This is a great concept that provides individuals the access to free tax-preparation and to engage in the opportunity to work towards financial empowerment (via learning to do their own taxes). I think it is a great idea that can easily change the way people look at taxes.
Ben Franklin once said: "An investment in knowledge pays the best interest" and I truly believe that once an individual invests the time to learn how to do their taxes, that this will pave the way for financial empowerment, and open doors to financial security.
However, I do have a couple of questions:
1. It seems to me that this program would aide the process and efficiency of a VITA tax-site; however, efficient tax-sites are not enough to compete with the prevalence of predatory services within communities. Additionally, commercial tax-preparers spend countless dollars on "glitz and glamor", advertising their services as early as possible. How do you plan on competing with these obstacles?
2. Provided you are able to overcome the above mentioned obstacles: As more people take part or learn of the Beehive services, there is a chance that individuals will choose to access the services from their home instead of going to the VITA site. Thus, how do you think this program will change the VITA and free tax-preparation movement and community?
Alone, VITA sites and self-prepared returns represent about a third of all returns filed in the US. The more that we can encourage those within low-income communities to prepare their own returns and they can encourage family members and neighbors to do the same, we can to save more tax payers valuable refund dollars. As more households learn how simple tax preparation software has become in recent years, and computer usage becomes more mainstream across income groups, a movement like this will become more easily adopted.
On your second question, I think more people will prepare their returns from their home as the programming builds popularity. Where clients choose, they can prepare their returns at home, work, or a family or friend's computer.
---Lee
Interestingly, where this pilot has been in place for 2 years, there was impressive growth from 200 to 1,200 returns, as filers shared the information about this valuable resource with friends and family.
Talk about something that is scalable and would help millions of people! Each year low-income tax payers collectively fail to claim billions of dollars on their tax returns. Much of this is due to confusion and misunderstanding with the complex forms involved with filing taxes. I've seen Lee's solution in action and he is really doing ground-breaking work.
Although his solution is not out of the box microfinance, it could put additional funds into the pockets of millions of people, empowering them economically. Best of all the system is already in place and its already proven, it just needs an additional catalyst.
This seems like a great way to simplify such an important and often confusing aspect of life. This can certainly make a huge impact on many people's lives. My question is this: If indeed you want 100,000 filers to use this in just a few years, how do you plan to scale it accordingly? Is the plan to seek out VITAs around the country and host as many one-on-many workshops as possible? And is there a way that even that could be done online too, as a sort of e-tutorial on how to e-file for one's own self? Keep up the good work.
Thanks for your comment. As recent as 2005, community based organizations prepared as many as 2.4 million tax returns one-on-one for clients at around 25,000 tax sites. If in three years, the 50 largest organizations (those struggling most with capacity and volume) each prepared 10% of their tax returns with a more efficient instructor-led program, 100,000 returns would be filed. The web-based technology will facilitate impressive growth as participants can share the resources of the Beehive with their family and friends further spreading this resource.
This program really accomplishes several things other than the obvious--helping people file their taxes online. Even more importantly, it enables people to learn the language of taxes while simultaneously empowering them to take action. It sends the message that self-prep and filing is not just for tax experts, but something everyone can do.
Bravo, Lee. This is most definitely scalable and seems like a sustainable model.
On November 3, 2008, the judges reviewed the entries for the Changemakers “Banking on Social Change: Seeking Financial Solutions for All” competition and would like to pass on the following feedback (listed below) for your entry. Thank you for applying and for your hard work in the field. We are excited to archive your entry to serve as a leading solution for the worldwide community of innovators who are seeking solutions that allow financial security to become a reality for everyone. We wish you continued luck with your sustainable, innovative, and socially impactful initiatives.
All the best, The Changemakers Team
“Income tax preparation is often a daunting and confusing process that many individuals are unequipped to handle. I like this idea as an innovative way to address this situation. I would like to learn more about this initiative’s plans for scalability since the service is limited to income tax preparation.”
- Changemakers “Banking on Social Change: Seeking Financial Solutions for All” Judges: Citi, The Times of India, Nokia, Soros Fund Management LLC, PlaNet Finance.
Comments
This is a great concept that provides individuals the access to free tax-preparation and to engage in the opportunity to work towards financial empowerment (via learning to do their own taxes). I think it is a great idea that can easily change the way people look at taxes.
Ben Franklin once said: "An investment in knowledge pays the best interest" and I truly believe that once an individual invests the time to learn how to do their taxes, that this will pave the way for financial empowerment, and open doors to financial security.
However, I do have a couple of questions:
1. It seems to me that this program would aide the process and efficiency of a VITA tax-site; however, efficient tax-sites are not enough to compete with the prevalence of predatory services within communities. Additionally, commercial tax-preparers spend countless dollars on "glitz and glamor", advertising their services as early as possible. How do you plan on competing with these obstacles?
2. Provided you are able to overcome the above mentioned obstacles: As more people take part or learn of the Beehive services, there is a chance that individuals will choose to access the services from their home instead of going to the VITA site. Thus, how do you think this program will change the VITA and free tax-preparation movement and community?
caseyroncorni,
Thanks for your questions.
Alone, VITA sites and self-prepared returns represent about a third of all returns filed in the US. The more that we can encourage those within low-income communities to prepare their own returns and they can encourage family members and neighbors to do the same, we can to save more tax payers valuable refund dollars. As more households learn how simple tax preparation software has become in recent years, and computer usage becomes more mainstream across income groups, a movement like this will become more easily adopted.
On your second question, I think more people will prepare their returns from their home as the programming builds popularity. Where clients choose, they can prepare their returns at home, work, or a family or friend's computer.
---Lee
Interestingly, where this pilot has been in place for 2 years, there was impressive growth from 200 to 1,200 returns, as filers shared the information about this valuable resource with friends and family.
Talk about something that is scalable and would help millions of people! Each year low-income tax payers collectively fail to claim billions of dollars on their tax returns. Much of this is due to confusion and misunderstanding with the complex forms involved with filing taxes. I've seen Lee's solution in action and he is really doing ground-breaking work.
Although his solution is not out of the box microfinance, it could put additional funds into the pockets of millions of people, empowering them economically. Best of all the system is already in place and its already proven, it just needs an additional catalyst.
A truly remarkable idea...
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This seems like a great way to simplify such an important and often confusing aspect of life. This can certainly make a huge impact on many people's lives. My question is this: If indeed you want 100,000 filers to use this in just a few years, how do you plan to scale it accordingly? Is the plan to seek out VITAs around the country and host as many one-on-many workshops as possible? And is there a way that even that could be done online too, as a sort of e-tutorial on how to e-file for one's own self? Keep up the good work.
Colin
ColinR,
Thanks for your comment. As recent as 2005, community based organizations prepared as many as 2.4 million tax returns one-on-one for clients at around 25,000 tax sites. If in three years, the 50 largest organizations (those struggling most with capacity and volume) each prepared 10% of their tax returns with a more efficient instructor-led program, 100,000 returns would be filed. The web-based technology will facilitate impressive growth as participants can share the resources of the Beehive with their family and friends further spreading this resource.
---Lee
This program really accomplishes several things other than the obvious--helping people file their taxes online. Even more importantly, it enables people to learn the language of taxes while simultaneously empowering them to take action. It sends the message that self-prep and filing is not just for tax experts, but something everyone can do.
Bravo, Lee. This is most definitely scalable and seems like a sustainable model.
Dear Lee,
On November 3, 2008, the judges reviewed the entries for the Changemakers “Banking on Social Change: Seeking Financial Solutions for All” competition and would like to pass on the following feedback (listed below) for your entry. Thank you for applying and for your hard work in the field. We are excited to archive your entry to serve as a leading solution for the worldwide community of innovators who are seeking solutions that allow financial security to become a reality for everyone. We wish you continued luck with your sustainable, innovative, and socially impactful initiatives.
All the best, The Changemakers Team
“Income tax preparation is often a daunting and confusing process that many individuals are unequipped to handle. I like this idea as an innovative way to address this situation. I would like to learn more about this initiative’s plans for scalability since the service is limited to income tax preparation.”
- Changemakers “Banking on Social Change: Seeking Financial Solutions for All” Judges: Citi, The Times of India, Nokia, Soros Fund Management LLC, PlaNet Finance.
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Kaylena Bray
Ashoka's Changemakers
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