Taxpayer Issues 

I am just beginning to build this page and add resoruces.. so be patient :)

LITC - Low Income Tax Clinics

There are more than 130 Low Income Taxpayer Clinics (LITCs) the help with collection alternatives and more.  LITCs represent low income individuals in disputes with the Internal Revenue Service (IRS), including audits, appeals, collection matters, and federal tax litigation. LITCs can also help taxpayers respond to IRS notices and correct account problems.  Low income taxpayers who need assistance in resolving a tax dispute with the IRS and cannot afford representation, or who speak English as a second language and need help understanding your taxpayer rights and responsibilities, may qualify for help from an LITC that provides free or low cost assistance.   The following link has a list of all the clinics and phone numbers for each.  https://www.irs..gov/pub/irs-pdf/p4134.pdf
The next link below is a map based web page on which LITC locations can be found.
 
https://taxpayeradvocate.irs.gov/about/litc

Income Limitations:

• Generally, household income under 250% of FPL (can be less than VITA
guidelines)

What Issues Can You Refer to LITCs?
Tax Controversy:

• “[…] any dispute between an individual and the IRS concerning the
determination, collection, or refund of any tax, penalties, or interest. The
definition is very broad and encompasses all types of [non-criminal]
disputes arising under the IRC.” IRS Publication 3319

LITC can also go to tax court for/with the Taxpayer.

 

Taxpayer Advocate Services (TAS)

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that serves as your voice, protecting your rights and providing free, confidential assistance to resolve tax issues you cannot fix through normal IRS channels.  **TAS can do everything an LITC can do and more. 

Here is a quick summary of what the TAS does:

  • Protects Rights: Ensures all taxpayers are treated fairly and understand their rights under the Taxpayer Bill of Rights.
  • Assists with Financial Hardships: Helps individuals and businesses experiencing severe economic harm or significant costs (including professional fees) due to IRS actions. 
  • Resolves Un-fixed Issues: Steps in when you have been unable to resolve an issue with the IRS, or if you have experienced delays of more than 30 days. 

If you qualify for help, a dedicated advocate will work with you to find a resolution. You can request assistance by submitting Form 911. For more detailed guidance, you can also connect with the Taxpayer Advocate Service directly. 

Assisting Clients Who Expect IRS to Keep Their Refund 

Taxpayer owes unpaid federal tax? 

• Offset Bypass Refund **I have referred several people to TAS for this

 Taxpayers who need a refund to meet basic needs can get it-- reach out to TAS, complete Form 911 and fax it in with a statement--I suggest writing Offset Bypass Request boldly on form so it gets seen easier and gets processed faster
•IMPORTANT: Do not e-file! Nearly impossible to reverse offset after the fact
• Refer to LITC to request OBR and evaluate any defenses to the old debt

Taxpayer Owes non-IRS federal or state debt?

• No Offset Bypass Refund – IRS can’t stop a refund offset to a state or non-IRS
federal debts
               Such debts include child support & state tax debts

Have a Large Debt from prior years and it would cause a hardship?  

 If a Taxpayer has a debt they have no chance of paying  (I have had Taxpayers who have become disabled and are on a fixed income from Social Security Disability, they will never be able to pay the debt. OR... Maybe your taxpayer is going through a medical crisis and can't afford to pay the debt for the next year or so... they can try to get Currently Non Collectible (CNC) status from the IRS. You do not need an LITC to request this, but they can help with it. CNC does not forgive the debt, it just stops collection temporarily (interest still accumulates). With CNC the IRS might still put a lien on the house for up to 10 years. Taxpayer could have to reverify income every couple years or so.. debt still grows in interest, but eventually it will be written off if situation/hardship does not change. CNCs can be short term or until debt is written off (after 10 years)

There is also Offer in Compromise (OIC) which the LITC could help the Taxpayer apply for. This is where the Taxpayer offers a lesser amount to the IRS requesting the remainder of the balance being written off as they won't be able to pay it.

LITCs and TAS can advise on which option is best and file the paperwork. They can even help set up payment plans,

 

NOTE: If a refund was already offset for federal debt and you are not sure why:

• The taxpayers should call Treasury Offset Program (800-304-3107) or Bureau of
Fiscal Services (816-414-2100) to learn the name and contact information for
the creditor who received the refund. Taxpayers must contact the creditor (not IRS) to request refund or address
inaccuracies.