IRS has begun to accept applications for Low Income Taxpayer Clinic (LITC) matching grants from all qualified organizations. Eligible organizations can start applying from April 22, 2024, to June 12, 2024, for the grants awarded from Jan 2025 to Dec 2025.
What is Low Income Taxpayer Clinic (LITC)?
Low-Income Taxpayer Clinics (LITCs) are organizations that provide free or low-cost assistance to low-income taxpayers who have disputes with the IRS or need help understanding and complying with their tax obligations. LITCs are typically independent from the IRS and offer services such as representation in IRS audits, appeals, and tax court proceedings, as well as education and outreach to taxpayers.
Who is an Eligible Organization?
To qualify for IRS grants to operate a LITC, organizations must meet certain eligibility criteria outlined by the IRS.
- A clinical program at an accredited law, business, or accounting school whose students represent low-income taxpayers in controversies with the IRS under the supervision of a qualified representative (and when necessary, refer to qualified volunteers to provide representation when the students cannot do so);
- An organization whose employees and volunteers represent low-income taxpayers in controversies with the IRS;
- An organization exempt from tax under IRC Section 501(a) whose employees and volunteers represent low-income taxpayers in controversies with the IRS or refer low-income taxpayers to qualified representatives to provide representation;
- An organization described in examples 1), 2), or 3) that also operates a program to inform ESL taxpayers about their taxpayer rights and responsibilities under the IRC; and
- An organization that operates a program to inform ESL taxpayers about their taxpayer rights and responsibilities under the IRC.
IRC Section 7526(c)(5) requires clinics to provide matching funds on a dollar-for-dollar basis for all federal funds awarded by the IRS. The matching funds requirement ensures that each LITC grant represents a financial partnership between the clinic and the federal government for the benefit of low-income and ESL taxpayers.
What’s New in Tax Season 2024?
- The eligibility criteria have been expanded to better serve low-income and ESL taxpayers. It removed the requirement for eligible organizations to provide direct controversy representation. Representation may be provided by referring taxpayers to qualified representatives who have agreed to handle the referred cases on a pro bono
- For previous years, the maximum annual federal funding available was $100,000, which is increased to $200,000 as included in the President’s fiscal year 2025 Budget Request. If the amount differs when Congress appropriates funds, the LITC Program Office will adjust all awards accordingly.
How To Apply?
There are two types of LITC grant applications: LITC Full Grant Applications and NCC Requests.
- A new applicant seeking an LITC grant award for the first time, or a returning clinic whose LITC award period has ended or will end on December 31, 2024, must submit a Full Grant Application to apply for 2025 funding. LITC Full Grant Applications must be submitted electronically via Grants.gov.
- A returning clinic funded with a multiyear LITC grant that ends after December 31, 2024, must submit an NCC Request. All NCC Requests must be submitted via GrantSolutions at grantsolutions.gov.
When will the Grant be Awarded?
Qualified applicants will receive notification of their selection for the award in October 2024 for the 2025 grant year. Award recipients are expected to attend the Annual LITC Grantee Conference, scheduled for December 2024. This conference offers an invaluable opportunity for new and returning LITCs to connect, exchange best practices, and receive training on tax law topics relevant to low-income and ESL taxpayers.
Contact Information: For any inquiries regarding the LITC Program or the grant application process, you can contact the LITC Program Office by phone at 202-317-4700 (not a toll-free call) or via email at [email protected].
IRS Lists Non-Covered/ Partially Covered Locations
Though the IRS makes an immersive effort to support LITCs in serving low-income taxpayers, there are still many areas that need to be covered by LITCs to serve the taxpayers of those regions. IRS lists the below areas that are either partially covered by any LITCs or completely not covered.
- Florida – Citrus, Hamilton, Hernando, Lafayette, Madison, Nassau, St. Johns, Sumter, Suwannee, Taylor, Brevard, Lake, Orange, Osceola, Seminole and Volusia counties.
- Hawaii – the entire state.
- Kansas – the entire state.
- Montana – Blaine, Broadwater, Carbon, Carter, Custer, Daniels, Dawson, Deer Lodge, Fallon, Fergus, Flathead, Garfield, Golden Valley, Granite, Jefferson, Judith Basin, Lincoln, Madison, McCone, Mineral, Missoula, Musselshell, Petroleum, Phillips, Pondera, Powder River, Powell, Prairie, Richland, Sanders, Sheridan, Stillwater, Sweet Grass, Toole, Treasure, Valley, Wheatland and Wibaux counties.
- Nevada – the entire state.
- North Dakota – the entire state.
- South Dakota – the entire state.
- West Virginia – the entire state.
- The territory of Puerto Rico – the entire country.
IRS Assistance in Application Process
IRS continues to help applicants through various webinars and direct inquiries to guide them in the application process. Questions about the LITC Program or the grant application process can be addressed to the LITC Program Office by email at [email protected]. Alternatively, you may contact Karen Tober by email at [email protected].
The following important dates help organizations navigate the application process.
| Important Dates for the 2025 LITC Grant Program | |
| Application Period | April 22-June 12, 2024 |
| New Applicant Webinar, Session 1 | April 25, 2024 |
| New Applicant Webinar, Session 2 | May 7, 2024 |
| Returning Applicant/ NCC Request Webinar | May 9, 2024 |
| Application Q&A Webinar | June 6, 2024 |
| Application Review and Evaluation | June-October 2024 |
| Notification of Selection/Non-Selection | October 2024 |
| Grant Year | January 1-December 31, 2025 |
| Interim Report Due | July 31, 2025 |
| Year-end Report Due | March 31, 2026 |
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