[Federal Register Volume 89, Number 38 (Monday, February 26, 2024)]
[Notices]
[Pages 14150-14151]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03791]



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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Low Income Taxpayer Clinic Grant Program; Availability of 2024 
Supplemental Grant Opportunity

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Solicitation of grant 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 
grant. Supplemental grant funds may be awarded for start-up 
expenditures incurred by new clinics during 2024. The budget and the 
period of performance for the grant will be July 1, 2024-December 31, 
2024. The application period runs from February 26, 2024, through April 
10, 2024. Organizations currently receiving a grant for 2024 are not 
eligible to apply for this supplemental grant opportunity.

DATES: All applications for funding pursuant to this supplemental 
funding notice must be filed electronically by 11:59 p.m. (eastern 
time) on April 10, 2024. All organizations must use the funding number 
of TREAS-GRANTS-052024-002, and the Catalog of Federal Domestic 
Assistance program number is 21.008, see www.sam.gov. The IRS is 
scheduling two optional webinars, where it will provide information 
about the LITC Program and the supplemental application process. 
Details on the dates and times of the webinars are available at 
www.taxpayeradvocate.irs.gov/about-us/litc-grants/. Note that the 
selection process for these part-year grants may not be complete before 
the beginning of the application period for the 2025 grant year; thus, 
applicants for a grant for the period July 1, 2024-December 31, 2024, 
will be expected to submit an application for full-year funding for the 
2025 grant year during the 2025 grant application period when announced 
later this year.

FOR FURTHER INFORMATION CONTACT: Karen Tober at (202) 317-9590 or by 
email at [email protected]. The IRS office that provides oversight of 
the LITC grant program is the LITC Program Office, located at: IRS, 
Taxpayer Advocate Service, LITC Program Office, TA:LITC, 1111 
Constitution Avenue NW, Room 1026, Washington, DC 20224. Copies of the 
IRS Publication 3319 (Rev. 5-2024), 2024 Grant Application Package and 
Guidelines, can be downloaded 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 informational video about the LITC Program. Note: To assist 
organizations in applying for funding, the ``Reminders and Tips for 
Completing Form 13424-M'' available at https://www.taxpayeradvocate.irs.gov/about-us/litc-grants includes instructions 
for which questions an organization should complete if requesting 
funding only for the English as a second language (ESL) 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. Grants are for the development, expansion, or 
continuation of an LITC.
    For FY 2023, pursuant to the Consolidated Appropriations Act, 2023, 
Congress doubled both the overall LITC grant funding level from $13 
million in fiscal year (FY) 2022 to $26 million and the maximum amount 
that may be awarded to any clinic from $100,000 to $200,000. See Public 
Law 117-328, Division E. For FY 2024, the IRS is currently operating 
under a Continuing Resolution that expires on March 8, 2024. The 
President's 2024 budget request includes a continuation of the overall 
LITC grant funding level at $26 million and the increased funding cap 
of $200,00 per clinic. Thus, the IRS remains hopeful that the funding 
will remain at $26 million when an appropriation for FY 2024 is 
enacted, and that the increased per clinic cap of $200,000 will also 
continue. Consequently, the IRS is allowing applicants to request up to 
$200,000 for the 2024 supplemental grant period. The IRS will also 
continue the ESL Education Pilot Program that was rolled out as part of 
the February 2023 supplemental funding opportunity. See 88 FR 13864-
13866 (March 6, 2023). If Congress ultimately does not continue the 
LITC Program's funding at $26 million and/or the increased per-clinic 
funding cap of $200,000, the IRS will adjust each supplemental grant 
recipient's award to reflect any limitations in the appropriation for 
FY 2024.
    At least 90 percent of the taxpayers represented by the clinic must 
have incomes which do not exceed 250 percent of the Federal poverty 
level as determined under criteria established by the Department of 
Health and Human Services. See 89 FR 2961-63 (Jan. 17, 2024). 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 clinics to provide dollar-for-dollar 
matching funds, which may consist of funds from other non-Federal 
sources or contributions of volunteer time. See IRS Pub. 3319 for 
additional details.

Mission Statement

    Low Income Taxpayer Clinics ensure the fairness and integrity of 
the tax system for taxpayers who are low-income or ESL 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

    IRC section 7526(b)(1)(A) authorizes the IRS to award grants to 
organizations that represent low-income taxpayers in controversies 
before the IRS and/or provide education to ESL taxpayers regarding 
their taxpayer rights and responsibilities.
    To achieve maximum access to justice for low-income and ESL 
taxpayers, the IRS has expanded the eligibility criteria for a grant by 
removing the requirement for eligible organizations to provide direct 
controversy representation. In addition, pursuant to the new ESL 
Education Pilot Program started in 2023 and continuing for 2024, a 
supplemental grant may be awarded to an organization to operate a 
program to inform ESL taxpayers about their taxpayer rights and 
responsibilities under the IRC without the requirement to also provide 
tax controversy representation to low-income taxpayers. See IRS Pub. 
3319 for examples of what constitutes a ``clinic.''

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, 
Kansas, Nevada, North Dakota, South Dakota, and West Virginia, and the 
territory of Puerto Rico currently do not have an LITC.

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    Although each application for the 2024 supplemental grant will be 
given due consideration, the IRS is especially interested in receiving 
applications from organizations providing services in these underserved 
geographic areas. For organizations that intend to refer low-income 
taxpayers in controversies with the IRS to other qualified 
representatives rather than providing representation directly to low-
income taxpayers, priority will be given to established organizations 
that can help provide coverage to underserved geographic areas. For the 
ESL 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 supplemental 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 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.
    For programs where all or the majority of cases will be placed with 
volunteers, we will also consider the following: (1) the qualifications 
of the representatives (attorneys, certified public accountants, or 
enrolled agents) who have agreed to accept taxpayer case referrals from 
an LITC and provide representation or consultation services free of 
charge; and (2) the ability 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.
    The final funding decisions are made by the National Taxpayer 
Advocate, unless recused. The costs of preparing and applying for the 
grant are the responsibility of each applicant. Applications may be 
released in response to Freedom of Information Act requests after any 
necessary redactions are made. Therefore, applicants must not include 
any individual taxpayer information. The IRS will notify each applicant 
in writing once funding decisions have been made.

Erin Collins,
National Taxpayer Advocate.
[FR Doc. 2024-03791 Filed 2-23-24; 8:45 am]
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