Program Outline 2020 Final.docx

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).

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.

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.

Grant awards may cover periods of up to three years’ duration. Funding is provided for one-year periods, subject to the availability of annually appropriated funds. The grant year begins on January 1 and ends on December 31. 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 by July 31st to be reobligated to other grant recipients.

New clinics are eligible to receive single year awards only; experienced clinics may receive multi-year grants. Awarding of multi-year grants is at the discretion of the LITC Program. Thus, applicants that apply for a multi-year grant may be awarded a single-year grant.

Recipients awarded a multi-year grant must submit a Non-Competing Continuation (NCC) request for continued funding for the second and third year of the grant period. Multi-year grant recipients will be reviewed annually for satisfactory performance and progress in meeting goals and objectives as well as compliance with grant terms. The funding level for subsequent years may be increased or decreased at the discretion of the LITC Program Office after a review of performance and compliance with grant terms and is also subject to the availability of funds annually appropriated for the LITC Program.

B. Federal Award Information For grant year 2020, the LITC program expects to make matching grant awards to 125-150 organizations to operate an LITC. Award amounts per recipient may not exceed $100,000 per year. Total funding is dependent upon annual appropriations. In grant year 2019, the IRS awarded approximately $12 million to approximately 131 grant recipients.

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 full application package, IRS Publication 3319, 2020 Grant Application Package and Guidelines, can be found online at www.irs.gov. The publication can be ordered online or by calling 1-800-829-3676.

Content and Form of Application Submission

(A) For an organization not currently receiving a grant for 2019, an organization that received a single year grant in 2019, or an organization whose multi-year grant ends in 2019, the organization must apply electronically at www.grants.gov. To be considered for 2020 LITC grant funding, a complete application must be submitted by June 17, 2019, 11:59 p.m. ET. A complete application consists of the following items:

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

(b) Standard Form 424A, Budget Information – Non-Construction Programs;

(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.

(B) For an organization currently receiving a grant for 2019 that is requesting funding for the second or third year of a multi-year grant, the organization must submit a request for continued funding electronically at www.grantsolutions.gov.To be considered for 2020 LITC grant funding, an NCC request must be submitted by June 17, 2019, 11:59 p.m. ET. An NCC request consists of the following items:

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

(b) Standard Form 424A, Budget Information – Non-Construction Programs;

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

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

(e) Project Abstract, which includes information about (i) numerical goals, (ii) proposed program plan changes and (iii) Civil Rights Statement;

(f) Attachments:

(g)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, make a statement in the project abstract that it was done and is uploaded to the clearinghouse;

(h) 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

(i) Indirect cost rate agreement, if applicable.

For informational purposes, copies of forms and instructions 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. DUNS is a unique nine-digit identification number provided by Dun & Bradstreet, Inc.

Applicants are required to register with the System for Award Management (SAM) prior to submitting a grant application and are required to maintain an active SAM registration with current information at all times during which they have an active federal award or an application under consideration. SAM is a web-enabled government-wide application that collects, validates, stores, and disseminates business information about the federal government’s trading partners in support of the contract award, grants, and electronic payment processes.

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 applications and NCC requests is June 17, 2019, at 11:59 p.m. Eastern Daylight Time.

ii. This deadline means that all applications and NCC requests must be received electronically via www.grants.gov or www.grantsolutions.gov, as appropriate, 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 Section IV.B.v, Instructions for Completing NCC Request 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:

(a) Grant awards may not exceed $100,000 per year;

(b) Construction expenses are not an allowable cost; and

(c) 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 not currently receiving a grant for 2019, an organization that received a single year grant in 2019, or an organization whose multi-year grant ends in 2019, the organization must apply electronically at www.grants.gov; and

· An organization currently receiving a grant for 2019 that is requesting funding for the second or third year of a multi-year grant, the organization must submit a request for continued funding electronically at www.grantsolutions.gov

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 This evaluation will be based on the information contained in the program plan, the project abstract, if applicable, as well as the clinic’s performance history in the LITC Program, if applicable.

· New Applicants. The LITC Program Office will perform a general review of the application and proposed program plan. 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.

· Prior Grant recipients. The LITC Program Office will perform a general review of the application, proposed budget, program plan, project abstract, if applicable, as well as a more detailed review of the clinic’s performance history in the LITC Program. The review will consider:

· Timeliness, accuracy, and completeness of Interim and Year-End reports;

· Any significant concerns identified by site assistance visits and how the grantee addressed those concerns;

· Whether the grantee’s activities match its program plan;

· Grantee’s involvement with other tax clinics, community groups, the Taxpayer Advocate Service (TAS), and the LITC Program Office;

· Whether the grantee has a history of not drawing down funds in a timely manner; and

· Whether the grantee has failed to use all funds awarded in prior years.

A summary of past performance will be provided to the NTA and will be given due consideration by the NTA when determining whether to approve an award and the amount of any award.

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 November 2019 whether or not they have been selected to receive a 2020 grant award. However, no specific award amount will be available until after Congress appropriates funding for fiscal year 2020.

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 grant year. The notice of award states the amount of funding awarded if Congress has appropriated the funding, the grant period, 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.

The LITC Program Office may issue a notice of award without a dollar amount, using this as a tool to notify an organization that it has been selected to receive 2020 grant funding subject to availability of appropriated funds and that its clinic director must attend the LITC Annual Grantee Conference in December 2019. This initial notice of award is not an authorization to begin performance; the performance period for 2020 grant funding begins on January 1, 2020.

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:

(1) 26 U.S.C. § 7526;

(2) the terms and conditions contained in Publication 3319 including but not limited to:

(a) If a Grantee is operating under a provisional Indirect Cost Rate Agreement (ICRA) at the commencement of the budget period (also referred to as funding period) which ordinarily commences January 1 and concludes December 31 of the same calendar year, the provisional rate will be used for billing and reporting purposes for that period. The rate when finalized will be applied to future budget periods during which the grantee receives funding, if any;

(b) If grant activities result in the generation of program income, such income, may be utilized by the Grantee to meet cost sharing or matching requirements. See 2 C.F.R. Sections 200.80 and 200.307 for a definition and discussion of program income, respectively.

(c) The Grantee authorizes the LITC Program Office to take steps to de-obligate funds without the need for the clinic to execute a new NOA, budget, or reporting forms if the amount involved is less than $25. The clinic will be notified via email of the planned action 30 days prior to taking the action and a de-obligation will not be initiated any earlier than September 1 of the year following the close of the budget period;

(3) Assurances and Certifications as attested to when registering for or renewing registration for Sam.gov;

(4) any requirements, prohibitions or restrictions imposed by the legislation appropriating federal funds for this award;

(5) other guidance issued by the Office of Management and Budget after the application or NCC has been received by the LITC Program Office; and

(6) 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 two reports – an Interim report due July 30, 2020, and a Year-End report due March 30, 2021. 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 (covering the period from January 1 – June 30, 2020);

· Form 13424-A, General Information;

· Form 13424-K, Controversy Case Information;

· Form 13424-B, Controversy Issues; and

· Form 13424-C, Systemic Advocacy Information.

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.