IRS offers hope of larger refunds

The Internal Revenue Service is hoping to give Utahns nearly $70 million this year, if taxpayers will only claim it.

Each year thousands of residents fail to claim credits that could save them big bucks. To help low and moderate income families file fair and accurate tax returns, the IRS is once again partnering with Volunteer Income Tax Assistance, or VITA.

"Taxes are intimidating," said IRS tax consultant Kathy Harper. "That's why we're here."

The program is open to all families or individuals who make less than $49,000 a year and are filing a simple return. Volunteers are trained to help with everything from first-time homebuyer credits to foreclosures, and can help with itemized deductions.

Using a tax-preparation service costs an average of $120 per return, said VITA regional coordinator Casey Christoffersen. The program aims to help low-income families avoid those extra costs, as well as getting them larger returns based on qualifying credits.

The program helped file more than 4,000 returns last year, and expects to file even more this year because of the economic slump. People who lost jobs or had hours reduced may now qualify, and the income limit was raised from $42,000 last year.

Volunteer Harries Lloyd of Salt Lake City has been helping families file returns for 15 years, and each year finds thousands of dollars in credits for those who seek his help. Families miss out on credits for education, child care
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costs, retirement funds and earned income. The Earned Income Tax Credit alone can be worth up to $5,600 on a 2009 return.

Lloyd cautions that while the big numbers sound wonderful, not every family qualifies for the full amount. Still, seeking help from a trained preparer is likely to save people more money than filing alone, he said.

Jacob Gepkens of Salt Lake City has been using the service for the past few years and has recommended it to friends. He said the volunteers have helped him find credits he didn't realize existed, let alone that he qualified for.

"It's much better than paying someone," said Gepkens, a distribution center supervisor. "It was easy."

The VITA staff can also help with unusual problems, said site supervisor Greg McDonald. Some families file returns only to find someone has already filed using their Social Security number. In such cases, many just give up and don't receive their full refund, not knowing or understanding their rights under tax law. McDonald and his staff can help file a petition to the IRS, assuring that families receive the appropriate refund.

Taxpayers can be assured their personal information is safe, Harper said. Returns are filed online and connect directly to an IRS server. No personal data remains on the computer after the return is filed.

The VITA program is available state wide. Walk-ins can often be accepted, except during the busiest times: the first two weeks of February and April. Returns usually take about 30 minutes to complete.