EARNED INCOME TAX CREDIT PRE-CERTIFICATION
WHEREAS, in 2002, the federal Earned Income Tax Credit (EITC) lifted 4.9
million people, including 2.7 million children, above the poverty line-more
than any other federal aid program; and
WHEREAS, currently, the value of the EITC credit is $36 billion, to the
benefit of 22 million hard working, low income families and individuals; and
WHEREAS, the EITC represents money earned by hard working, low income
families and in no way represents a give-away; and
WHEREAS, the EITC provides enormous economic benefit to our communities
because recipients spend their EITC dollars on goods and services within our
communities; and
WHEREAS, beyond reducing poverty, the EITC promotes work, reduces income
inequity and helps low income working families build assets; and
WHEREAS, despite great opposition from the U.S. Conference of Mayors,
members of Congress and many national organizations, the Internal Revenue
Service (IRS) implemented a new "certification" process in December
2003 which required 25,000 EITC applicants to be "certified" before
they could receive their EITC benefits; and
WHEREAS, the IRS plans to “pre-certify”
an additional 25,000 EITC applicants in July 2004 prior to knowing the initial
impact of these requirements through a comprehensive evaluation; and
WHEREAS, the extensive documentation required for this pre-certification
may be difficult, if not impossible, to obtain within the proposed six month
deadline and will inevitably deter many eligible families from even applying
for the EITC benefit to which they are entitled under federal law; and
WHEREAS, the complications of the
“pre-certification” process will inevitably cause delays in EITC refunds of
such filers, refunds that families count on for basic living expenses; and
WHEREAS, the IRS has indicated that it
may expand the “pre-certification” requirements to approximately two million
filers for the coming filing seasons, and do so prior to knowing the initial
impact of these requirements through a comprehensive evaluation; and
WHEREAS, the IRS appears to be targeting low income working families
applying for the EITC benefit while not requiring pre-certification for tax
shelters purchased by corporations or tax benefits claimed by higher income
individuals,
NOW, THEREFORE, BE IT RESOLVED that The United States
Conference of Mayors calls on Congress to address any delays in tax returns
that EITC filers have experienced due to the certification and pre-certification
procedures; and
BE IT FURTHER RESOLVED that The U.S. Conference
of Mayors opposes the IRS initiative to continue and expand the EITC
pre-certification procedures; and
BE IT FURTHER RESOLVED that the U.S. Conference of
Mayors calls on Congress to prohibit any further implementation of new EITC
requirements without proper Congressional authorization; and
BE IT FURTHER RESOLVED that the U.S. Conference of
Mayors urges Congress and the IRS to simplify EITC so that all those who are
eligible can and will apply for their justly deserved tax credit.
©2004 U.S. Conference of Mayors 