§7526 Low-income taxpayer clinics

Summary

The Secretary can give matching grants, if Congress provides the money, to help start, expand, or keep running qualified low-income taxpayer clinics. The program cannot give out more than $6,000,000 a year unless a special appropriation says otherwise. A clinic cannot get more than $100,000 in one year. Grants may be awarded for up to 3 years. A qualified clinic must charge only a small fee (except to cover actual costs) and must either represent low-income taxpayers in disputes with the IRS or run programs that teach people for whom English is a second language about their tax rights. To count as representing low-income taxpayers, at least 90% of the clients must have incomes at or below 250% of the poverty level, and the tax amount in dispute generally must not exceed the limit in section 7463. “Clinic” also includes school legal or tax clinics and certain tax-exempt organizations. A “qualified representative” is anyone allowed to practice before the IRS or the court. Clinics must match grant dollars on a dollar-for-dollar basis; match can include staff pay and equipment. When awarding grants, the Secretary will consider how many people will be served (including English learners), other clinics in the area, program quality and staff, and other funding sources. Treasury employees may tell taxpayers about funded clinics and how to contact them.