U.S. Rep. Barbara Lee's Taxpayer Abuse Prevention Act

[marmar]

http://lee.house.gov/index.cfm?sectionid=57§iontree=35,57&itemid=2056



Washington, D.C. – Recently, Congresswoman Barbara Lee (D-CA) introduced the Taxpayer Abuse Prevention Act. This legislation seeks to stop predatory Refund Anticipation Loans that target low income Americans. She released this statement:

“The Earned Income Tax Credit (EITC) is one of the most effective anti-poverty programs in America. In 2008, the EITC provided critical help to 24 million families, lifting many of those families above the federal poverty line.

“It is one of the most important anti-poverty efforts that we have and so we cannot afford to lose the hundreds of millions of dollars that are siphoned out of the hands of low income families by the refund anticipation loan industry.

“That is why I have introduced the Taxpayer Abuse Prevention Act to end the use of the EITC and Child Tax Credit as collateral for Refund Anticipation Loans.

“The IRS reports that 86 percent of taxpayers who applied for a RAL were low income and 63 percent qualified for the EITC. The National Consumer Law Center reports that $465 million in loan fees and another $42 million in add on fees went to the tax preparers and banks who offer these loans.

“Far too many needy families lose hundreds of dollars in loan fees, questionable “processing fees” to access their own money.

“They are also forced to pay for tax preparation services that they can often get for free through the Volunteer Income Tax Assistance (VITA) program — just to get their tax refund a few days faster.

“Let’s end this predatory practice and make sure that our public funds get to the families who need it most and don’t end up lining the pockets of predatory lenders.”

Taxpayers can locate nearby volunteer sites that help low- to moderate-income (generally, $49,000 and below) people who cannot prepare their own tax returns. IRS-certified volunteers sponsored by various organizations receive training to help prepare basic tax returns in communities across the country. VITA sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations. Most locations also offer free electronic filing. Taxpayers can call 1-800-906-9887 or visit this website: http://www.irs.gov/individuals/article/0,,id=219156,00.html

[Donnachaidh]

1. what's the realistic chances of this getting through?

I've been watching fights here in Georgia to get rid of these vicious loan programs and it's been horrendous. We have title pawn shops popping up virtually on every corner.