Congressman John Lewis was at the Atlanta Workforce Development Agency on Monday to host a news conference and informational forum to on the under-utilized tax benefit called the Earned Income Tax Credit (EITC).

Also in attendance were Commissioner Mark W. Everson of the Internal Revenue Service and Deborah Lum, Executive Director of AWDA, who spoke about the local and federal resources available to assist Atlanta residents in obtaining these resources.

Currently 850,000 Georgia taxpayers qualified for and received this benefit last year. They were able to claim as much as $4,536 in individual refunds, but thousands never applied. Nationwide about 25 percent of eligible taxpayers or 5 to 7 million Americans miss the opportunity to claim an estimated $12 billion in unclaimed federal funds. As Chairman of the U.S. House of Representatives Subcommittee on Oversight, Rep. Lewis decided to make this benefit the subject of his first hearing in February.

“Poor and moderate income families need all the help they can get today,” said Rep. Lewis. “An Earned Income Tax Credit refund could mean more food on the table for hungry children, money to hold back evictions, life-saving medications for a senior citizen, and even a new home for a hopeful family. That is why I want to use my chairmanship to help reform the tax code and place every possible tool in the hands of creative mothers and fathers who are struggling to support their families.”

Commissioner Everson agrees that this credit enables more families to reach for the American dream.

“The Earned Income Tax Credit can transform people’s lives,” said Commissioner Everson. “At the IRS we want all eligible taxpayers to claim this benefit. My thanks go to Congressman Lewis, Mayor Franklin, and the Atlanta volunteers for all their hard work to support this program.”

During the hearing in February, Atlanta distinguished itself as one of the most effective deliverers of taxpayer services in the country. Mayor Franklin recognizes the hard work of city officials in partnership with community agencies to spread the word about these benefits and help residents claim what is theirs.

“Local governments,” said Mayor Franklin, “are an important partner in expanding the reach of EITC. This is a great opportunity for governments to partner with other charitable organizations, social-service agencies, schools and businesses to educate low-income families on the many different ways they can keep more of the money they earn.”

The forum and news conference will highlight the EITC, but they will also shed light on other tax credits, like the Telephone Excise Tax Refund. This is a one-time refund available this year on taxes people pay on long distance and bundled telephone services. Congressman Lewis sponsored the Telephone Excise Repeal Act of 2007 that would abolish this excise tax for good.

Congress first enacted the tax in 1898 to help pay for U.S. involvement in the Spanish-American War. The war only lasted four months, but the tax remained in effect for 109 years. Its impact, until recently, was to add a 3 percent tax on telecommunications services for all consumers. New tax rules that went into effect in August of 2006 repealed the tax on many long distance, wireless, and bundled telecommunications services.

Consumers who remained untouched by this relief are often the most vulnerable Americans who can least afford additional costs to their bill. Many disabled users, for example, still pay the tax because they may need to rent specialized equipment in order to use telephone services. Rental equipment is still taxed under current law. Some of these same citizens would also be eligible for the earned income tax credit.

(L to R) Commissioner Mark W. Everson of the Internal Revenue Service, Deborah Lum, Executive Director of AWDA, and Congressman John Lewis.