Frequently Asked Questions

The SMU Dedman School of Law Tax Clinic offers representation to taxpayers who cannot otherwise afford representation and who have federal income tax disputes with the Internal Revenue Service (IRS). In limited situations, the Tax Clinic will also represent taxpayers before the United States Tax Court. The Tax Clinic is staffed with law students trained by Gregory Mitchell, Adjunct Clinical Professor of Law.

  • Offers-in-Compromise (negotiating a reduced settlement with the IRS)
  • Installment Agreements (setting up manageable payment plans)
  • Innocent Spouse relief (resolving joint tax liability issues)
  • Protest letters (challenging IRS determinations)
  • Collection Due Process Hearings
  • IRS Appeals Conferences and Settlement Negotiations
  • Federal Tax Liens
  • Representation Before the U.S. Tax Court

The Tax Clinic offers representation to taxpayers who cannot afford representation and in cases where the fee to be charged by a tax practitioner is expected to equal or exceed the amount of tax in controversy. The Clinic represents those who have controversies with the IRS and who have filed a petition in the United States Tax Court or anticipate filing a petition. In order to determine whether a taxpayer qualifies for representation, a free one-hour consultation with student attorneys is offered to prospective clients. While there is no set of financial guidelines, the Clinic considers the following when making its determination to accept a taxpayer applying for assistance:

  • Current and future income and expenses of the taxpayer applying.
  • Number of members of the applicant’s family.
  • The nature and complexity of the issues involved.
  • Whether the Clinic has the expertise and/or time to handle the case.
  • The economic effect on the client.
  • Whether the client has the ability to represent himself/herself or obtain suitable paid representation.
  • Whether the client lives within 100 mile radius of Dallas, Texas.
  • Whether the client is committed to assisting the Clinic in resolving the case.
  • Timing considerations, including whether the Clinic has sufficient staffing at the time the case is submitted (for example, the Clinic has limited staff over the summer months, and new cases that arise shortly before summer may be more difficult for the Clinic to accept).

The Tax Clinic does not provide any legal advice to individuals until they are accepted as a client.

You can expect to hear back from the clinic whether your case has been accepted for representation within seven days of your consultation.

  • Please bring copies of your tax returns that are at issue, all IRS correspondence (including notices), and any other documentation that might help us understand your situation—such as payment receipts, prior communications with tax professionals, or documents showing your current financial status.
  • Before the meeting, you’ll also receive an Interview Consent Form and an Applicant Information Sheet. Please complete both forms ahead of time so the student attorneys can review them and make the most of your consultation time.

During your first meeting, two student attorneys will meet with you to discuss your tax issue in detail. They’ll ask about your interactions with the IRS, any deadlines you’re facing, the amount the IRS claims you owe, and the tax years involved.

An OIC is an agreement between a taxpayer and the IRS that allows you to settle your tax debt for less than the full amount that you owe. It is designed for people who cannot afford to pay their full tax liability or if doing so would cause significant financial hardship.

https://www.irs.gov/taxtopics/tc204#:~:text=More%20In%20Help&text=A%20taxpayer%20who%20can%20fully,allowed%20for%20basic%20living%20expenses.

The IRS may accept an OIC based on one of the following three reasons based on §7122 of the Internal Revenue Code. Each one depends on your specific situation and the problem you are facing.

  1. Doubt as to Liability. A compromise meets this only when there is a genuine dispute as to the existence or amount of the correct tax debt under the law
  2. Doubt as to Collectibility. This is satisfied in any case where the taxpayer’s assets and income are less than the full amount of the tax liability. If the IRS believes you will never be able to pay the full amount owed, they may accept the OIC.
  3. Effective Tax Administration (ETA). An offer can be accepted based on ETA when there is no doubt that the tax is legally owed and that the full amount can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable based on certain circumstances.

Before a taxpayer can submit an OIC, there are other requirements that must be met.

  1. The taxpayer must be current on all tax filings (must have filed all required tax returns);
  2. The taxpayer must have received a bill for at least one tax debt included in the offer;
  3. the taxpayer must have made all required estimated tax payments for the current year; and
  4. If the taxpayer is a business owner with employees, the taxpayer must have made all required federal tax deposits for the current quarter and two preceding quarters.

As a client, your cooperation and communication are essential to help us represent you effectively. We ask that you:

  • Please reply promptly to emails, phone calls, or document requests from your student attorneys. Many tax matters involve strict IRS deadlines, so timely communication ensures we can act quickly on your behalf.
  • Provide necessary documentation and signatures.
  • Come prepared to meetings. For your initial client meeting, it’s helpful to bring a list of important dates, IRS correspondence, deadlines, and details about any prior communications with the IRS. This helps the student attorneys understand your case fully from the start.
  • Involve support if needed. In most cases, you are welcome to bring a spouse or family member to your interview. You may also authorize someone we can contact if we are unable to reach you directly.