NYC Mayor Takes on IRS Over Earned Income Credit Plan | AccountingWEB

NYC Mayor Takes on IRS Over Earned Income Credit Plan

New York City Mayor Michael Bloomberg has gone on record against the Internal Revenue Service's controversial plan to require pre-certification for certain recipients of the Earned Income Credit.

In a New York Daily News interview this week, the mayor indicated his concern that the pre-certification process might "decrease filings by legitimate, eligible recipients." There are approximately 700,000 recipients of the Earned Income Credit (EIC) in New York City. It is estimated that another 230,000 eligible residents of New York City fail to claim the credit each year.

The IRS has announced its intention to require single parents, grandparents, and other non-traditional guardians who want to claim the EIC to provide proof that they provided housing for the dependent(s) who qualify them for the credit. Such proof will need to be in the form of official records and third-party affidavits such as copies of marriage certificates, leases, school records, or letters from child care providers, members of the clergy, employers, landlords, or other local officials.

New York City Council Democrats have also criticized the plan as being unfair to people who might intend to file for the credit. Opponents to the plan have expressed concern that the pre-certification requirements will be too confusing or too difficult for low-income individuals to execute.

New York City Council Speaker Gifford Miller described the program as part of President Bush's "unconscionable attack on working people."

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