Client Story: Tax Justice for Hard-Working Refugees

After fleeing desperate circumstances in South Sudan*, refugees Paul and Helene Faida* and their six children had begun to feel they could start building a future in the U.S.

Both husband and wife worked swing-shift factory jobs, leaving their home at around 3:00 p.m. and not returning until the wee hours of the morning. The work was often tiring but they felt the sacrifices would be worth it someday when they could afford the ultimate American Dream: purchasing their own home.

The Faidas knew they needed to pay taxes and relied on an out-of-state tax preparer that spoke their own language and seemed legitimate. But rather than filing their taxes jointly, the shady tax preparer filed for them both as single, heads of household, and claimed the same earned income and child tax credits for each of them. This created a profit for the fly-by-night tax preparer, who filed taxes for the Faidas from 2017-2021.

“Our clients trusted the out-of-state return preparer and had no idea they were filing improperly,” according to Shawn Richter, Director of the Tax & Economic Justice Program at the Clinic. 

When the IRS caught wind of the scheme and opened an audit, the Faidas were overwhelmed at the idea of paying back a huge liability they could not afford. They also worried that it would destroy their credit and they would never be able to purchase a home. 

If all of this weren’t enough, there was a fire in their apartment building at this time, and they became temporarily homeless.

In their moment of greatest need the Faidas learned about the Neighborhood Christian Legal Clinic. 

Not only did attorneys at the Clinic file amended returns to prevent liabilities from being assessed against the Faidas, they also worked with exam agents to recertify their 2021 credits and qualify them for a refund of over $12,000. 

“Paul and Helene Faida were taken advantage of and felt the crushing weight and stress of their circumstances,” says Richter. “Our legal representation provided a huge relief and kept them on track to meet their goal of home ownership.”

Through your support, the Clinic can continue to operate and more people like the Faidas will be able to experience hope and relief in their time of need. 

Thank you for partnering with us for justice! Please help more vulnerable neighbors access life-changing legal services by giving to our #Spring4Justice fundraiser at https://justice.nclegalclinic.org/spring4justice23.

*Country and name changed to protect clients’ safety