2027 Low Income Taxpayer Clinic (LITC)

The Low Income Taxpayer Clinics grant program is administered by the Internal Revenue Service within the Department of the Treasury. It was authorized under the Internal Revenue Service Restructuring and Reform Act of 1998 to improve access to tax justice for underserved populations. The program supports organizations that assist low income taxpayers in resolving disputes with the IRS, advocate for systemic improvements in tax administration, and provide education about taxpayer rights and responsibilities, particularly for individuals for whom English is a second language. The primary purpose of this funding opportunity is to expand access to legal representation and educational services for low income and ESL taxpayers. Funded clinics are expected to provide pro bono or nominal fee services, including representation in controversies with the IRS, consultations, and outreach activities. In addition to direct services, grantees must contribute to broader systemic improvements by identifying issues affecting underserved taxpayers and advocating for changes within IRS processes. Funding for this program is substantial, with an expected total allocation of 28 million dollars and approximately 150 awards anticipated. Individual awards range from 15500 dollars to 200000 dollars per year. The program operates on a one year budget period from January 1 through December 31 of the grant year. Applicants must provide a dollar for dollar match equal to the federal award amount, which may include cash contributions, in kind support, volunteer services, and certain operational costs. Indirect costs are not eligible to count toward matching requirements, and construction expenses are not allowable under the program. Eligible applicants include nonprofit organizations, academic institutions with clinical programs, and other entities that provide representation or education services to low income taxpayers. Organizations must demonstrate the ability to serve individuals at or below 250 percent of the federal poverty level, and at least 90 percent of clients served must meet this threshold. Applicants must also comply with federal tax obligations, maintain appropriate audit standards, and not be debarred from receiving federal funds. The application process requires multiple registrations, including obtaining a Unique Entity Identifier through SAM and creating accounts in Grants.gov and the LITC Grants Portal. Applications must be submitted electronically through the portal and include standard federal forms, a detailed narrative, and a budget worksheet. Additional attachments such as financial statements and proof of eligibility may be required. Applications submitted after the deadline, lacking required identifiers, or failing to propose eligible services will be disqualified. Applications are evaluated through a multi step review process that includes eligibility screening, technical evaluation, and program office assessment. Review criteria include program design, staffing, outreach, financial responsibility, and measurable goals. Final award decisions are made by the National Taxpayer Advocate, who also considers factors such as geographic coverage, number of taxpayers served, and availability of non federal funding. Successful applicants are notified in November and must comply with reporting requirements throughout the grant period, including interim and final performance reports. The application window for this funding opportunity opens on May 6, 2026 and closes on July 17, 2026. Awards are expected to be announced by November 1, 2026, with funding beginning January 1, 2027. This program is offered annually, requiring both new applicants and continuing recipients to apply each year to maintain funding eligibility.

Focus on strong measurable goals for representation and education; demonstrate geographic need and outreach capacity; ensure budget clarity and compliance with matching requirements