Got a Letter From the IRS?
Don’t panic! We know that having a dispute or problem with the IRS or Illinois Department of Revenue can be expensive and confusing if you don’t have the right help. Our Tax Clinic provides free assistance to help you with resolving your tax issues.
Common Tax Issues
Audits
If the IRS or Illinois Department of Revenue believes that there are errors on your tax return, you may be audited. During an audit, you are required to prove that you qualify for the deductions and credits claimed on your tax return. We can help you understand which documents the IRS or Illinois Department of Revenue requires and, if needed, we can represent you during the audit.
Collections
If you owe money to the IRS or Illinois Department of Revenue, they can garnish (levy) your wages or Social Security benefits, levy your bank account, or file a lien—all actions that can make it difficult to maintain good credit. If you disagree with the amount that the IRS or Illinois Department of Revenue says you owe, the Tax Clinic can investigate and work to correct it. If you agree with the amount you owe, the Tax Clinic can help you set up an affordable payment arrangement.
Learn more: I Owe a Tax Debt: What are My Payment Alternatives? (Spanish, Chinese, Polish)
Innocent Spouse
When spouses file a joint tax return, both spouses are jointly and severally liable for the information on the return. The IRS can pursue one or both spouses for the entire tax debt shown on a tax return, even if the debt is caused by only one of the spouses. In some circumstances, the Tax Clinic can file a request asking the IRS to release the “innocent spouse” from this joint and several liability.
Learn more: Tax Relief for Divorced and Separated Taxpayers (Spanish, Chinese, Polish)
Employee vs. Independent Contractor Disputes
Some employers improperly classify their workers as independent contractors rather than employees. This means they don’t withhold any taxes during the year. At tax time, the affected workers find themselves with higher tax rates and owing taxes which were not withheld during the year. If a worker has been improperly classified, we can work with the IRS contest the worker classification and have it corrected for the time of employment.
Learn more: Are You an Employee or an Independent Contractor? (Spanish, Chinese, Polish)
Canceled Debt
The IRS generally treats canceled debt as taxable income that must be reported on your tax return. Typical examples include canceled credit cards, mortgages, or car loan debt. However, in some circumstances, this “cancelation of debt” income may properly be excluded from your taxable income. We can help determine whether you qualify for this exclusion and amend prior-year tax returns if needed.
Learn more: Do You Have Cancelled Debt?
Qualifying for Tax Clinic Services
Our Tax Clinic helps low-income individuals and families who have a controversy with the IRS or Illinois Department of Revenue and who would like to dispute their liability or negotiate affordable payment arrangements. You can qualify for a Tax Clinic representation if your current household income is less than the following thresholds. Add $11,350 for each additional family member over 8.
| Family Size | Income No More Than |
|---|---|
| 1 | $32,200 |
| 2 | $43,550 |
| 3 | $54,900 |
| 4 | $66,250 |
| 5 | $77,600 |
| 6 | $88,950 |
| 7 | $100,300 |
| 8 | $111,650 |
Generally the LITC does not prepare tax returns. If you need tax returns prepared, CLICK HERE.