More money available for Low-Income Taxpayer Clinics

The Internal Revenue Service will accept supplemental applications for Low Income Taxpayer Clinic matching grants until April 10.

The IRS awards matching grants to qualifying organizations to develop, expand or maintain an LITC. For every dollar awarded by the agency, an LITC must have a dollar of match. An LITC must also provide services for free or a nominal fee.

Operating independently of the IRS, LITCs perform a number of functions, including:

• Providing pro bono representation to assist low-income taxpayers in resolving tax disputes; 
• Educating English-as-a-second-language taxpayers about their rights and responsibilities; and, 
• Identifying and advocating on issues that impact these taxpayers. 

In a statement, National Taxpayer Advocate Erin Collins called the grant period is "a chance for eligible organizations to apply for funding that can help make a difference for vulnerable taxpayers and grow the LITC presence in areas with the greatest need."
President Biden's 2024 budget request includes a continuation of LITC funding at $26 million with a funding cap of $200,000, which was echoed in bills by the House and Senate. Pending further action in Washington, the IRS will allow applicants to request grants up to $200,000.

Timothy Fadek/Bloomberg

Hawaii, Kansas, Nevada, North Dakota, South Dakota, West Virginia and the territory of Puerto Rico do not have LITCs. The IRS will give priority to supplemental applications from organizations that provide services in these areas. 

The IRS has removed the requirement for eligible organizations to provide direct controversy representation. A grant may also be awarded to an organization to operate a program to inform ESL taxpayers about their rights and responsibilities under the Internal Revenue Code without the requirement to also provide tax controversy representation.

For the ESL Education Pilot Program, special consideration will be given to established organizations with existing community partnerships that can deliver services to the target audiences.

Applications must be electronically submitted by April 10; the funding number is TREAS-GRANTS-052024-002. Copies of IRS Publication 3319, 2024 Grant Application Package and Guidelines, can be downloaded from IRS.gov or ordered by calling 800-TAX-FORM (800-829-3676). A "Reminders and Tips for Completing Form 13424-M" document is on the LITC grants page.

Questions about the LITC Program or the grant application process can be emailed to litcprogramoffice@irs.gov or karen.tober@irs.gov.