Low Income Taxpayer Clinics
Program Funding
Annual program obligations reported to SAM.gov.
Who has received this funding
Organizations awarded under CFDA 21.008 (USAspending.gov).
- Inland Counties Legal Services $375,232
- Legal Services Of New Jersey $361,170
- Chinese Newcomers Service Center $341,103
- Florida Rural Legal Services, Inc. $337,662
- Washington University, The $328,766
- Pisgah Legal Services $303,056
- Houston Volunteer Lawyers Program, Inc. $301,446
- Prairie State Legal Services Inc $278,252
- Lone Star Legal Aid $272,581
- University Of Florida $250,942
Program Objective
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.
Eligibility
Eligible Applicants
- Nonprofit Organization
- For-Profit Organization
- Not-for-Profit Organization
- Other
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.
Beneficiaries
- Other
Low Income Taxpayers are: Individuals whose household income does not exceed 250 percent of the Federal Poverty Guidelines published annually by the Department of Health and Human Services.
ESL Taxpayers are: individuals for whom English is not their first language.
How to Apply
Award Procedure
Following the 3-step application evaluation process, the National Taxpayer Advocate (NTA) is presented with funding recommendations. The NTA approves or makes changes to the recommendations. Decisions are subject to review by a senior administration appointee.
Decision Timeline
- Approval: From 90 to 120 days
Program details & compliance
Description
This assistance opportunity provides a matching grant of up to $200,000 per grant year to qualified organizations.
Applicants are encouraged to apply for a grant to provide both representation to low-income taxpayers in controversies with the Internal Revenue Services and to provide education to low-income and ESL individuals about their taxpayer rights and responsibilities. However, a qualified organization may also receive a grant for operating an LITC program to inform taxpayers for whom English is a Second Language about their taxpayer rights and responsibilities without also providing controversy representation.
Mission Categories
Primary: Legal Services - Other
Use of Funds
Allowed Uses
Expenses must be allowable, allocable and reasonable and otherwise consistent with the 2 CFR Part 200 and spent in furtherance of the program; clinic may not use non-LITC funds used to pay indirect costs as matching funding sources. Examples of allowable and unallowable costs are provided in IRS Publication 3319, 2026 Grant Application Package and Guidelines
Restrictions
At least 90% of taxpayers represented in a controversy before the IRS by Low Income Taxpayers must be Individuals whose household income does not exceed 250 percent of the Federal Poverty Guidelines published annually by the Department of Health and Human Services. Education services are targeted to taxpayers for whom English is not their first language.
Matching Requirements
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 personnel, consultants, and other skilled and unskilled labor;
2. The fair market value of donated equipment and supplies; and
3. The fair rental value of donated space, if the space being offered is not owned by the sponsoring organization.
Program income, including nominal fees charged, from activities that are directly related to the clinic’s objectives as well attorney fees can be program income and will be used for as matching funds. Indirect expenses, including general overhead of the institution sponsoring the clinic, are not countable as matching funds. More information about matching funds can be found in IRS Publication 3319, Low Income Taxpayer Clinic Grant Application Package and Guidelines.
Matching requirements are required by law.
Maintenance of effort requirements are not applicable to this assistance listing.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart E — Cost Principles
- Subpart F — Audit Requirements