|
Hartford, Conn. (Dec. 1, 2004) -
The City of
Hartford filed a lawsuit in District Court this week to block an
Internal Revenue Service test aimed at reducing erroneous earned
income tax credit payments that the city alleges violates taxpayers'
civil rights and discriminates against its African-American and Latino
taxpayers, who make up the bulk of those who receive the credit.
According to the city, the
Hartford pre-audit effort, which it says constitutes one-third of a
nationwide test of the EITC by the IRS, would allow the agency to
delay or deny payments to 8,200 Hartford area families who receive the
EITC until they submit sworn statements from third parties (such as
ministers, daycare workers, etc.) proving that their children resided
with them for more than six months out of the year. The city said that
the amount of delayed or denied payments could exceed $14 million in
the Hartford area alone.
The lawsuit alleges that IRS
Commissioner Mark Everson has never been authorized by Congress to
"selectively deny or delay payments to taxpayers simply because they
have been identified for participation in a test of 'error reduction
techniques,'" and further alleges that the pre-audit of Hartford area
taxpayers "is a violation of their civil rights and will
disproportionably deny/delay payments to working families of color and
those with a limited proficiency in English." The suit also alleges
that the program makes no provisions for those who have been called up
to active duty military service.
IRS spokeswoman Nancy Mathis
said that the agency couldn't comment because it hadn't seen the
lawsuit, but a statement from the IRS said, "We are testing a
certification program intended to reduce the high EITC error rate. The
Government Accountability Office has designated EITC as 'high risk'
because of its high rate of erroneous payments. This certification
effort is in response to that designation."
"The IRS and Commissioner
Everson are strongly committed to the fair implementation of EITC. Our
objective is to maximize participation and minimize the error rate. We
want all eligible taxpayers, but only those who are eligible, to claim
this important credit," the IRS continued. "The certification program
underway in Hartford County is the second phase in a series of tests
launched last year. Hartford County was chosen by career statisticians
because its population mirrors the EITC population nationwide."
Mayor Eddie A. Perez called the
program "part of a continuing effort by this administration and the
Republicans in Congress to dismantle the EITC program, a significant
source of tax relief for working families.
|
