Someone had stolen “Steve’s” (not his real name) social security number and was using it to work in another state. Because the identity thief did not pay taxes on the income earned with Steve’s social security number, Steve was unknowingly on the hook for thousands of dollars in back taxes. It was only after the IRS placed a levy on Steve’s income for the unpaid taxes that Steve realized he had a problem. Worried he would lose a significant percentage of his income, Steve contacted the MLSA Low Income Taxpayer Clinic (LITC) for help. MLSA’s LITC Attorney agreed to take on Steve’s case, and worked to notify the IRS that he had been a victim of identity theft and to remove the levy from his income. After receiving a refund of $3,600 for the money the IRS had levied, Steve could finally relax knowing that the unpaid tax bill was no longer hanging over his head.
MLSA’s Low Income Taxpayer Clinic provides pro bono representation to clients facing tax disputes with the IRS and raises awareness on issues negatively impacting low income taxpayers.