IRS Accepting Grant Applications for Low Income Taxpayer Clinics

IR-2004-62, May 3, 2004

WASHINGTON — The National Taxpayer Advocate, Nina E. Olson, announced today that the 2005 Low Income Taxpayer Clinic (LITC) grant application process is now open. Non profit organizations providing free or nominal fee representation to people involved in tax disputes can apply for grants worth up to $100,000 for 2005 grant cycle. Grants are also available for programs that inform taxpayers for whom English is a second language of their tax rights and responsibilities.

The National Taxpayer Advocate sees funding of the low income taxpayer clinics and the provision of free or nominal fee tax representation as a significant step toward a more equitable tax system. The IRS is committed to achieving the maximum access to representation for low income taxpayers possible under the terms of this grant program. The IRS matching grant program encourages the establishment and operation of low income taxpayer clinics across the nation. These clinics provide an important resource to taxpayers who may not be able to afford a tax professional.

The Low Income Taxpayer Clinic grant program is entering into its seventh year and continues to expand. Under the program, the IRS awards matching grants of up to $100,000 a year to develop, expand or continue low income taxpayer clinics. In 2004, the IRS awarded $7.5 million to 135 organizations representing 49 states, the District of Columbia and Puerto Rico.

The application period for the 2005 LITC grant program is from May 1, 2004 to July 1, 2004. Applications for Low Income Taxpayer Clinic grants must be received at Internal Revenue Service, Taxpayer Advocate Service, Mail Stop 211-D, LITC Program Office, 401 West Peachtree St. NW, Atlanta, GA 30308, no later than July 1, 2004. The application package (Publication 3319) is available at /advocate or may be ordered from the IRS Forms Distribution Centerby calling 1-800-829-3676. Applicants can also file electronically at www.grants.gov.

Each application will be given due consideration and the LITC Program Office will mail a notification letter to each applicant. Grant decisions will be made by November 15, 2004, for the grant period commencing in January 2005.

Qualifying tax clinics may be run by either law, business or accounting schools whose students represent taxpayers in tax disputes with the IRS or Tax Court and by tax-exempt organizations. These organizations can represent taxpayers in tax-related matters, refer taxpayers to pro-bono qualified representatives and provide non-English-speaking taxpayers information about their tax rights and responsibilities.