EAST LANSING, Mich. – Reaching out to low-income individuals,the Michigan Credit Union League is launching a free, Web-based taxpreparation service debuting this month. The program called, “Justfile it! We'll Help” and promoted as a tax preparation aid forthose most in need, gives participating CUs the ability to providerefund anticipation loans to both members and non-members. “TheMichigan credit union community, through its broad geographic andsocioeconomic reach, can serve as an effective catalyst forlow-income families and individuals to access much needed taxcredits,” explained David Adams, president/CEO of the league. The“Just File It” package, which the league contends CUs can offer atno cost, has been in the planning stages for nearly two years andis an initiative advanced by the league's Community ReinvestmentTask Force. The project also has the endorsement of stateregulators and the University of Michigan Poverty Law Program whichhas underwritten part of the costs. Jo Anne Fillwock, task forcechairman and president/CEO of the $80 million Financial Health CUin East Lansing, said the service provides a way for low-incomeindividuals, who ordinarily might pay high fees for taxpreparation, to file forms for free at their local CU. So far, 60CUs have signed up for the program. “We're getting strong interestfrom our members,” said Lori Z. Bahnmller, league vice president.Fillwock said “Just File It” is not meant to be a moneymaker butdoes demonstrate anew the industry's broad social mission. “Toooften we who manage credit unions are unable to clearly define,measure and demonstrate exactly how we serve the low-incomesector,” said Fillwock. Both Congress as well as state lawmakers“hear the anecdotal stories we tell” but compiled statistics anddocumentation to back up CU performance are not always available,she said. Financial Health expects to start “Just File It” at threeof its four branches including one in a low-income area of EastLansing, said Fillwock. Under the program, tax filers using theleague service and completing both state and federal income taxreturns, could save substantial money. Combined with loan charges,a tax filer could pay as much as $350 to H&R Block, she said,acknowledging that the nationwide tax firm “might not like theservice we offer” but does understand CU goals in helping lowincome. As part of “Just File It” being offered to Financial Plusmembers, Fillwock said the CU is requesting filers seeking refundanticipation loans put 10% of the refund into CDs. “We hope thiswill help encourage savings,” she said. Adams noted the league hasinvested in the Web-based software and all CUs need is Internetaccess and a printer to participate – there is no cost to thecredit union. Adams pointed out that “more than $200 million infederal tax refunds and credits go unclaimed in Michigan annuallyby the people who need it most-low-income families andindividuals.” The league noted that helping low-income taxpayerswas the topic of a Nov. 10 NCUA mailing to state leaguesencouraging free tax preparation in conjunction with the IRS. “Morethan 130 credit unions across the country provided various servicesto assist low income families during the 2005 filing season makinga difference in their communities and the lives of others,” wroteNCUA Chairman JoAnn Johnson. The Michigan League noted that Johnsonwas focusing on the federal earned income tax credits “but ourprogram will also give low-income tax filers access to state incometax credits that could as much double their EITC refund.” In aseparate fact sheet, the league also reiterated the point that manyCUs are already involved in assisting low-income filers inaccessing the EITC mostly through local community partnerships withthe IRS, United Way and others. In outlining program details, theleague said participating CUs agree to host one or more “Just FileIt” on-premise sites, which are Internet-ready with computer accessand the printer. “Many credit unions already have computersavailable in lobbies for members to access home banking,” said theleague. Thus, “one or more of those could be isolated for “JustFile It.” “The only cost to the credit union is for printing,” theleague concluded. As for using CU staff, the league said theprogram is intended to be self-serve “and such is written at afifth-grade reading level and includes video tutorials.” Creditunions starting the program may choose to have a staff memberoversee the filer site to assist individuals withmembership-related questions, such as opening an account for directdeposit of the refund, and/or asset building ideas such as CDs.Apart from the U of Michigan Poverty Law Program and Linda Waters,commissioner of the Michigan Office of Financial Institutions, theLeague identified the administration of Gov. Jennifer Granholm as abacker of the program as well as these groups: Michigan StateUniversity Extension, Michigan Department of Health & HumanServices, Michigan Works! Michigan Family Independence Agency andthe Michigan Department of Treasury. [email protected]