SDC’s abrupt closure; nonprofit to process hundreds of tax returns
MILWAUKEE - It’s been one month since the Social Development Commission (SDC) abruptly shut down operations and laid off staff. The SDC’s closure is impacting hundreds of people who filed taxes through the agency.
Jarmarl McNeil in Milwaukee is waiting on his 2023 tax return. It’s been two months since he dropped off his documentation at the SDC office on 34th and North.
"Told me not to come back, "we’ll just call," said McNeil. "Next thing I know, they’re closed."
For more than 60 years, the SDC serviced low-income families. It offered dozens of programs including Volunteer Income Tax Assistance (VITA). In late April, the SDC’s four offices suddenly closed.
McNeil wrote to Contact 6 asking for help with his tax refund.
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"Where do we go from here?" asked McNeil.
The SDC’s attorney, William Sulton, says of the 5,000 people who filed taxes through the agency, at least 800 have taxes not yet completed.
"What they should understand is their information is safe and secure," Sulton told Contact 6. "The IRS has taken custody of those files."
The IRS told Contact 6 in a statement, "We understand this is an extremely troublesome situation for taxpayers … The IRS is working hard to help taxpayers caught in this situation, and we are exploring options to complete the processing of any outstanding tax returns."
The IRS is partnering with the community organization La Casa de Esperanza to get the tax filings completed.
Shari Campbell, CEO of La Casa de Esperanza, says once the non-profit has the SDC’s tax records and a location for processing, they’ll contact clients to set up appointments.
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"We’re going to make it as easy as possible for everyone," said Campbell. "We will have options for in-person tax returns and for virtual."
Sulton says that tax extensions for those impacted were filed. La Casa de Esperanza is rounding up volunteers to prepare taxes.
They says that means McNeil should see progress on his tax return within weeks.
"I’m still waiting on that call," said McNeil.
Sulton says the SDC shut down operations because the agency could not make payroll and needed to review its finances. He says the SDC plans to reopen, hopefully within weeks rather than months, under new leadership.
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News release
La Casa de Esperanza, Inc. Assumes VITA Client Services from Social Development Commission
[Milwaukee, May 24th, 2024] – In partnership with the IRS, La Casa de Esperanza, Inc. is pleased to announce that it will be assuming the provision of services for Volunteer Income Tax Assistance (VITA) clients who were previously served by the Social Development Commission (SDC). This transition comes at the request of the Internal Revenue Service (IRS) and marks a significant step in ensuring continued support for taxpayers in our community.
Under the direction of the IRS, La Casa de Esperanza, Inc. has been entrusted with the responsibility to manage and resolve outstanding tax returns, both prepared and unprepared, for VITA clients formerly served by SDC. This decision reflects the IRS's confidence in La Casa de Esperanza's commitment to upholding the highest standards of service and compliance with VITA Quality Site Requirements and Volunteer Standards of Conduct.
"We are honored to be chosen by the IRS to continue providing essential tax assistance services to members of our community," said Shari Campbell, President and CEO at La Casa, "We understand the importance of this responsibility and are dedicated to ensuring that every taxpayer receives the assistance they need."
La Casa de Esperanza remains committed to delivering reliable, accessible, and high-quality tax preparation services to individuals and families across the state of Wisconsin. Taxpayers who were previously affiliated with SDC are encouraged to contact La Casa de Esperanza, Inc. for assistance with their tax-related inquiries.
Details such as scheduled hours and exact location will be announced as soon as finalized. For more information or to schedule an appointment, please contact: Gina Sanchez, Director of the Center for Financial Stability at (262) 899-6786 or by email at gsanchez@lacasadeesperanza.org
About La Casa de Esperanza, Inc.:
La Casa de Esperanza, Inc. is a Waukesha-based nonprofit organization that will be coming to Milwaukee to provide VITA tax services and is dedicated to empowering individuals and families through education, advocacy, and support services. With a focus on promoting self-sufficiency and community development, La Casa de Esperanza, Inc. offers a wide range of programs and resources to meet the diverse needs of our community. To learn more, visit our website at https://www.lacasadeesperanza.org/