NeighborWorks® Network Organizations Offer Free Tax Prep Services and Encourage Filers Not to Be Fooled by ‘Low-cost’ Quick Refund Services

For Immediate Release

January 24, 2007
Contact: Douglas Robinson, NeighborWorks® America, 202-220-2360; drobinson@nw.org

NeighborWorks Network Organizations Offer Free Tax Prep Services and Encourage Filers Not to Be Fooled by ‘Low-cost’ Quick Refund Services

Washington, DC - As W-2 and other income forms make their way to taxpayers’ mailboxes, signaling the start of the 2006 tax season, NeighborWorks America announced that several members of the national NeighborWorks network are offering free tax preparation services, and also advised taxpayers to be aware of the real cost of quick refund services offered in the market today.

Several of the NeighborWorks network’s 236 local nonprofit organizations offer free tax preparation services to new and existing low- and moderate-income clients. Depending on the complexity of the return, using a free service can save each taxpayer hundreds of dollars.

"NeighborWorks Waco is part of the Asset Building Coalition of Waco and plays a key role in support, recruitment, and outreach for all of the free tax preparation sites in the Waco area,” said Roy Nash, executive director of NeighborWorks Waco. “Getting the word out about free tax preparation, and supporting the trained and dedicated volunteers who perform this important work, is another way to help people in our community save money and build wealth.”

In addition to its involvement in free tax services in the Waco community during tax season, Nash explained that his organization offers services throughout the year, primarily for low-income families and older persons.

First-time homeowners who may be eligible to itemize their returns because of the availability of the federal mortgage interest deduction, or taxpayers who are unsure about eligibility for the federal Earned Income Tax Credit are especially encouraged to seek the advice of trained preparers, said Stuart Mitchell, CEO and President of Rural Opportunities, Inc., based in Rochester, NY.

“Our volunteer tax preparers have all been trained under an IRS system and passed with high scores,” said Mitchell. “We think that the tax preparation service is an added value to the people of our community and is in keeping with our mission of service and economic empowerment.”

A True Interest Cost Above 50 Percent
If a taxpayer uses a fee service from a provider other than the NeighborWorks organizations offering this service for free, it is very important that she or he understand the true cost of agreeing to a quick refund loan from their preparer.

According to research done by several consumer rights organizations, the real interest cost of a quick refund loan can easily exceed 50 percent on an annualized basis or even more.

“It’s easy to accept a check right there on the spot and pay what seems to be a small amount of money to have cash in hand,” said Nash. “However, by waiting just a little while longer, a taxpayer can receive all of her or his money and continue to make good on what many of us pledge to do each year -- to be more money savvy.”

Contact information for local NeighborWorks network organizations can be found at http://www.nw.org/network/nwdata/NeighborWorksOrganizations.asp.

NeighborWorks America provides financial support, technical assistance and training for communities across the nation through the NeighborWorks network of over 235 nonprofit organizations covering nearly 4,500 urban, suburban and rural communities. These organizations engage in revitalization strategies that strengthen communities and transform lives. In the last five years alone, NeighborWorks organizations have generated more than $12 billion in reinvestment and helped more than 845,000 families of modest means purchase or improve their homes, or secure safe, decent rental or mutual housing.

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