WASHINGTON, D.C. — To amplify tax justice and maintain fairness in the system, the Internal Revenue Service (IRS) has announced that it will be accepting supplemental applications for its Low Income Taxpayer Clinic (LITC) matching grants until April 10, 2024. This exciting opportunity opens doors for qualified organizations to play an instrumental role in safeguarding taxpayer rights, especially in underserved areas across the country.
LITCs help ensure that everyone, irrespective of their income, gets a fair shake in the labyrinth of tax laws. They offer free or nominal fee services to low-income taxpayers and those for whom English is a second language, bridging the gap between tax complexities and common understanding. By providing representation to assist in resolving tax disputes and conducting educational initiatives, these clinics guard the principles of tax honesty and integrity, strengthening the fabric of our economy.
Erin M. Collins, the National Taxpayer Advocate, highlighted that there are pockets in our community that still lack these essential services. Therefore, the supplemental grant period is a golden opportunity for eligible organizations to come forward and secure funding to make a tangible difference for vulnerable taxpayers.
Therefore, the IRS is particularly encouraging applications from organizations currently serving or willing to extend their services to underserved areas such as Hawaii, Kansas, Nevada, North Dakota, South Dakota, West Virginia, and Puerto Rico. With a proposal to continue LITC funding at $26 million under President’s 2024 budget request, a single organization may be awarded a grant up to $200,000.
The IRS has shown leniency in the eligibility criteria for these grants. Back in 2023, they removed the necessity for organizations to directly represent tax disputes, allowing referrals to qualified representatives who could handle the cases on a pro bono basis.
Under the ESL Education Pilot Program, which is set to continue for 2024, organizations can be awarded grants to inform ESL taxpayers about their rights and responsibilities. The need to provide tax controversy representation to low-income taxpayers in this program has been waived off.
While the IRS has been striving to achieve a balance in availability and accessibility, it is noted that there are communities that still remain underserved by such clinics. In some states and territories, there are currently no LITCs at all. That’s why the IRS is going all out to invite organizations to apply for these supplemental grants, which could be crucial in increasing the LITC presence in areas with the greatest need.
While LITCs receive partial funding from the IRS, they operate independently of the IRS, ensuring unbiased assistance to taxpayers. The LITC Program is administered by the Office of the Taxpayer Advocate at the IRS, led by Erin M. Collins.
Organizations interested in applying for the supplemental grant can submit their applications electronically by 11:59 p.m. Eastern Time on April 10, 2024. They can also take advantage of the upcoming optional webinars by the LITC Program Office, which will provide comprehensive information about the LITC Program and the supplemental application process.
For a copy of IRS Publication 3319, the 2024 Grant Application Package and Guidelines, visit IRS.gov or dial 800-TAX-FORM (800-829-3676). To aid organizations in funding applications, find the “Reminders and Tips for Completing Form 13424-M” document on the LITC grants page. Queries regarding the LITC Program or grant application process can be directed to the LITC Program Office via email at litcprogramoffice@irs.gov. For assistance, reach out to Karen Tober at karen.tober@irs.gov.
Through these grants, the IRS is not only facilitating financial justice for low-income taxpayers but also fostering societal equity, making it a crucial move in the current socio-economic landscape.
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