The Low Income Taxpayer Clinic (LITC) provides direct legal services to taxpayers who have personal income tax disputes with the Internal Revenue Service or the New York State Department of Taxation and Finance. Our work involves tax litigation, audits, refund claims, tax settlement, etc. We also provide trainings to members of the community, technical assistance to community-based organizations, engage in legislative and administrative advocacy and impact litigation, and work with State-wide advocacy coalitions on matters impacting low-income New Yorkers.

Contact

For assistance with tax disputes, call the Access to Benefits helpline at 888-663-6880 Monday through Friday from 10:00 a.m. to 3:00 p.m. Tax disputes can also be initially assessed via our online intake form.

Our Impact

Tax-related identity theft can cause significant stress, especially when unexpected IRS notices appear. For example, a client recently contacted the LITC after receiving a notice stating that he owed $10,000 in taxes. Upon review, we discovered that someone had fraudulently used his Social Security number to report over $77,000 in income.

We filed an identity theft claim and represented him before the IRS. After conducting an investigation, the IRS reversed the tax liability and eliminated the debt. With the LITC’s help, the client regained control of his finances and was relieved of the burden caused by the fraud.

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After filing his 2023 tax return, taxpayer R.W. expected a refund—but instead, the IRS withheld his $17,200 payment due to discrepancies in reported income, including several W-2G forms for gambling winnings. Despite multiple attempts, R.W. was unable to resolve the issue on his own and turned to the LITC for help.

The LITC worked with the Taxpayer Advocate Service (TAS) to submit documentation verifying R.W.’s income and withholdings. Thanks to this coordinated effort, the IRS approved the release of his refund. However, R.W. never received the check—it had been lost or stolen.

As a result of our continued advocacy, the IRS reissued the refund via direct deposit, ensuring R.W. received the much-needed funds for his living expenses and financial stability.

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K.A., a taxi medallion owner who saw his income plummet in recent years, could not pay his medallion loan.  Thankfully, the lender canceled about $348,000 of K.A.’s loan to bring the loan balance more in line with the medallion’s $150,000 value.

K.A.’s tax preparer included the full $348,000–Cancellation of Debt (COD) income–in his taxable income, leaving him with a liability of over $105,000.  After conducting an insolvency evaluation and evaluating his assets and liabilities, however, the LITC determined that K.A. should have reported only about $4,400 in COD income, resulting in a tax liability of no more than $500.  The amended tax return saved K.A. over $104,500 in total income taxes.

Partnerships

The Legal Aid Society LITC engages in networking with advocacy groups, tax experts, and tax clinics that strive to improve the experience of, and advocate for, low-income taxpayers under both federal and state tax laws. This consortium of 14 law schools, bar associations, and other legal services providers across New York and Northern New Jersey convenes regularly to discuss emerging legal issues, share legal strategies, and reflect on the successes and challenges in tax advocacy.