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  • InsideTrack
  • April 06, 2016

    Volunteer Spotlight: Tax Lawyers Restore Hope to Low-income Clients

    Meet three Wisconsin lawyers who are helping low-income residents untangle the complexity of tax rules.

    Jeff Brown

    April 6, 2016 – Tax preparation season doesn’t inspire warm thoughts for most Americans, but it can carry an extra element of dread for some people.

    Jeff BrownJeff Brown, Harvard 1989, is manager of the State Bar Pro Bono Program, liaison to the Legal Assistance Committee, and staff for the Wisconsin Access to Justice Commission. He can be reached by email or by phone at (608) 250-6177.

    Whether it was the result of inattention to tax filing and documentation requirements during past times of financial stress, a lack of understanding of complex tax rules, complicated personal lives, or identity theft, many low-income Wisconsin residents can find themselves in a situation where the Internal Revenue Service (IRS), the Wisconsin Department of Revenue, or both is seeking many thousands of dollars in back taxes, penalties, and interest.

    Wisconsin tax lawyers volunteer their time to help untangle some of these situations. They are supported by three IRS-funded Low Income Taxpayer Clinics (LITC) at Legal Action of Wisconsin, the Legal Aid Society of Milwaukee, and Wisconsin Judicare.

    Here are a few of their volunteer stories.

    Tom PhillipsTom Phillips: Clearing the Path to Citizenship

    When Alex (not his real name), fled political persecution in his home country to seek political asylum in the United States, identity theft was probably not on the list of hurdles he expected to find in his path. Yet it did happen when someone fraudulently used his work authorization document but failed to pay thousands of dollars in income taxes that were due. Years later, the IRS demanded that Alex pay the back taxes (with penalties and interest) that were tied to his identity.

    Madison attorney Margaret Maroney (read about her in this 2014 InsideTrack article) who was helping Alex with his immigration issues on a pro bono basis, contacted the State Bar to find another lawyer willing to help Alex with his tax problem. Tom Phillips, a tax partner in the Milwaukee Office of Quarles & Brady LLP, quickly responded. He was able to assist Alex with filing amended returns, correcting inaccurate information, and negotiating a resolution to the identity theft issue. With this tax issue behind him, Alex will be eligible to apply for U.S. citizenship in three years.

    This wasn’t Phillips’ first pro bono matter in the tax arena. Most of his pro bono cases have involved federal tax issues, but he also encounters state tax issues. He has also handled prescreened referrals from the Low Income Taxpayer Clinic at Legal Action of Wisconsin. Tom also finds time to volunteer as a member of the State Bar’s Board of Governors and the board of directors of the Taxation Law Section. Phillips is a member of the 2015 Wisconsin Pro Bono Honor Society.

    Tom VanceTom Vance: Untangling Sticky Situations

    It’s easy to become caught up in the “bureaucratic maw” of the tax collection system where small problems, if neglected, can quickly become much more serious and expensive. Tom Vance, with the Milwaukee office of Whyte Hirschboeck Dudek S.C., has seen this repeatedly while helping clients referred by the Low Income Taxpayer Clinic at the Legal Aid Society of Milwaukee.

    Sometimes, the taxpayer has failed to file a return, assuming that they wouldn’t owe any taxes. Or, perhaps they had other more basic survival priorities, such as putting food on the table. Vance notes that when people “lose hope” they often lose the motivation to manage stressful and complicated matters like tax preparation.

    That’s what happened with one individual who needed Vance’s help. When the client’s financial world fell apart amid the real estate crash, most of his income came from working as a seasonal Christmas tree seller to help support his three children. After he didn’t file his tax returns for some period of time, the IRS began sending notices demanding that he pay tens of thousands of dollars in unpaid taxes, penalties and interest, because the IRS assumed that he was still earning his pre-recession income. Once the client’s tax situation was untangled and the IRS received the correct information, the result was a large tax refund.

    Another pro bono client worked as a janitor but had received some stock options from the employer. When a tax preparer neglected to include the basis for the sale of the stock options, the client faced a tax bill that dwarfed the proceeds from the sale of the stock options. Vance was able to obtain the missing information from the brokerage firm involved with the stock options, which took the client from a tax bill of tens of thousands of dollars to a $1 tax refund.

    Vance is a member of the 2014 and 2015 Wisconsin Pro Bono Honor Society.

    Jay MillerJay Miller: 200 to 300 Volunteer Hours Per Year

    After practicing for more than 40 years as a tax lawyer, including 20 years in the legal department for Northwestern Mutual Insurance, Jay Miller retired. But for the last few years he has been volunteering 200 to 300 hours per year at the Low Income Taxpayer Clinic coordinated by Legal Action of Wisconsin. His service has earned him membership in the Wisconsin Pro Bono Honor Society for 2013, 2014, and 2015.

    Along with other volunteers, he advises and represents clients who have disputes with the IRS. In one notable case, Miller represented a taxpayer whose use of the Earned Income Tax Credit and dependent exemption was challenged by the IRS. It took three years of work, but eventually Miller was able to persuade the IRS to accept the client’s tax returns for 2009, 2010, and 2012, resulting in a tax refund of close to $10,000.

    Miller describes his work as fun and challenging. “It’s pretty gratifying when you get a good result for a client,” says Vance.

    National Volunteer Week

    Where to Volunteer

    Attorneys with tax law experience who want to volunteer can contact any of the Low Income Taxpayer Clinics in Wisconsin. The clinics in Milwaukee assist clients statewide.


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