§7526 Low-income Taxpayer Clinics

Summary

The IRS can award matching grants to low-income taxpayer clinics. A qualified clinic charges no more than a nominal fee and either represents low-income taxpayers 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 qualify on the representation side, at least 90 percent of the taxpayers the clinic serves must have incomes at or below 250 percent of the poverty level, and the amounts in dispute must generally stay within the small-case limit. Clinics can include law, business, or accounting school programs where students represent taxpayers, and certain tax-exempt nonprofits. Unless Congress appropriates otherwise, total grants are capped at $6,000,000 per year, no clinic may receive more than $100,000 in a year, and a grant can run up to 3 years. A clinic must match every grant dollar with a dollar of its own, which can include staff salaries and equipment costs. In choosing grantees, the IRS weighs how many taxpayers will be served, other clinics in the area, program quality, and other funding sources. Treasury employees may tell taxpayers that these clinics exist and how to contact them.