LITC Grant Information

ESL taxpayer who was a survivor of domestic violence sought assistance from an LITC after learning about the clinic at one of its community education events about taxpayer rights and responsibilities. After attending the workshop, the taxpayer met with the clinic outreach coordinator who answered her individual tax questions. The taxpayer disclosed that she wanted to leave her abusive spouse but did not have funds to rent an apartment. Clinic staff researched the taxpayer’s accounts and determined that the taxpayer had never received any of the joint tax refunds to which she was entitled because her abusive spouse owed unpaid student loans. The LITC  submitted injured spouse claims on her behalf for six years and the taxpayer later received combined refunds totaling over $8,000. She was able to leave her spouse, rent an apartment on her own, and become financially independent. Another legal unit within the organization that housed the LITC then represented the taxpayer in her divorce proceedings and helped her obtain an order of protection. The taxpayer rights education provided by the LITC was a catalyst in protecting and transforming the taxpayer’s life.

An LITC assisted a developmentally disabled single parent who received only Supplemental Security Income (SSI) and needed help amending the federal income tax return filed for her by a preparer who incorrectly claimed self-employment income and refundable tax credits on her behalf. The taxpayer reached out for help after receiving notice from the Social Security Administration about an overpayment, as the income made her ineligible for SSI. The LITC filed an amended tax return to resolve the self-employment income issue but the return resulted in a tax liability. The taxpayer was found eligible for CNC status, but the LITC transferred the case to a volunteer pro bono attorney who submitted an OIC request to address the remaining tax debt. The IRS accepted the offer and the tax liability of over $2,000 was fully resolved. The LITC also educated the taxpayer to avoid another situation like this in the future.

An LITC assisted a young taxpayer who had recently enlisted in the Navy. In 2021, the taxpayer received an IRS notice of intent to levy claiming he had unreported income for the 2010 tax year and owed over $8,000 in taxes. The taxpayer was a young child in 2010 and had not earned the reported income. The LITC researched the account and filed an identity theft affidavit on the taxpayer’s behalf; however, he continued to receive levy notices from the IRS. This was a stressful and frustrating time for the taxpayer as he was trying to start his career in the military. The LITC requested a CDP hearing to stop the levy attempts and explain the taxpayer’s situation. Following the hearing, the IRS processed and approved the identity theft affidavit and the tax liability was eliminated. The taxpayer was relieved and happy to turn his attention back to starting his military career without the fear of IRS enforcement actions.