Locations

Wake County Human Services, Northern Regional Center: This site is reopening for a second year in 2011 and we expect to complete at least 125 personal income tax returns. No appointment is necessary.

Martin Street Community Development Corporation: Hosted at Martin Street Baptist Church, this tax site is new for 2011. The City of Raleigh has provided matching funds for this location which is expected to complete over 100 personal income tax returns for lower income families. We expect to serve a concentration of elderly tax filers and those who are disabled. No appointment is necessary.

We again want to thank Republic Bank for providing the necessary funding to allow us to expand services to those who can often least afford to pay for tax preparation. The ability to help lower income families with relatively simple tax returns allows us to keep more money in Wake County and provide opportunities for our volunteers to donate their time and expertise.

The $14,000 grant received from our local United Way chapter provides the Wake EITC Coalition with additional funding to maintain and expand outreach for this year’s free tax preparation program. Vision Credit Education is one of several partners that provide direct services to lower income families in the Greater Raleigh area including Wake County and surrounding counties.

The grant is being used to support local marketing programs to spread the word about free tax preparation through the Volunteer Income Tax Assistance (VITA) program and AARP’s TaxAide program. Some 40,000 informational fliers are being distributed through libraries, churches, area nonprofit organizations and regional centers of Wake County Human Services. Some clients also stumble onto the coalition’s website at WakeTax.org.

The grants are also being used to provide site coordinators at some of the 16 locations that will be serving tax filers this year. Free tax locations are hosted by partners at area locations, and the service is provided by community volunteers who are trained by the Internal Revenue Service.

Vision Credit Education will be providing VITA services at two of those locations:

• Northern Regional Center/Wake County Human Services, 350 E. Holding Ave., Wake Forest, NC 27587
• Martin Street CDC, 1001 E. Martin St., Raleigh, NC 27601

For more information on obtaining free income tax assistance, call Ronnica Rothe, Program Manager at 919-338-0882.

The grant specifically targets two groups who may be underserved in downtown Raleigh. First of all, we are focusing on attracting potential tax filers who are disabled. Many disabled citizens who are very low income have no filing requirement but could benefit from having their taxes filed. These citizens are often turned away from storefront paid preparers whose heavy fees dwarf the refund that would be received. By taking advantage of free tax filing through VITA, those with disabilities are able to receive the tax credits that they are entitled to without having to pay for what is actually a fairly routine tax return.

An additional target population are those citizens who are lower income and are aged 60 and above. While many senior citizens may not feel like seniors, their income may be less than what they used to earn. Those on a fixed income really feel the pinch from tax preparation fees that can easily exceed $100 to $200. Instead, they can take advantage of VITA, which offers free income tax preparation and filing for lower income residents and senior citizens. To further expand outreach to our senior citizens, we have invited our partners at AARP who will be providing the similar TaxAide service on additional weekdays.

Here is the information for the new location:

Hours: Tuesday & Thursday from 5-8 pm.

This is the second consecutive year that IRS has lent its support to our coalition, so it really shows their commitment to helping lower income tax filers afford to be able to comply with the tax laws. In addition to grant funding, local IRS representatives provide training and material support to the volunteer led effort. VITA is a wonderful way to give back to the community, and we couldn’t do it without the generous support of the IRS and the volunteers that give so freely of their time.

The IRS grant will be used to expand outreach and increase the effectiveness of newly expanded site locations. Having a trained site coordinator who is experienced not just in tax preparation but also in volunteer recruitment and management is a real boost. It allows us to extend our programs far beyond what our small staff is able to monitor directly on a daily basis.

Vision Credit Education is an active participant and integral voice of the Wake EITC Coalition. The Wake EITC Coalition provides volunteer tax preparation and filing for lower income families located in Wake County as well as the surrounding Greater Raleigh and Triangle area. It is made up of participating organizations including the local IRS office, Vision Credit Education, Fiscal Progress, Family Resource Center of Raleigh, Wake County Human Services, United Way of the Greater Triangle, AARP, and multiple area churches and community centers.

We thank the IRS for their continued support. For more information on the Wake EITC Coalition, including free tax preparation locations and volunteer opportunities, visit waketax.org.

Free tax preparation services are available to the elderly, the disabled and any household with less than $50,000 in annual income. This threshold is determined by the Internal Revenue Service to allow for free tax assistance to those who may lack the means to afford pricey services by paid preparers.

If you would like to benefit from this service, contact Vision Credit Education at 919-338-0882 or toll-free at 800-379-4720. You may make an appointment to meet with a trained VITA volunteer who can prepare your income tax return.

Since this program is also supported by the Internal Revenue Service, you may have your return e-filed. This allows for instant submission to the IRS, clearing the way for a prompt refund. Most federal tax refunds are received within 10 days through the service. There is zero charge for preparation, e-filing or refund services.

To receive any funding from the City of Raleigh during such difficult economic times shows how important this program really is. We are grateful for the opportunity to expand our VITA program to provide much needed services to the city residents that need it most.

Tax season runs from January 17 to April 15, 2011. Volunteers will also be on hand at limited locations prior to January 17 for anyone who needs to file a prior year tax return.

What is VITA?

The Volunteer Income Tax Assistance program is a community service that provides a free alternative to costly tax preparation services. Volunteers are trained by the Internal Revenue Service to provide income tax preparation. They can file both federal and state income tax returns on your behalf. Since VITA is volunteer run and sponsored by numerous organizations, it is free to you.

Who Qualifies?

If your household income is below $49,000 for 2009, or if you are age 60 and above, you qualify. There is zero cost for you to participate.

Location

Wake County Human Services is hosting our VITA program at their Northern Regional Center. The address is 350 E. Holding Ave, Wake Forest, NC 27587. For information, call 1-919-338-0882.

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Times and Dates

No appointment is necessary. Volunteers are available Tuesdays from noon to 6:00 pm, and on Thursdays from 10:00 am to 4:00 pm. The services is available from Tuesday, January 26 through Thursday, April 15 for 2010.

How Long Does a Refund Take?

Most federal tax refunds are direct deposited within 10 days. There is no need for a refund anticipation loan or any other costly service to get your refund quickly. Again, there is no charge for this service.

Many of our tax clients report that they previously paid anywhere from $100 to $450 for tax preparation services. This year, you can get a bigger refund because no one is skimming their fees off the top!

What if I Live Outside of this Area?

You can still receive free income tax preparation from an IRS partner organization. If your area is served by the United Way’s 211 service, simply call 211 and ask for a referral to a free income tax service. Alternatively, you may contact the IRS at 1-800-829-1040 and ask for the closest location. Free services are available from both VITA and AARP Tax Aide partners.

So how do you know how much you are on the hook for as we bail out Wall Street, combat the housing crisis and deal with rampant unemployment? It depends on which figures you use.

When we consider that there were 156.3 million tax filers in 2008, that amounts to just over $9,000 per tax filer. Please note that this figure is double what the number is when dividing by the total U.S. population.

While that sounds like a lot, understand that 2008 was a record year for U.S. tax filings as there were added incentives to file for people who normally do not file a return. Remember the economic stimulus payments? Before the stimulus, there were only 136.1 million tax filers in 2006.

A substantial number of tax filers actually pay no tax. This is due to standard deductions and a slew of tax credits, many of which are refundable. It is a fact that the number of tax filers who owe no tax has been rising rapidly over the last several years, a number that many economists find unsustainable in the long run.

So exactly how many Americans actually pay income taxes? The number of Americans not owing income taxes has been rising rapidly, and according to many could reach even higher numbers over the next couple of years. One of those voices is Tax Foundation President Scott Hodge.

By 2012, if President Obama’s proposals on taxes, health care and climate change become law, families earning up to $109,000 will, as a group, be receiving more in federal spending than they pay in federal tax.

It is important to note that the portion of tax filers who do not owe has been rising rapidly through multiple White House administrations.

A recent CNN Money article states that 47% of households will owe no tax in 2009. That means that an estimated 80 million households will be responsible for the $1.42 trillion budget deficit. That comes out to $17,500 per household that actually pays tax. And yes, this is in addition to what we already owe from previous deficits.

So what does that mean for each of us? It means that we need to understand that promises by the federal government to take care of us in our old age sound good, but we need to prepare for life without government assistance. The expected shortages in Social Security are well known. Therefore it is our responsibility to live below our means, make intelligent purchases, and save and invest for the future.

This judgment affects all affiliated companies of Laura Hess, including:

• Laura Hess & Associates, PA
• Hess Kennedy Chartered LLC
• The Consumer Law Center LLC

Many consumers have expressed concern that they had deposited substantial balances with The Consumer Law Center as a part of their debt settlement program. Those deposits were in jeopardy amid allegations that some funds were transferred from the company to another related company.

Receiver Daniel J Stermer has been tapped to sort out the dealings of these companies and to return funds to the customers of Laura Hess. The companies were ordered by a Broward County judge to be liquidated so that refunds could be paid.

Attorney General Bill McCollum had some strong statements regarding the bold actions taken against Laura Hess:

Instead of the assistance they were promised, thousands of cash-strapped consumers found themselves even deeper in debt. By shutting down these operations, we’re sending a strong message that the Attorney General’s Office will not tolerate scam artists who prey on the vulnerable.

Some of the claims were that Hess Kennedy and The Consumer Law Center could settle debts for pennies on the dollar. Allegations also were made that consumers were told that they did not have to pay creditors because they were enrolled in the debt settlement program. Many consumers consequently faced judgments from lawsuits filed by their creditors, of which they received no representation by their debt settlement companies or their legal representatives.

Capital One has announced that they would cancel the credit card debt of 18,000 former cardholders that had defaulted on their debt as a part of their debt settlement program with Hess Kenndy and The Consumer Law Center. HSBC will also forgive the balances of 6,000 victims of Laura Hess and her companies.

These forgiven debts will certainly be good news to the thousands of affected debtors that fell victim to this rogue debt settlement scheme. Although the debts have been forgiven, those that have their debt forgiven should still be prepared for additional tax liabilities if they receive a Form 1099-C as a result of the forgiven debt.

Recommended Link

For updates on refunds to clients of Laura Hess & Associates and related debt settlement companies, see the receivership update. The receiver is providing regular updates on the process as well as additional information on claims for refunds.

If you would like to file for the stimulus payment and are not normally required to file a tax return, you may complete Form 1040A–Fillable Form for Stimulus Payment and mail directly to the IRS. If you are required to file, your regular tax return is all you need to file.

The mistake was an overstatement of benefits received on the 1099-SSA. Some errors were due to Medicare Advantage or Part C or D prescription drug plans. Other forms mistakenly included 2006 benefits in with 2007 benefits.

The result is that the benefits were reported to be higher than what beneficiaries actually received. This could adversely affect tax returns.

Correct forms should be received by mid-February. You may call the Social Security Administration at (800) 772-1213 if you do not receive a corrected 1099-SSA form. Taxpayers that file with an incorrect form may need to file an amended return once they receive the corrected 1099-SSA form.