§7526 Low-income Taxpayer Clinics

Summary

The Secretary may give matching grants, when money is available, to help start, grow, or keep qualified low-income taxpayer clinics. A qualified clinic charges only a small fee (or just cost reimbursement) and either represents low-income people in disputes with the IRS or runs programs that teach people who speak English as a second language about their tax rights and duties. To represent taxpayers, at least 90% of a clinic’s clients must have incomes at or below 250% of the poverty level, and the tax amount in dispute generally must not exceed the limit set in section 7463. “Clinic” includes school legal or accounting clinics and certain tax-exempt organizations. A “qualified representative” is anyone allowed to practice before the IRS or the court. Total grant money is normally capped at $6,000,000 per year unless a specific appropriation says otherwise. One clinic can get no more than $100,000 in a year. Grants may be awarded for up to 3 years. The Secretary will consider how many taxpayers will be helped (including ESL taxpayers), whether other clinics serve the same group, program quality and staff, and other funding the clinic has. Clinics must match grant dollars dollar-for-dollar. Matching can include staff salaries and equipment, but not general overhead. Treasury staff may tell taxpayers about funded clinics and give their contact and location information.