More protections for Low Income Tax-Filers in the Works; Curfew and Gambling Machine Bills Pass Council

Christine Speidel, Associate Professor at the Villanova University Charles Widger School of Law and the Director of the Villanova Tax Clinic, said many low-income people pay for tax preparation services despite being eligible for free help.

”The IRS Taxpayer Advocate Service found that volunteer assistance sites prepared 3.5 million tax returns in 2017, out of 108 million potentially eligible taxpayers,” Speidel said. “That is only 3%. In 2022, the Government Accountability Office found similarly that 70% of Americans are eligible for free online tax preparation software, but only 3% use it.”

Speidel said the Villanova Tax Clinic regularly assists low-income families who depend on their tax refund for 25-30% of their annual income. These families earn between $15,000-40,000 per year and are routinely charted between $200-300 for a tax return that could have been prepared for no cost. 

The Campaign for Working Families, one local organization that provides tax services to Philadelphians, reports for 2023 serving 21,376 unique individuals and preparing 42,540 tax returns. Their clients received over $32 million in tax returns, including nearly $8 million in Child Tax Credits. 

Dr. Nikia Owens, President and CEO of CWF, explained the role of the Earned Income Tax Credit as an important tool to increase economic benefits to Philadelphians, who are still impoverished at a rate of 23.3%. Black families see a greater disparity in wealth accumulation and a lower median income of $39,352 per year. 

The Earned Income Tax Credit, or EITC, is a feature of the tax code that lets filers earning under a certain threshold apply a credit to the amount they owe, thereby lowering their tax bill. The credit is if offered in four possible amounts: $600; $3995; $6604; and $7430, depending on various circumstances. If the filer’s tax bill is less than the credit amount, they can receive a refund for the difference.

However, according to Owens, nearly 50,000 Philadelphians fail to claim the EITC each year, leaving $100 million unclaimed. 

Lazlo Beh, the Supervising Attorney and Director of the Low-Income Taxpayer Support Clinic for Philadelphia Legal Assistance, a non-profit organization that provides free legal assistance to low-income Philadelphians, said problems caused by tax preparation companies, which can charge outrageous prices, often bring clients to PLA. 

“We do not learn in every case how much our clients wer charged but in some cases we do and it is both enraging and disheartening that their are business people who are not ashamed to be charging these fees,” Beh said, adding some clients had been charged as much as $800 for a tax return, despite having four children and earning less than $40,000 per year. 

Conversely, the American Coalition for Taxpayer Rights, an industry trade group that represents many of the nation’s largest tax prepartion companies, including H&R Block, Jackson Hewitt, and Liberty Tax, argued that, amongst other complaints, the bill as written is a violation of the First Amendment. 

“The real sub here is that you would be requiring commercial enterprises to tell customers seated faring in front of them about free, competing alternative services,” David Ransom, counsel to the trade group said. 

Ransom also objected to the language in the bill relating to explanation of costs as “too broad and undefined.” 

After the hearing, Landau signaled a willingness to listen to industry specialists, but stressed the baseline of the bill is a significant consumer protection that has been needed in Philadelphia for a long time. 

“There’s not going to be a lot of room to compromise because the essence of the bill is so essential,” Landau said. “It’s ensuring that commercial tax preparers provide their pricing at the outset and then say if you’re low income, elderly, or disabled, you may be eligible for free tax services (from) the city. We’re not asking a lot in that respect.”

Called an “emergency measure” in a press release issued by Lozada’s office, the intent of the bill is to reduce crime, first and foremost, and also help ameliorate the trash build-up and calm after-hours activity. 

According to Lozada, about 90 businesses are in the area affected by the curfew. Those not in compliance will be fined $500 for each offense. The bill sunsets on January 1st, 2028. 

• Licensed facilities as authorized in the Pennsylvania Race
• Horse Development and Gaming Act

• Locations operating with a valid liquor license that has 30 or more seats for use by customers to consume food

Businesses not in compliance will be deemed a public nuisance, which can lead to the business losing its Commercial Activity License. 

According to the resolution, 1 in 5 Americans do not have internet in their homes, with cost being the primary factor. The ACP has helped over 20 million Americans afford internet access. 

Landau’s resolution on Transgender Day of visibility calls the city to “ to lift up the joy, triumphs, and pride that Transgender people experience and bring into our communities.”

The resolution makes mention of important milestones Transgender and Non-binary have achieved in recent years, including non-discrimination protections for transgender residents in housing, healthcare, credit, lending, and education. 

The genesis of the resolution, however, is the anti-Transgender legislation that has been enacted in other parts of the country, making Transgender people second-class citizens, or worse, in their communities. This year alone, 526 anti-Trans bills have been introduced in 41 states, 11 of which have become law. Such laws not only harm Transgender people legally, but also help make them a target of bigotry and sometimes violence.