April 11, 1994
Millions to Receive Notice from the IRS on
How to Get Additional Money in
WASHINGTON - Over 16 million workers will qualify for the
Earned Income Tax Credit (EITC) this year. However, many workers don't have to wait until
next year to get it. Advance ETIC payments allow low income workers to increase their
take-home pay by as much as $102 per month starting with their next paycheck.
Fewer than 1 percent of workers eligible for the credit are getting the advance
payments. Recent studies show that many employees are unaware of how to get this extra
money in their paychecks whole others fear their employers' reactions if they ask for the
credit to be added to their paychecks.
A number of employers, however, view the advance payment as a means to increase their
employees' take-home pay almost immediately without increasing their payroll burden.
Employers also appreciate the AETIC payments' easing of employees' day-to-day financial
concerns and infusion of additional funds into the local economy in a matter of weeks.
Major efforts are underway to educate the taxpayers and eliminate their fears. The
White House, Treasury and Internal Revenue Service are encouraging public interest and
advocacy groups, business associations, CEOs and federal agencies to promote the credit
and put the advance ETIC in the pockets of the American people now.
To help notify taxpayers about the advance payment option, IRS will begin sending
notices to all taxpayers who receive the credit on their 1993 tax return. The first set of
notices will be mailed to approximately 10 million taxpayers beginning on April 22. The
notices will include a Form W-5, Earned Income Credit Advance Payment Certificate, and
information advising taxpayers who may qualify to return the completed 4-line certificate
to their employer. The second mailout of advance ETIC notices will begin July 1 and go to
over 3.5 million taxpayers. In September, over 700,000 taxpayers will receive notices in
the final mailout.
For more information on the advance ETIC call an IRS assistor on 1-800-829-1040 or get
Form W-5 or Publication 596, Earned Income Credit. Employers can learn more about their
responsibilities and how easy it is to calculate the payment in Publication 15-Employer's
Tax Guide. Employees and employers can receive these publication by calling
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