Low Income Taxpayer Clinic (LITCs)

Access to Tax Refunds for Nevada Families

The Nevada Families Access to Tax Refunds (NVFATR) program supports low- to moderate-income families in Nevada by enhancing their access to tax refunds. The program offers free, IRS-certified tax preparation services, ensuring that eligible families can claim their full tax refund amounts without costly errors. It educates families about potential federal and state tax credits, such as the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), to help maximize their returns. Additionally, the NVFATR program promotes financial literacy, aiding families in making informed financial decisions. It also advocates for tax policy reforms, championing economic equity for the state’s low-income families. Through these measures, NVFATR strives to improve financial stability and stimulate economic growth in Nevada.

Learn More about Access to Tax Refunds for Nevada Families

IRS Tax Collection: Process and Options

IRS Tax Collection follows federal rules, with local offices for state-specific help. After a tax return is filed, if taxes are unpaid, a Notice and Demand for Payment is sent. The IRS first assesses the debt, then may place liens or enforce levies on properties if it’s not paid.

Various options for those unable to pay upfront include:

Installment Agreement: Pay in monthly installments.
Offer in Compromise: Pay less than owed if certain criteria are met.
Currently Not Collectible Status: Halts collection if tax payment causes financial hardship.
Innocent Spouse Relief: Helps unaware spouses of tax understatement.
Bankruptcy: Discharges taxes under certain bankruptcy codes.

Professional tax help, such as a tax attorney or a Certified Tax Resolution Specialist, is advised for navigating these options in Nevada.

Learn More about IRS Tax Collection: Process and Options

LITC Near You

The Low Income Taxpayer Clinic (LITC) program in the state of Nevada provides essential tax-related services to individuals who are low income or speak English as a second language (ESL). The LITC is an initiative that strives to ensure that these underserved groups have equitable access to quality tax assistance and are treated fairly by the IRS.

The LITC in Nevada currently operates several clinics spread across the state’s key population centers such as Las Vegas, Reno, and Carson City. Each clinic is staffed by dedicated professionals, including tax attorneys, certified public accountants, and enrolled agents. These individuals work tirelessly to provide essential services including IRS controversy resolution, tax preparation assistance, and educational workshops.

IRS controversy resolution involves assisting clients with audits, appeals, collection disputes, and litigation related to tax issues. The LITC also aids clients in understanding their rights as taxpayers and guides them in negotiating with the IRS. Tax preparation assistance involves helping clients accurately complete their tax returns, ensuring they take advantage of all possible credits and deductions.

Learn More about LITC Near You

Taxpayer Bill of Rights

Are you aware that as a taxpayer, you are entitled to certain rights? Surprisingly, many people aren’t. These rights are crucial to remember, especially when interacting with the IRS. With this knowledge, you may now be curious about what these specific rights are.

For those unfamiliar with the Taxpayer Bill of Rights, it constitutes ten essential protections when dealing with the IRS. These rights are:

The Right to Appeal an IRS Decision in an Independent Forum
The Right to Be Informed
The Right to Challenge the IRS’s Position and Have Your Voice Heard
The Right to Confidentiality
The Right to a Fair & Just Tax System
The Right to Finality
The Right to Pay No More Than the Legally Due Amount of Tax
The Right to Privacy
The Right to Quality Service
The Right to Retain Representation

Learn More about Taxpayer Bill of Rights

Temas de impuestos federales para familias que trabajan en Nevada

Nevada, known for its zero state income tax policy, can be an attractive location for working families. However, the lack of a state income tax does not mean Nevadans are exempt from other forms of taxation, and several tax concerns remain for working families in the state. It is crucial to be aware of these to ensure effective financial planning.

Sales Tax: Nevada imposes a relatively high sales tax, which can be a significant burden for working families. The state tax is 4.6%, but when combined with local taxes, the total can reach up to 8.38%. This disproportionately affects lower-income families who spend a higher proportion of their income on taxable goods.
Property Taxes: While Nevada’s property tax rates are average compared to the rest of the US, rising property values in areas such as Las Vegas and Reno have increased the property tax burden for homeowners.
Federal Income Tax: Regardless of the state’s policy, Nevada residents are still responsible for federal income taxes. For working families, especially those in higher income brackets, this can represent a substantial part of their annual tax bill.
Self-Employment Taxes: For those self-employed or working as contractors, understanding self-employment taxes is critical. These taxes cover Social Security and Medicare taxes, and are usually higher than what’s deducted from a regular paycheck.
Gambling Taxes: Nevada is renowned for its gaming industry. Any winnings are considered taxable income and must be reported on federal tax returns. Notably, even nonresidents who win in Nevada are subject to this tax.
Retirement Taxes: Nevada does not tax retirement income, which is a benefit for retirees. However, working families should be aware of the tax implications of their retirement savings strategies, including potential taxes on withdrawals from certain retirement accounts at the federal level.
Estate and Inheritance Taxes: While Nevada does not impose any estate or inheritance taxes, federal taxes may apply to larger estates.