IRS to Accept Supplemental Low Income Taxpayer Clinic (LITC) Grant Applications to Serve Taxpayers in Targeted States

WASHINGTON - The National Taxpayer Advocate, Nina E. Olson, today announced that as a result of increased funding made possible by enactment of the Consolidated Appropriations Act of 2005, the IRS will open a supplemental period for accepting LITC applications for the remainder of the 2005 grant cycle (the 2005 grant cycle runs Jan. 1, 2005, through Dec. 31, 2005). The supplemental application period will be open from March 15, 2005, to April 15, 2005.

Despite the IRS´s efforts to foster parity in availability and accessibility in the selection of organizations receiving LITC matching grants and the continued increase in clinic services nationwide, there remain communities that are underrepresented by clinics. For the supplemental application cycle, the IRS will focus on those geographic areas where there is limited or no clinic representation.

Accordingly, in order to be considered for a supplemental 2005 Low Income Taxpayer Clinic grant, a new qualifying organization must be in a position to provide qualified services to taxpayers in a state (or areas within a state) as follows:

• Alabama — Montgomery & south of Birmingham
• Alaska — Statewide excluding Anchorage area
• Arizona — Statewide
• Colorado — Statewide
• District of Columbia — Districtwide
• Idaho — Southern sections
• Iowa — Statewide excluding Des Moines area
• Maryland — Statewide
• Mississippi — Western & southern sections
• Missouri — Eastern & central sections including St. Louis
• Montana — Eastern sections
• Nebraska — Statewide excluding Omaha area
• New Mexico — Statewide
• North Dakota — Northern sections
• Puerto Rico — San Juan & eastern sections
• Texas — Western sections & Dallas
• Utah — Statewide
• Wisconsin — Statewide
• Wyoming — Statewide

Nonprofit organizations providing free or nominal fee representation to people involved in tax disputes with the IRS can apply for matching grants for the remainder of the 2005 grant cycle. Grants are also available for organizations that inform taxpayers for whom English is a second language of their tax rights and responsibilities.

Qualifying organizations include (1) clinical programs at accredited law, business or accounting schools, whose students may represent taxpayers in tax disputes with the IRS, and (2) tax-exempt organizations.

Clinics represent taxpayers in tax-related matters, refer taxpayers to qualified representatives, and provide English as a second language taxpayers information about their tax rights and responsibilities. Clinics provide an important resource to taxpayers who may not be able to afford a tax professional.

The LITC grant program is now in its seventh year and continues to expand. To date in 2005, the LITC Program Office has awarded LITC grants to 145 organizations in 48 states, the District of Columbia and Puerto Rico.

As noted, the supplemental application period will begin March 15, 2005, and applications for grants must be electronically filed or received by 4 p.m. on April 15, 2005. Grant decisions will be made by June 1, 2005, and funds awarded can only be used for the remainder of the grant period that runs through the balance of the 2005 calendar year. Grant funds may be awarded for start-up expenditures incurred by new clinics during the grant period.

Copies of the 2005 Grant Application Package and Guidelines, IRS Publication 3319 (Rev. 5-2004), are available on the IRS Web site at www.irs.gov/advocate. Application packages may also be ordered from the IRS Distribution Center by calling 1-800-829-3676. Applicants can also file electronically at www.grants.gov. For applicants applying through the Federal Grants Web site, the Funding Number is TREAS-GRANTS-032005-002.

Questions about the LITC Program or grant application process can be addressed to the LITC Program Office at (404) 338-7185 (not a toll-free call) or by e-mail at LITCProgramOffice@irs.gov.

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