DEN-2007-86, April 27, 2007
DENVER — National Taxpayer Advocate Nina E. Olson announced today that the IRS will accept applications for a part-year Low Income Taxpayer Clinic (LITC) matching grant from organizations that will provide services to qualified taxpayers in the state of Colorado.
The supplemental application period for this grant will run from April 27, 2007, to May 25, 2007. The grant will cover the balance of the 2007 grant cycle (the 2007 grant cycle runs January 1, 2007, through December 31, 2007), and successful applicants may be eligible for a regular full-year grant for the 2008 grant cycle.
LITCs are qualifying organizations that provide representation for free or a nominal fee to low income taxpayers involved in tax disputes with the IRS. They also provide education on taxpayer rights and responsibilities to taxpayers for whom English is a second language or who have limited English proficiency.
The LITC grant program is a federal program that is administered by the Taxpayer Advocate Service, an independent organization that helps taxpayers resolve problems with the IRS and recommends changes to prevent the problems.
The program is now in its ninth year and continues to expand. To date in 2007, the LITC Program Office has awarded LITC grants to 154 organizations in 49 states, the District of Columbia, Puerto Rico, and Guam. Currently, there are no LITCs in the state of Colorado.
To be considered for a supplemental 2007 LITC grant, a qualifying organization must be in a position to provide qualified services to taxpayers in Colorado. Qualifying organizations can apply for matching grants for the remainder of the 2007 grant cycle if they either provide representation for free or for a nominal fee to low income taxpayers involved in tax disputes with the IRS or provide education on taxpayer rights and responsibilities to taxpayers for whom English is a second language or who have limited English proficiency.
Examples of qualifying organizations include (1) clinical programs at accredited law, business or accounting schools, whose students may represent low income taxpayers in tax disputes with the IRS, and (2) organizations exempt from tax under I.R.C. § 501(a) which represent low income taxpayers in tax disputes with the IRS or refer those taxpayers to qualified representatives.
As noted, the supplemental application period will begin April 27, 2007. Applications for grants must be electronically submitted or postmarked by May 25, 2007. Grant decisions will be made by July 1, 2007, and funds awarded can only be used for the remainder of the 2007 grant cycle. Grant funds may be awarded for start-up expenditures incurred by new clinics during the grant period.
Copies of the 2007 Grant Application Package and Guidelines, IRS Publication 3319 (Rev. 5-2006), are available on the IRS Website at /advocate. Application packages may also be ordered from the IRS Distribution Center by calling 1-800-829-3676. Applicants can also file electronically at http://www.grants.gov. For applicants applying through the Federal Grants Web site, the Funding Number is TREAS-GRANTS-052007-002.
Questions about the LITC Program or grant application process can be addressed to the LITC Program Office at (202) 622-4711 (not a toll-free call) or by e-mail at LITCProgramOffice@irs.gov.