Senate Study Bill 3275 SENATE FILE BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to providing information to certain persons about 2 the availability of volunteer income tax assistance programs 3 and the federal and state earned income tax credits. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6067SC 82 6 mg/sc/5 PAG LIN 1 1 Section 1. NEW SECTION. 217.47 DISTRIBUTION OF EARNED 1 2 INCOME TAX CREDIT INFORMATION. 1 3 1. The department shall ensure that educational materials 1 4 relating to the federal and state earned income tax credits 1 5 are provided in accordance with this section to each person 1 6 receiving assistance or benefits under: 1 7 a. The hawk=i program under chapter 514I. 1 8 b. The family investment program under chapter 239B. 1 9 c. The medical assistance Act under chapter 249A. 1 10 d. The food programs defined in section 234.1. 1 11 e. Any other appropriate programs administered by, or 1 12 under the oversight, of the department of human services. 1 13 2. The department shall, by mail or through the internet, 1 14 provide a person described in subsection 1 with access to: 1 15 a. Internal revenue service publications relating to the 1 16 federal earned income tax credit. 1 17 b. Department of revenue publications relating to the 1 18 state earned income tax credit. 1 19 c. Information prepared by tax preparers who provide free 1 20 federal or state income tax preparation services to low=income 1 21 and other eligible persons and who are located in close 1 22 geographic proximity to the person. 1 23 3. In January of each year, the department or a 1 24 representative of the department shall mail to each person 1 25 described in subsection 1 information about the federal and 1 26 state earned income tax credit that provides the person with 1 27 referrals to the resources described in subsection 2. 1 28 Sec. 2. Section 252B.5, Code Supplement 2007, is amended 1 29 by adding the following new subsection: 1 30 NEW SUBSECTION. 4A. a. In order to maximize the amount 1 31 of any tax refund to which an obligor may be entitled and 1 32 which may be applied to child support and medical support 1 33 obligations, cooperate with any volunteer income tax 1 34 assistance programs in the state in informing obligors of the 1 35 availability of the programs. 2 1 b. The child support recovery unit shall publicize the 2 2 services of the volunteer income tax assistance programs by 2 3 distributing printed materials regarding the programs. 2 4 EXPLANATION 2 5 This bill relates to income tax assistance to be provided 2 6 by the department of human services. 2 7 The bill directs the department to provide to certain 2 8 individuals materials and publications related to the federal 2 9 and state earned income tax credits. These individuals are 2 10 those in the child health (hawk=i) program, the family 2 11 assistance program, the medical assistance programs, the food 2 12 stamp program, and other appropriate programs administered or 2 13 overseen by the department. The publications or materials 2 14 provided would be those from the internal revenue service, the 2 15 department of revenue, and tax preparers that provide services 2 16 to low=income and other eligible persons. 2 17 The bill also requires the child support recovery unit to 2 18 assist obligors of child support and medical support 2 19 obligations to maximize their tax refunds by publicizing the 2 20 services of volunteer income tax assistance programs and by 2 21 distributing materials regarding the programs. 2 22 LSB 6067SC 82 2 23 mg/sc/5