With Tax Season in High-Gear, Rep. Becerra Introduces Legislation to Protect Low-Income Taxpayers and Highlights Volunteer Income Tax Assistance

WITH TAX SEASON IN HIGH-GEAR, REP. BECERRA INTRODUCES LEGISLATION TO PROTECT LOW-INCOME TAXPAYERS AND HIGHLIGHTS VOLUNTEER INCOME TAX ASSISTANCE

LOS ANGELES - Representative Xavier Becerra (CA - 31), the only congressional member from Southern California who is on the House Ways and Means Committee teamed up with Children's Defense Fund (CDF) to highlight the importance of Volunteer Income Tax Assistance (VITA) sites, the benefits they offer to low-income families and individuals, and the importance of the Earned Income Tax Credit (EITC). CDF released a report on refund anticipation loans (RALs), which are offered by unscrupulous tax-preparers who target EITC eligible taxpayers, and pocket unnecessarily costly fees.

"The fees some tax-preparers charge are ridiculously costly, especially in light of the free tax return assistance VITA has to offer," Becerra said. "On top of this, certain tax-preparers then charge a usurious interest rate on the refund loans they offer, taking advantage of low-income communities, and taking money out of the pockets of EITC-eligible taxpayers. Last year, California taxpayers lost an estimated $237 million to such practices - that's food taken from our tables, clothes taken off our backs, and school supplies taken from our children. I will work to make sure the community knows this is an abuse, and to stop it from happening" emphasized Rep. Becerra.

To help combat the problem, this week Rep. Becerra introduced legislation, the "Low Income Taxpayer Protection Act of 2005," which would provide additional assistance for low-income taxpayers in preparing and filing their tax returns and protecting them from unscrupulous refund anticipation loan providers. His statement on introduction is below:

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http://becerra.house.gov/HoR/CA31/News/Press+Releases/2005/Low-Income+Taxpayer+Protection+Bill+Introduced.htm