Transcript Document
Tax Issues and Resources Relevant to Legal Aid Attorneys and Clients Tax Issues and Resources • CEP Tax Clinic • General tax issues • Tax issues related to: -divorce & domestic violence -custody -immigration -employment law -consumer law • Our services CEP Tax Clinic • A program of the Center for Economic Progress • Representation, advice and outreach on individual income tax controversies with IRS and IDR • All clients are within 250% of the poverty level • We serve > 5000 taxpayers annually • We serve taxpayers statewide • One of 150 clinics across the country General Tax Issues • Who must file a tax return? -income, filing status, age -nonresident aliens -self employed • Who else may benefit from filing? -taxpayers with dependents General Tax Issues • Tax return preparation -self preparation -VITA -tax professionals -seasonal tax preparation offices • CEP VITA -25 communities statewide -January 22- April 18 Divorce and Domestic Violence • Innocent spouse • Injured spouse Custody • Under qualifying child rules custodial parent claims dependent benefits • Child support irrelevant • Noncustodial parent access to dependent benefits: -Form 8332 -Judgment or agreement and signed statement (for pre 2009 agreements) • Tie breaker rules Immigration • Who is a nonresident alien under the tax code? • Filing requirements for nonresident aliens • Tax information is not shared with BCIS • ITINs • Refunds can be obtained even if SSN/ITIN mismatch exists Employment Law • Misclassified workers -Form SS-8 • Recordkeeping for sole proprietors -written records of income and expenses: a must -receipts: keep and organize -formal ledgers: ideal but unnecessary Consumer Law • Levies: IRS/IDR can garnish: -paychecks: vast majority (formula based) -bank accounts: all funds -social security: 15% (IRS only) -but not unemployment benefits •ID theft -typical scenario: ID thief working under another taxpayer’s SSN; IRS reassesses victim’s taxes using additional income earned by thief -all victims should review their IRS records Consumer Law • Liens • Debt cancellation -general rule: cancelled debt is taxable -exceptions: a) insolvency b) certain mortgage foreclosures Our Services All of our services are available statewide • Full representation -clinic staff and interns or pro bono attorneys • Brief advice -by phone or in person -we review documents, contact IRS as necessary and create a step by step resolution plan -available to all taxpayers, regardless of whether they qualify for representation services Our Services • Referrals -VITA -community service organizations -IRS/IDR • Outreach -ITIN events -fairs/ other tabling events -presentations -trainings Contacting Us • Practitioner questions: Tax Clinic Manager 312-630-0255 • Client referral: Tax Clinic Help Line 312-630-0241 • Center for Economic Progress 312-252-0280 www.economicprogress.org