2027 Low Income Taxpayer Clinic (LITC)

The Low Income Taxpayer Clinics grant program is administered by the Department of the Treasury through the Internal Revenue Service under Assistance Listing 21.008. The grant program was authorized by Congress through Internal Revenue Code Section 7526 as part of the Internal Revenue Service Restructuring and Reform Act of 1998. The purpose of the program is to improve fairness and integrity within the tax system by ensuring that low-income taxpayers and taxpayers who speak English as a Second Language have access to tax controversy representation, taxpayer education, and advocacy support. The IRS expects to distribute approximately $28 million through roughly 150 awards during the 2027 grant cycle. Average awards for the prior grant year were approximately $156,000, and eligible applicants may request between $15,500 and $200,000 for the annual budget period running from January 1, 2027 through December 31, 2027. The grant program supports organizations that provide pro bono representation to low-income taxpayers involved in controversies with the IRS, conduct taxpayer education activities, and identify systemic issues affecting vulnerable taxpayers. Eligible activities include direct representation, consultations, outreach, educational workshops, and English as a Second Language taxpayer education programs. Organizations that propose both controversy representation and education services must provide numerical goals related to case openings, consultations, educational activities, and projected taxpayer reach. Applicants that focus exclusively on ESL education activities must provide educational activity and outreach projections specific to ESL taxpayers. The IRS requires that at least 90 percent of represented or referred taxpayers have household incomes that do not exceed 250 percent of the federal poverty guidelines. Eligible applicants include accredited law, business, or accounting school clinical programs; nonprofit organizations; tax-exempt organizations under IRC Section 501(a); and organizations operating ESL taxpayer education programs. Applicants may use employees or volunteers to provide services and may also refer taxpayers to qualified representatives. All recipients must provide dollar-for-dollar matching funds equal to the amount of federal funding awarded. Matching funds may include cash contributions, salaries and fringe benefits, rent, utilities, donated services, donated space, donated equipment, and certain program income. However, indirect costs and institutional overhead cannot be counted toward the match requirement. Organizations must also comply with federal tax and non-tax obligations, cannot be suspended or debarred from federal funding, and must satisfy applicable audit requirements under 2 CFR Part 200. Applications must be submitted electronically through the LITC Grants Portal. The application period opens on May 6, 2026 and closes on July 6, 2026 at 11:59 p.m. Eastern Time. Applicants are required to obtain an Employer Identification Number, maintain active registration in the System for Award Management, secure a Unique Entity Identifier through SAM registration, and establish an ID.me account for portal access. The required application package includes Standard Form 424, IRS Form 13424-M Low Income Taxpayer Clinic Application Narrative, and IRS Form 13424-J Detailed Budget Worksheet and Narrative Explanation. Required attachments may include audited or unaudited financial statements, tax-exempt determination letters, proof of academic accreditation, and indirect cost rate agreements where applicable. Applications submitted after the deadline, lacking a UEI without an approved exemption, or failing to propose eligible clinic services will not be considered. The IRS conducts a multi-stage review process that includes eligibility screening, technical evaluation, and program office review. Technical scoring evaluates applicant background, taxpayer access and outreach, staffing, clinic operations, financial responsibility, training, volunteer engagement, and numerical program goals. Clinic operations carry the highest weighting at 20 percent of the technical score. Applications scoring below 50 percent may be removed from further consideration following review by the LITC Program Office. The National Taxpayer Advocate ultimately considers technical scores, service reach, duplication of services, availability of non-federal support, and indirect cost efficiency when making funding decisions. The IRS also prioritizes expanding service coverage into underserved geographic areas and specifically notes states and counties where clinic access remains limited. First-time applicants receive single-year awards, while experienced recipients that successfully complete grant requirements may qualify for multiyear funding arrangements. However, all applicants for the 2027 cycle are required to complete the full application regardless of prior status. Successful applicants will receive a Notice of Award detailing award amounts, reporting obligations, and terms and conditions. First-time grantees must attend a mandatory webinar, and all recipients are expected to participate in the annual LITC Grantee Conference anticipated for December 2026 in Washington, D.C. Required reports include an interim report due July 30, 2027 and a year-end report due March 30, 2028. Questions regarding the funding opportunity may be directed to Michael Condict at Michael.J.Condict@irs.gov or the LITC Program Office at litcprogramoffice@irs.gov.

Prioritize strong clinic operations plans detailed staffing structures measurable taxpayer outreach goals and service expansion into underserved geographic areas because these factors receive significant technical review weighting. Ensure all numerical goals are clearly defined and supported by operational capacity.