Darrin Williams: Volunteer Tax Program Is A ‘Win-Win-Win’

Editor’s note:  Darrin Williams is CEO of Southern Bancorp Inc. and serves as a State Representative for House District 36 in Little Rock.

Once again tax season is upon us, and with it likely comes heated debate from both sides of the political aisle. However, aside from a discussion about the policy implications of paying taxes, I would like to momentarily turn your attention instead to the process of paying taxes.

Specifically, I’m referring to the Volunteer Income Tax Assistance program, also known as VITA. This IRS-sponsored, volunteer program offers free tax prep and filing assistance to income eligible individuals and families.  Even before I became CEO of Southern Bancorp, an organization with a ten year history of offering VITA services, I had spent years working to promote this valuable service because of the life changing implications it can have on working families and the positive effect it can have on our state as a whole.

Let me first say that VITA is not meant to compete with reputable, local tax preparers. It’s really aimed at helping those people who can’t afford to have their taxes done professionally and either complete the forms themselves or don’t file taxes at all. As a result, they could be missing out on important credits and deductions. In fact, some studies report that nearly one quarter of working families are leaving money on the table at tax time.

The benefit that’s often left unclaimed comes primarily from the Earned Income Tax Credit, or EITC, and it’s probably one of the greatest bi-partisan, anti-poverty tools ever created.

A worker with two or more children with a qualifying income could receive more than $5,600 in EITC benefits. It’s essentially an incentive to work because it lets workers keep more of what they earn. Passed by Congress in the mid-70’s, the EITC works by providing a tax refund to workers whose income falls below the EITC amount. And for someone who’s living paycheck to paycheck, that can be a game changer.  Many recipients use their tax credit to eliminate debt, pay for school, or make a down payment on a home.

Unfortunately, far too many eligible workers aren’t claiming it, which brings us back to the VITA program.

If a worker meets certain income level requirements, they can simply bring their tax documents to any VITA location and have trained volunteers help with finding potential tax credits as well as filing. It’s that easy. Southern Bancorp is one of several organizations offering this service across the country. To learn more, taxpayers can visit the IRS website and search for “VITA” or visitwww.BankSouthern.com/VITA to find locations, qualifications, details of the program, hours of operation, and required paperwork needed to complete the tax returns.

So that’s definitely a win for working Arkansans, but as the title suggests, two more wins remain.

When working folks receive these credits, where do you think that money most likely ends up? Most of the time, the answer is the local community. They are shopping in local stores, eating at local restaurants, and driving their local economy. So can you imagine what would happen if eligible Americans took advantage of VITA programs and claimed their credits? I’m pretty confident in saying that it would provide an economic shot in the arm to many communities desperately trying to shake off the effects of the Great Recession.

The third win of VITA is one that might not be as apparent, but is nonetheless important for Arkansas’ economy. This time I believe the win is for employers.

Imagine a program through which your qualifying employees could have stronger financial security just by receiving this free assistance. Less stress on them could lead to a stronger workforce for you – all by simply visiting a website and sharing information with them. It seems to me that it’s a pretty easy call when it comes to taking care of the people who put in the long hours for you. And it doesn’t cost you a dime.

Southern Bancorp is one of several organizations in Arkansas and across the country encouraging its employees to become volunteers for the VITA program. For us, it marks the 10th year that our employees have volunteered to participate, and the results speak for themselves. Southern volunteers have filed 10,000 tax returns, helping taxpayers receive over $20 million in refunds and credits. That’s $20 million going back into taxpayers’ pockets and into their local communities.

As a CEO, that’s an investment of time I can get behind. It’s part of our effort to empower individuals to transform their communities for the better, and I believe it works.

So if you’re a working Arkansan and think you might qualify, a community leader looking for ways to improve your local economy, or an employer who sees the opportunity to give back to your employees, I encourage you to check out VITA and be part of this “Win-Win-Win” solution.