GU legal clinic gives free tax help

Facing an IRS bill for more than $1,000, Spokane retirees Al and Gina Greco came to U.S. Tax Court this week hoping for a break.

The Grecos quickly got bad news: The accountant who’d come downtown to testify about the value of their charitable deductions was not allowed to appear in the federal courtroom, because IRS attorneys were not notified ahead of time.

“I’m not a lawyer. I didn’t know the rules,” said Al Greco, who worked as a mechanic for Triumph Composite Systems until retiring in 2007.

But the day got better, in large part because the Grecos received legal advice from two students who were part of Gonzaga University’s federal tax clinic. The clinic helps taxpayers who are trying to deal with tax issues without hiring an attorney.

A group of nine GU law students were on hand. Third-year students John Wagner and Chris Carlisle offered to help the couple.

The Grecos had two problems stemming from their 2007 return: The IRS said that they claimed too large a deduction for Al Greco’s work clothing and that they overestimated the value of furniture they listed as charitable donations.

The Grecos were among about 50 taxpayers with scheduled hearings in Spokane’s tax court. The U.S. Tax Court, based in Washington, D.C., sends a visiting judge to Spokane for one week a year.

The judge handles as many cases as possible, dealing with issues that couldn’t be solved through appeals or negotiations.

After meeting with students Carlisle and Wagner, the Grecos left the courtroom to visit an IRS appeals officer. Carlisle negotiated on behalf of the Grecos during that visit.

At first the IRS official agreed to offer the Grecos 20 percent valuation of the items donated. During their move to a new house in 2007, the couple gave away more than 50 pieces of furniture.

Carlisle pushed on, listing how much the furniture would likely fetch at garage sales. Carlisle also offered a compromise: The Grecos would accept the IRS rejection of the clothing deduction if the IRS allowed 40 percent of the furniture deduction.

The IRS accepted, reducing how much the Grecos would pay in past-due taxes.

“You really have to know how to negotiate,” Al Greco said. “We got more than a small break, thanks to these two students.”

The GU students from the clinic, who work free of charge, are supervised by Jennifer Gellner, a Spokane and Seattle tax attorney. The tax court session is part of a three- or six-credit program through GU’s legal assistance office.

Gellner said the tax relief program at GU runs all year. She said it’s important for people with tax concerns to contact the program well ahead of a scheduled hearing or a deadline.

“The problem the Grecos ran into – the ‘gotcha’ about the accountant – is one example of how average people just don’t understand how the court works. That’s why we can help if they reach us ahead of time,” she said.