Low-Income Taxpayer Clinics (21.008)
Program
21.008 Low-Income Taxpayer Clinics
Federal Agency
INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
Authorization
Internal Revenue Code, as amended, 26 U.S.C. 7526(c).
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 tax 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 awardee's 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 tax rights and responsibilities. Each awardee is required to enter into an assistance agreement that requires the awardee to comply with performance goals and abide by other terms and conditions pertinent to assistance received under this program. No awards may be issued to Federal government agencies, departments or instrumentalities. No awards may be issued to any State or local government or any agency or instrumentality thereof.
Eligibility Requirements
Applicant Eligibility
Private nonprofit institutions/organizations (501(c) and 501 (a)) or educational institutions with accredited law, business or accounting school.
Beneficiary Eligibility
Low-income taxpayers with incomes which do not exceed 250 percent of the poverty level or taxpayers for whom English is a second language. (The poverty level is determined in accordance with guidelines established by the Director of the Office of Management and Budget.)
Credentials/Documentation
Not applicable.
Application and Award Process
Preapplication Coordination
None. This program is excluded from coverage under E.O. 12372.
Application Procedure
Each Low-Income Taxpayer Clinic applicant must complete a Low-Income Taxpayer Clinic Application Package. This program is subject to the provisions of OMB Circular No. A-110.
Award Procedure
IRS reviews applications and selects grant recipients.
Deadlines
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
Appeals
None.
Renewals
Multi-year grants can be awarded for terms of up to 3 years.
Assistance Considerations
Formula and Matching Requirements
All awards of financial assistance shall be matched by the recipient on a one dollar to one dollar basis using funds from sources other than the Federal government.
Length and Time Phasing of Assistance
Generally, an award may be issued up to 3 years maximum.
Post Assistance Requirements
Reports
Each awardee will submit two reports, an interim report due approximately midyear and an annual report due approximately 90 days after the end of the award year.
Audits
Costs incurred are subject to audits throughout the award period subject to the award terms and conditions. In accordance with the provisions of OMB Circular No. A-133 (Revised, June 24, 1997), non- Federal entities that expend financial assistance of $300,000 or more in Federal awards will have a single or a program-specific audit for that year. nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in OMB Circular No. A-133.
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
In fiscal year 2003, 136 organizations received funding under this program. The grantees provided needed assistance to low income taxpayers that otherwise might not receive assistance.
Financial Information
Account Identification
20-0912-0-1-803.
Obligations
(Grants) FY 02 $7,000,000; FY 03 est $7,000,000; FY 04 est $0.
Range and Average of Financial Assistance
Not available.
Regulations, Guidelines and Literature
Low-Income Taxpayer Clinic Program Application Package.
Related Programs
None.
Information Contacts
Regional or Local Office
None.
Headquarters Office
Low-Income Taxpayer Clinics, Program Manager, Internal Revenue Service, 401 W. Peachtree Street, NW., Stop 211D, Atlanta, GA 30308. Telephone: (404) 338-7894. Use the same number for FTS. Email: LITCProgramOffice@irs.gov.
Web Site Address
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 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) Alternative funding sources available to the clinic; and (5) Other factors deemed appropriate under this program and published in the notice of funds availability.
