Many Polish immigrants who used their Individual Taxpayer Identification Number (ITIN) when filing their tax returns have received a letter from New York City Department of Finance, informing them that they may be entitled to tax returns based on their Earned Income Credit.

The refund assessments in the letter are applied mostly to earlier tax periods and amounted to as much as several thousands of dollars. What was not mentioned in the letter was the fact that in order to receive such tax returns, the taxpayer has to have a valid Social Security number. Calculations of return amounts, however, were included.

The letter also implied that the earlier tax assessments prepared by private tax agencies may have been erroneous. This caused confusion and disappointment among the owners and accountants of several local tax preparing agencies.

“Every day over a dozen people come to us and inquire about this. I’m afraid that it’s only the beginning,” said Emilia Sroczynska, owner of Emilia’s Agency located on Manhattan Avenue in Greenpoint, Brooklyn. “Most people believe that they are entitled to this money. Since the Department of Finance mailed the assessments, they believe what they see, and so they come to our agency telling us that the tax forms we have prepared were incorrect. The letter, however, does not mention that in order to receive this money, you have to have a valid Social Security number. That’s how they (the Department of Finance) misinformed taxpayers and at the same time undermined the credibility of the tax preparing agencies responsible for the original assessments.”

The question about a valid Social Security number appears on the front page of the official website of the New York City Department of Consumer Affairs (www.nyc.gov/EITC).

Those who visit the website but are unable to enter their valid Social Security number are automatically informed that they don’t meet the criteria that would entitle them to a refund. However, not too many Poles check their own eligibility for refunds through the Internet.

“Since Friday, dozens of people have come here with their letters,” said Maria Dedza of Maria Agency. “None of them were eligible to receive a refund, but they refused to believe it. I have no idea why the Department of Finance has put so much work into this, and I wonder who approved mailing all these letters out. It was just unnecessary paperwork.”

“It’s a catastrophe,” said Emilia Piechota, who works preparing taxes for Forum Agency. “A lot of people have come to us. So far, no one has qualified to receive a refund. These letters have caused one big mess and have gotten our clients upset. I tell the more stubborn ones to fill out forms and mail them out. They will not get a refund, anyway, as they don’t meet the basic criteria, which is possession of a valid Social Security number.”

Polish immigrants who came to tax preparing agencies didn’t hide their disappointment when they found out that they were not eligible for refunds after all.

“It’s like hide-and-seek,” said Zofia Koper of Greenpoint, who came with her letter to one of the Greenpoint tax preparing agencies. “I was credited $270, and I was very happy. I was sure that I would have to pay less in taxes by this much. I used my ITIN to get my tax forms done, but they were aware of it in the Department of Finance.”

Owen Stone, spokesperson for the New York City Department of Finance, explained in an interview with Nowy Dziennik that the city had good intentions for trying to reach as many EITC-eligible taxpayers as possible.

“We have analyzed all the information from tax return forms and we have mailed information to everyone who may be potentially entitled to receive EITC and has not applied for it yet. We have also calculated for everyone the amount of refunds they were entitled to. They only had to provide their Social Security numbers and sign,” said Stone.

He also stressed that the great majority of people who have received the letters have a valid Social Security numbers. He has apologized to those who have ITINs who are not eligible for a refund.

The City Department of Finance has organized this type of initiative for the first time. “Next year we will try to send this type of letter only to those who have valid Social Security numbers,” Stone added.