State Employees' Credit Union (SECU), Local Government Federal Credit Union (LGFCU) and the Internal Revenue Service (IRS) today announced SECU's 215 statewide branches will serve as Volunteer Income Tax Assistance (VITA) sites in 2008, providing free income tax preparation services to North Carolina's underserved population. The announcement was made at a ceremony in Raleigh attended by Ellie Cimaglia, National Director of Stakeholder Partnerships, Education and Communication (SPEC) for the IRS and North Carolina Secretary of State Elaine F. Marshall. Others present at the signing ceremony included Peggy Gavaghan - Area Director of SPEC for the Internal Revenue Service, Roger Burton - IRS Territory Manager in the Carolinas, Debra Chandler - Senior Tax Analyst with Financial Institutions Partnership with the IRS, Jennifer Cohen - Deputy Chief of Staff with the North Carolina Department of State Treasurer, SECU's Board of Directors Chairman David King and Local Government Federal Credit Union President/CEO Maurice Smith.
The VITA program offers free tax assistance to people with low to moderate incomes. SECU and LGFCU estimate over 400,000 of their credit union members are eligible to receive these no-cost services. Two SECU employees at each branch location will serve as VITA representatives trained to prepare and electronically file basic tax returns. The primary focus of these representatives will be to assure eligible North Carolinians receive special credits such as the Earned Income Tax Credit (EITC) and the Child Tax Credit. The EITC is our nation's largest anti-poverty program, yet studies show that as many as 25% of eligible taxpayers fail to claim the credit. VITA sites also provide the opportunity for tax preparers to encourage financial literacy and assist taxpayers on their way to asset accumulation and greater economic security.
Josh Kelly, VP of Financial Advisory Services states, "Many North Carolinians are unaware they qualify for free income tax preparation through VITA and subsequently pay for tax preparation. In addition, SECU has found many of its members obtain refund anticipation loans with extremely high interest rates targeted at low income taxpayers. These refund anticipation loans make little sense, since the IRS typically delivers refunds in 7-13 days. Tax filing abuse is becoming a nationwide epidemic and SECU is positioning itself to combat this abuse, leaving more money in the pockets of North Carolinians."
David King, SECU Board of Directors Chairman, adds, "Serving as VITA sites, State Employees' Credit Union is offering a fair, impartial alternative to abusive tax preparers. Concurrently, North Carolinians are leaving over $150 million in EITC refunds unclaimed, as they simply don't know they are eligible for the refunds. We're looking forward to helping over 400,000 credit union members and the citizens of North Carolina get the money they deserve -- a positive result of hands-on financial literacy and a possible $150 million boost in North Carolina's economy."
Maurice Smith, President/CEO of Local Government Federal Credit Union, responds, "LGFCU is pleased to partner with SECU and the IRS to provide this much needed service to North Carolinians. The extensive statewide branch network gives us the ability to reach many of our State's citizens with these free services -- citizens who would otherwise be forced to pay excessive fees. Collectively, we feel this is the right thing to do and an initiative that can make a huge financial difference in North Carolina."
About SECU
SECU is a non-profit financial cooperative owned by its members. SECU has been providing the employees of the State of North Carolina and their families with consumer financial services for nearly 70 years. Currently serving nearly 1.4 million members, SECU provides services through more than 200 branch offices, over 950 ATMs, two call centers and a website - www.ncsecu.org.
About Local Government Federal Credit Union
Local Government Federal Credit Union serves local government employees, volunteers and their families across North Carolina. The $725 million federally-chartered credit union serves more than 155,000 members in all facets of local government in North Carolina's 100 counties and 545 cities, towns and villages. www.lgfcu.org.
