CDF Report Finds Low-Income Families Lose Billions to Predatory Commercial Tax Preparers
Source: Children’s Defense Fund
Low-income families lost billions in tax year 2005 in Earned Income Tax Credit (EITC) benefits to high-interest, short-term loans, tax preparation fees, and other financial products issued by commercial tax preparers, according to a Children’s Defense Fund (CDF) report released today. With the tax filing deadline fast approaching and millions of families expecting to receive economic stimulus payments later this year, the report warns low-income families to avoid Refund Anticipation Loans whose high interest rates cause families to forfeit a significant percentage of their refunds in order to receive their money a little earlier. According to CDF’s analysis of newly released data from the Internal Revenue Service (IRS), Refund Anticipation Loans, commercial tax preparation services and financial products cost lower-income tax filers who claimed the EITC $3 billion for 2005.
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on Friday, March 28th, 2008 at 8:28 pm and is filed under Business and economics, Children and families, Consumer issues, Government and politics, Social and cultural issues, Taxation.
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