U.S. Department of Treasury: Low Income Taxpayer Clinic
The Low Income Taxpayer Clinic (LITC) program helps organizations to represent low income taxpayers in disputes with the IRS and to educate persons who speak English as a second language (ESL) about their rights and responsibilities as U.S. taxpayers. LITC grantees must:
- Represent individual low income taxpayers in controversies with the IRS
- Educate low income and ESL taxpayers about their rights and responsibilities as U.S. taxpayers
- Identify and advocate for issues that impact low income taxpayers
- Offer LITC services for free or for no more than a nominal fee
Start-up operations qualify for funding. An applicant may be awarded an LITC grant for the full grant year although it anticipates that it will not begin representing taxpayers until after the start of the grant year. An applicant may also be awarded a grant although it anticipates that it will not begin representing taxpayers until after the close of the grant year for which the grant is awarded.
Amount: A total of $12,000,000 is available to award approximately 140 grants ranging up to $100,000. The program period is for up to three years. Grantees must provide matching funds on a dollar-for-dollar basis.
Eligibility: To receive a grant, a clinic must represent low income taxpayers in controversies with the IRS and operate a program to educate ESL taxpayers about their rights and responsibilities under the IRC. Examples of an eligible applicant include:
- A clinical program at an accredited law, business, or accounting school in which students assist in service delivery
- An organization described in IRC § 501(c) and exempt from tax under IRC § 501(a) in which employees and volunteers in service delivery represent low income taxpayers in controversies with the IRS
At least 90 percent of the taxpayers represented must have incomes that do not exceed 250 percent of the poverty level (see solicitation for a chart showing applicable poverty guidelines).
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