Notice2023-04499
Low Income Taxpayer Clinic Grant Program; Availability of 2023 Supplemental Grant Application Package
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Published
March 6, 2023
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
This document contains a notice that the IRS has provided a supplemental grant opportunity in www.grants.gov for organizations interested in applying for a Low Income Taxpayer Clinic (LITC) matching supplemental grant. The budget and the period of performance for the supplemental grant will be July 1, 2023-December 31, 2023. The application period runs from March 7, 2023, through April 18, 2023. Due to the Consolidated Appropriations Act, 2023, the LITC Program Office has more funding for fiscal year 2023, and the maximum amount of an award an organization can receive for year 2023 has been increased from $100,000 to $200,000. Organizations currently receiving an LITC grant for 2023 are also eligible for an increase in funding up to $200,000 (including any funds already awarded); however, those organizations do not need to apply in response to this notice and instead will be contacted directly by the LITC Program Office. For all other organizations applying for a supplemental grant for the remainder of 2023, the following process applies.
Full Text
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<title>Federal Register, Volume 88 Issue 43 (Monday, March 6, 2023)</title>
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[Federal Register Volume 88, Number 43 (Monday, March 6, 2023)]
[Notices]
[Pages 13864-13866]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-04499]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
Low Income Taxpayer Clinic Grant Program; Availability of 2023
Supplemental Grant Application Package
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Solicitation of supplemental applications.
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SUMMARY: This document contains a notice that the IRS has provided a
supplemental grant opportunity in <a href="http://www.grants.gov">www.grants.gov</a> for organizations
interested in applying for a Low Income Taxpayer Clinic (LITC) matching
supplemental grant. The budget and the period of performance for the
supplemental grant will be July 1, 2023-December 31, 2023. The
application period runs from March 7, 2023, through April 18, 2023. Due
to the Consolidated Appropriations Act, 2023, the LITC Program Office
has more funding for fiscal year 2023, and the maximum amount of an
award an organization can receive for year 2023 has been increased from
$100,000 to $200,000. Organizations currently receiving an LITC grant
for 2023 are also eligible for an increase in funding up to $200,000
(including any funds already awarded); however, those organizations do
not need to apply in response to this notice and instead will be
contacted directly by the LITC Program Office. For all other
organizations applying for a supplemental grant for the remainder of
2023, the following process applies.
DATES: All supplemental applications must be filed electronically by
11:59 p.m. (Eastern Time) on April 18, 2023. All organizations must use
the funding number of TREAS-GRANTS-052023-002, and the Catalog of
Federal Domestic Assistance program number is 21.008, see <a href="http://www.sam.gov">www.sam.gov</a>.
The LITC Program Office is scheduling a webinar for March 9, 2023, to
cover the full application process. See <a href="http://www.irs.gov/advocate/low-income-taxpayer-clinics">www.irs.gov/advocate/low-income-taxpayer-clinics</a> for complete details, including posting
materials and any changes to the date and time.
FOR FURTHER INFORMATION CONTACT: Karen Tober at (202) 317-9590 (not a
toll-free number) or by email at <a href="/cdn-cgi/l/email-protection#214a4053444f0f554e434453614853520f464e57"><span class="__cf_email__" data-cfemail="c8a3a9baada6e6bca7aaadba88a1babbe6afa7be">[email protected]</span></a>. The LITC Program
Office is located at: IRS, Taxpayer Advocate Service, LITC Grant
Program Administration Office, TA: LITC, 1111 Constitution Avenue NW,
Room 1034, Washington, DC 20224. Copies of the 2023 Grant Application
Package and Guidelines, IRS Publication 3319 (Rev.
[[Page 13865]]
5-2022), can be downloaded from the IRS internet site at <a href="https://www.taxpayeradvocate.irs.gov/about-us/litc-grants/">https://www.taxpayeradvocate.irs.gov/about-us/litc-grants/</a> or ordered by
calling the IRS Distribution Center toll-free at 1-800-829-3676. See
<a href="https://youtu.be/6kRrjN-DNYQ">https://youtu.be/6kRrjN-DNYQ</a> for a short video about the LITC Program.
Note, however, that some provisions of the Publication 3319 are now out
of date. To assist organizations in applying for supplemental funding,
the ``Reminders and Tips for Completing Form 13424-M'' available at
<a href="https://www.taxpayeradvocate.irs.gov/about-us/litc-grants/">https://www.taxpayeradvocate.irs.gov/about-us/litc-grants/</a> will include
details about the out-of-date provisions, including instructions for
which questions an organization should complete if requesting funding
only for the taxpayer education pilot program described in this notice.
SUPPLEMENTARY INFORMATION:
Background
Pursuant to 26 U.S.C. 7526, the IRS will annually award up to
$6,000,000 (unless otherwise provided by specific Congressional
appropriation) to qualified organizations, subject to the limitations
in the statute. In the recently enacted Consolidated Appropriations
Act, 2023, Congress appropriated $26,000,000 for the LITC Program for
fiscal year 2023. See Public Law 117-328, Division E. Grants may be
awarded for the development, expansion, or continuation of programs
providing qualified services. Grant funds may be awarded for start-up
expenditures incurred by new clinics during the grant year. At least 90
percent of the taxpayers represented by the clinic must have incomes
which do not exceed 250 percent of the poverty level as determined
under criteria established by the Director of the Office of Management
and Budget. See 88 FR 3424-25 (Jan. 19, 2023). In addition, the amount
in controversy for the tax year to which the controversy relates
generally cannot exceed the amount specified in Internal Revenue Code
(IRC) section 7463 ($50,000) for eligibility for special small tax case
procedures in the United States Tax Court. IRC section 7526(c)(5)
requires dollar-for-dollar matching funds.
Mission Statement
Low Income Taxpayer Clinics ensure the fairness and integrity of
the tax system for taxpayers who are low-income or speak English as a
second language by: providing pro bono representation on their behalf
in tax disputes with the IRS; educating them about their rights and
responsibilities as taxpayers; and identifying and advocating for
issues that impact these taxpayers.
Expansion of the Type of Qualified Services an Organization Can Provide
In recent years, the IRS has awarded grants to organizations that
represent low-income taxpayers in controversies before the IRS and
provide education to taxpayers who speak English as a second language
(ESL taxpayers) regarding their rights and responsibilities.
Previously, the IRS would not award a grant to an organization solely
referring taxpayers to other qualified representatives. Similarly, the
IRS required organizations to provide controversy representation in
addition to education to eligible taxpayers.
Due to the Consolidated Appropriations Act, 2023, the LITC Program
Office has more funding available for fiscal year 2023, and the maximum
amount of an award an organization can receive for 2023 has been
doubled. In addition, the Covid-19 pandemic has brought about several
positive changes in how LITCs can provide services virtually to low-
income and ESL taxpayers and has caused the LITC Program Office to
reconsider some grant award policies consistent with statutory
authority. To achieve maximum access to justice for low-income and ESL
taxpayers, the LITC Program Office is expanding the eligibility
criteria for a grant by removing the requirement for eligible
organizations to provide direct controversy representation.
Specifically, under this expansion, a qualified organization may
receive a grant for the following activities of (1) referring low-
income taxpayers in a controversy with the IRS to a qualified
representative instead of providing controversy representation directly
to those taxpayers; or (2) operating a pilot program to inform ESL
taxpayers about their taxpayer rights and responsibilities without also
providing controversy representation.
Thus, a qualified organization is one that (1) ensures low-income
taxpayers have access to representation (either by providing the
representation directly, or providing it indirectly with a referral to
a qualified representative) in controversies with the IRS, or that (2)
provides ESL taxpayers education about their taxpayer rights and
responsibilities.
Although a qualified organization is no longer required to provide
both representation and education services, organizations are still
encouraged to provide both services, if their resources allow. A
qualified organization must not charge more than a nominal fee for its
services (except for reimbursement of actual costs incurred).
Examples of a qualified organization include: (1) a clinical
program at an accredited law, business, or accounting school whose
students represent low-income taxpayers in tax controversies with the
IRS (and when necessary, refer to qualified volunteers to provide
representation when the students cannot do so), (2) an organization
exempt from tax under IRC section 501(a) whose employees and volunteers
represent low-income taxpayers in controversies with the IRS, (3) an
organization exempt from tax under IRC section 501(a) whose employees
and volunteers refer to qualified representatives to provide
representation, (4) an organization that operates a program to inform
ESL taxpayers about their taxpayer rights and responsibilities, and (5)
an organization that operates a program to inform ESL taxpayers about
their taxpayer rights and responsibilities and functions as a referral
service to refer taxpayers to qualified representatives for controversy
representation, but such organization must be tax-exempt under section
501(a).
The ability to satisfy the representation component of the LITC
mission through referral of taxpayers to qualified representatives will
be permanently incorporated into the LITC Program. Currently, the pilot
program on educating ESL taxpayers without also providing controversy
representation is only for the remainder of the 2023 grant year.
Depending on the success of organizations awarded a grant for the pilot
program, the LITC Program Office will determine whether to continue the
pilot program in subsequent grant years.
Selection Consideration
Despite the IRS's efforts to foster parity in availability and
accessibility in choosing organizations receiving LITC matching grants
and the continued increase in clinic services nationwide, there remain
communities that are underserved by clinics. The states of Hawaii,
Montana, Nevada, North Dakota, and the territory of Puerto Rico
currently do not have an LITC. In addition, two states--Arizona and
Florida--have only partial coverage. The uncovered counties in those
states are:
Florida: Baker, Bradford, Citrus, Clay, Columbia, Dixie, Duval,
Flagler, Hamilton, Hemando, Lafayette, Madison, Nassau, St. Johns,
Sumter, Suwannee, and Taylor.
Arizona: Apache, Coconino, and Navajo.
[[Page 13866]]
Although each application for the 2023 grant year will be given due
consideration, the IRS is interested in receiving applications from
organizations providing services in those underserved geographic areas.
For organizations that intend to refer low-income taxpayers in
controversies with the IRS to other qualified representatives, priority
will be given to established organizations that can help provide
coverage to underserved geographic areas. For the taxpayer education
pilot program, special consideration will be given to established
organizations with existing community partnerships that can swiftly
implement and deliver services to the target audiences.
As in prior years, the IRS will consider a variety of factors in
determining whether to award a grant, including: (1) the number of
taxpayers who will be assisted by the organization, including the
number of ESL taxpayers in that geographic area; (2) the existence of
other LITCs assisting the same population of low-income and ESL
taxpayers; (3) the quality of the program offered by the organization,
including the qualifications of its administrators and qualified
representatives, and its record, in providing services to low-income
taxpayers; (4) the quality of the organization, including the
reasonableness of the proposed budget; (5) the organization's
compliance with all federal tax obligations (filing and payment); (6)
the organization's compliance with all federal nontax monetary
obligations (filing and payment); (7) whether debarment or suspension
(31 CFR part 19) applies or whether the organization is otherwise
excluded from or ineligible for a federal award; and (8) alternative
funding sources available to the organization, including amounts
received from other grants and contributors and the endowment and
resources of the institution sponsoring the organization.
In addition, the IRS will consider two additional factors for
organizations that refer taxpayers to other qualified representatives:
(1) the quality of the representatives (attorneys, certified public
accountants (CPAs), or enrolled agents (EAs) who have agreed to accept
taxpayer referrals from an LITC and provide representation or
consultation services free of charge; and (2) the quality of the
organization to monitor referrals and ensure that the pro bono
representatives are handling the cases properly, including taking
timely case actions and ensuring services are offered for free.
Applications that pass the eligibility screening process will then
be subject to technical review. Details regarding the scoring process
can be found in Publication 3319. The final funding decisions are made
by the National Taxpayer Advocate, unless recused. The costs of
preparing and applying are the responsibility of each applicant.
Applications may be released in response to Freedom of Information Act
requests. Therefore, applicants must not include any individual
taxpayer information.
The LITC Program Office will notify each applicant in writing once
funding decisions have been made. Applicants that want to be considered
for 2024 grant year funding will need to apply for a separate grant
when the applicable application period opens on or about May 1, 2023.
Kim S. Stewart,
Deputy National Taxpayer Advocate.
[FR Doc. 2023-04499 Filed 3-3-23; 8:45 am]
BILLING CODE 4830-01-P
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