two employees at each branch will serve as VITA representatives trained to prepare and electronically file basic tax returns. These representatives will ensure eligible North Carolinians receive special credits such as the Earned Income Tax Credit (EITC) and the Child Tax Credit. The EITC is the nation’s largest anti-poverty program, yet studies show that as many as 25% of eligible taxpayers fail to claim the credit. VITA sites also provide the opportunity for tax preparers to encourage financial literacy and assist taxpayers on their way to asset accumulation and greater economic security.
Josh Kelly, VP of Financial Advisory Services states, “Many North Carolinians are unaware they qualify for free income tax preparation through VITA and subsequently pay for tax preparation. In addition, SECU has found many of its members obtain refund anticipation loans with extremely high interest rates targeted at low income taxpayers. These refund anticipation loans make little sense, since the IRS typically delivers refunds in 7-13 days. Tax filing abuse is becoming a nationwide epidemic and SECU is positioning itself to combat this abuse, leaving more money in the pockets of North Carolinians.”
David King, SECU Board of Directors Chairman, adds, “Serving as VITA sites, State Employees’ Credit Union is offering a fair, impartial alternative to abusive tax preparers.
Concurrently, North Carolinians are leaving over $150 million in EITC refunds unclaimed, as they simply don’t know they are eligible for the refunds’re looking forward to helping over 400,000 credit union members and the citizens of North Carolina get the money they deserve—a positive result of hands-on financial literacy and a possible $150 million boost in North Carolina’s economy.”
Local Government Federal Credit Union serves local government employees, volunteers and their families across North Carolina. The $725 million federally-chartered credit union serves more than 155,000 members in all facets of local government in North Carolina’s 100 counties and 545 cities, towns and villages.
