Legal Aid Society of Orange County Uses Technology to Help Low-Income Workers, Seniors Get Federal Tax Relief

Congresswoman Loretta Sanchez has announced the start of an Internet-based system that allows low-income families and seniors to file their federal income taxes electronically and be eligible for up to $4000 in Earned Income Tax Credit (EIC) refunds. Up to $12,000 in refunds could be retrieved retroactively.

               
Contact:   Les Goldberg, APR
      (714) 549-4300
      lgprman@aol.com

SANTA ANA, Calif., Nov. 4, 2002 -- Rep. Loretta Sanchez, (D-Calif.) has announced the start of a national web-based computer network designed to allow low-income families and seniors to file their federal income taxes electronically and become eligible for up to $4,000 in Earned Income Tax Credit (EIC) refunds.

Officials hope to have the I-CAN! system available in all 50 states in time for the 2003 tax season.

This $40 billion program will dramatically impact the lives of families across America," Sanchez said during a fundraiser celebrating the second anniversary of I-CAN!, the first technology-driven program that provides free legal services to low-income people and seniors.

Sanchez, who represents the 46th Congressional District in Orange County, Calif., is one of the first congressional supporters of the Legal Aid Society of Orange County (LASOC) system, which so far has helped nearly 10,000 people since 2000.

Sponsored by the Internal Revenue Service and the Legal Services Corporation and implemented by LASOC, the program will be available soon on a nationwide scale as communities adopt the system.    

A key element of the system is its ease of use," she said. English and non-English speaking users can take advantage of this new technology and the benefits of the EIC program without costly legal assistance."         

The new I-CAN! system will be located at public sites where citizens can access the Internet through a 56K modem connection, a monitor and a keyboard. Each site also will have a workspace to complete the forms and access to clerical assistance to introduce new users to the program and answer routine questions.

According to Bob Cohen, executive director of LASOC, the EIC program is retroactive up to three years. Low-income earners and seniors who did not claim the EIC in years past are entitled to file or amend prior tax returns, potentially enabling them to receive up to $12,000 at one time."

He said I-CAN! attempts to solve a long-standing problem:

Many individuals do not file their federal tax returns and the Earned Income Credit worksheet. Those who do file may be victimized by the high-priced refund anticipation loans" offered by commercial tax preparation offices with annual percentage rates as high as 700 percent," Cohen said.

With the web-based I-CAN!, tax preparation is free and refunds are expedited. Offered in Spanish and English, the software asks questions designed for fifth grade literacy, and a video guide helps the user read the questions. The system allows users to answer the questions at their own pace, and upon completion, the completed tax forms can be printed and, in some locations, electronically filed.

So far, participating partners in the I-CAN! EIC program include more than 25 community service organizations in 11 states.
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(Photos are available)