Tax

U.S. tax refund card program flawed: report

Reuters News
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Posted: Sep 05, 2012 6:42 PM

WASHINGTON (Reuters) - A short-lived U.S. government program meant to get tax refunds to low-income taxpayers using debit cards was flawed, according to a report released on Wednesday.

The program ran for less than a year before it was suspended by the Treasury Department after few people participated.

The analysis by the Urban Institute said about 800,000 people were selected for inclusion in the program. But many invitations to take part in it were sent to the wrong addresses.

The $4.95 monthly maintenance fee for the program might have further depressed participation in the program, the report said.

About 0.3 percent of people who received the invitations applied for the card, according to the report.

Treasury suspended the program in late 2011.

(Reporting by Kim Dixon; Editing by Kevin Drawbaugh and Stacey Joyce)