Lone Star Legal Aid’s Low Income Taxpayer Clinic helps families with tax problems. Sometimes the tax problems are extreme. Here’s the story of Alamenia and her amazing recovery from a million dollar tax debt.
Alamenia had never seen the box in her attic. She was surprised when “Marty,” her ex-husband, called to tell her to find the box. Her surprise turned to curiosity as she headed to the attic. Marty had gone to prison after their divorce; he had kidnapped an elderly woman and demanded $500,000 in ransom from her family. Even though they had divorced before her husband kidnapped his victim, Alamenia was devastated and didn’t understand why her ex would commit a heinous crime when they had two beautiful children. Why risk missing out on all the milestones and events in their young lives?
The box held the shocking answers. Inside the box, Alamenia found three years’ worth of letters from the IRS. It turns out that the IRS was trying to collect back taxes that Marty had failed to pay and had kept hidden from Alamenia. Marty owed the IRS an astounding $1,000,000 in back taxes. During the 9 years they were married Marty operated a construction business and assured Alamenia that he was handling all of the accounting and tax obligations. The business was doing well and Alamenia was able to focus on raising their children, including their autistic son, while Marty ran the business and provided for the family. Alamenia hoped that when the children were old enough to attend school she would have the time to pursue her own dreams. Alamenia and Marty spent many hours apart while he worked and she cared for their children. Over the years, Marty changed from a supportive husband into someone Alamenia didn’t recognize. The vague rumors of cheating were followed by Marty’s trips abroad. Marty purchased expensive cars and jewelry, not for Alamenia, but for himself. With her focus on raising their children, Alamenia missed the signs that Marty was not the man she had married. After the rumors intensified and became her reality, Alamenia divorced Marty.
Karyna Lopez, the manager of LSLA’s Low Income Taxpayer Clinic, immediately knew what to do to help Alamenia with her tax problem. Attorney Lopez interviewed Alamenia and advised her regarding her rights to an Offer in Compromise. Attorney Lopez wrote Alamenia’s story and presented it to the IRS, along with documentation of her financial hardship. Attorney Lopez argued for a reduction in liability based upon community income, asking that the debt be forgiven due to the uncertainty of its collectability. The IRS granted Alamenia’s Offer in Compromise, lowering her debt from over $1,000,000 to $1. Alamenia gratefully paid the $1.
Legal aid helps families move forward to realize their dreams. With help from LSLA to successfully resolve her tax debt, Alamenia is now able to focus on providing a better life for her family.