CASH, Taxes, and Independent Contractors

Contributed by Low-Income Taxpayer Clinic Student Attorney, Eric Giannolla

Of my clinic experiences so far this semester, one of the most rewarding was accompanying a Client to an appointment at the Creating Assets, Savings, and Hope (CASH) Campaign to complete his taxes.  I know what you’re thinking: “a tax appointment, enjoyable?”  Hear me out.

This Client has been with me since the beginning of the semester.  He was an immigrant from Afghanistan who came to the United States via a Special Immigrant Visa- the type of visa that is issued to individuals who are the target of persecution.  As an attorney in Afghanistan who helped the democratic regime advance the rule of law and constitutional foundation of the country, along with serving as an interpreter for the United States Army, he was not able to remain in Afghanistan when the Taliban took over.

He came to the United States a few years ago and began to work an independent contractor job, while also engaging in a previously secured contract to serve and contribute at a local university.  He was used to being presented a bill from the government for taxes owed, which is the practice in Afghanistan.  For his newfound employment in the United States, all this income was received as an independent contractor, so no withholdings were taken.  This is what brought him to the clinic for assistance.

On the day of his appointment, he arrived at the Enoch Pratt library before I did and started to fill out the required forms.  I got there a bit before our appointment, and in short order we sat in front of a CASH campaign volunteer named Maureen.  As a student attorney, I was happy to be there for my Client, and proudly proclaimed my assertions of law and procedure, which Maureen patiently and kindly explained were incorrect.  Maureen then proceeded to work through my Client’s tax returns, diligently seeking any mechanisms which would properly reduce my Client’s liability.  She took the time to explain the intricacies of several important factors to consider when accepting a wage (W2) job versus an independent contractor (1099) job, then scolded my Client’s employers (in absentia, of course) for engaging in the latter.  We finished our appointment in impressive time, and were handed over to a return reviewer, who looked over and finalized my Client’s returns.  

I can speak for my Client and say that this help was most welcome, especially as he navigates the expatriation process for his family and him.  For me, the experience was one of learning and personal satisfaction in being able to play a small part in helping a person who sacrificed much, including residency in his home country, to attempt to advance the rule of law there.  Hence, enjoyable.

We will now turn to coordinating fair payment options for my Client, but that is a story for another day…

-I’ll sign off with a hearty thanks to Maureen and the rest of the CASH campaign volunteers-

For more details on the CASH campaign, and how they may help you, see the below link: https://cashmd.org

Lessons in Action: Navigating Experiential Learning in the Low-Income Taxpayer Clinic

Contributed by Low-Income Taxpayer Clinic Student Attorney, Allan Podin

The Low-Income Taxpayer Clinic has been the best form of experiential learning during my time in law school. As I reflect on my time working in the clinic, it has been the definition of learning through different experiences. When I first started clinic, I wasn’t sure what to expect in terms of the work we’d be doing. You quickly learn that you will be doing hands on work with a multitude of clients. While at first it may seem overwhelming, you learn to adjust and grow with the experiences that you have representing your clients.

During my time in the Low-Income Taxpayer Clinic, I’ve experienced several situations that I wouldn’t have expected. Early when the semester began, I was made aware of an Offer in Compromise submitted for my client during the previous semester. An Offer in Compromise is when a taxpayer submits an offer to pay some of the liabilities owed because of an inability to pay the full amount. I had to become fully aware of the situation and be prepared to have conversations with the IRS representative. As I had not submitted the Offer initially, when questions were asked, I had to follow up many times with the client for clarification. During these conversations, the client’s story began to change and lack credibility.  Although our Offer had been rejected, the experience still allowed me to grow. I had been able to practice speaking with IRS reviewers, client interviewing, counseling, and moving forward with the next steps to achieve the best outcome for the client. This experience showed me the value of proper interviewing and counseling skills to ensure consistency and clarity.

Later in the semester I was given the opportunity to assist a client with a settlement conference. The client was in a bad situation with her former spouse and was seeking relief from liabilities that weren’t her own. During the weeks working the case I truly was able to appreciate the amount of time dedicated to information gathering and organizing. There was a need to work with my partner to achieve the most favorable outcome for the client. Additionally, I learned the value of working with another person closely on the case and being able to bounce off ideas from one another. My partner had much more experience with counseling and speaking to the client about the difficult situations. I had a financial background and was able to analyze financial documents for inconsistencies. Through both of our efforts we were able to create the entire story-line of events for the client. What I had next learned was that there may not have even been the need. In our situation the IRS had fully agreed with the client, and we were able to come to a favorable settlement. The fact gathering and information stages are the longest while the actual process may only take an hour. However, my partner and I don’t feel as though we had wasted any time. We were in high spirits that our client was able to receive a favorable outcome, while growing our knowledge for situations that may arise in the future.

Each client has their own set challenges and experiences that you can grow from. You must remain persistent when faced with these challenges. Most recently I was on the phone with the IRS for roughly five and a half hours for a simple fax number and mailing address. We were attempting to appeal the client’s Notice of Levy but the online tool for uploading appeals was limited to certain years that didn’t apply to my client. Although it seemed simple it turned into a challenge to find a fax and mailing address to send an appeal.

The Low-Income Taxpayer Clinic feels like the best form of learning to be able to handle an attorney’s workload. Although it’s not a traditional form of learning, the unimaginable situations that occur through experiential learning allows for greater adaptation to any situation.