DOT – Low Income Taxpayer Clinic (2021)

By NLADA on May 5, 2021

Applications due: by June 18, 2021 at 11:59 p.m. ET

The Low Income Taxpayer Clinic (LITC) Program protects taxpayers’ rights by providing free or low-cost access to representation for low-income taxpayers, so that achieving a correct outcome in an IRS dispute does not depend on the taxpayer’s ability to pay for representation. Helping a taxpayer avoid a tax controversy through education and outreach is another essential function of LITCs. LITCs are required to educate taxpayers on their rights and responsibilities to help them understand the U.S. tax system, exercise their rights as taxpayers, and comply with their tax responsibilities. Learning is enhanced by LITCs providing an opportunity for taxpayers to ask questions and interact with clinic staff. Educational activities may be accomplished directly with taxpayers or indirectly through other organizations or groups that assist low-income and ESL taxpayers. At least 90 percent of the taxpayers the LITC represents must be low-income, meaning the countable income for the taxpayer’s household does not exceed 250 percent of the Federal Poverty Guidelines. In addition, when an LITC represents a taxpayer, the dollar amount in controversy for any tax year generally must not exceed the amount specified in IRC § 7463 which is also the limit eligibility for special small case procedures in the U.S. Tax Court (currently $50,000). See Section VI.C.xii, Representing Low Income Taxpayers, Low Income Taxpayers and the 90/250 Requirement.

Grant information

Funding Title: Low Income Taxpayer Clinic

Agency Name: Department of Treasury

Funding Opportunity Number: TREAS-GRANTS-052022-001

Funding Instrument Type: Grant

Express Language for Legal Aid: Yes

Target Population: Low-income and ESL clients

Expected Number of Awards: 150

Cost Sharing or Matching Requirement: Yes

Estimated Total Program Funding: $1,000,000

Award Ceiling: $1,000,000

Award Floor: $0

Current Closing Date for Applications: by June 18, 2021 at 11:59 p.m. ET.

Eligible Applicants: Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education, Public and State controlled institutions of higher education, Private institutions of higher education