Low Income Taxpayer Clinics

The objective of the grant program is to provide low-income taxpayers with access to representation in controversies with the IRS, to advocate for improvement in IRS processes and services provided to taxpayers, and to educate low-income individuals and those for whom English is a second language about their tax rights and responsibilities.

Public nonprofit institution/organization (includes institutions of higher education and hospitals), Private nonprofit institution/organization (includes institutions of higher education and hospitals) Examples of a qualified organizations include: 1. a clinical program at an accredited law, business, or accounting school whose students represent low-income taxpayers in tax controversies with the IRS (and when necessary, refer to qualified volunteers to provide representation when the students cannot do so), 2. an organization exempt from tax under IRC section 501(a) whose employees and volunteers represent low-income taxpayers in controversies with the IRS, 3. an organization exempt from tax under IRC section 501(a) whose employees and volunteers refer to qualified representatives to provide representation, 4. an organization that operates a program to inform ESL taxpayers about their taxpayer rights and responsibilities, and 5. an organization that refers taxpayers to qualified representatives for controversy representation, but such organization must be tax-exempt under section 501(a); and an LITC may not charge more than a nominal fee for its services and organizations that provide representation are expected to also provide educational services to low income and ESL individuals.

Evaluation factors include but are not limited to: 1. Quality of the proposed programs; 2. History of performance under LITC grants in prior years, if applicable; 3. Soundness of the proposed budget; and 4. Any significant concerns identified during the technical evaluation, program office evaluation and risk assessment outlined in 2 CFR 200.

Under this program, IRS will fund no more than 50% of the project�s total cost, which means that the applicant must cover at least 50% of the project�s total cost with non-federal resources. In other words, for every $1 an applicant receives in federal funding, the applicant must contribute at least $1 in non-federal resources. Qualified matching funds include (but are not limited to): � Cash contributions which may include funds from grants or foundations; � Legal Services Corporation funds; � Grantee expenditures of operating funds to pay for: 1. Salaries and fringe benefits for clinic staff; 2. Equipment and supplies used in the clinic; 3. Rent and utilities costs to operate the clinic; and � Other reasonable and necessary costs to operation of the program; Third-party in-kind contributions, may include: 1. The value of volunteer services furnished by professional and technical...