U.S. Government - APThe Internal Revenue Service said Tuesday that 25,000 low-income earners will be asked to bolster their tax returns with proof that they qualify for a tax credit designed to lift the working poor out of poverty.
The new forms will go to families chosen for the pilot program who have at least one child and receive the earned income tax credit. The credit is designed as an incentive for low-wage workers to keep working. The families will be asked to prove they cared for a child more than half the year, one requirement for receiving the credit. ---
Some critics said the program singled out low-income taxpayers for a higher standard of proof than high-income taxpayers, with no evidence that poor families cheat on their taxes more often. The complicated and possibly intimidating letters from IRS agents may deter eligible families from claiming the credit, others said.
"The IRS must ensure that the public perception of this program is not 'guilty until proven innocent', creating an additional burden on poor communities and individuals," J. Thomas Cochran, executive director of the U.S. Conference of Mayors, said in comments to the IRS. ---