Low Income Taxpayer Clinic | TREAS GRANTS 052024 001

Frequently Asked Questions (FAQs)

What is the Low Income Taxpayer Clinic (LITC) grant opportunity?

The Low Income Taxpayer Clinic grant is a discretionary funding opportunity from the U.S. Department of the Treasury, administered through the Low Income Taxpayer Clinic (LITC) program. It is designed to support organizations that provide direct assistance to taxpayers who have low incomes and to taxpayers who speak English as a second language.

What is the main purpose of this grant?

The purpose of the grant is to fund organizations that help underserved taxpayers navigate federal tax matters. The program focuses on improving access to representation and improving understanding of taxpayer rights and responsibilities, especially where income limitations or language barriers make it difficult to participate fairly in tax processes.

What types of activities does the grant support?

The grant supports three core functions: (1) representation, (2) education, and (3) advocacy. Funded work generally includes helping eligible taxpayers resolve disputes involving federal tax matters, educating taxpayers about their rights and responsibilities, and identifying recurring systemic issues affecting low-income and English-as-a-second-language taxpayers and elevating those concerns through appropriate channels.

What does "representation" mean under this program?

Representation refers to helping eligible taxpayers resolve disputes or issues involving federal tax matters. In practice, clinics often assist with matters such as audits, appeals, tax collection issues, and related controversies.

What does "education" mean under this program?

Education refers to helping taxpayers understand their rights and responsibilities under the tax system. This may include outreach and efforts that improve awareness and understanding among underserved communities, particularly where tax notices, procedures, and deadlines can be confusing.

What does "advocacy" mean under this program?

Advocacy refers to supporting systemic improvements by identifying recurring problems that affect low-income taxpayers and taxpayers who speak English as a second language, and raising those issues through appropriate channels to improve how the system works for these populations.

Who is this funding intended to help (the target populations)?

The funding is intended to support services for taxpayers who have low incomes and taxpayers who speak English as a second language. A key theme of the opportunity is language access and equitable participation in tax administration and dispute resolution processes.

What kinds of taxpayer issues might a funded clinic help with?

A funded Low Income Taxpayer Clinic typically assists clients with federal tax issues such as audits, appeals, tax collection matters, and related controversies. Clinics may also help taxpayers understand notices and deadlines, communicate with tax authorities, and reduce the risk of preventable penalties caused by misunderstandings of complex rules.

What is the Funding Opportunity Number for this grant?

The Funding Opportunity Number is TREAS GRANTS 052024 001.

What is the CFDA number for this program?

The CFDA number listed for this program is 21.008.

Which federal agency offers and administers this grant?

This is a U.S. Department of the Treasury grant opportunity, administered through the Low Income Taxpayer Clinic (LITC) program.

What is the maximum award amount (award ceiling)?

The award ceiling is $200,000 per award.

How many awards were anticipated?

The Treasury anticipated making roughly 150 awards. This suggests the program is structured to fund many clinics across different communities rather than a small number of very large projects.

When was the opportunity originally posted?

The original posting date was May 8, 2023.

What was the original closing date for applications?

The original closing date was June 26, 2023.

What types of organizations are eligible to apply?

Eligible applicants include public and state-controlled institutions of higher education, private institutions of higher education, and nonprofit organizations with IRS 501(c)(3) status (excluding higher education institutions under the nonprofit category wording provided).

What funding activity category does this program fall under?

The program falls under the funding activity category of Law, Justice and Legal Services, reflecting the legal nature of the services and the focus on access to tax administration and dispute resolution for underserved taxpayers.

Why is there a special emphasis on taxpayers who speak English as a second language?

The opportunity highlights English-as-a-second-language taxpayers to emphasize language access and equitable participation in tax processes. This includes helping taxpayers understand notices and deadlines, communicate effectively with tax authorities, and avoid preventable penalties that can result from misunderstanding complex rules.

Does this grant focus on federal tax matters or state tax matters?

The description centers on federal tax matters, including disputes and issues involving federal tax administration and controversy resolution processes.

Is this grant meant to fund direct services or only outreach and education?

It is meant to support direct help to eligible taxpayers, including representation, and it also supports education and outreach as well as advocacy to address systemic issues affecting the target populations.