Fighting for Financial Justice Against Unjust IRS Assessments

A 34-year-old Laredo, Texas resident experienced a surprising turn of events during the summer of 2020. She received unexpected notice from the Internal Revenue Service (IRS) claiming she owed nearly $20,000 in unpaid taxes. Despite living her entire adult life with disabilities and relying on Social Security and SNAP benefits, her income was insufficient for tax filing. The IRS notice left her confused and anxious, especially as the deadline to challenge the assessment drew near.

IRS cases can be frightening for our clients due to the agency’s standing as a “super-creditor.” Unlike other creditors, the IRS can pursue collections without requiring a court judgment, and exemptions under Texas law’s “judgment proof” status might not be applicable. Even a homestead could be in jeopardy.

Upon contacting TRLA for help, Polly Bone, Federal Tax Team Manager, quickly realized the client had fallen victim to identity theft. TRLA’s tax attorneys, Beto Mesta and Elizabeth Molina, collaborated to explore solutions and crafted a lawsuit that was submitted to tax court. Although the case faced a year-long delay due to an IRS backlog, it finally proceeded to trial in 2022. Attorney Mesta approached an IRS Appeals officer who, after reviewing the evidence presented, agreed that the assessment was incorrect.

Despite the long-standing link between our client’s Social Security number and her income, the IRS issued an inexplicable income assessment. Our client was put in the position of having to demonstrate the assessment’s inaccuracy rather than the other way around. Mesta assisted her in gathering evidence, submitting an ID affidavit, and engaging in extensive communication with the IRS to establish the reasoning behind her case.

Our Federal Tax Team provides unwavering support to low-income taxpayers, guiding them through federal court procedures, including the United States Tax Court, and representing their interests at all levels within the IRS. We stand with individuals dealing with various disputes involving the IRS, such as incorrect refund denials, offset actions, and financially challenging collection efforts. This team is dedicated to safeguarding clients’ financial stability with modest incomes while also employing outreach and advocacy to shield them from exploitation by unethical tax preparers, employers, and debt collectors.

$76,795 federal income tax refunds obtained for taxpayers represented before the IRS $146,083 decrease in federal tax liabilities for taxpayers represented before the IRS

111 number of tax cases

668 attendees at educational events for taxpayers

303 one-on-one consultations with tax payers