Bill Mandates Disclosure of Free Services for Low-Income Clients
Landau’s Bill Advances for Low-Income Taxpayers Assistance
A bill requiring tax-preparation companies to inform low-income clients of their eligibility for free assistance with their tax returns passed through a City Council committee despite potential First Amendment challenges. Sponsored by Councilmember Rue Landau, the bill aims to increase access to free tax services for low-income individuals potentially saving them significant fees. Supporters of the bill including Laura Smith from Community Legal Services emphasized the importance of transparency regarding tax preparation fees particularly as they can significantly impact refunds including those from the Earned Income Tax Credit which serves as a crucial anti-poverty measure.
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Low-Income Taxpayers To Receive Free Service Notices- City Council Takes Action! (PHOTO: FreeImages)
Councilmember Gauthier Challenges Industry’s Resistance to Free Tax Assistance
Opposition from the tax prep industry cited concerns over First Amendment rights arguing that compelling disclosure of free services could violate their freedoms. However, proponents like Councilmember Jamie Gauthier questioned the industry’s reluctance to support efforts to provide free tax assistance to low-income individuals. Despite debates, the Committee on Commerce and Economic Development unanimously voted to advance the bill to the full Council, with potential amendments under consideration. The bill’s passage could be delayed until after the current tax season to allow further negotiation with industry stakeholders.
