Cook Inlet Tribal Council

Six years ago, the IRS approached Cook Inlet Tribal Council (CITC) about filling a need in the Anchorage area. There were not enough organizations offering free tax preparation services to low-income taxpayers. Rather than asking Cook Inlet Tribal Council to become a Volunteer Income Tax Assistance (VITA) site, the IRS offered to train Cook Inlet Tribal Council employees to help clients through the process of filing their own taxes online using the Free File system.

About Cook Inlet Tribal Council

Cook Inlet Tribal Council is a tribal nonprofit organization serving Native Alaskans in Anchorage and villages within the Cook Inlet Region of Alaska. The organization was founded in 1983 to provide social, educational and employment services to Native Alaskans and Native Americans in the region. Cook Inlet Tribal Council operates a wide range of programs, including parenting and life skills classes, inpatient and outpatient addiction recovery support programs, employment and training services, a tribal Temporary Assistance for Needy Families (TANF) program, financial assistance programs, childcare assistance, GED completion programs, on-site state food stamp and Medicaid services, crisis intervention, and more.

One of CITC's great strengths is that they can refer clients who come in for one service, introducing them to a range of other services they may need and either CITC or a partner can provide. In addition to the broad range of services that CITC provides for the Native community, they also look for ways to collaborate with the state and other organizations to find solutions to the challenges Native families face. This holistic approach to helping the Native community allows CITC to provide life-long solutions, not just temporary fixes.

Taxes and Asset Building

The current economic crisis has left families across America in difficult financial situations. As with other segments of society, many members of the Alaska Native community find themselves in need of financial services. The Employment and Training Department of CITC works to meet the needs of these individuals by offering financial programs to the Native community. Two programs that have been very successful over the last few years are the Free File assistance program, and an Individual Development Account (IDA) program.

Free File Assistance

The Free File assistance program began 6 years ago, when the IRS first trained 4 CITC employees to help clients prepare their own taxes online using the Free File system. Since then, CITC has offered this service 1 day a week, from January through April. As the only Native Social Service program in the Anchorage area that offers free tax preparation services to the tribal community, CITC provides a vital service. Although they are not trained tax professionals, CITC staff members are trained in Earned Income Tax Credit (EITC) outreach, and are knowledgeable about other credits for low-income taxpayers. CITC makes it a point to teach the Native families that they serve about these credits, and to find out if they are eligible. In many cases, clients who had never even heard of the EITC or the Child Tax Credit find out they are eligible for much larger refunds than they expected or had received in the past.

Success of the Free File Assistance Program

The Free File assistance program has enjoyed great success over the years. The first year CITC offered the service, they had 15 Native Alaskans file their taxes. That number has grown steadily over the years through word of mouth, and last year CITC was able to serve 65 taxpayers, who together received a total of $110,000 in refunds; $51,000 of that was due to the EITC.

Cook Inlet Tribal Council has a great partnership with their local IRS Stakeholder, Partnership, Education, Communications office. If a tax question arises that CITC’s staff is not trained to answer, they can call their IRS contacts, who are always available and willing to answer questions and provide clarification on tax issues. The IRS also trains new staff members to help tax filers to use Free File. The success of the Free File assistance program is largely due to the excellent relationship that CITC has built with their local IRS SPEC office.

IDA Program

For the last 5 years, the Free File assistance program has been complemented by a thriving Individual Development Account (IDA) pilot program. This program has allowed Native Alaskans to receive matched savings towards purchasing a house, getting an education or starting a small business. CITC staff members who assist clients with tax preparation encourage them to use their refunds to contribute to an IDA. In addition, staff encourage IDA participants to take advantage of tax preparation assistance and put their refunds into their IDAs.

CITC has also been fortunate to have Wells Fargo contribute additional funds for an alternative IDA to help families purchase vehicles, which has helped to mitigate the transportation problems that many low-income Native Alaskans face. With the end of the 5-year pilot program, CITC will not be able to continue the IDA program. However, through the program, CITC has been able to assist many Native Alaskan families to accomplish their goals, achieve their dreams and improve their lives.

Finding Solutions for the Native Community

With the current economic crisis, families across America are more in need of help than ever. This holds true in Anchorage among the Alaska Native community, where many are worried about the rising costs of living, heating oil and other utilities, and fuel. The burden of rising fuel costs falls disproportionately on the rural population in Alaska, and many anticipate that this may cause people from rural areas to move into Anchorage, creating an even bigger need for financial services for Anchorage’s community.

Cook Inlet Tribal Council is poised to deal with these challenges. They are committed to continuing free tax preparation services and EITC outreach. The money clients receive from the EITC and the savings they enjoy by avoiding tax preparation fees can be a real lifesaver when it comes to winter heating and fuel costs. With CITC’s impressive menu of integrated client services and strong partnerships twith other organizations in the community, CITC is also able to help Native Alaskans build the life, career and financial skills they need to use their refunds to really get ahead.

Carol Wren, career center coordinator of CITC, has seen the difference that the Free File assistance program makes for families. “One of the strongest indicators that people appreciate the service is that they come back year after year, and they tell their friends about it. The people I helped six years ago, when we first started the program, still come back every year. This shows the difference that the program makes in their lives.”