TAX TALK

Published by the Section of Taxation of the Maryland State Bar Association, Inc.

· Jonathan Z. May, Chair ·  
Stephanie Ketchum, Editor, 
Catherine Mary Rafferty, Asst. Editor

It’s that time of year again! The recruitment process has begun for the 2003 Earned Income Credit Project (the "Tax Clinic"), where attorneys and accountants provide the valuable and much-needed service of preparing tax returns for low-income taxpayers in Maryland. The Tax Section has sponsored this project with the Maryland Volunteer Lawyer Services since 1995. Due to the great success we experienced last year, the clinic will remain at Baltimore City Community College ("BCCC") and expand from four to five days, starting the last Saturday in January and running each Saturday in February. Once again, we will prepare all returns on computers and offer free electronic filing.

As many of you know, volunteering for the clinic is extremely rewarding. In addition to feeling good about helping your fellow citizens, you get to mingle with the "best and the brightest" of our tax community. Attorneys and accountants from all over the State contribute their time and talents to this project, making it one of the best and most successful events of the year. Friendships and professional relationships formed during the clinic often last far beyond the tax season.

Last year, the Tax Clinic prepared 190 returns, 151 of which were filed electronically. Single women with children accounted for 96 of these households, and the clients’ average household income was $13,932. The returns prepared reflected refunds totaling $409,851, with an average refund of $2,157. The average Earned Income Tax Credit ("EITC") was $1,004.

Notwithstanding our past efforts, estimates suggest that 12-25% of eligible families still do not claim the EITC, either because they have not heard of it, do not know they are eligible, or do not know how to apply. By volunteering at the Tax Clinic, you can help increase the number of Maryland EITC filers, and thereby increase the flow of funds into the Maryland economy.

We need volunteers for each Saturday (January 25, February 1, 8, 15 and 22). Training for "new" volunteers (those that have volunteered less than 3 times, or anyone with a particular computer phobia) will be on Saturday, January 11th, from 9 a.m.-5 p.m. Lunch will be provided. Volunteers who have participated in the Tax Clinic at least 3 times will be offered an abbreviated training session on Wednesday, January 15th, from 4 p.m.-7 p.m. Both sessions will be held at BCCC and involve computer training.

We need as many volunteers as possible — volunteers need not be "tax" attorneys or accountants. We encourage each of you to volunteer for at least 1 day of tax preparation and then pass the word and bring a friend! You may sign up through the Tax Section website or fax a registration form to Mina Naddaf at MVLS (the fax number is on the form). Please call us (Caroline Ciraolo or Leigh Kessler) to discuss any questions you may have. Thank you!