Since its launch in January 2006, the LITC has been involved in more than 80 cases. With clients referred from a number of different sources including Legal Aid of North Carolina, the IRS, and the Law School’s Volunteer Income Tax Assistance Program (VITA), students have been exposed to a broad range of tax matters.
In its first semester, LITC students had the opportunity to work on a case in which the Social Security disability payments of a young, brain-damaged man were being levied by the IRS to satisfy an outstanding tax debt. As a result of their efforts, the Service reviewed the case and, based on facts developed by the students and coordinated with the client’s doctor, agreed to cease the tax levy.
A successful resolution was also reached in a case involving a client who prepared and filed an offer-in-compromise (OIC) – an agreement between a taxpayer and the IRS that resolves a taxpayer’s debt – which was rejected by the IRS. Working with an offer-in compromise group manager, the student handling the case determined that his client – who was blind, had experienced a series of strokes, and was financially dependent on his children – was in fact eligible for OIC under one of the Service’s special programs. After the student gathered the facts documenting the client’s eligibility, the OIC was resubmitted and is currently pending before an IRS appeals officer.