IRS Accepting Applications for Low Income Taxpayer Clinic Matching Grants

WASHINGTON - National Taxpayer Advocate Nina E. Olson announced today that the 2008 Low Income Taxpayer Clinic (LITC) grant application process is now open. The LITC grant program is a federal program administered by the Taxpayer Advocate Service, an independent organization within the IRS that helps taxpayers resolve problems with the IRS and recommends changes to prevent taxpayer problems.

Under the LITC grant program, the IRS awards matching grants of up to $100,000 per year to develop, expand or maintain low income taxpayer clinics. The program is in its ninth year and continues to expand. To date in 2007, the LITC Program Office has awarded LITC grants to 154 organizations in 49 states, the District of Columbia, Puerto Rico and Guam. There are currently no LITCs in the state of Colorado, but the IRS has opened a supplemental period for accepting applications for Colorado for the remainder of the 2007 grant cycle.

LITCs are qualifying organizations that provide representation for free or a nominal fee to low income taxpayers involved in tax disputes with the IRS. They also provide education on taxpayer rights and responsibilities to taxpayers for whom English is a second language or who have limited English proficiency. Examples of qualifying organizations include:

Clinical programs at accredited law, business or accounting schools, whose students may represent low income taxpayers in tax disputes with the IRS, and
Organizations exempt from tax under I.R.C. § 501(a) that represent low income taxpayers in tax disputes with the IRS or refer those taxpayers to qualified representatives.

The application period for this grant will run from May 7, 2007, to July 6, 2007. The grant will cover the 2008 grant cycle, from Jan. 1, 2008, through Dec. 31, 2008. Applications must be postmarked or filed electronically by July 6, 2007.

Copies of the 2008 Grant Application Package and Guidelines, IRS Publication 3319 (Rev. 5-2007), are available on the Taxpayer Advocate Service Web site. Applicants may also order application packages from the IRS Distribution Center by calling 1-800-829-3676. Applicants can also file electronically at Grants.gov –– those applying through this Web site should use the Funding Number TREAS-GRANTS-052008-001.

Questions about the LITC Program or grant application process can be addressed to the LITC Program Office at (202) 622-7186, not a toll-free call, or by e-mail at LITCProgramOffice@irs.gov.