IRS Awards $7.5 Million to Tax Clinics Assisting Low Income Taxpayers

The National Taxpayer Advocate, Nina Olson, announced that the Internal Revenue Service has awarded $7.5 million in matching grants to Low Income Taxpayer Clinics (LITCs). This amount will fund 135 clinics in 2004. LITCs are qualifying organizations that represent low income taxpayers involved in tax disputes with the IRS or that inform taxpayers for whom English is a second language or who have limited English proficiency of their tax rights and responsibilities.

The IRS matching grant program, which is in its sixth year, encourages the creation and growth of Low Income Taxpayer Clinics across the nation. These clinics provide an important resource to taxpayers who may not be able to afford a tax professional.

"I am pleased that, again this year, we are able to provide needed funding for these low income tax clinics," said Treasury Secretary John W. Snow. "Low income tax clinics are crucial to this Administration's efforts to ensure that all taxpayers, regardless of their resources, can understand their tax obligations. I would like to compliment the National Taxpayer Advocate on her devotion to these clinics."

Under the program, the IRS awards matching grants of up to $100,000 a year to organizations operating independent tax clinics. This year, LITC grant recipients represent non-profit organizations and accredited academic institutions from 49 states plus the District of Columbia and Puerto Rico. Grant amounts range from $6,448 to $85,000.

Low Income Taxpayer Clinics provide a source of assistance to low income taxpayers when they have disputes with the IRS or are trying to comply with tax laws.

There are two types of awards. One is for representation (R) and the other is for English as a Second Language (ESL). Some clinics receive awards for providing both types of services. Attached is a list of organizations awarded a matching grant for 2004. This list is arranged alphabetically by state abbreviation and, within a state, by city name.

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