The IRS has multiple programs and resources available to taxpayers. One of these is the IRS Low Income Taxpayer Clinic (LITC), a program designed to aid qualified organizations in representing low-income taxpayers who have faced issues with the IRS. Understanding this program can help you determine who qualifies for it, as well as where to go for assistance with tax concerns.
The Low Income Taxpayer Clinic (LITC) is a federal grant program issued through the IRS that offers up to $100,000 annually to independent organizations that qualify under the requirements and regulations. These organizations can use the funds to provide outreach and education to taxpayers for whom English is a second language, as well as low-income taxpayers who are experiencing tax-related issues with the IRS and need further assistance.
For eligible taxpayers, these services are offered at a low cost or for free. Organizations that provide services receive partial funding, although many of those involved in the process provide their time and knowledge on a volunteer basis. Before agreeing to provide services, those involved with an LITC will need to ensure that taxpayers meet income requirements and guidelines, as well as any other necessary criteria.
Another resource offered through the IRS is the Taxpayer Advocate Service (TAS) program, which differs from the LITC program. The TAS program is handled through an independent department within the IRS, ensuring that every taxpayer understands their rights and the IRS treats them fairly. Taxpayer advocates through the program can help taxpayers identify and resolve specific tax-related issues, as well as recommend changes to tax laws or IRS practices that can further aid taxpayers.
TAS offices exist in every state, as well as in Washington, D.C. and Puerto Rico. Unlike the LITC, the income of the individual is not taken into account. These services are generally offered to those taxpayers that have issues resolving their tax problems through the regular channels provided.
The resources and services provided through this program are free to taxpayers. The ultimate goal of those who work for the independent organization that provides these services is to resolve issues taxpayers are facing, as well as improve the tax system in the U.S. for current and future taxpayers.
Organizations that receive IRS grants under this program must match the fund’s dollar for dollar, as well as provide the required services as outlined by the program’s mission. These services include educating taxpayers, representing individuals facing issues with the IRS, and identifying and advocating for issues that affect low-income taxpayers.
Although an LITC does receive partial funding from the IRS, the clinic operates independently of the government agency. As a result, a taxpayer may receive different services depending on which clinic they use and who is assisting them. For a taxpayer to qualify for services under the LITC, they must meet certain criteria for the LITC to accept them into the program
Low-income taxpayers who need help resolving a tax dispute, appeals, tax collection issues, audits, and appeals are eligible to use these services, as long as they meet the income guidelines. The income ceiling is based on the size of the family and the state of residence. Additionally, those who speak English as a second language and don’t fully understand their responsibilities and rights as taxpayers are eligible for the services.
Some of the services offered through the LITC include:
According to the IRS Publication 5066, taxpayers who worked with representatives at organizations through the LITC program were able to resolve their issues in several ways. Below were the most common methods the LITC uses to help taxpayers with their issues based on 2017 percentages:
Approximately 10% of those in the program set up installment agreements to pay back the taxes they owed, while 23% of those in the program had offers in compromise accepted by the IRS, allowing them to pay less than they owe and have that amount accepted as payment in full.
Realize that LITCs are independent of the IRS and obtaining representation from them does not mean you will get preferential handling of your case. Each clinic operates on their own, and they will decide if you meet the particular eligibility to use their services.
For general information about the LITC program, you can reach out to the program office at 202-317-4700 or by email at LITCProgramOffice@irs.gov.
To obtain services, you will need to reach out to the LITC in your area and talk with them about your problem and discuss your eligibility to obtain their services.
Not all taxpayers will qualify for assistance under the LITC program. For those who don’t, additional options and resources are available to resolve tax issues. The IRS has resources, including installment agreements, offers in compromise, and appeal processes, to aid those who owe back taxes. The TAS program may be another option. Additionally, the options provided through BackTaxesHelp.com assist taxpayers as they work to resolve their problems, including tax settlement, payment plan options, and disputes or appeals.
Although facing a tax concern is never a fun experience, the IRS and independent organizations provide options to help resolve these concerns and help taxpayers get back on financial track.