Legal Services Resolves Erroneous Tax Debt for Divorced Father

Updated: Nov 19

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.