By Gina Tabonares
Variety News Staff

THE $10 million disbursement for 1997 and 1998 earned income tax credits, or EITC, is close to completion with only about $1 million left uncollected by taxpayers who should benefit from the settlement agreement.
In a status report submitted by Department of Administration director Lourdes Perez, a total of $8.678493.66 was paid for EITC claims for the month of March.
A total of $444,642.26 was made for tax year 1997 while $8,233,851 was paid for tax year 1998.
The total amount of the monies paid from the income tax refund reserve fund and income tax refund efficient payment trust fund in March 2007 was $4,282,478 while the total amount of monies paid in tax refunds for the same month was $3,640.106.39.
Perez also reported that the total amount that has been reserved for EITC payments under the settlement agreement as of March is $642,371.72 or 15 percent of $4,282,478.10.
The $10 million payment of 1997 and 1998 EITCs was part of the partial settlement agreement made by the EITC class and the Office of the Governor on May 26, 2006.
GovGuam agencies that are among the defendants in the three EITC class actions are required to submit a monthly status report to the federal court.
There were three separate class actions filed in federal court concerning EITC payments: the Julie Babauta Santos et al vs. Felix Camacho filed on Feb. 14, 2004, the Charmaine R. Torres vs. Government of Guam filed on Aug. 9, 2004, and the Mary Grace Simpao vs. Government of Guam filed in December 2004.
Based on the settlement agreement, the government will pay the EITC class not more than $15 million for their claims for tax years 1995, 1996, 1999 and 2000. The amount will be divided proportionally among each claimant found eligible for the EITC by the Department of Revenue and Taxation based on the value of their claim, up to 100 percent.
The government will pay the EITC class not more than $15 million for their claims for tax year 1998 which will be divided proportionally among each claimant found eligible for the EITC by DRT based on the value of his or her claim, up to 100 percent.
The same amount will be divided equally among each claimant found eligible for each tax year of 2001, 2002, 2003 and 2004.