Tax preperation

Feb. 25, 2005
By Katie Voelliger
Staff Writer

St. Ambrose accounting students are offering free tax return preparation services every Saturday during the month of February from 8 a.m. to 1 p.m. in McMullen Hall.

This program, the Volunteer Income Tax Assistance (VITA), is specifically designed for low income residents of Iowa, which includes individuals without children who earn less than $15,000 or families with a yearly income less than $35,000.

Currently Nick Manrique and Ali Purcell are in charge of the program, with Manrique holding the position of site manager.  Other key roles are filled by Kevin Gaede and Andy Hoenig.  There are a variety of students involved, although mostly accounting students. Faculty participants are Lew Marx, Elizabeth Pogue, and Dee Wellman.

Students participate in the program in various capacities such as answering the phone line, screening clients, providing them with guidance on materials needed to complete their tax return and setting up appointments.  Some students act as greeters during the VITA and assist the taxpayers in completing an information sheet.  Other students work with the clients and input the tax information into the computer, Wellman said.       

Wellman went on to mention that there are numerous after hour tasks to be completed by the site manager.  The site manager transmits the tax returns to the IRS. The IRS will check the information before the returns are fully processed and any returns that do not meet the IRS acknowledgment guidelines are rejected.  The rejected returns must be checked, corrected, and resubmitted to the IRS within 72 hours.

“This is the second year the VITA has been held at SAU, but it is the first year that it is student-run,” Purcell said.  “This year everything is done by students, with only an adviser to consult with.”

During last year’s tax preparation program, SAU students prepared 238 tax returns, which resulted in refunds of $250,000.  The students saved these taxpayers approximately $15,000 in tax preparation fees.

“The amount of money that goes uncollected every year in the state of Iowa is ridiculous,” Gaede said.  “It's just nice knowing that you are making a difference.  The unique aspect of this program is how it has developed into a student program.  We have first year students to seniors helping out in every section.”

“For 2002, there was approximately $2 million dollars that Scott County taxpayers failed to collect because they didn’t file and properly claim the EITC,” Wellman said.

The VITA service enables the taxpayer to file their tax return for no charge which prevents many taxpayers from being forced to obtain the "refund loans" from the paid providers.  Low-income individuals do not have the cash available to pay for the tax preparation service in advance, Wellman said.  A minimum typical fee for a very simple tax return starts at $75.

“This program provides excellent job training for accounting majors,” Wellman said.  “They are able to put their classroom theory into practice using organizational skills, team working skills, time management skills, and communication skills, as well as their technical knowledge of the tax laws and the tax preparation software,” Wellman said.

“The ability to see the smile on the faces of those whom you help is the biggest award,” said Purcell.

Ages vary of the people who use the VITA program at Ambrose.  College students are present, along with senior citizens. 

“Anyone who qualifies is encouraged to take advantage of our services regardless of their age, including SAU students,” said Purcell. “Many Ambrose alumni are not present, due to the fact that the majority of them exceed the income guidelines.”

Last year there were 27 students that participated in the program.  The success of the SAU program was also highlighted in an IRS publication.  Several students participate in the VITA program as part of the service learning program operated on campus.

Many colleges have VITA programs, including Augustana, Drake, University of Iowa, University of Northern Iowa and Western Illinois.

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