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Designed to be self-operated, the lift also will allow the motorman to have override control.

9. The Office of Federal Assistance in the Federal Railroad Administration (FRA) has collaborated with Amtrak, and has provided financial support for the design and implementation of special facilities and programs for the handicapped and elderly which include: (a) special seats for the handicapped, enabling them to transfer easily from a wheelchair to their train seat; (b) handrails built into restrooms to insure the safety of the handicapped and aged while mobile; and (c) sponsoring off-peak fares for people over 65 years of age. As of now, new equipment designed for the handicapped and elderly has already been put to use on the turboliners in upstate New York, and the Am Fleet operated in the Northeast corridor, midwestern, and western routes.

VI. PLANNING

A. Under section 9 of the Urban Mass Transportation Act of 1964, as amended, UMTA provides financial and technical assistance to approximately 250 metropolitan and 50 State agencies. These agencies are now required by the April 30, 1976, transportation for elderly and handicapped persons regulations to make special efforts in the transportation programing process to plan public mass transportation facilities and services that can effectively be utilized by elderly and handicapped persons, particularly wheelchair users and semiambulatory handicapped persons. Guidance to the UMTA field offices has been developed to assist in their review of unified work programs.

B. Under the State and community highway safety program of NHTSA, States are encouraged to plan and execute their own projects to benefit the elderly. Through the use of Federal, State, and local funds, States are planning preparing and providing programs for the elderly in the areas of driver instruction, pedestrian safety, and driver licensing.

An excellent example of these types of activities is in the State of Illinois where a specific driver reeducation program for the elderly is now operational as a result of Federal assistance. The program entitled "The Senior Driver Improvement Program" was designed to assist elderly drivers to become more knowledgeable about the driving task and ways to compensate for their driving deficiencies. A study guide and a coordinator's handbook were developed and are available from the State of Illinois. This program should prove valuable to senior drivers who wish to continue their driving in a safe and more skillful

manner.

VII. DEMONSTRATIONS

A. Following an appropriation of $15 million, 50 additional projects have been identified for selection under the rural highway public transportation demonstration program, bringing the total to 102 projects in 48 States. The selection and evaluation criteria again specifically required consideration of the "adaptability of systems to the needs of the elderly and handicapped." While almost 98 percent of the projects identify elderly persons as direct beneficiaries of the proposed service, several, most notable in Kansas, will demonstrate the coordination of the transportation service with programs sponsored under the Older Americans Act.

B. In a demonstration of user subsidies for the elderly and handicapped in Lawrence, Mass., eligible users can purchase tickets at a reduced rate but they can be redeemed by the transportation provider at full fare. The project will examine how the several private sector providers respond to the demand, and what changes, if any, are made in the supply and levels of service. Lawrence, Mass., has a private, fixed route bus system and several taxicab companies that will be participating in the demonstration.

C. In a project in Montgomery, Ala., the user subsidy mechanism is an identification card that will enable eligible elderly and handicapped persons to obtain public transportation, including bus or taxi services at reduced fares.

D. The objective of a demonstration project being carried out in Mercer County, N.J., is to determine the extent to which elderly and handicapped transportation can be improved by coordinating the transportation resources of various social service agencies, including public transit agencies and private transportation providers.

E. The Vera Institute of Justice in New York City is conducting a demonstration to demonstrate the cost effectiveness of integrated funding in the operation of a multipurpose special transportation service.

F. The Tri-State Regional Planning Commission in New York City has a demonstration grant to carry out the planning necessary to develop a detailed implementation plan for a demonstration of coordinated door-to-door transportation services for the handicapped in a pilot area of New York City. One alternative being considered is a broker system through which private operators can be contracted to provide services.

VIII. CAPITAL ASSISTANCE

The Urban Mass Transportation Administration has awarded a capital grant to the West Virginia Board of Regents for the phase II expansion of the Morgantown PRT system. Under the grant, elevators for use by the elderly and handicapped will be installed in the three stations of the present system and in the two stations being added.

During fiscal year 1976, $22 million was set aside under section 16(b)(2) of the Urban Mass Transportation Act of 1964, as amended, to provide grants to private nonprofit organizations in the acquisition of capital equipment for the provision of transportation services to the elderly and handicapped. Of the $22 million that thas been set aside, grants totaling $466,000 have been awarded to 4 States on behalf of 27 organizations in fiscal year 1976 and the transition quarter. Some States have elected to hold over their fiscal year 1976 funds for use in fiscal year 1977.

IX. CONFERENCES AND WORKSHOPS

The problems elderly riders encounter are addressed in the workshops FHWA/UMTA conduct for State representatives and sponsors of rural demon. strations projects, including such aspects as sensitive driver selection and training.

X. INFORMATION DISSEMINATION AND TECHNOLOGY SHARING

The Federal Highway Administration reprinted 1,500 copies of the Administration on Aging sponsored "Planning Handbook-Transporattion Services for the Elderly," prepared by the Institute of Public Administration. FHWA distributed the report to all its demonstration project sponsors, its field offices, State transportation agencies, and metropolitan planning organizations.

ITEM 9. DEPARTMENT OF THE TREASURY

DECEMBER 24, 1976.

DEAR MR. CHAIRMAN: On behalf of the Secretary of the Treasury and myself, I am furnishing you with a summary of Treasury activities benefiting the elderly during 1976. Our efforts during 1977 will be largely along the same lines, although we hope and expect to improve our programs. We are also continuing to make a major effort to inform elderly taxpayers, and others, of their tax rights and responsibilities under the recently enacted Tax Reform Act of 1976, and to simplify our forms and instructions where possible.

You will note that we have included material supplied by Treasury bureaus and offices in addition to the Internal Revenue Service. In this connection, it is our understanding that your committee has had recent contact with the Office of Revenue Sharing on matters relating to the committee's endeavors and that they have responded with information directly to your office. We have not, therefore, duplicated these efforts in this transmittal.

If we can provide additional assistance to the committee, please call upon us. With kind regards,

Sincerely,

[Enclosure.]

DONALD C. ALEXANDER,
Commissioner.

INTERNAL REVENUE ACTIVITIES AFFECTING THE AGED

As in past years, the Internal Revenue Service was active during 1976 in numerous activities directly associated with providing tax assistance for the elderly. These activities included:

-Published Revenue Ruling 76-481, December 13, 1976, in Internal Revenue Bulletin 1976–50, which allows a medical deduction for the medical-care portion of both the founder's fee and the monthly fee, paid by individuals in connection with life-care residence in a retirement home.

-Preparing a series of questions and answers to be issued shortly which provide guidance for applying the newly enacted disability income exclusion provisions of the Tax Reform Act of 1976.

-Updated and published the following publications that deal with tax issues of particular interest to the elderly:

Publication No.

524

554.

559__.

567

575.

Title

Tax Credit for the Elderly.

Tax Benefits for Older Americans.

Federal Tax Guide for Survivors, Executors, and
Administrators.

Tax Information on U.S. Civil on U.S. Civil Service
Retirement & Disability Retirement.

Tax Information on Pension & Annuity Income.

All of these publications are available free of charge at IRS offices. They are also used extensively in taxpayer education programs, often in cooperation with organizations especially interested in problems of retired people. -Conducted "retiree income tax seminars" as a part of our overseas taxpayers assistance program. These seminars are designed to assist retirees and senior citizens (who reside abroad) to determine their correct U.S. tax obligations. These seminars consist of discussions of tax laws and forms applicable to this specific taxpaying group. The discussions are followed by an exercise in the preparation of a tax return under the guidance and assistance of a tax assistor.

-Implemented a procedure to discontinue an examination when it is found that the issues in question were considered in an audit of either of the 2 preceding tax years and such audit resulted in no tax change. This relief is available to all taxpayers but is particularly helpful to the elderly individuals and others who would be unduly burdened by repetitive and unnecessary audit.

-Increased number of locations where appellate conferences may be held to include all cities in which the U.S. tax court hears small tax cases. Conferences are now offered in 37 additional cities in small tax cases in which the amount of the disputed deficiency or overpayment does not exceed $1,500 for any 1 tax year. This service is available to all taxpayers, but is particularly beneficial to elderly persons and others who could not readily participate in conferences at more distant locations.

-Required that all employees who performed tax assistance work during the 1976 filing period complete a lesson during refresher training on tax issues for the elderly.

-Visited senior citizen centers, nursing homes and other sites convenient to elderly taxpayers in order to assist in tax return preparation. -Emphasized tax problems of the elderly by providing special lessons in our volunteer training program geared to the tax situations of older citizens as a part of the voluntary income tax assistance (VITA) portion of our taxpayer education program. The special material included information on tax credits for the elderly, estimated tax payments and form W-4P. -Conducted a workshop, in conjunction with the National Retired Teachers Association and the American Association of Retired Persons, for senior citizen instructors who, in turn, recruited and trained other volunteers in the tax aid program for the elderly.

-Distributed with the cooperation of the Social Security Administration (SSA) publications describing tax benefits for the elderly through SSA local offices.

-Continued emphasis on securing first floor space or, alternatively easy access to elevators as an aid to handicapped and elderly citizens. -Developed and mailed approximately 2.5 million notices to low income individuals, of whom the elderly represent a relatively high number, calling specific attention to the earned income credit in those cases where it appeared eligible persons failed to claim the credit on their tax return. This resulted, at last count, in some $247 million in credits allowed to lower income tax

payers who might otherwise not have had the benefit of this provision of the law. -Issued guidelines to our collection people which exclude, except in flagrant cases, the first $6,000 per annum of retirement (pension) income from the effects of tax levies under IRS section 6331.

-Provided tax information via our public affairs office to older Americans with the following as major points of emphasis:

A. Special tax advantages available to taxpayers age 65 and over such as a double personal exemption, retirement income credit, and tax advantage in the sale of a home.

B. The nontaxability of the special $50 payment made to social security beneficiaries on the rolls for the month of March 1975, as well as all other social security payments received during 1975.

C. Taxpayers age 65 and over, while entitled to a double personal exemption, can claim only a single $30 personal exemption credit.

D. Certain taxpayers, including those age 65 and over with adjusted gross income under $8,000 might be eligible for an earned income credit.

E. Taxpayers with high medical and dental expenses, such as older Americans, should determine if they can itemize on their tax return and qualify for a medical deduction.

F. Premiums for part B of medicare can be deducted as a medical deduction by taxpayers who itemize.

G. The availability of a special form W-4P for use by retirees having income tax withheld from their pensions.

H. The necessity for many part-time workers, including retirees, who had taxes withheld during the year but incurred no tax liability, to file a tax return in order to obtain a refund.

I. The services provided by the IRS-sanctioned voluntary income tax assistance (VITA) program, a tax aide volunteer program designed, in part, for the elderly and retired.

J. The services for older Americans provided by IRS taxpayer services year-round in terms of telephone assistance, walk-in help at IRS offices, free publications available by mail, taxmobiles and satellite offices in some locales, and in some areas, tax seminars for older Americans.

In 1977 our plans will cover the following activities:

-Requiring that employees performing tax assistance work during the 1977 filing period complete training on provisions of the Tax Reform Act of 1976 including new benefits for the elderly.

-Visiting senior citizen centers, nursing homes and other sites convenient to elderly taxpayers in order to assist in tax return preparation.

-Continuing assistance to older Americans through taxpayer education programs such as the volunteer income tax assistance (VITA) program. -Scheduling a workshop similar to that held in 1976 for the National Retired Teachers Association and the American Association of Retired Persons volunteers.

-Conducting retiree seminars to assist citizens residing abroad with their U.S. tax obligations.

-Instituting computer preparation of forms 1040 on a trial basis. This will allow the IRS to render a complete preparation service rather than the limited self-help previously available to the older taxpayer and other individuals less able to prepare their own returns.

-Conducting a mailout program similar to that described with regard to taxpayers who appear to be entitled to, but do not claim the earned income credit.

-Continue to direct information to the elderly via our Public Affairs Office. In 1977, with passage of the far-reaching Tax Reform Act of 1976 which includes certain provisions affecting older Americans, the Public Affairs Division again has developed an intensive information program to reach the elderly. In addition to stressing all of the highlighted items for 1976, except for the special $50 payment to social security beneficiaries, the $30 personal exemption credit, and the retirement income credit-all of which have either been discontinued or changed by legislation-other points of emphasis for 1977 include:

A. Older Americans may qualify for a new tax credit for the elderly. B. Tax benefits for older Americans relating to the sale of a home have been liberalized.

C. Older Americans, although eligible for a double personal exemption, can claim only one general tax credit.

D. Taxpayers who file the short form 1040A, including a large number of older Americans, compute their tax from a single tax table.

In addition, Public Affairs has prepared a special tax supplement for use by Sunday and weekly newspapers with the contents including a feature article on older Americans, an article on the general tax credit, and a listing of "tax terms" to make understanding of the tax instructions easier.

OFFICE OF THE SECRETARY

ASSISTANT SECRETARY (ADMINISTRATION)

ACTIVITIES AFFECTING THE AGED

In response to Presidential Proclamation 4426, the Director of Fersonnel contacted each Bureau to publicize the month of May as Older Americans Month. The Department of Treasury amended the Treasury Personnel Manual chapter 713 (equal opportunity) appendix B (processing complaints of discrimination) to include provisions for age discrimination complaints.

The Equal Employment Opportunity Affirmative Action Plan for fiscal year 1977 reaffirms Treasury policy that there must be equal opportunity provided without regard to age.

BUREAU OF GOVERNMENT FINANCIAL OPERATIONS

ACTIVITIES AFFECTING THE AGED

Treasury's direct deposit program for Federal recurring payments, which was implemented during 1975, was extended to recipients of civil service and railroad retirement annuities during 1976. This program permits beneficiaries to receive their monthly payments by automatic credit to their accounts in financial institutions. This system virtually eliminates loss, theft, forgery and delays in receiving payments. This service will be extended to recipients of veterans compensation and pension payments during 1977. A marketing campaign is planned for 1977 to make more elderly recipients aware of the advantages of the program.

As an aid to social security recipients, whose checks are normally dated the third of each month, the Bureau amended its disbursing procedures in 1976 to provide for delivery of the checks on the preceding Friday whenever the third falls on a Saturday or a Sunday. This permits recipients to receive their benefits on a day when most financial organizations are open.

COMPTROLLER OF THE CURRENCY ACTIVITIES AFFECTING

THE AGED

National bank examiners will soon begin to enforce amendments to the Equal Credit Opportunity Act prohibiting discrimination in the granting of credit on the basis of age. These amendments were enacted by Congress in 1976 as part of Public Law 94-239 and will become effective on March 23, 1977.

Several years ago, the Comptroller granted permission to Chesapeake National Bank, Towson, Md., to establish a branch office in Annapolis that would be of special assistance to older citizens of the community. When a competitor subsequently filed a legal challenge to the bank's right to open the branch, the Comptroller's Office assisted in the bank's defense. Ultimately, the Comptroller's approval of the branch was upheld by the courts.

In evaluating applications for new bank charters, branches, mergers and relocations, the Comptroller is willing to receive and take into account evidence tending to show that approval of the application will assist senior citizens. Such evidence suggests that approval of the application would benefit the needs and the convenience of the community to be served.

Within the month, the Comptroller will write a letter to all 4,700 national banks urging their participation in the neighborhood housing services program, which is aimed at preserving residential neighborhoods suffering from blight. Neighborhood housing services represents a unique neighborhood preservation strategy involving a partnership of mortgage lenders, municipal officials and community residents in a concerted local effort at reviving the flow of private capital into declining urban neighborhoods. Since an unusually large percentage

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