24-LITCGrantAgreement.docx

COMMONWEALTH OF MASSACHUSETTS

DEPARTMENT OF REVENUE

AND

[NAME OF CLINIC]

GRANT AGREEMENT

FOR

LOW INCOME TAXPAYER CLINICS

BID NUMBER: BD-24-1028-DR129-DR129-91611

12 FY24 Grant Agreement

This Grant Agreement is by and between the Massachusetts Department of Revenue and [Name of Grantee] (Grantee), located at [Address of Grantee] in accordance with Section 1 of chapter 159 of the Acts of 2016.

WHEREAS, DOR issued a Grant Application on August 7, 2023 for Low-Income Taxpayer Clinics; and WHEREAS, on or about, [Date], DOR selected the Grantee, based on the Grantee’s Grant Application submitted by the required response date of August 28, 2023 by 3 PM; and WHEREAS, the Grantee appears qualified and is willing to perform its duties as set forth herein subject to the terms and conditions hereof;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, DOR and the Grantee agree as follows:

SECTION 1. DEFINITIONS

The following terms or their abbreviations, when capitalized in this Grant Agreement and its Attachments, are defined as follows unless the context clearly indicates otherwise.

Advocacy means zealously protecting the rights of low income and LEPI taxpayers. Advocacy can occur on an individual or systemic basis. LITC work involves assisting clients with a DOR issue by exploring all possible options for relief in order to assist the clients in making a fully informed decision on how to proceed. Advocacy also includes identifying systemic-level issues and sharing them with DOR’s Office of the Taxpayer Advocate.

Cases are counted and reported in inventory when a taxpayer retains the clinic to act in a representative capacity before the DOR, the Appellate Tax Board or any other state court in a state tax dispute and the clinic takes steps to address the dispute, including developing a plan for advocacy.

Consultation means a discussion with a taxpayer designed to provide advice or counsel about a specific tax matter that does not result in representation of the taxpayer (opening a case). This would include fact gathering and contact with the DOR that does not rise to the level of advocacy.

Dispute with the DOR means an appeal under M.G.L. Chapter 62C, Section 37 or any dispute between an individual and the DOR concerning the determination, collection, or refund of any tax, penalties, or interest administered by the Department of Revenue. The definition is very broad and encompasses all types of disputes. The dispute may be pending in court or in any tax administration function of the DOR (e.g., Audit, Collection, Office of Appeals).

Educational activities are programs designed to inform low-income taxpayers about their rights and responsibilities as taxpayers, as well as tax issues of particular significance to the intended audience and generally delivered in person. LITCs should address a wide range of substantive tax issues in their educational programs and materials (e.g., filing requirements, tax recordkeeping, family status issues, refundable credits, the Earned Income Tax Credit, worker classification, identity theft, information about the audit and appeals process, and collection alternatives). LITCs prepare and distribute materials in languages appropriate for the LEPI communities they assist. Selecting education topics relevant to community needs and offering the presentations in languages commonly spoken in the community allows LITCs to reach taxpayers who otherwise might experience great difficulty communicating with the DOR.

Grant Start Date is the latest date that the Grant is signed by an authorized party of the Grantee and DOR. Such date is the date on which the Grant is effective and the date on which the Grantee may begin to provide services under this Grant.

Grantee is any entity that enters into this agreement with DOR for the provision of services described in this Grant. All requirements described herein shall also be applicable to the Grantee’s employees.

Key personnel are individuals necessary for the successful operation of the LITC. Key personnel are responsible for ensuring that the LITC’s day-to-day operations function smoothly, finances are properly administered, and legal arguments are sound. Key personnel include the Clinic Director, Qualified Business Administrator (QBA), and Qualified Tax Expert (QTE). See also Section 2.2.

Limited English Proficient Individuals (LEPI) are persons who do not speak English as their primary language and who have a limited ability to read, speak, write, or understand English.

Low Income Taxpayer is an individual with a household income which does not exceed 400 percent of the federal poverty level, as calculated by the United States Department of Health and Human Services. A sole proprietor is considered an individual and may be assisted if otherwise eligible. A business or other entity is not a low-income taxpayer eligible for LITC representation. An individual trying to resolve a tax liability arising from personal involvement with a business can be a low-income taxpayer. For example, an individual who is personally liable for taxes owed from a business (e.g., a responsible person) may be a low-income taxpayer provided the individual otherwise meets the definition. For the purposes of this Grant Agreement, the determination as to whether a taxpayer is a “low-income taxpayer” is made at the time the LITC agrees to represent the taxpayer.

Massachusetts Department of Revenue (DOR) is the state agency responsible for administering the tax laws of the Commonwealth, as well as assisting parents who pay and receive child support and helping cities and towns manage their finances.

Program Plan is a document, approved by DOR and incorporated herein, which includes an outline of a clinic’s planned operations, including a description of the services to be offered, how the services will be delivered, the intended recipients of the services, and numerical goals.

Qualified low-income taxpayer clinic is a clinical program at an accredited law school, business school, accounting school or an organization described in 26 U.S.C. 501(c) and exempt from taxation under 26 U.S.C. 501(a) that does not charge a fee for services, except for reimbursement of actual costs incurred, and in which at least 95 per cent of taxpayers represented by the clinical program are low-income taxpayers.

Qualified Representative is an individual who is authorized to practice before the department or the applicable court.

SECTION 2. GRANTEE RESPONSIBILITIES

Section 2.1 Program Plan The Grantee shall perform all work under this Grant Agreement in accordance with the Program Plan and Budget Plan approved by DOR and hereby incorporated by reference.

Section 2.2 Staffing Requirements The Grantee shall ensure that qualified and competent staff performs all activities specified in this Grant Agreement, and that appropriate supervision and working conditions are provided for all such Program staff.

The Grantee shall ensure that staffing resources are sufficient to perform all tasks specified in this Grant Agreement in a professional, accurate, complete, and timely manner.

The Grantee shall maintain job descriptions and salary schedules for all Program staff positions funded by this Grant. Job descriptions shall include job duties and job requirements, such as education, licensing, skills, and experience.

Key personnel will include the following positions. Titles may be different, but each functional area must be represented.

Clinic Director is a staff member who has overall management responsibility for the clinic. The Clinic Director may also be the QBA or QTE, if qualified. The Clinic Director manages day-to-day clinic operations, prepares, or reviews the required clinic reports, and may sign reports as the clinic’s authorized representative. The Clinic Director serves as the primary contact person for DOR.

Qualified Business Administrator (QBA) is a staff member with sufficient business administration expertise to oversee the clinic’s business operations. If a department, as opposed to a single individual, fulfills this requirement, please provide details about the staff member who oversees the department. The QBA must demonstrate education or experience with business or program administration, such as internal controls, grant funds management, budgeting, procurement, or the equivalent.

Qualified Tax Expert (QTE) is a staff member with sufficient tax law expertise to oversee technical substantive and procedural tax matters. The QTE must be an attorney, certified public accountant, or enrolled agent who provides representation on behalf of low-income taxpayers in disputes with the DOR. The QTE is also responsible for reviewing all educational materials for accuracy before distribution.

Section 2.3 Requirements to Submit Reports on Grant Activities The Grantee shall maintain detailed documentation of all goods, services and activities funded under this Grant Agreement in accordance with Section 7 of the Commonwealth Teams and Conditions, and in compliance with any other applicable state and federal regulatory, statutory and other requirements, including requirements promulgated by the Secretary of State as related to document retention.

DOR requires the timely submission of two reports for each grant year — Mid-Term Activity Report due January 20th and a Year-End Activity Report due July 31st. Based on these reports, DOR will assess the Grantee’s progress in meeting its stated goals and objectives and measure the quality of clinic operations, including the services provided to low income and LEPI taxpayers. Quality of operations is measured by determining how well Grantees support the LITC mission statement and the related performance measures. DOR will use this information to evaluate the overall success of the program and provide the information, as required, to the state legislature who will determine future funding of the program.

A. Submitting the Mid-Term Activity Report For each grant year, the Mid-Term Activity Report must be submitted by January 20th by email. The report covers all statistical information from the beginning of the Grant through December 31st of the grant year. Please complete and submit the following form by email:

· Form LITC – I, Low Income Taxpayer Clinic (LITC) Mid-Term Activity Report (see Appendix 1) B. Submitting the Year-End Activity Report For each grant year, the Year-End Activity Report must be submitted by July 31st. The report covers all statistical information from the beginning of the Grant through June 30th. Please complete and submit the following form by email:

· Form LITC – Y/E, Low Income Taxpayer Clinic (LITC) Year-End Activity Report (see Appendix 2)

· Narrative report describing progress toward current year goals including any challenges encountered.

SECTION 3. DOR RESPONSIBILITIES

DOR shall provide financial assistance by way of Grant Funding, and review and process invoices.

The Grantee shall exercise complete management and oversight responsibility of the Program and agrees that the Commonwealth’s provision of state funding under this Agreement shall not in any way be construed as assuming responsibility or liability for the Program.

SECTION 4. FUNDING AND PAYMENT

Section 4.1 Funding The work of the Grantee will be supported with funding available through line item 1201-0122, Low Income Taxpayer Clinics, as determined by DOR. Although a three-year contract may be awarded under this grant application process, funds remain subject to appropriation and each budget year grant award will be in accordance with the Commonwealth's State Budgetary cycle. Funds will not carry forward. Your FY2024 grant award is [Amount].

Section 4.2 Payment – Cost Reimbursement Subject to DOR’s satisfaction with the Grantee’s performance, and other terms and conditions of the Grant Agreement, and provided that sufficient funding is appropriated to the source identified in Section 4.1, DOR shall pay the Grantee in accordance with the following provisions:

· The Grantee will document the costs that are eligible for reimbursement, certify that the costs have been incurred, and submit an invoice to DOR for cost reimbursement.

· The funds must only be used for goods or services provided during the grant year. Invoices may be submitted for services through September 30th, December 31st, March 31st, and June 30th of each grant year. Funds will not carry forward from one grant year to the next. Invoices should include the same expense categories as the grant budget provided with your application.

· A Grantee will be compensated only for performance or costs accepted or deemed eligible by DOR in accordance with this Grant Agreement and the specific terms and conditions of a properly executed Standard Contract Form.

· DOR will not make final payment to the Grantee until all reports and other deliverables required under the Grant Agreement have been submitted to DOR in an acceptable form, but in no event later than July 31st for the grant year ending June 30th of the same fiscal year.

DOR shall have the right to recoup or offset underspending or overpayments made for grant performance. In the event underspending or overpayment occurs, DOR shall have the right to offset remaining payments during the current fiscal year, to require the Grantee to make repayment, or to take other steps, in accordance with any policies promulgated by the Office of the Comptroller or other applicable regulations.

Section 4.3 Allowable Expenses Expenses incurred to support activities or expenditures that are not included in the Grantee’s approved Budget Plan, or that are incurred prior to receiving DOR’s approval, will not be reimbursed.

SECTION 5. ADDITIONAL TERMS AND CONDITIONS

Section 5.1 Grant Term This grant shall commence upon execution by the parties and end on June 30, 2024, subject to (1) the Grantee’s satisfactory performance, as determined by DOR, of all duties and obligations under this Grant Agreement, and (2) any termination provisions set forth in the Grant, provided however, that DOR may terminate the Grant immediately if DOR does not have sufficient funding for the fiscal year of the grant term.

DOR authorizes Mireille Eastman as its Grant Officer, who shall be authorized and empowered to represent DOR with respect to all matters relating to this Grant. Such designation may be changed during the period of this Grant only by written notice.

The Grantee authorizes [Name] as its Grant Officer, who shall be authorized and empowered to represent the Grantee with respect to all matters relating to this Grant. Such designation may be changed during the period of this Grant only by written notice.

Section 5.2 Notification of Administrative Change The Grantee must notify DOR in writing no later than 30 days prior to any change affecting the Grantee, or its performance of its responsibilities under this Grant. This includes any changes to the program plan, budget plan, and/or staffing identified in the program plan.

Section 5.3 Responsibility of the Grantee The Grantee is responsible for the professional quality, technical accuracy, and timely completion and delivery of all services furnished by the Grantee under this Grant. The Grantee shall, without additional compensation, correct or revise any errors, omissions, or other deficiencies in its deliverables and other services.

Section 5.4 Assignment The Grantee shall not assign or transfer any right, interest, or obligation under this Grant to any successor entity or other entity without the prior written consent of DOR.

Section 5.5 Independent Contractor The Grantee, its employees, and any other of its agents shall act in an independent capacity in the performance of this Grant and not as officers or employees of DOR or the Commonwealth of Massachusetts.

Section 5.6 Effect of Invalidity of Clauses If any clause or provision of this Grant is in conflict with any state or federal law or regulation, that clause or provision shall be null and void and any such invalidity shall not affect the validity of the remainder of this Grant.

Section 5.7 Authorizations This Grant is subject to all necessary state and federal approvals.

Section 5.8 Amendments The parties may amend this Grant where such amendment does not violate state or federal statutory, regulatory, or waiver provisions, provided such amendment is in writing, signed by both parties, and attached hereto. The parties agree to negotiate in good faith to cure any omissions, ambiguities, or manifest errors herein.

The Grantee shall promptly execute and comply with any amendment to this Grant that DOR determines is necessary to ensure compliance with all applicable statutes, orders, and regulations promulgated by any federal, state, municipal, or other governmental authority.

Section 5.9 Waiver DOR’s exercise or non-exercise of any authority under this Grant including, but not limited to, review and approval of materials submitted in relation to the Grant, shall not relieve the Grantee of any obligations set forth herein, nor be construed as a waiver of any of the Grantee’s obligations or as acceptance by DOR of any unsatisfactory practices or breaches by the Grantee.

Section 5.10 Record Keeping, Quality Review, Audit, and Inspection of Records The Grantee shall maintain all books, records and other compilations of data pertaining to the performance of the provisions and requirements of the Grant, as determined by DOR, to the extent and in such detail as shall properly substantiate claims for payment under the Grant and in accordance with the requirements in Section 7 of the Commonwealth Standard Contract.

DOR and any of its duly authorized representatives shall have the right at reasonable times and upon reasonable notice to conduct site reviews and examine and copy books, records, and other compilations of data pertaining to the performance of this Grant.

Section 5.11 Entire Agreement This Grant Agreement (including the Standard Contract Form with Commonwealth’s Terms and Conditions, and the Grantee’s Grant Application) constitutes the entire agreement of the parties with respect to the subject matter hereof including all Attachments and Appendices hereto, and supersedes all prior agreements, representations, negotiations, and undertakings not set forth or incorporated herein. The terms of this Grant Agreement shall prevail notwithstanding any variances with the terms and conditions of any written or verbal communication subsequently occurring, except as otherwise provided herein.

Section 5.12 Remedies for Poor Performance DOR may seek remedies for poor performance on the part of the Grantee under this Grant. If the Grantee fails to perform in a manner that is satisfactory to DOR, DOR may take one of the following actions:

· Require the Grantee to develop and submit a corrective action plan for DOR’s review and approval. DOR will approve, disapprove, or require modifications to the corrective action plan based on its reasonable judgment as to whether the corrective action plan shall correct the deficiency; or

· DOR may initiate a corrective action plan for the Grantee to implement. The Grantee shall promptly and diligently implement the corrective action plan as approved by DOR. Failure to implement the corrective action plan may subject the Grantee to termination of the Grant by DOR.

Section 5.13 Termination DOR may terminate this Grant immediately and without prior written notice, if DOR determines that the Grantee has materially breached any of its obligations under this Grant or fails to complete obligations under this Grant to DOR’s satisfaction. Prior to terminating this Grant as permitted above, DOR, in its sole discretion, may provide an opportunity for the Grantee to cure or end the breach. If such an opportunity is provided, but cure is not feasible, or the Grantee fails to cure the breach or end the violation within a period set by DOR, DOR may terminate the Grant.

DOR may also immediately terminate the Grant, in whole or in part, if there are any reductions to appropriation account 1201-0122, or if there are changes in applicable state or federal law or initiatives that make termination of the Grant necessary or advisable as determined by DOR.

Section 5.14 Restrictions of Use of the Commonwealth Seal Grantees are not allowed to display the Commonwealth of Massachusetts Seal in any document or subsequent marketing materials if they are awarded a Grant because use of the coat of arms and the Great Seal of the Commonwealth for advertising or commercial purposes is prohibited by law.

Section 5.15 Notices Notices to the parties as to any matter hereunder shall be sent via email:

TO DOR: Mireille Eastman, Grant Officer/Taxpayer Advocate at eastmanm@dor.state.ma.us To the Grantee: [Name], Grant Officer/[Title] at [Email]

APPENDIX 1

Form LITC – I Low Income Tax Clinic (LITC) Mid-Year Activity Report Name of Clinic

Reporting Period:

LITC Activities Related to Massachusetts Issues

a. Total Number of Taxpayers Serviced* ___________________

b. Total Number of LEPI Taxpayers Serviced ___________________

*Please provide a breakdown of how many Taxpayers Serviced had Massachusetts only issues and how many had both Massachusetts and federal issues.

Submit the form by email to Mireille Eastman, Taxpayer Advocate at eastmanm@dor.state.ma.us

APPENDIX 2

Form LITC – Y/E Low Income Tax Clinic (LITC) Year-End Activity Report Name of Clinic

Reporting Period:

1. LITC Activities Related to Massachusetts Issues

c. Total Number of Taxpayers for Each Issue

(Note: the total number for c. may be higher than a., if taxpayers were assisted with multiple issues)

2. Languages included in 1b above _____________________________________________________

3. Narrative description of achievements and progress toward current year goals including any challenges encountered.

*Please provide a breakdown of how many Taxpayers Serviced had Massachusetts only issues and how many had both Massachusetts and federal issues.

Submit the form by email to Mireille Eastman, Taxpayer Advocate at eastmanm@dor.state.ma.us