Drive down any urban street and you’re bound to come across tax preparation shops nestled in-between their title loan, rent-to-own, and check cashing cousins.
Some are no-name “Mom and Pop” operations, while others are well-known national chains. Many aggressively push their services, sending grown people dressed in ridiculous costumes to cut a fool in order to catch the attention of onlookers. The dancing man I pass daily, who’s grooving to headphones while dressed as the Statue of Liberty, immediately comes to mind.
I’ve often wondered why low-to-moderate income folk need so much tax preparation help? Many don’t make enough money to itemize, and a simple 1040 form would suffice for most.
What I found was, like their pawn shop and title loan neighbors, these vultures are attracted to the promise of easy money. “Predators of the Poor,” some call them.
The lure is the Earned Income Tax Credit, explains Gary Rivlin in his article “1040 Sleaze” that appears in the latest issue of Mother Jones magazine. A mother of two earning $16,000, for example, can expect a $5,000 tax refund through the Earned Income Tax Credit.
To find out how tax preparation companies are looking to get a piece of this action, read the rest of this article at BlackandMarriedwithKids.com
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