Low Income Taxpayer Clinic Grant Program; Availability of 2023 Supplemental Grant Application Package, 13864-13866 [2023-04499]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 88, Number 43 (Monday, March 6, 2023)]
[Notices]
[Pages 13864-13866]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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 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.

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 www.sam.gov. 
The LITC Program Office is scheduling a webinar for March 9, 2023, to 
cover the full application process. See www.irs.gov/advocate/low-income-taxpayer-clinics 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 [email protected]. 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 https://www.taxpayeradvocate.irs.gov/about-us/litc-grants/ or ordered by 
calling the IRS Distribution Center toll-free at 1-800-829-3676. See 
https://youtu.be/6kRrjN-DNYQ 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 
https://www.taxpayeradvocate.irs.gov/about-us/litc-grants/ 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