Low Income Taxpayer Clinic Sigificantly Increases Workload, Adds More Students

The workload at Cal Poly’s Low Income Taxpayer Clinic increased nearly 45 percent in the last six months, prompting the clinic to increase its roster of student accountants, said Lisa Sperow, executive director of the clinic.

During that time, the clinic reduced more than $160,000 in client liabilities and procured over $23,000 in refunds.

The clinic, which began operating in 2010, provides pro bono representation to taxpayers in tax disputes with the IRS. It also provides outreach and education, assisting the community and providing students with valuable real-world experience.

Last year, 31 students were enrolled in the LITC senior project program, while the clinic employed nine students, including four bilingual students.

The clinic provides regular reports on its workload to satisfy grant requirements.

Between January 1 and June 30, the clinic opened 29 cases and worked on 65. The clinic currently has 18 cases pending in the U.S. Tax Court and students are scheduled to appear in the federal courthouse in Fresno Oct. 28 for a trial calendar.

Multiple factors account for the increased caseload, Sperow said.

In the past two years, the clinic has doubled its IRS funding, from $100,000 to $200,000 – the result of the IRS lifting the maximum limit the LITC could request. The IRS also recently sent out collection notices that had been paused for several years. And the clinic has increased its outreach events.

One new outreach effort is the Taxes 101 program, where students visit government classes in local high schools in Santa Maria and Morro Bay.

Student workers from the Low Income Taxpayer Clinic appear at an outreach event at Morro Bay High School. (Photo/Jack Sann)

“It allows high school seniors to understand their tax filing obligations and why it can be both beneficial and necessary for them to file,” said Sperow, who recently became co-chair of the American Bar Association’s Tax Section Pro Bono and Tax Clinic Committee. “It also helps them understand the importance of taxes in our country and one of the requirements that comes with becoming an adult and entering the work force.”

For the Taxes 101 students, the visits provided mentoring opportunities and ways to share their paths to Cal Poly, Sperow added.

To further assist students and clients, the clinic also welcomed Holly Newman, a retired Ernst & Young tax partner, as a consultant.

The LITC, which reflects Cal Poly’s Learn by Doing approach, offers services at no charge to clients.