2021 Supplemental NOFO Final.docx

Notice of Funding Opportunity

Summary information

· Federal Awarding Agency Name: Internal Revenue Service

· Funding Opportunity Title: Low Income Taxpayer Clinic

· Announcement Type: 2021 Supplemental Application

· Funding Opportunity Number: TREAS-GRANTS-052021-002

· Assistance Listing Number: 21.008

· Key Dates: The 2021 supplemental application is due on April 16, 2021, 11:59 p.m. ET. The LITC Program will require the timely submission of four reports, an Interim or Progress Report October 30, 2021, Year-End report due March 31, 2022, an Interim report due July 30, 2022, and a Year-End report due March 31, 2023.

· Availability period: The supplemental application period will be from March 15, 2021 – April 16, 2021, 11:59 p.m. ET.

A. Program Description Internal Revenue Code (IRC) § 7526 (Title 26 USC § 7526) authorizes the Secretary of the Treasury to award matching grants of up to $100,000 per year to organizations for the development, expansion, or continuation of a qualified low-income taxpayer clinic (LITC).

The assistance listing name is Low Income Taxpayer Clinic and the number is 21.008, which can be found in www.beta.sam.gov.

LITCs represent low income taxpayers involved in controversies with the Internal Revenue Service (IRS) and educate individuals who speak English as a second language (ESL) about their rights and responsibilities as taxpayers. Representation, education, and advocacy are the primary functions of LITCs. LITCs provide services to taxpayers for free or for no more than a nominal fee. Each applicant must provide numerical goals as part of the application outlining the number of:

· New representation cases to be opened

· Consultations with low income and ESL taxpayers

· Educational activities conducted for low income and ESL taxpayers

· Low income and ESL taxpayers who will be reached in educational activities

Low income status is determined by reference to the Federal Poverty Guidelines, which are updated annually by the Department of Health and Human Services (HHS). At least 90% of taxpayers represented or referred by an LITC must have incomes that do not exceed 250% of the Federal Poverty Guidelines.

The grant award if selected will cover a period of performance of 18-months, July 1, 2021 – December 31, 2022. The funding will also be provided for that same 18-month period. All grant funds awarded to a grantee must be used for the LITC program specifically authorized in the notice of award or returned to the LITC program.

Applicants for this grant will complete the application by requesting the 18-month period of performance on the Form 424 and submitting an 18-month budget on Form 13424-J.

B. Federal Award Information

The LITC program uses grants to award funds to successful applicants. For grant year 2021, the LITC program so far has awarded matching grant awards to 129 organizations to operate an LITC totaling approximate $12 million. The total program funding for 2021 which is dependent upon annual appropriations is $13 million. Award amounts per recipient may not exceed $100,000 per year.

Applications will be accepted from all areas, but priority consideration will be given to organizations that can provide services in the identified geographic areas or counties, listed below.

· Arizona- Gila

· Florida- Brevard, Citrus, Flagler, Hernando, Lake, Orange, Putnam, Seminole, Sumter

· Idaho- Ada, Adams, Bannock, Bear Lake, Bingham, Boise, Bonneville, Butte, Canyon, Caribou, Clark, Clearwater, Custer, Franklin, Freemont, Gem, Idaho, Jefferson, Latah, Lemhi, Lewis, Madison, Nez Perce, Oneida, Owyhee, Payette, Power, Teton, Washington, Valley

· Nevada- Entire state

· North Dakota- Entire State

· Pennsylvania- Bradford, Clinton, Lycoming, Monroe, Northumberland, Pike, Snyder, Sullivan, Susquehanna, Tioga, Wyoming

· Puerto Rico- Entire territory

· West Virginia- Entire state

· Wyoming- Entire state

The LITC program accepts all approved indirect costs rates approved by the cognizant agency for the applicant. Indirect costs are costs that have been incurred for common or joint objectives with other grant programs and cannot be readily identified with the LITC Program. After direct costs have been determined and assigned directly where appropriate, indirect costs are those remaining to be allocated to a particular program. Direct cost of minor amounts may be treated as indirect costs under the conditions described in 2 CFR § 200.413(d). A cost may not be allocated to the LITC Program as an indirect cost if any other cost incurred for the same purpose, in like circumstances, has been assigned to another federal award as a direct cost. Indirect costs may be charged as a use of federal funds based upon an approved Indirect Cost Rate Agreement or the de minimis rate of ten percent allowed under 2 CFR Part 200. Indirect costs may not be utilized to meet as matching funds requirements.

C. Eligibility Information

1. Eligible Applicants A “qualified low-income taxpayer clinic” means a clinic that:

(a) does not charge more than a nominal fee for its services (except for reimbursement of actual costs incurred), and

(b) (i) represents low income taxpayers in controversies with the IRS where the amount in controversy generally does not exceed $50,000 and at least 90% of taxpayers represented or referred by an LITC have incomes that do not exceed 250% of the Federal Poverty Guidelines, or

(ii) informs individuals for whom English is a second language about their rights and responsibilities as U.S taxpayers.

A “clinic” includes but is not limited to:

(a) a clinical program at an accredited law, business, or accounting school in which students represent low-income taxpayers in controversies arising under the Internal Revenue Code, and

(b) an organization described in section 501(c) and exempt from tax under section 501(a) that represents low income taxpayers in controversies with the IRS or refers taxpayers to qualified representatives.

A letter of accreditation (for school applicants) or a copy of the IRS determination (for I.R.C. § 501(c) organizations) is required with the application.

2. Cost Sharing or Matching A low-income taxpayer clinic must provide matching funds on a dollar-for-dollar basis for all LITC grant awards. Matching funds must be:

· Verifiable from the grantee’s records;

· Not used as a match for any other federally assisted project or program;

· Necessary and reasonable for proper and efficient accomplishment of the program;

· Allowable under the applicable cost principles;

· Not paid by the federal government under another award, except when authorized by federal statute;

· Provided for in the grantee’s approved budget; and

· In conformity with other provisions of 2 CFR Part 200.

Qualified matching funds include (but are not limited to):

· Cash contributions, including Legal Services Corporation funds;

· Grantee contributions, including payments for:

· Salaries and fringe benefits paid to clinic staff;

· Equipment and supplies used in the clinic;

· Rent and utilities costs to operate the clinic; and

· Other costs necessary to the operation of the program;

· Third-party in-kind contributions, including:

· The value of volunteer services furnished by professional and technical personnel, consultants, and other skilled and unskilled labor;

· The fair market value of donated equipment and supplies; and

· The fair rental value of donated space.

· Program income, including nominal fees charged, from activities that are directly related to the clinic’s objectives.

Indirect expenses, including general overhead of the institution sponsoring the clinic, are not countable as matching funds.

3. Other Before an award is made to any applicant, it will undergo a civil rights review by the Civil Rights Division of the IRS. The LITC Program Office will also conduct a review of the organization’s federal tax compliance status and the suspension and debarment status of the applicant. To be eligible for an LITC grant, an applicant must:

· Be in compliance with all federal tax obligations;

· Be in general compliance with all federal nontax obligations; and

· Not be debarred or suspended (2 CFR Part 180), or otherwise excluded from or ineligible for a federal grant award.

D. Application and Submission Information

1. Address to Request Application Package A printable version of the 2021 Grant Application Package and Guidelines, IRS Publication 3319 (Rev. 5-2020), can be downloaded from the IRS internet site at www.irs.gov/advocate or ordered by calling the IRS Distribution Center toll-free at 1-800-829-3676. (Note, however, that the Distribution Center may be closed due to COVID-19. If so, the publication will only be available online.)

To be considered for 2021 supplemental LITC grant funding, a complete application must be submitted by April 16, 2021, 11:59 p.m. ET. A complete application consists of the following items:

(a) Standard Form 424, Application for Federal Assistance;

(c) IRS Form 13424, Low Income Taxpayer Clinic (LITC) Application Information;

(d) IRS Form 13424-J, Detailed Budget Worksheet and Narrative;

(e) IRS Form 13424-M, Low Income Taxpayer Clinic (LITC) Application Narrative;

(f) Attachments Form (used to attach items g-k);

(g) Tax exemption determination letter, if applicable*;

(h) Proof of academic accreditation, if applicable*;

(i) Most recent audited financial statement (if the applicant expends $750,000 or more in federal funds during the applicant’s fiscal year, this must be a single audit or program-specific audit as defined in 2 CFR § 200.501.) If the applicant’s most recent audited financial statement is available on the Federal Audit Clearinghouse found at harvester.census.gov/facweb/ then in lieu of attaching the audit, check the “yes” box located on Form 13424-M in response to question II.4. ii. See Section IV.E.iv, OMB Audit Requirement, infra; An applicant that does not have audited financial statements must submit an unaudited statement for its most recent fiscal year and a statement as to why an audited financial statement is not available*;

(j) Applicants must also provide documentation (e.g., articles of organization or an IRS Form 2848) which shows that the designated Tax Compliance Officer on Form 13424 is properly authorized to receive tax information*; and

(k) Indirect cost rate agreement, if applicable*.

Items marked with an * must be submitted via the Attachments Form (downloadable as part of the application package from www.grants.gov). For informational purposes, copies of forms are included in Publication 3319, Appendix A.

2. Dun and Bradstreet Universal Numbering System Number and System for Award Management

Applicants are required to provide a Data Universal Numbering System (DUNS) number with each application that is registered in the System for Award Management at www.sam.gov. However, the registration in sam.gov requirement is currently on hold due to COVID. DUNS is a unique nine-digit identification number provided by Dun & Bradstreet, Inc which will be changing during the calendar year of 2021. Beginning in May 2021, the Data Universal Numbering System (DUNS) number for all entities will be replaced by a Unique Entity Identifier (UEI), or the Entity ID. The UEI will be requested via, assigned by, and managed through System for Award Management (SAM) at www.SAM.gov. Grants.gov changed the naming convention to UEI in March 2020, but the number that shows will still be the DUNS number. Organizations should use their current DUNS number until SAM generates the UEI for your organization.

The IRS may not make an award to an applicant until the applicant has complied with all applicable DUNS and SAM requirements. If an applicant has not fully complied with the requirements by the time the IRS is ready to make an award, the IRS may determine that the applicant is not qualified to receive the award and may make the award to another applicant.

3. Submission Dates and Times

i. The due date for all supplemental applications April 16, 2021, at 11:59 p.m. Eastern Daylight Time.

ii. This deadline means that all supplemental applications requests must be received electronically via www.grants.gov on or before the due date.

iii. An application is considered incomplete if it fails to include any of the required forms listed in Section IV.B.iii, Instructions for Completing Full Grant Application Forms, or if the applicant fails to complete the forms in accordance with the relevant instructions. Incomplete applications submitted before the due date will be reviewed and may be considered, depending on the circumstances. Applications submitted after the due date will not be reviewed or considered absent extraordinary circumstances.

iv. The application will be considered timely if the electronic receipt time is on or before the due date.

4. Intergovernmental Review This item is not applicable to the LITC grant program.

5. Funding Restrictions The funding restrictions for the LITC grant program are:

· Grant awards may not exceed $100,000 per year;

· Construction expenses are not an allowable cost; and

· Indirect costs, including general overhead of the institution sponsoring the clinic, are not countable as matching funds.

6. Other Submission Requirements All applicants are required to use an electronic submission process:

· An organization must apply electronically at www.grants.gov. An account must be established for the organization and each user must be granted access to the system by their organization. Each user has their own password and can take only certain actions based on their role in the system. Support for the system is provided by the system own and the support information is contained on the site.

E. Application Review Information

1. Criteria Full Grant Applications that pass the eligibility screening process will then undergo a technical evaluation by a ranking panel. If the application receives a score of 50 points or more, it will advance to the LITC Program Office evaluation. Applications receiving a score of 49 or lower will not be reviewed by the LITC Program Office and will not receive an award. LITC programs not receiving awards may request their scores through a Freedom of Information (FOIA) request. NCC requests do not undergo a technical evaluation.

a. Technical Evaluation During the technical evaluation, each application will be reviewed using the criteria listed below and awarded points based on the information provided in the application. Applicants can receive a maximum of 100 points per program. In scoring applications, the IRS will evaluate each program plan based on how it will assist in accomplishment of the LITC Program goals.

Points will be assigned as follows:

Experience

· Experience in operating a low-income taxpayer clinic or delivering services to low income and ESL taxpayers. (Maximum 13 points).

Financial Responsibility

· Quality of grant administration and internal accounting procedures. (Maximum 11 points).

Program Plan

· Quality of programs offered to assist low income taxpayers and ESL taxpayers. Evaluation criteria include the qualifications, training, and supervision of the clinic staff, students, and volunteers; amount of time devoted to the program by clinic staff; comprehensiveness of services to be provided; procedures for ensuring the confidentiality of taxpayer information; procedures for monitoring and evaluating program results; publicity and outreach plans; Organizations identified within the community for collaboration to achieve outreach to the identified audience; and the dates and days and hours of clinic operation. (Maximum 71 points).

Program Coverage

· Number of low income and ESL taxpayers in the geographic area(s) to be covered, proposed efforts to reach these taxpayers, and the number of taxpayers to be assisted. (Maximum 5 points).

b. Program Office Evaluation The LITC Program Office will perform a general review of the application, proposed program plan, and a budget analysis that includes a review of audited or unaudited financial statements. The review will consider the quality of the proposed program, the soundness of the proposed budget, and any significant concerns identified during the technical evaluation.

2. Review and Selection Process

In making grant award decisions, the IRS seeks to fund qualified organizations, including academic institutions and nonprofit organizations throughout the United States, to provide tax representation, education, and advocacy on behalf of low income and ESL taxpayers. The decision of whether to award grant funds will be based on the technical evaluation, Program Office evaluation, and the following additional considerations:

(a) To foster parity regarding clinic availability and accessibility for low income and ESL taxpayers nationwide, the LITC Program Office will consider an applicant’s geographic coverage area, the number of low income and ESL taxpayers served, and the languages in which assistance will be provided to taxpayers.

(b) If applications are submitted by more than one clinic sponsored by the same institution or organization, the LITC Program Office will consider all factors surrounding the operation of the clinics, including the geographic area(s) served by the clinics and the comprehensiveness of the services to be provided, in determining whether and in what amount grants will be made to one or more such clinics.

(c) For academic clinics, which may serve fewer taxpayers than non-academic clinics because of the time involved in teaching and mentoring students, the LITC Program Office will consider additional ways in which academic clinics can accomplish LITC Program goals (e.g., providing technical assistance, training, and mentoring to other LITCs, publishing articles about the LITC Program, commenting on proposed Treasury regulations that affect low income or ESL taxpayers, and monitoring graduates to determine whether they perform pro bono work on behalf of or otherwise assist low income taxpayers).

(d) The existence of other clinics serving the same population.

(e) Appropriateness of funds sought for the quantity and quality of services to be offered.

(f) Other sources of funding available to the clinic.

Final funding decisions are made by the National Taxpayer Advocate, unless recused. In recusal situations, final funding decisions are made by the Deputy National Taxpayer Advocate.

3. Anticipated Announcement and Federal Award Date The LITC Program Office intends to notify all applicants no later than June 2021 whether they have been selected to receive a 2021 supplemental grant award and the amount.

F. Federal Award Administration Information

1. Federal Award Notices The LITC Program Office will issue a notice of award to each applicant selected to receive funding for the 18-month performance and budget period. The notice of award states the amount of funding awarded, the grant period, the period of performance, the DUNs number, the award number, general terms and conditions, specific terms as applicable, due dates to accept the award and complete an application amendment, and incorporates by reference the requirements specified in Publication 3319. If an applicant incurs expenses and a grant is not awarded, all costs incurred will be the responsibility of the applicant.

2. Administrative and National Policy Requirement By accepting funds under this grant, the grantee agrees to comply with all terms and conditions for the grant, which are imposed by:

· 26 U.S.C. § 7526;

· The Uniform Guidance at 2 C.F.R. Part 200 (updated as of August 2020), and the Treasury Department’s implementation of the Uniform Guidance at 2 C.F.R. Part 1000 (updated as of December 2014);

· IRS Publication 3319, 2021 Grant Application Package and Guidelines (Rev. 4-2020) found at www.IRS.gov;

· Assurances found in Publication 3319 (Rev. 4-2020), pages 14 and 60-65, and in Standard Form 424B, Assurances – Non-Construction Programs;

· The grant number noted in box 3, is referred to as the Federal Award Identification Number in the Uniform Guidance. See 2 C.F.R. § 200.211, Information contained in the Federal award;

· The Project Performance Period noted in box 5, is the approved length of the project which may be 1, 2, or 3 years and is referred to as the Period of Performance in the Uniform Guidance. See 2 C.F.R. § 200.1, Definitions;

· The Funding Period noted in box 6, is referred to as the budget period in the Uniform Guidance. See 2 C.F.R. § 200.1, Definitions. The LITC Program requires a new budget each year even though the project performance period might be for up to as many as 3 years;

· For periods of performance greater than one-year, subsequent budget periods are subject to the availability of funds, program authority, satisfactory performance, and compliance with the terms and conditions of the federal award;

· The budget previously submitted by the Grant Recipient will be updated via the application amendment process and said amended budget will be subject to approval by the LITC Program Office;

· Any additional requirements, prohibitions, or restrictions imposed by the legislation appropriating federal funds for this award;

· Compliance with 2 C.F.R. § 200.216, which prohibits the use of federal funds on certain telecommunications and video surveillance services or equipment;

· In compliance with 2 C.F.R. § 200.305(b)(8), the Grant Recipient must maintain advance payments of federal awards in interest-bearing accounts, unless the following apply: (i) The Grant Recipient receives less than $250,000 in federal awards per year, (ii) The best reasonably available interest-bearing account would not be expected to earn interest in excess of $500 per year on federal cash balances, (iii) The depository would require an average or minimum balance so high that it would not be feasible within the expected federal and non-federal cash resources, or (iv) A foreign government or banking system prohibits or precludes interest-bearing accounts;

· Unless exempted from this requirement under 2 C.F.R. § 25.110, the Grant Recipient must maintain current information in the System for Award Management. This includes information on the Grant Recipient’s immediate and highest level owner and subsidiaries, as well as on all of the Grant Recipient’s predecessors that have been awarded a federal contract or federal financial assistance within the last three years, if applicable, until the Grant Recipient submits the final financial report required under this federal award or receives the final payment, whichever is later. This requires that the Grant Recipient review and update the information at least annually after the initial registration, and more frequently if required by changes in the Grant Recipient’s information or another Federal award term. See Appendix A to 2 C.F.R. Part 25;

· Unless exempted from this requirement under paragraph d of Appendix A to 2 C.F.R. Part 170, any Grant Recipient with total funding anticipated to equal or exceed $30,000 in federal funding must report to http://www.fsrs.gov the total compensation for each of the Grant Recipient’s five most highly compensated executives for the preceding completed fiscal year. See Appendix A to 2 C.F.R. Part 170;

· The IRS may terminate this agreement for reasons of default or failure of the Grant Recipient to perform their obligations under this agreement, as well as for malfeasance, illegal conduct, and/or management practices by the Grant Recipient that jeopardize the ethical operations and implementation of this agreement. In any of the above cases, the IRS will notify the Grant Recipient in writing of its intent to terminate the agreement and the causes for such a decision. Grant Recipients should be aware that 2 C.F.R. § 200.340 strengthens the ability of the IRS to terminate federal awards, to the greatest extent authorized by law, when the federal award no longer effectuates the program goals; and

· any additional specific conditions listed in the notice of award.

Grant recipients are responsible for monitoring clinic operations to ensure that all activities under the award comply with applicable Federal requirements and performance expectations are being achieved. Grant recipients are responsible for performing in accordance with the standards of operation, meeting all compliance requirements, proper expenditure and accounting for Federal and matching funds, and complete, timely, and accurate reporting of grant activities and finances

3. Reporting The LITC Program requires the timely submission of four reports – an Interim Report due November 1, 2021, Year-end report due March 31, 2022, an Interim report due August 1, 2022, and a Year-End report due March 31, 2023. Reports must be submitted electronically via www.grantsolutions.gov.

The LITC Program Office uses the reports to assess the grantee’s progress in meeting its goals and objectives and to measure the quality of clinic operations, including the services provided to low income and ESL taxpayers. Quality of operations is measured by determining how well grant recipients fulfill the prongs of the LITC mission statement and the related performance measures. The IRS also compiles and analyzes data from the reports to assess the overall success of the LITC Program. Thus, it is important that grant recipients provide accurate and complete reports.

Below is a list of the forms required for the interim and year-end reports:

· Standard Form 425, Federal Financial Report;

· Form 13424-L, Statement of Grant Expenditures;

· Form 13424-N, Program Narrative

· Form 13424-A, General Information;

· Form 13424-K, Controversy Case Information;

· Form 13424-B, Controversy Issues; and

· Form 13424-C, Systemic Advocacy Information.

Please note that for the Interim Report due on November 1, 2021 only the Form 13424-L and 13424-N will be required and will cover the time frame from July 1 through submission of the report.

G. Federal Awarding Agency Contact(s) Questions regarding the Low-Income Taxpayer Clinic program and grant application process should be directed to:

· Our general assistance phone line at 202-317-4700 or via email at LITCProgramOffice@irs.gov;

· Bill Beard at 949-575-6200 or via email at beard.william@irs.gov; and

· Fax number 877-477-3520.

You should receive a response by the next business day.

H. Other Information in LITC grant applications may be released in response to Freedom of Information Act (FOIA) requests after appropriate redactions have been made. Do not include any individual taxpayer information in the grant application.