Knodl introduces bi-partisan bill focusing on W-2 fraud

In 1994, Governor Thompson unveiled Wisconsin Works (W-2), a bipartisan plan that would dramatically reform welfare by ending cash handouts and placing a greater emphasis on work. W-2 programs subsidize employment, help parents find childcare, and even provide transportation assistance to adults who have found jobs. Since inception, W-2 programs have served as a model for national welfare reform, and have helped thousands of Wisconsin families get back on their feet by providing individuals the tools they need to become self-sufficient.

In recent years, the state has started to back away from the principles that made W-2 a success. The underlying premise of W-2—that honest individuals willing to work should be given a helping hand—was forgotten as fraud infected the system and criminals stole from taxpayers and the truly needy. For example, under the Doyle administration, Wisconsin law allowed an applicant for assistance to lie twice (!) before they could be subject to sanction. As Governor Walker’s Taskforce on Waste, Fraud, and Abuse recently discovered, this type of program administration made a mockery of program integrity and cost taxpayers roughly $200 million annually. I believe Wisconsin deserves better.

To that end, I have teamed up with Representative Scott Krug and Senator Alberta Darling to introduce legislation to give the Department of Children and Families the tools they need to go after welfare cheats. My legislation ensures W-2 programs continue to emphasize the importance of work while giving honest individuals the assistance they need to get back on their feet.

First, the bill fixes a fundamental problem in the law, and makes it clear that applicants cannot lie on their forms when applying for W-2 benefits. Second, this proposal cuts through red tape and allows front-line workers in W-2 agencies to apply sanctions when applicants have been caught lying. Finally, the legislation creates a more progressive system of sanctions that will protect taxpayers from dishonest individuals who would steal not only from the state, but from the truly needy.

I will continue to work to root out waste, fraud, and abuse in our public assistance programs. Not only does this protect taxpayers, but ensures that we can continue to help those who are truly needy. That's Integrity!

If you are looking for some help with your tax returns, I would encourage you to take advantage of free tax preparation services available through the IRS Free File program. Since its inception in 2003, IRS Free File has offered 70 percent of taxpayers free access to leading commercial tax preparation software. Every taxpayer with a 2010 Adjusted Gross Income of $57,000 or less may visit www.IRS.gov/freefile to prepare, complete and e-file their federal tax returns at no cost. This service is made possible through a partnership between the IRS and the Free File Alliance, a coalition of industry-leading tax software companies.

Once at the website, users will find a list of Free File Alliance member companies and may either choose the one that fits their needs or utilize the “help me find a company” tool. After selecting a tax software company, users will be transferred to the company's website to prepare, complete and electronically file their federal income tax returns.

Once your federal taxes are complete you can go to http://www.revenue.wi.gov/wi_efile/index.html to get more information on how to fill out your Wisconsin tax forms online for free.

(To view video of my State of the State Comments, click the picture above)

Last week I had the chance to talk to reporters about how our efforts to balance the $3.6 billion deficit turned Wisconsin around and got us moving in the right direction.  As we move forward this session, I will continue to remain focused on reforming job-killing regulations, improving education, and eliminating waste in state government.