Low Income Taxpayer Clinic Wisconsin Judicare, Inc.

Background

Low Income Taxpayer Clinics (LITCs) represent low income taxpayers before the Internal Revenue Service in audit, appeals, and collection issues, and federal tax litigation for free.
[Publication 4134 - Low Income Taxpayer Clinic List]

LITCs receive partial funding from the IRS. However, clinics and their volunteers are completely independent of and are not associated with the federal government. Nonprofit organizations, law schools or business schools operate the clinics. Each clinic independently determines if you meet its income guidelines and other criteria before it agrees to represent you. Low income taxpayers may also receive assistance from attorney referral systems operated by state bar associations, local societies of accountants, and other nonprofit tax professional organizations.

Every taxpayer has a right to have access to representation.

The Low Income Taxpayer Clinic Grant Program is designed, as a result of the IRS Restructuring and Reform Act of 1998, to help accredited academic institutions and non profit organizations provide low to no cost tax assistance (such as representing the taxpayer during an audit or tax collection effort) and/or tax outreach to taxpayers for whom English is a second language.

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Application

If you are a low income taxpayer who cannot afford professional tax assistance during audits of your federal income tax return, you may qualify for help from Low Income Taxpayer Clinics or other organizations that provide free assistance in tax disputes. Low Income Taxpayer Clinic (LITCs) represent low income taxpayers before the Internal Revenue Service in audit, appeals, and collection issues, for free. Low Income Taxpayer Clinics receive partial funding from the IRS. However, the clinics and their volunteers are completely independent of and are not associated with the federal government. These clinics are operated by nonprofit organizations or academic institutions. If you believe you are interested in this service, please contact the Wisconsin Judicare, Inc. office:

Wisconsin Judicare, Inc. 300 Third Street, Suite 210 Wausau, WI 54403 1-800-472-1638

Working With Wisconsin Judicare

Wisconsin Judicare is able to provide private attorney representation of low income individuals in tax controversies of disputed taxes, and making offers in compromise for back taxes owing. The role of Wisconsin Judicare’s main office is primarily one of supervision. The attorneys, for the most part, will not prepare tax returns.

Financial Eligibility

Taxpayers will be accepted up to 250% of the poverty guidelines.
The tax amount due cannot be more than $50,000.

Subject Matter

The clients who are most likely to be affected by tax problems include those who have been subject to domestic violence by a spouse, and are currently divorced. Typically, determining who has the right to take the Earned Income Tax Credit is a common problem. We have been advised that the IRS audits 48 % of returns on which the Earned income Tax Credit is claimed, and that errors are found in 17 % of those returns. Nationally the IRS statistics indicate that 1.6 million taxpayers claim children that do not qualify. Due to the IRS rules, the determination of a “qualified child” after divorce appears to be very difficult for taxpayers. Additionally, tax problems arise for divorced clients who file as head of household, and for those who claim the dependency exemption for children. Legal assistance is needed for divorced persons who need to file an innocent spouse claim, in situations where joint returns have been filed, and the ex-spouse has caused the filing of an erroneous return. Other clients who are likely to be affected are those who formerly would have been able to file bankruptcy and eliminate older tax years. These clients may not be able to file bankruptcy under the current rules, but might be able to eliminate some of the tax debts by making an offer in compromise to the IRS. In the near future, the IRS will be entering into agreements with private debt collectors to collect delinquent taxes. This probably will result in increased pressure on taxpayers who owe money.

Need in Wisconsin

The IRS Taxpayer Assistance unit has impressed on us the need for services to clients in tax controversies in Northern Wisconsin. There are two programs in Milwaukee, but the outreach to the Northern area is brand new. It appears this service will be very beneficial to low income clients in Wisconsin Judicare's service area, and will assist Wisconsin Judicare's diverse client population, including the victims of domestic abuse and those who have large debts they cannot pay and/or are subject to collection efforts.

LITC In The News

• IRS Awards $8M to Tax Clinics Aiding Low Income Taxpayers
• 2006 IRS LITC Grantees
• 2006 IRS LITC Matching Grants