AASA Call-to-Action: Tell the IRS to Close School Voucher Program Tax Shelter
For many years the IRS has
permitted taxpayers in 12 states to turn a profit by financially supporting
private school voucher programs. This profitable tax shelter has fueled rapid
growth in these voucher programs, leading to a major transfer of public dollars
into private schools. Moreover, the profits being pocketed by these taxpayers
come at the expense of state and federal budgets and do not find their way into
any public school or public works project.
The profiteering facilitated by
these tax credit vouchers schemes is neither accidental nor incidental. Tax
accountants, private schools, and others in many states with tax credit voucher
programs
have long marketed these programs as tools for exploiting the
federal charitable deduction.
Given the Trump Administration’s
love of vouchers, we were quite surprised that the IRS has proposed regulations
that would shut down this tax shelter and could significantly weaken the
popularity and growth of the voucher programs in these 12 states. We have an
opportunity as public education advocates to weigh in with the IRS and support
these regulations, but the IRS is already facing extreme
pressure by pro-privatization entities and members of Congress to
keep them on the books.
Please take 5 minutes to fill
out this template and send it to the IRS today. This is an opportunity to
send more dollars into public schools both at the federal and state level.
How to File Comments
with the IRS
Comments
are due by October 11, 2018
- Draft your response comments. You can create your own
comments or work from AASA’s
template. Format your response as a
Word/PDF document (include district letter head!).
- Go to https://www.regulations.gov/comment?D=IRS-2018-0025-0001
- In the ‘Comment” box, type the phrase “I submit the
attached comment in response to the IRS proposed regulations on
Contributions in Exchange for State and Local Tax Credits.
- Below the comment box:
- Upload your file.
- Enter your first and last name.
- Click ‘continue’
- Review the information on this page, including a check
to ensure your document is attached.
- Click the ‘I have read and understand’ item.
- Click ‘Submit Comment’
Note: If it’s too complicated to use the web form, please email
your comments to Sasha at spudelski@aasa.org
and she will submit them on your behalf.