Low-Income Taxpayer Clinics offer tax assistance and legal services to underserved communities. In the following post, Optima Tax Relief reviews the Low-Income Taxpayer Clinic grant application process, as well as the services these clinics provide to taxpayers.
The Internal Revenue Service is currently accepting applications for grants for Low-Income Taxpayer Clinics (LITC). The applications will be accepted through June 16, 2020.
The IRS will provide either single-year grants or multi-year grants for a maximum three-year period to qualifying organizations. Organizations that have qualified for a single-year grant whose term ends in 2020 may submit an electronic full grant application before the deadline to ensure future funding. Organizations that have qualified for a multi-year grant may submit an electronic request for continued funding.
The LITC program provides grants to organizations that have the resources to create, maintain, and expand LITCs. LITCs are programs designed to advocate for low-income taxpayers who have a dispute with the IRS, and also provide outreach to people for whom English is a second language. LITC representation is free in most cases, and helps people during audits, tax collection, appeals, and legal matters. LITC program participants must:
- Offer pro bono services for low-income taxpayers engaged in IRS disputes
- Provide educational services to low-income taxpayers about their rights and obligations
- Provide advocacy for unique issues that affect the low-income communities the organizations serve
- Provide outreach to non-English speaking communities about tax issues
Organizations that tend to qualify for LITC program grants include:
- Accredited law schools
- Accredited business schools
- Accredited accounting schools
- Legal aid societies
- Law firms
The goal of the LITC program is to expand resources to states and high-need communities that are currently unserved, and ensure that every state has a minimum of one clinic. Organizations in central Arizona, Hawaii, Montana, Nevada, North Dakota, southeast New York, northeast Pennsylvania, West Virginia, and Wyoming are encouraged to apply.
The IRS provides grants of up to $100,000 per year with the understanding that the organization will meet the established qualifications and provide services either free of charge or for a marginal fee.
For more information about the LITC program, services, and eligibility, please visit the IRS.gov 2021 Grant Application Package and Guidelines page.