Saving Boyle Heights Residents Over $6,000! Free Tax Prep at Proyecto Pastoral, By Marco Ramirez, Tax Preparation Consultant

.

April 15th turned out to be anything but an ordinary day at Proyecto Pastoral---it marked the end of the tax season, and this year, staff and residents came together in the final weeks before the tax deadline to offer the community a service that is often overlooked---free tax preparation.

It’s a well-known fact that Boyle Heights has one of the largest concentrations of Latinos in Los Angeles County. Equally important is the fact that the area is also known for the lack of access to certain financial services. Instead of banks, many residents frequent check cashers and payday lenders, with over $2 million in fees being drained out of Boyle Heights on payday lending fees alone. At this time of the year, many residents patronize expensive tax prepares who charge hundreds of dollars for simple returns. Proyecto Pastoral wanted to get involved this year

In partnership with East LA Community Corporation (ELACC), the Mayor Antonio Villaraigosa’s Bank on LA campaign, the AARP Foundation and Dolores Mission Church, Proyecto Pastoral offered free income preparation and used the service as a way to educate members of the Boyle Heights community on the benefits of banking and money management.

While the project began spontaneously in late February, Proyecto Pastoral and its collaborators worked quickly to identify tax preparers, train them on the basics of tax preparation, set up appointments with interested residents, and prepare taxes. Those recruited to be tax preparers would help clients file their own taxes online using the much-heralded I-CAN income tax preparation software.

After undergoing training, staff from both Proyecto Pastoral and Dolores Mission served approximately 30 individuals resulting in over $40,000 in refunds and tax credits for residents of the Boyle Heights community. The free service saved income tax filers, many of who were unemployed, low-income, or on fixed incomes, save over $6,000 in tax preparation related fees.

Simultaneously, ELACC and the Bank on LA team worked with local bank branches, such as US Bank, Citi, and E1 Credit Union to offer incentivized, and often free checking and savings accounts as part of the program.

Through the commitment and dedication of volunteers and staff, the group proved the impact a small group could have on a community. It is important to recognize the efforts of the individuals who made the program a success, they include: Karina Galan, Fatima Djelmane, Michelle Angeles, Cynthia Sanchez, Juan Carlos Esparza, Alma Islas, Carmen Canjura, and Angelica Rubio.

Based on the immediate success of the program, Proyecto Pastoral is looking forward to getting support for next year’s program, where training will happen months in advance of the 2010 tax season.

The project was made possible by the generous support of the AARP Foundation – who provided the necessary resources to administer the services.

To start things off, the partnership worked diligently to identify the best methods to put their energy and resources to good work. Leveraging the momentum of tax season, the group took advantage of offering free income tax preparation to encourage unbanked program participants an opportunity to enter the financial mainstream.