FREE TAX HELP COULD RETURN MILLIONS TO NASHVILLE AREA WORKING FAMILIES

-community group opens more locations for free tax prep assistance in 2006

NASHVILLE-A community-wide effort that offers free tax assistance to low- to moderate-income working families is paying off - for local taxpayers and the Nashville community.

More than 5,000 area families received free tax help at one of the Nashville tax prep sites in 2005, accounting for $7.1 million in tax refunds, according to the Nashville Wealth Building Alliance (NWBA). And the group expects even more business and greater returns in 2006, with the addition of more tax preparation locations. The NWBA is a coalition of government, non-profits, churches and businesses that work together to help area families build financial stability and a better future.

"Hard-working Nashville families deserve to get their full tax refund and everyone benefits when those dollars come back into the Nashville economy," U.S. Rep. Jim Cooper, a member of the NWBA, said. "In the past, thousands of area families failed to file for their full return, including the Earned Income Tax Credit (EITC). When that happens, it costs the family hundreds, maybe thousands of dollars, and it cost Nashville millions in lost tax revenue."

A family with two or more children may be eligible for the EITC if they earned less than $37,263 in 2005. A single head of household with one child and an income of $31,030 may be eligible - as well as a single person with no dependents and an income of $11,750. Additional information regarding eligibility is available by dialing 2-1-1, Middle Tennessee's community services help line.

Last year, the free tax sites in Nashville saw a 65% increase in number of individuals served, helping more than 5,000 taxpayers. There was an 85% increase in total EITC dollars returned to the community as well, totaling $2.3 million. The average EITC refund received by a Nashville taxpayer at one of the free tax sites was over $1,500.

"The assistance this program offers to an increasing number of Nashville families is invaluable," said Nashville Mayor Bill Purcell. "Ensuring that families understand and properly prepare their taxes and receive their full refund is beneficial not only for each family but for the community as a whole."

"United Way 2-1-1 played a key role in helping taxpayers find the VITA site closest to them last year and once again will be providing a central information point for interested taxpayers," said Mark Desmond, President and CEO of United Way of Metropolitan Nashville. "Helping struggling workers building financial stability is part of United Way's mission to improve lives and the long-term health of the community, so we're very happy to be a part of this unique community service and educational outreach."

Area companies and organizations are taking an active role in letting their employees know about the free tax help and, in particular, the EITC benefit. "With over 500 employees in the Nashville area, the Tennessee Department of Revenue found the VITA program to be a no-cost service to its employees," said Tennessee Department of Revenue Commissioner Loren Chumley. "Many of our employees earn less than $37,500 per year. Even in the state's tax agency, we found employees who were not aware that they were eligible for this important benefit."

This year, most of the NWBA sites will open no later than Saturday, January 28th. A special kick-off event will take place on the 28th at the 100 Oaks Mall location on the 2nd Floor. Beginning at 9 a.m., the site will offer food and games for children, in addition to the free tax help.

Information regarding the location and hours of all NWBA free tax preparation sites is available by dialing 2-1-1. All of the free tax preparation locations are supported by the Volunteer Income Tax Assistance (VITA) program and certified by the Internal Revenue Service.

According to the IRS, 49,347 Davidson County families filed an EITC return and claimed more than $85.4 million in refunds for tax year 2003, the most recent tax year figures available. However, an additional 15% to 25% of EITC eligible households fail to file for the credit each year, meaning millions in refunds lost to the community.

This year, eligible individuals and families can get their taxes processed for free at one of the following 12 locations:

• 100 Oaks Mall, 719 Thompson Lane, 2 nd floor
• 15 th Avenue Baptist CDC, 930 Scovel Street
• Conexion Americas, 800 18 th Avenue South, Suite A
• Margaret Maddox Family YMCA, 2624 Gallatin Road
• Mt. Zion Baptist Church - Jefferson Street, 1112 Jefferson Street
• Mt. Zion Baptist Church - Antioch, 2261 Murfreesboro Road
• Nashville ACORN, 800 8 TH Avenue South, Suite C
• Sam Levy Neighborhood Network Center, 302 Foster Street
• St. Luke's Community House, 5601 New York Avenue
• Westwood Baptist Church, 2510 Albion Street
• Woodbine Community Organization, 222 Oriel Avenue

For more information about the EITC, the free tax sites and hours of operation, all interested taxpayers should dial 2-1-1. Information about the EITC and the free tax sites is also available online at: www.cooper.house.gov

In addition to the United Way, the Metropolitan Government of Nashville and Davidson County, the State of Tennessee, the Tennessee Department of Revenue and Congressman Cooper, key support for the NWBA and the EITC effort comes from the Federal Reserve Bank of Atlanta, the Tennessee Department of Financial Institutions, SunTrust Bank and Wachovia.

The EITC has become an increasingly important part of the U.S. tax code since it was launched in 1975 under President Nixon. It is now considered one of the most successful anti-poverty programs ever developed, lifting nearly 5 million people above the poverty line every year. It is a refundable federal income tax credit that can provide substantial benefits - up to $4,400 to qualified filers in tax year 2005, depending on income, family size and marital status.

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Contact:
- Anne Smart, Congressman Jim Cooper (615) 736-5295
- Jessica LeVeen, Federal Reserve Bank of Atlanta (615) 251-7360
- Samantha Hamernik, Nashville Wealth Building Alliance (615) 780-2444
- Carole King, United Way of Metropolitan Nashville (615) 780-2449