Public Benefits

Tax Deficiency Due to Identity Theft
     An elderly farmworker couple received a tax notice from the IRS, alleging that the couple had an extra $5,000 in income in 2001, which resulted in an increased tax bill of $900. We determined that someone was fraudulently using the husband’s social security number in North Carolina. We helped the clients obtain proof from the Social Security office that he did not earn that money, and we sent the proof to the IRS. The IRS changed its decision so that the couple did not owe the extra $900 in taxes.

Emergency Medicaid
     We represented a farmworker who was eligible for emergency Medicaid when she had emergency gall bladder surgery in 2001. However, due to an administrative error at FIA, Medicaid only paid a portion of the bill. The hospital then sued to recover the balance from the client - a sum of over $5,300. Under state and federal law, an eligible Medicaid recipient may not be held responsible for amounts not reimbursed to the provider by the state Medicaid agency (FIA) for Medicaid-covered services.
     We filed a Motion for Summary Disposition and a brief regarding the legal issue, and we persuaded the FIA to issue an exception. Based on our advocacy, the hospital agreed to voluntarily dismiss the case against our client.

Benefits for a Battered Immigrant
      Our office represents an immigrant woman who suffered domestic violence by her U.S. citizen husband.  We assisted her with an immigration application that was approved by INS and which classified her as a battered immigrant according to federal law.  She is now on her way to legal residency.
       A local FIA office recently informed her that FIA would be cutting off her food stamps and Medicaid benefits, because they thought that she should no longer qualify as a battered immigrant.  FLS attorneys advocated with the FIA officials to inform them that a battered immigrant does not lose that status after a period of time that is arbitrarily determined by FIA.  The agency reversed its decision with the result that our client will continue to receive her food stamps and Medicaid benefits.
 
Earned Income Credit
     One of our clients applied for the Earned Income Credit (EIC) when he was filing his 2001 taxes, and he was given a "Rapid Refund" loan (commonly called a Refund Anticipation Loan, or RAL). The IRS denied the EIC, and then the bank that provided the RAL began demanding that the client immediately repay the $2,500 loan. We were able to provide documentation to the IRS to prove that the client was eligible for the EIC, and he will receive his refund.
     However, this client spent six anxious months waiting to hear IRS's decision, and now he must find out the effect of that denial on his credit record. Tax filers claiming the EIC are audited more often than filers who do not claim the EIC. Therefore, EIC filers who get refund anticipation loans can find that their credit is injured while they receive their "refund" -- actually a loan -- only about two weeks faster.