2069-02192016_FTP-ITIN Pilot Program Social Media_blog_640x295px

MEDA Tax Program Manager Max Moy-Borgen received some exciting news when contacted by the Internal Revenue Service (IRS) last December. It turns out that MEDA had been chosen for an innovative Individual Taxpayer Identification Number (ITIN) pilot program – just one of three sites in the nation selected. MEDA is the lead agency of the Mission Promise Neighborhood.

A nine-digit ITIN is a tax-processing number issued by the IRS so that people working in the U.S. can file a federal tax return without a Social Security Number.

Moy-Borgen knew that his years of building four culturally competent Volunteer Income Tax Assistance (VITA) sites in San Francisco had led to this honor, with free tax prep for Mission Promise Neighborhood families a big part of the services offered.

The gist of the pilot program is that MEDA’s status as a Certified Acceptance Agent (CAA) for the IRS has been expanded. This means that whereas before a dependent’s original passport or National ID Card would need to be mailed to the IRS with an ITIN application, photocopies of either of these documents will now be accepted. Before this pilot program, photocopies sufficed solely for primary and secondary taxpayers.

The genesis of this prospective streamlined process is based on the IRS having confidence in MEDA’s best practices around free tax preparation in San Francisco. This includes ITIN preparation, for which MEDA annually assists about 200 clients.

ITIN clients will benefit in two ways:

  • They will now negate the risk of losing their dependents’ original documents – a nightmare situation for anyone. Moy-Borgen has seen such unfortunate incidents in the past, with the IRS claiming they never received a client’s original passport or National ID Card.
  • What is currently a three- to four-month process will now be expedited. The reason is that just one point of contact, a supervisor in the IRS’s Austin, Texas office will be receiving the ITIN applications from MEDA, offering priority to these color-coded applications coming from the organization. Think of it as direct service rather than the possibility of getting lost in a bureaucratic maze.

It’s not surprising that the IRS is looking to streamline its ITIN-application process after two decades of the program’s existence. According to the IRS, in 2010 over 3 million federal tax returns were submitted using ITINs, with those filers paying $870 million in federal income taxes — a direct benefit to the federal coffers.

Explains Moy-Borgen of the need, “We explain to our undocumented Mission Promise Neighborhood clients that ITINs are a path to citizenship, acting as a way to prove that they have been living and working the U.S. ITINs are a means to eventually obtaining a Social Security Number, and no longer being off the radar.”

ITINs can also be used in other ways. Under the U.S. Patriot Act, provisions mandate that financial institutions collect information on their customers’ identities, and an ITIN suffices to open interest-bearing accounts. Also, an ITIN holder can secure a driver’s license in some states. Additionally, an ITIN can be used to establish or improve credit through MEDA’s Secured Credit Card with Self-Help Bank, with financial institutions even starting to use ITIN’s as a way to open credit cards, loans and mortgages.

Moy-Borgen is hoping that with the anticipated success of this pilot program, expansion to VITA sites nationwide will occur next year.

He concludes, “MEDA is honored to be part of this ITIN pilot program and looks forward to working with IRS officials to further the needs of our undocumented clients.”

Are you a Mission Promise Neighborhood family ready to get your ITIN or taxes prepared? Call (415) 282-3334 ext. 178 for your appointment for free tax prep in San Francisco.

Special thanks to the City and County of San Francisco-Human Services AgencyUnited Way of the Bay Area and Bank of the West for helping low-income residents do their taxes at no cost.

____________________________________________________________

About Mission Promise Neighborhood
The Mission Promise Neighborhood is a citywide community partnership that was created to support kids and families living, working, and attending school in the Mission District. It brings together schools, colleges, community organizations and community leaders to help kids graduate and families achieve financial stability.

Read More

FTP-EITC Press Conference-Blog

“Use it or lose it!” Those powerful words from State Board of Equalization Member Fiona Ma, at a press conference held at MEDA yesterday, underscored the importance of getting out the message about the state’s new Earned Income Tax Credit (EITC). Ma fears that if not enough Californians take advantage of this credit, politicians in Sacramento may not fund the program again.

California’s EITC supplements the federal EITC, but far too many low-income and working-class families are unaware this new credit now exists – and may be missing out on as much as $2,653 added to their 2015 tax refund.

A grouping of local and state elected officials were accompanied by nonprofits United Way of the Bay Area and MEDA at yesterday’s event. MEDA is the lead agency of the Mission Promise Neighborhood.

Executive Director Luis Granados first welcomed everyone to Plaza Adelante, the main venue for a quartet of MEDA VITA sites that now comprise the largest free tax preparation program in San Francisco. Last tax season, 4,000 tax returns were prepared for free, with $4.5 million returned to the community. The demand for free tax preparation remains equally strong this year.

Explained Granados of the power of the EITC, “With some of our families eligible for thousands of dollars of Earned Income Tax Credits, this is a large percentage of their annual household income.”

As an example of the above, MEDA client Karina Acevedo (photo, fourth from left), a resident of the Mission Promise Neighborhood footprint, was on hand to share her experience. Karina first came to MEDA in 2013 to get her taxes prepared for free. MEDA’s tax team corrected an issue from the past, getting Karina a $2,000 tax refund … but there was more work to do.

It seems Karina had credit accounts in collections, rent that had tripled in the local housing crisis, and a son in elementary school with special educational and health needs. The Mission resident was given free one-on-one coaching, opening a Secured Credit Card to rebuild her credit score, sticking to a budget and now having saved thousands, and opening a Kindergarten to College savings account for her son, Chuy. The catalyst for this bettering of her life was simple: she came to a VITA site to get her taxes prepared for free and was made aware of the EITC for which she qualified. Family economic success is now on the horizon for this Mission Promise Neighborhood family.

Karina showed her appreciation for the joint effort that made this all happen by stating, “I want to thank MEDA, the State, the City and United Way of the Bay Area for working together to make a better life possible for my family. I encourage all families to come to MEDA to do their taxes, get EITC credits and access the many other free services available.”

State Treasurer John Chiang knows firsthand the power of savings. Not only was he once a tax law specialist with the IRS, but Chiang explained to the audience today that his father managed to save a few dollars each week, despite the family’s budget being tight. Chiang saw that money grow exponentially over the years, and he now wants other families to harness the power of savings – especially via California’s EITC — to make that occur in their household. Chiang was adamant that leadership must be responsive to make this happen.

EITC Press ConferenceSpeaking on behalf of State Controller Betty Yee, Director of External Affairs John Kessler (photo, right) told of Yee’s strong belief that the state EITC is a game changer, especially as a complement to VITA sites with volunteers well versed in the needs of the low-income community.

San Francisco Treasurer José Cisneros (photo, left) was up next, telling how San Francisco’s own EITC, called Working Families Credit, aims to supplement the federal and state credits. Qualifying low-income families can earn a one-time-only additional credit of $100 if paid via a paper check or $250 if paid by direct deposit. (The program was designed to encourage families to avoid check-cashing fees by opening bank accounts.)

To showcase how their “Earn It! Keep It! Save It!” program is creating family economic success in the region and throughout the state at 200 sites, United Way of the Bay Area Chief Operating Officer Eric McDonnell explained that communities need anchor institutions. McDonnell noted that MEDA’s Plaza Adelante serves as such an anchor institution for San Francisco’s Mission District, thereby ensuring that families have access to all of the services and tools they need to achieve economic stability.

Today’s press conference was a vital step in getting out the word that the California EITC is an important means of fostering fiscal stability for low-income and working-class families. This subject’s importance was indicated by the fact that so many pivotal players in this arena came together today to put forth a unified message.

“It takes a partnership. One voice,” summed up Ma.

Are you a Mission Promise Neighborhood family ready to get all of your EITC tax credits? Call (415) 282-3334 ext. 178 for your appointment for free tax prep in San Francisco.

Special thanks to the City and County of San Francisco-Human Services AgencyUnited Way of the Bay Area and Bank of the West for helping low-income Mission Promise Neighborhood families do their taxes at no cost.

Photo gallery.

____________________________________________________________

About Mission Promise Neighborhood
The Mission Promise Neighborhood is a citywide community partnership that was created to support kids and families living, working, and attending school in the Mission District. It brings together schools, colleges, community organizations and community leaders to help kids graduate and families achieve financial stability.

Read More

MONTHLY ARCHIVE

Contact
We’d love to hear from you!

Email
info@missionpromise.org
 
Phone
(866) 379-7758
 
Address
2301 Mission Street
Suite 303
San Francisco, CA 94110

Newsletter
Get the latest news and information on
what’s happening in your neighborhood.