Application period runs through June 12, 2024
WASHINGTON — The Internal Revenue Service today announced it will accept applications for Low Income Taxpayer Clinic matching grants from all qualified organizations.
The application period runs from April 22, 2024, to June 12, 2024. The funding and the period of performance for the grant will be Jan. 1, 2025, to Dec. 31, 2025.
“Low Income Taxpayer Clinics make a tremendous impact on the lives of taxpayers. Especially, for those with the most need,” said National Taxpayer Advocate Erin M. Collins. “I encourage all qualifying organizations to apply for an LITC grant and join the community of clinics across the country that are making a real difference and changing lives.”
Under Internal Revenue Code section 7526, the IRS awards matching grants to qualifying organizations to develop, expand or maintain an LITC. For every dollar of funding awarded by the IRS, an LITC must have a dollar of match. An LITC must provide services for free or for no more than a nominal fee (except for reimbursement of actual costs incurred).
LITCs ensure the fairness and integrity of the tax system for taxpayers by:
· Providing pro bono representation to assist low-income taxpayers in resolving tax disputes with the IRS;
· Educating taxpayers for whom English is a second language (ESL taxpayers) about their rights and responsibilities as taxpayers; and
· Identifying and advocating on issues that impact these taxpayers.
For fiscal year 2024, Congress has provided overall LITC grant funding of $28 million and has authorized funding of up to $200,000 per clinic. The President’s FY 2025 budget request proposes an overall LITC grant funding level of $26 million and a continuation of the $200,000 per-clinic funding cap. In light of the President’s budget request and the uncertain timeline for final congressional action, the IRS will allow applicants to request up to $200,000 for the 2025 grant year. If, for FY 2025, Congress significantly reduces the overall LITC grant funding level or reduces the per-clinic funding cap, the IRS will adjust each grant recipient’s award to reflect any limitations in place at that time.
To achieve maximum access to justice for low-income and ESL taxpayers, the IRS has expanded the eligibility criteria for a grant by removing the requirement for eligible organizations to provide direct controversy representation. Representation may be provided by referring taxpayers to qualified representatives who have agreed to handle the referred cases on a pro bono basis.
The IRS will also continue the ESL Education Pilot Program that was rolled out as part of the February 2023 supplemental funding opportunity. A grant may be awarded to an organization to operate a program to inform ESL taxpayers about their rights and responsibilities under the IRC without the requirement to also provide tax controversy representation to low-income taxpayers. See IRS Publication 3319, 2025 Grant Application Package and Guidelines for examples of what constitutes a “clinic.”
Despite the IRS's efforts to foster parity in availability and accessibility when choosing organizations to receive LITC matching grants, there remain communities that are underserved by clinics. Currently, the following counties, states and territory do not have an LITC or have only partial coverage:
· Florida – Citrus, Hamilton, Hernando, Lafayette, Madison, Nassau, St. Johns, Sumter, Suwannee, Taylor, Brevard, Lake, Orange, Osceola, Seminole and Volusia counties.
· Hawaii – the entire state.
· Kansas – the entire state.
· Montana -- Blaine, Broadwater, Carbon, Carter, Custer, Daniels, Dawson, Deer Lodge, Fallon, Fergus, Flathead, Garfield, Golden Valley, Granite, Jefferson, Judith Basin, Lincoln, Madison, McCone, Mineral, Missoula, Musselshell, Petroleum, Phillips, Pondera, Powder River, Powell, Prairie, Richland, Sanders, Sheridan, Stillwater, Sweet Grass, Toole, Treasure, Valley, Wheatland and Wibaux counties.
· Nevada – the entire state.
· North Dakota – the entire state.
· South Dakota – the entire state.
· West Virginia -– the entire state.
· The territory of Puerto Rico – the entire country.
The IRS is particularly interested in receiving applications from organizations that provide services in these underserved geographic areas. Priority will be given to established organizations that can help provide coverage to underserved geographic areas. 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.
The LITC Program is administered by the Office of the Taxpayer Advocate at the IRS, led by National Taxpayer Advocate Erin M. Collins. Although LITCs receive partial funding from the IRS, LITCs, their employees and their volunteers operate independently of the IRS.
Applications must be submitted electronically by 11:59 p.m. Eastern Time on June 12, 2024. The funding number is TREAS-GRANTS-042025-001.
Copies of IRS Publication 3319, 2025 Grant Application Package and Guidelines, can be downloaded from IRS.gov or ordered by calling 800-TAX-FORM (800-829-3676). To assist organizations in applying for funding, a "Reminders and Tips for Completing Form 13424-M" document is available on the LITC grants page.
Questions about the LITC Program or the grant application process can be addressed to the LITC Program Office by email at litcprogramoffice@irs.gov. Alternatively, you may contact Karen Tober by email at karen.tober@irs.gov.
More information about LITCs and the work they do to represent, educate and advocate on behalf of low-income and ESL taxpayers is available in IRS Publication 5066, 2023 LITC Program Report. A short video about the LITC Programis also available on the Taxpayer Advocate Service YouTube channel.
Join the LITC Program Office for one of two optional webinars where they will provide information about the LITC Program and the application process. Details on the dates and times of the webinars are available at www.taxpayeradvocate.irs.gov/about-us/litc-grants.
