Low Income Taxpayer Clinic

Background
The Low Income Taxpayer Clinic (LITC) program is authorized by Internal Revenue Code (IRC) § 7526 and is designed to provide representation, education, and advocacy for low income taxpayers involved in controversies with the Internal Revenue Service (IRS). The program also aims to educate individuals who speak English as a second language (ESL) about their rights and responsibilities as taxpayers. It aims to foster parity in availability and accessibility in the selection of organizations receiving LITC matching grants and to address underrepresented communities.

Grant Details
The LITC program uses grants to award funds of up to $100,000 per year to organizations for the development, expansion, or continuation of a qualified low-income taxpayer clinic. The primary functions of LITCs include providing representation, education, and advocacy for low income taxpayers involved in controversies with the IRS. The grant application requires numerical goals outlining the number of new representation cases to be opened, consultations with low income and ESL taxpayers, educational activities conducted for low income and ESL taxpayers, and the number of low income and ESL taxpayers who will be reached in educational activities. At least 90% of taxpayers represented or referred by an LITC must have incomes that do not exceed 250% of the Federal Poverty Guidelines.

Eligibility Requirements
Eligible applicants include clinics that do not charge more than a nominal fee for their services, represent low income taxpayers in controversies with the IRS where the amount in controversy generally does not exceed $50,000, inform individuals for whom English is a second language about their rights and responsibilities as U.S taxpayers. Eligible applicants also include clinical programs at accredited law, business, or accounting schools in which students represent low-income taxpayers in controversies arising under the Internal Revenue Code, and organizations described in section 501(c) and exempt from tax under section 501(a).

Period of Performance
The grant application period will be from May 3, 2021 – June 18, 2021. The period of performance for the contract will depend on annual appropriations.

Grant Value
For grant year 2021, the LITC program awarded matching grant awards totaling approximate $12 million to 129 organizations to operate an LITC. The total program funding for 2021 is $13 million. Award amounts per recipient may not exceed $100,000 per year.

Place of Performance
The IRS is particularly interested in applicants from specific underserved geographic areas including certain counties in Arizona, Florida, Idaho, Nevada, North Dakota, Pennsylvania, Puerto Rico, West Virginia, and Wyoming.