TAX NEWS - June 2010

IRS Free Help Available For Those With Little Income

The Internal Revenue Service (IRS) announced the opening of the 2011 Low Income Taxpayer Clinic (LITC) grant application process. Applications must be submitted no later than July 16, 2010.

The Low Income Taxpayer Clinic (LITC) grant program is a federal program administered by the Office of the Taxpayer Advocate at the IRS, led by National Taxpayer Advocate Nina E. Olson. The LITC program serves individuals who have problems with the IRS and whose incomes do not exceed 250 percent of the Federal Poverty Guidelines. The Low Income Taxpayer Clinic (LITC) program also provides outreach and education to taxpayers who speak English as a second language (ESL). LITCs are independent from the IRS. Most LITCs can provide representation before the IRS or in court on audits, tax collection disputes and other issues for free or for a nominal fee. Many clinics provide multilingual information about taxpayer rights and responsibilities.

Some states have either a controversy clinic, which provides representation before the IRS or in court, or an ESL clinic –– but not both. An overriding goal of the Office of the Taxpayer Advocate is to provide both types of services in each state, the District of Columbia and Puerto Rico. Toward that end, we are interested in receiving applications from organizations in Connecticut that currently lacks ESL services. The chart below lists states that are currently lacking one of these services and which type of service is needed.

Copies of the 2011 Grant Application Package and Guidelines, IRS Publication 3319 (Rev. 5-2010), are available at www.irs.gov/advocate. Applicants may also order application packages from the IRS Distribution Center by calling 1-800-829-3676. Applicants may file electronically at www.grants.gov. Those applying electronically should use the Funding Number TREAS-GRANTS-052011-001.

Grant applications from all clinics are welcome and will receive full consideration. Questions about the LITC Program or grant application process can be addressed to the LITC Program Office at (202) 622-4711 (not a toll-free call) or by e-mail at LITCProgramOffice@irs.gov