LOW INCOME TAXPAYER CLINIC

LSNV's Low Income Taxpayer Clinic (LITC) has been working tirelessly to address the issues that have arisen due to COVID-19 surfacing during tax season. Virtually every IRS Service Center and phone line has been shut down, effectively cutting off all direct communications between taxpayers, their representatives, and the IRS. As the agency charged with providing tax refunds, as well as the Economic Impact Payments (EIPs) mandated by the CARES Act, access to the IRS is vital to our clients.

The local Volunteer Income Tax Assistance (VITA) and AARP Tax-Aid programs suspended services in mid-March, leaving low-income and senior taxpayers unable to obtain necessary help other than by the FreeFile program available on the IRS website. Unfortunately, the FreeFile program requires computer access and the skills necessary to navigate tax preparation software. Many of our clients do not have either. While mobile low-income individuals have free computer access at local libraries and community centers, these are now closed.

LSNV's taxpayer clinic recognized that disadvantaged individuals, including homeless persons and disabled veterans, would likely be unable to receive their EIPS or tax returns as a result of these closures and acted quickly to receive special permission to prepare returns and assist with accessing the IRS's online systems. In the past month, our staff has assisted more than 50 clients to obtain their refunds and EIPs.

Naomi is one of the clients we represented this past month. She is the legal guardian of her granddaughter and was forced to cease working as a massage therapist as a result of the virus. Because she was under audit for claiming her granddaughter as a dependent in 2017, prior to obtaining legal guardianship, the IRS put a "hold" on her Earned Income Tax Credit refunds for both 2018 and 2019 pending the outcome of the audit. LSNV successfully advocated on her behalf with the IRS. Naomi received a refund of more than $10,000 in Earned Income Tax Credits due to her COVID-19 related economic hardship and a stimulus payment of $1,700!

In addition to direct representation, the LITC has also engaged in educational activities for taxpayers, practitioners, and other organizations. In April, Nancy Ryan, the Director of the LITC, and pictured above, served as a panelist for the ABA Tax Section webinar entitled, "Tax Implications of COVID-19: Tax Collection in the Time of COVID-19". Earlier this month, LSNV attorney Jessica Harris lectured on economic impact payments and related IRS issues for a Virginia CLE entitled "The CARES Act and Relief for Your Clients."