Legal Services Resolves Erroneous Tax Debt for Divorced Father

Updated: Nov 19, 2021


Kenlly, a 45-year-old divorced father found himself down on his luck when he came to Legal Services for assistance with a 2015 tax debt. He had been working to meet his expenses, which included renting a room to live, and making child support and credit card debt obligations. On top of facing financial difficulties, he had gotten sick and was feeling overwhelmed having to deal with the Internal Revenue Service (IRS).


His tax return preparer made an error on his 2015 tax return by reporting a canceled debt as taxable income, which resulted in a tax debt of $7,342.00. Kenlly attempted to correct the error on his own, but the IRS rejected his tax return amendment. In the meantime, the IRS assigned the tax debt to a private debt collector for collection action.


Legal Services Senior Attorney Mary Ann David first sent a letter to the debt collector directing them to return Kenlly’s account to the IRS. Then, she filed an appeal of the IRS’ determination to reject the amendment and had Kenlly file a new amended tax return to correct the error. Meanwhile, Kenlly’s tax refunds were being applied to this 2015 tax debt. Once Kenlly’s account was returned to the IRS, Mary Ann negotiated with the IRS Collections Unit to get his account into uncollectible status based on his financial hardship. Ultimately, the IRS decided in favor of Kenlly and processed the amended tax return. As a result, the tax liability in the amount of $7,342.00 was removed freeing up Kenlly’s prior refund offsets totaling $511.


Kenlly is extremely grateful to Legal Services for helping him resolve his tax debt and expressed this was the best news he has had in 5 years. This is a step in the right direction for Kenlly who is working on becoming financially stable so he can better support himself and his children.


If you need assistance with tax debts, identity theft, or tax preparer fraud, please visit https://www.legalservicesmiami.org/self-help or call 305-576-0080 to apply for services.

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