2019 will go down in history as the year Foundation Communities reached the milestone of filing 250,000 tax returns for Central Texans. Students and faculty at the University of Texas at Austin have helped the nonprofit hit that mark.
For many people, a tax refund is more than a benefit that results from owing less tax than they anticipated. That refund might provide funds for a coworker’s next rent payment, a friend’s utility bill, or put food on a neighbor’s table. Without assistance, many people in the Austin community would have difficulty accessing these funds.
Each spring semester, the Department of Accounting partners with Foundation Communities, a local nonprofit that provides affordable housing and a variety of free on-site services, to train and certify UT students to prepare personal tax returns for filers who earn less than $55,000 annually.
Ross Jennings and Steve Limberg created the Tax Practicum class in 2006. Ross, the Department Chair at the time, was exploring new ways to increase students’ opportunities for experiential learning. It came to his attention that several accounting students were volunteering at Foundation Communities to prepare returns, and an idea struck him. Why not offer a class to train students to file tax returns AND give back to their community?
“I asked Steve Limberg to design and teach the class, and he did a fabulous job. Steve taught the course for one year, and then turned it over to Brian Lendecky. During Brian’s first few years, the class grew to what it is today,” Ross said.
This semester, J Kamas and Gretchen Charrier are teaching the Practicum. In addition to completing return preparation training and preparing returns, the students also attend a series of classes that feature IRS guest speakers. For many participants, the class provides an inspiring and rewarding experience that comes from supporting the people of Austin. “Our students are really focused on giving back to the community,” J added.
This year, 208 UT students are enrolled in the class. 59 of those students are MPAs; economics, finance, and accounting undergraduates comprise the rest of the student population enrolled in the course. Fifth-year iMPA student Erin Markey said, “This work can really impact lives, and many clients share their excitement about what the money will do for their families.”
Before they begin volunteering, students are trained and certified by the IRS. Then, until April 15, they volunteer for 55 to 60 hours in order to meet their course requirements. In Austin, there are six locations at which clients can meet with a volunteer and have their return filed for free. Many clients especially benefit from the knowledge their student volunteers have of child tax credits and of the earned income credit. Often, Foundation Communities tax filers are unaware of these tax benefits and might otherwise have to rely on a tax professional to receive them.
“Foundation Communities simply could not serve as many clients and prepare as many tax returns without the student volunteers. In total, we’ve had over 2,000 students work in our program and help their Austin neighbors file their taxes correctly, saving folks over $7 million in tax preparation fees,” said Walter Moreau, Executive Director of Foundation Communities.
Since its inception 13 years ago, over 250,000 returns have been filed, resulting in over $382 million in refunds for those community members. We estimate that approximately one-third of all returns completed at the Foundation Communities sites were prepared by UT-Austin students. Brian Lendecky added, “The city gives so much to UT; it’s nice that UT can give back to the city.”
Texas McCombs MPA student Parker Rasansky checks in clients at the Foundation Communities front desk.
