Low Income Taxpayer Clinic Has Its Day in Court

In a real-life tax lesson, several students with the Low Income Taxpayer Clinic traveled to federal court in Fresno recently, where the clinic helped a non-represented litigant resolve his case with the IRS.

A record 15 students traveled by bus to the U.S. Tax Court, accompanied by LITC director Lisa Sperow and David Chamberlain, associate professor of accounting and tax at the Orfalea College of Business, and clinic volunteer Enrolled Agent John Ozanich.

There they assisted a client, who owed $6,000 after being denied a child dependency claim.

“We worked with the IRS attorney and another pro bono volunteer to reach the settlement,” Sperow said. “When it became clear he did not have the documentation he needed to resolve his case, two LITC students, Yoali Romero and Allison Prestwich, escorted him to the family court and Department of Child Services, which were located a few blocks from the federal courthouse, to help him obtain the records necessary to substantiate his claims.”

The client entered into a stipulated decision with the IRS – ultimately requiring him to pay $1,200 instead of $6,000 – and the agreement was approved by a judge.

Members of the LITC pose for a group photo at the U.S. Tax Court in Fresno. (Courtesy photo)

For the LITC students, who typically work with clients at the campus office, going to court offered expanded education.

“It offers an excellent experience for them to see how our justice system works and the importance of having representation when you have a case pending in court,” Sperow said.

The LITC includes student employees and students working on senior projects. Every year, the LITC assists dozens of clients. Last year, the clinic increased its workload by 45 percent, helping many clients deal with confusing IRS bills.

“Many of them come in feeling frightened and confused,” Sperow said. “Most of them cannot afford the liability the IRS says they owe, and many do not understand why the IRS thinks they owe that liability.”

For clients, the LITC helps clarify unexpected IRS bills and often helps negotiate a better resolution.

During this year’s annual trip to Fresno, the LITC’s accounting students also met with Special Trial Judge Diane Leyden and several IRS attorneys in addition to attending court.

Madyson Hughes, who is working with the LITC for her senior project, said speaking with the judge and attorneys and seeing the court process in action helped her better understand the collaborative nature of tax disputes.

“It was inspiring to see how hard the judge, the IRS attorneys, and the petitioner’s attorneys worked together to come to a fair resolution,” she said. “I was struck by the understanding and flexibility demonstrated by the IRS attorneys, who were engaged in helping find solutions that worked for everyone.”

Working with the LITC, she added, has helped her solidify her interest in pursuing a career helping lower-income individuals with tax challenges.

“This experience has helped me with everything from interacting with clients to applying tax knowledge to real-world situations.” She said. “The compassion and commitment of both the judge and attorneys have demonstrated to me that tax law isn’t just about enforcing rules, it is also about advocating for those who do not have the resources to navigate the system on their own.”

Your LITC support allows students to have an impact by helping local residents with significant tax challenges. This real-world experience helps prepare them to have further impact in their future careers.

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