Low-Income Taxpayer Clinics (21.008)

Program

21.008 Low-Income Taxpayer Clinics

Federal Agency

Agency: Department of the Treasury
Office: Internal Revenue Service (IRS)

Authorization

Internal Revenue Code, as amended,, 26 U.S.C 7526.

Program Number

21.008

Last Known Status

Active

Objectives

To provide matching grants to organizations providing: (1) Representation of low income taxpayers in controversies with the Internal Revenue Service (IRS), or (2) programs to inform individuals for whom English is a second language about their taxpayer rights and responsibilities.

Types of Assistance

PROJECT GRANTS

Uses and Use Restrictions

Awards under this program are issued to provide financial assistance that enhances the awardees' ability to represent low income taxpayers in controversies with the Internal Revenue Service (IRS) or inform individuals for whom English is a second language of their taxpayer rights and responsibilities. Each awardee is required to enter into an assistance agreement that requires the awardee to comply with program goals and abide by other terms and conditions pertinent to assistance received under this program.

Eligibility Requirements

Applicant Eligibility

Qualifying organizations that represent low income taxpayers involved in controversies with the IRS and organizations that provide education and outreach on the taxpayer rights and responsibilities of U.S. taxpayers to individuals who speak English as a second language. IRC Section 7526 requires clinics to provide services for free or for no more than a nominal fee. The term "clinic" includes, but is not limited to, a clinical program at an accredited law, business, or accounting school in which students represent low income taxpayers in controversies with the IRS, and an organization described in IRC Section 501(c) and exempt from tax under IRC Section 501(a) that either directly represents taxpayers or refers taxpayers to qualified representatives.

Beneficiary Eligibility

Low-income taxpayers with incomes which do not exceed 250 percent of the Federal Poverty Guidelines published annually by the Department of Health and Human Services, or taxpayers for whom English is a second language.

Credentials/Documentation

No Credentials or documentation are required. This program is excluded from coverage under OMB Circular No. A-87.

Application and Award Process

Preapplication Coordination

Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. OMB Circular No. A-110 applies to this program. Each Low Income Taxpayer Clinic applicant must complete a Low Income Taxpayer Clinic Application Package. See IRS Publication 3319, Low Income Taxpayer Clinic Grant Application Package and Guidelines, which you may obtain by calling 1-800-TAX-FORM (1-800-829-3676) or by visiting www.irs.gov. This program is subject to the provisions of OMB Circular No. A-110. Access www.irs.gov or call 1-800-TAX-FORM (1-800-829-3676) to obtain a copy of Publication 3319.

Award Procedure

The IRS reviews applications and selects grant recipients.

Deadlines

Jul 07, 2009 An annual notice of funds availability, published in the Federal Register, announces deadline dates for submission of applications. Deadline dates are generally 60 days subsequent to the notice publication date.

Range of Approval/Disapproval Time

Grantees are generally selected 120 days after the application submission deadline.

Appeals

None.

Renewals

A multi-year award may be issued up to 3 years maximum.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula.

Matching Requirements: Percent: 100.%. All awards of financial assistance shall be matched by the recipient on a dollar-for-dollar basis. In general, funds from sources (other than from other federal government sources) can be counted as matching funds.

This program does not have MOE requirements.

Length and Time Phasing of Assistance

Generally, an award may be issued up to 3 years maximum. Method of awarding/releasing assistance: lump sum.

Post Assistance Requirements

Reports

Program reports are not applicable. Cash reports are not applicable. Each awardee will submit two reports, an interim report due approximately 30 days after the calendar mid-year and an annual report due approximately 90 days after the end of the award year. Each awardee will submit two reports, an interim report due approximately 30 days after the calendar mid-year and an annual report due approximately 90 days after the end of the award year. Performance monitoring is not applicable.

Audits

Not Applicable.

Records

Award recipients are required to maintain records to substantiate total costs incurred and to assure that all performance measures were met. Records must be retained in accordance with the provisions of OMB Circular No. A-110.

Program Accomplishments

Fiscal Year 2008: In 2008, 156 organizations received funding, representing each of 50 states, the District of Columbia, Puerto Rico, and Guam. Fiscal Year 2009: For 2009, we anticipate funding 163 clinics with continuing representation in each of the 50 states, the District of Columbia, and Puerto Rico. In each of these years, LITCs provided needed assistance to low income and ESL taxpayers that otherwise might not have received assistance. Fiscal Year 2010: For 2010, we plan to strengthen and improve the Low Income Taxpayer Clinics (LITC) Program�s ability to deliver service to low-income taxpayers. We anticipate expanding geographic and service coverage by providing increased matching grants to qualified organizations. We will continue to enhance clinic oversight and support by improving management controls for report timeliness and quality and refining the site assistance visit process.

Financial Information

Account Identification

20-0912-0-1-803.

Obligations

(Project Grants) FY 08 $9,000,000; FY 09 est $9,500,000; FY 10 est $10,000,000

Range and Average of Financial Assistance

$10,000 to $100,000 (FY 2008/2009 data).

Regulations, Guidelines and Literature

IRS Publication 3319, Low Income Taxpayer Clinic Grant Application Package and Guidelines.

Related Programs

Not Applicable.

Information Contacts

Regional or Local Office

None.

Headquarters Office

Deborah L. Jones 1111 Constitution Avenue NW
Room 1034
, Washington, District of Columbia 20224 Email: Deborah.L.Jones@irs.gov Phone: 202-622-0883 Fax: 202-622-4318

Web Site Address

http://www.irs.gov/advocate

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Evaluation factors include: (1) Number of taxpayers who will be served by the clinic, including the number of taxpayers in the area who are low income or for whom English is a second language; (2) Existence of other low income taxpayer clinics serving the same population; (3) Quality of the program offered by the clinic, including the qualifications of the clinic's administrators and representatives as well as the clinic's record in providing service to low-income taxpayers; (4) Quality of grant administration and internal accounting procedures; and (5) Other factors deemed appropriate under this program.