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Tax Issues and Resources Relevant to Legal Aid Attorneys and Clients

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

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Tax Issues and Resources Relevant to Legal Aid Attorneys and Clients

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  1. Tax Issues and Resources Relevant to Legal Aid Attorneys and Clients

  2. 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

  3. 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

  4. 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

  5. General Tax Issues • Tax return preparation • -self preparation • -VITA • -tax professionals • -seasonal tax preparation offices • CEP VITA • -25 communities statewide • -January 22- April 18

  6. Divorce and Domestic Violence • Innocent spouse • Injured spouse

  7. 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

  8. 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

  9. 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

  10. 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

  11. Consumer Law • Liens • Debt cancellation • -general rule: cancelled debt is taxable • -exceptions: • a) insolvency • b) certain mortgage foreclosures

  12. 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

  13. Our Services • Referrals • -VITA • -community service organizations • -IRS/IDR • Outreach • -ITIN events • -fairs/ other tabling events • -presentations • -trainings

  14. 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

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