Abstract
The Situation –
• Low income taxpayers are entitled to an earned income credit (a
refundable, negative income tax) of up to $5,666
• Paid tax return preparers have provided short term loans and
prepaid debit cards using the refunds as collateral
• Some of these loans result in interest rates over 100%
• The Winnebago, NE community was especially vulnerable to these
exorbitant loans
The Response –
• Creighton accounting and law students, and alumni from accounting
and law, decided to sponsor a tax preparation clinic in Winnebago,
NE
• The IRS has a program called VITA – Volunteer Income Tax
Assistance – that coordinates free tax return preparation for low
income taxpayers
• A partnership was created with the IRS, Ho-Chunk, Inc. (a forprofit
corporation affiliated with the Winnebago Nation), and St.
Augustine Indian Mission
• Creighton partners included the Department of Accounting, Beta
Alpha Psi, and the Business Law Society
• Students in Accounting 343, Federal Income Tax, are required to
participate in VITA as a course service learning component
• Volunteers need to pass several examinations and undergo training