GLOSSARY

The Uniform Guidance contains definitions at 2 CFR 200.1, and the definitions provided here do not supersede any definitions in that section.

90/250 Income Requirement – at least 90% of taxpayers represented by an LITC must have incomes which do not exceed 250% of the poverty level or criteria established by the Director of the Office of Management and Budget (OMB). See IRC § 7526(b)(1)(B)(i). The Director of OMB has not established a poverty level or criteria. The Department of Health and Human Services (HHS) publishes annual Federal Poverty Guidelines based on family unit size and geographic location, which are applicable to the LITC Program. For 2026, the Federal Poverty Guidelines were published at 91 Fed. Reg. 1797 (Jan. 15, 2026).

A

Allowable Expenses – expenses chargeable to a grant as a use of federal funds or matching funds in accordance with the cost principles guidance in 2 CFR Part 200 and 2 CFR Part 1000. See also 2 CFR § 200.403. Generally, for an expense to be allowable, the expense must:

n Be necessary and reasonable for the performance of the federal award and be allocable thereto under the

applicable cost principles;

n Conform with any limitations or exclusions set forth in the cost principles or in the Notice of Award;

n Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities

of the grant recipient;

n Be accorded consistent treatment by the grant recipient;

n Be determined in accordance with generally accepted accounting principles, except for state and local

governments and Indian tribes only, as otherwise provided for in the cost principles;

n Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period;

n Be adequately documented; and

n Be incurred during the approved budget period. However, the federal awarding agency is authorized, at its

discretion, to waive prior written approvals to carry forward unobligated balances to subsequent budget periods pursuant to 2 CFR § 200.308(g)(3).

Application – a request for LITC grant funding submitted to the LITC Program Office. When used it is referring to either an LITC New Grant Application or a Continuation Request, depending upon the type of application that the organization needs to complete.

Appropriation – a law authorizing federal agencies to obligate funds and make payments from the U.S. Department of the Treasury for specified purposes. Appropriations are annual acts and permanent law. Until Congress makes an appropriation for the LITC Program, the LITC Program Office may not be able to inform grant recipients of the amount of their funding.

Award – the provision of funds by the LITC Program Office to an organization to carry out activities in support of the LITC mission. It is based on an approved application and budget and is subject to a federal appropriation.

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B

Basis of Accounting – the time at which financial transactions are recorded. There are two primary methods for tracking income and expenses. With accrual basis accounting, income is recorded when earned and expenses are recorded when incurred. With cash basis accounting, income is recorded when received and expenses are recorded when paid.

Budget – the financial plan for the Federal award that the Federal agency approves. For LITC purposes, it also means a request for funds to support an activity, presented by expense category. An initial budget is submitted with the application proposing how the applicant intends to use the funds. If an award is made, the clinic will submit a revised budget with the clinic’s application amendment that is due shortly after the award amount is finalized and the Notice of Award is issued.

C

Case Management System – a system that may be used by grant recipients to capture intake information, calculate client financial eligibility, track case status and outcomes, input case notes, maintain timekeeping records, record educational and outreach activities, and compile data for Interim and Year-End Reports. LITCs are strongly encouraged to use case management software to maintain and monitor client files. An LITC may purchase case management software with grant funds to efficiently track and report its program activities.

Catalog of Federal Domestic Assistance (CFDA) – a governmentwide compendium of federal programs and activities that provide assistance or benefits. See https://sam.gov/content/assistance-listings. The CFDA number for the LITC Program is 21.008.

Clinic Director – a staff member who has overall management responsibility for the clinic. The Clinic Director may also be the QTE or QBA, if qualified. The Clinic Director manages day-to-day clinic operations, prepares or reviews the required clinic reports, and signs reports as the clinic’s authorized representative. The Clinic Director serves as the primary contact person for both the LITC Program Office and the Local Taxpayer Advocate (LTA) office.

Closeout – the process by which the federal awarding agency determines that all applicable administrative actions and all required work of the federal award have been completed and takes actions as described in 2 CFR § 200.344.

Congressional District – an electoral constituency, apportioned by population, which elects a Member of Congress.

Continuing Legal Education (CLE) – an accredited professional educational program for attorneys. CLE is also known as MCLE (Mandatory or Minimum Continuing Legal Education). The number of CLE credit hours will vary by program and is dependent upon state CLE board approval. CLE rules vary by jurisdiction. Some jurisdictions may not allow CLE credit for all types of programs, such as teleconferences or webinars.

Continuing Professional Education (CPE) – an accredited educational program required to maintain a professional license, such as a Certified Public Accountant or Enrolled Agent designation.

Continuation Request – a request for LITC grant funding submitted to the LITC Program Office through the LITC Grants Portal.

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Glossary

D

Demographics – vital or social statistics ( e.g., income, education level, native spoken language) of a group or population of taxpayers within a defined state, county, or geographic regional area.

Digital Accountability and Transparency Act of 2014 (The Data Act) – a law that requires the U.S. Department of the Treasury to establish common standards for financial data provided by all government agencies on the USASpending website to increase transparency in federal expenditures and to make the information more accessible to the public. Among other objectives, the Data Act also aims to simplify reporting for entities receiving federal funds and improve the quality of submitted data.

Direct Costs – costs that can be identified with or allocated specifically to a particular program, such as an LITC Program, with a high degree of accuracy. Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect. For additional information, see 2 CFR § 200.413.

Direct Lobbying – activities supporting the enactment, modification, or adoption of any law, regulation, or policy at any level of government. Direct lobbying includes influencing or attempting to influence a Member of Congress, a state or local legislator, or any of their staff members to take a position or action on a specific piece of legislation or potential legislation. For additional information, see 2 CFR § 200.450.

E

Engagement Letter – an agreement that defines the specific matters for which the LITC will provide representation and protects both the representative and the taxpayer by informing both parties as to the agreement of assigned responsibilities over the course of the professional relationship. Written copies of the engagement letter or retainer agreement signed by both the representative and the taxpayer should be retained by the LITC and a copy should be retained by the taxpayer.

F

Family Unit – for purposes of the 90/250 rule, a family unit is generally defined as an unrelated individual or a family. An unrelated individual is a person 15 years old or over not living with persons related by birth, marriage, or adoption. A family is a group of two or more persons related by birth, marriage, civil union, or adoption who live together. However, if related individuals live together, but the person seeking assistance from the LITC is financially independent, then that person may be treated as a family unit, distinct from relatives in the household. If two unrelated individuals live together, they constitute two family units.

Federal Register – an official daily publication that provides a uniform system for communicating proposed and final regulations and legal notices issued by federal agencies, including announcements of the availability of funds for financial assistance programs.

Fringe Benefits – allowances and services provided by employers to their employees as compensation in addition to regular salaries and wages. Fringe benefits include, but are not limited to, the costs of leave, employee insurance, pensions, and unemployment benefit plans. For additional information, see 2 CFR § 200.431.

G

Grant – a legal instrument of financial assistance between a Federal agency and a recipient to carry out an authorized public purpose.

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I

Indirect Costs – costs that have been incurred for common or joint objectives benefitting more than just the LITC program and that are not readily assignable to the LITC Program.

Intake – a process used by clinic staff to gather information from a taxpayer seeking assistance to determine eligibility for services. LITCs must record the taxpayer’s income information on an intake form (paper or electronic). If the taxpayer is part of a family unit, the income of the family unit should be reported and utilized in the eligibility determination. LITCs must also determine and document the amount in controversy during intake.

Individual Taxpayer Identification Number (ITIN) – a unique nine-digit number used for tax administration purposes that the IRS issues to individuals who are not eligible to obtain a Social Security number (SSN).

L

Local Taxpayer Advocate (LTA) – a delegate of the National Taxpayer Advocate who is a manager in a local jurisdiction and reports to the National Taxpayer Advocate. IRC § 7803(c)(2)(D)(i)(I) requires that each state have at least one LTA who is independent of the local IRS office. Each LTA provides essential guidance and assistance to the LITCs within his or her geographic area or as assigned by the LTA’s manager.

Limited Entry of Appearance – to improve efficiency and to encourage the assistance of unrepresented taxpayers, the U.S. Tax Court has allowed practitioners to enter Limited Entry of Appearance. See Tax Court Rule 24, limited representation means that the legal services provided are limited in scope and duration to less than full representation.

M

Matching Funds – the portion of program costs not funded by federal funds. Grant recipients must provide matching funds on a dollar-for-dollar basis for all LITC grant funds received. See IRC § 7526(c)(5), 2 CFR § 200.1, and § 200.306 for more information. Only funds that are used in direct support of the LITC Program qualify as matching funds. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR § 200.306 (and the U.S. Department of the Treasury’s implementation thereof at 2 CFR § 1000.306) provides that all contributions, including cash and third-party in-kind, shall be accepted as part of the grant recipient’s cost sharing or matching when such contributions:

n Are verifiable from the grant recipient’s records;

n Are not included as contributions for any other federal award;

n Are necessary and reasonable for achieving the program objectives;

n Are allowable under the applicable cost principles;

n Are not paid by the federal government under another award, except where authorized by the program’s federal

statute to be used for cost sharing or matching;

n Are provided for in the approved budget when required by the federal awarding agency; and

n Conform to other applicable provisions of 2 CFR Part 200.

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Glossary

N

National Taxpayer Advocate – the official who supervises and directs the Office of the Taxpayer Advocate. The National Taxpayer Advocate reports directly to the IRS Commissioner and serves as the voice of the taxpayer with the IRS and before Congress.

O

Office of Management and Budget (OMB) – the White House office that oversees the preparation of the federal budget and supervises its administration in Executive Branch agencies. OMB evaluates the effectiveness of agency programs, policies, and procedures, assesses competing funding demands among agencies, and sets funding priorities. OMB ensures that agency reports, rules, testimony, and proposed legislation are consistent with the President’s Budget and with Administration policies.

Operational Review Visit – a site assistance visit conducted by LITC Program Office staff to evaluate a clinic’s overall operations and to provide technical assistance to help the grant recipient maintain compliance with the terms and conditions of the LITC grant. During an operational review visit, an LITC Advocacy Analyst will interview clinic personnel, examine intake procedures, review case management and reporting systems, and sample financial records. An operational review visit may also include observation of clinic facilities and review of procedures and internal controls, personnel policies, training plans, privacy and confidentiality policies, outreach plans and materials, educational curricula, fee policies, and client satisfaction instruments. When monitoring and evaluating clinic activities, the LITC Program Office will respect the clinic’s duty to protect confidential information and will not interfere with the confidential nature of the relationship between qualified representatives and their clients. The LITC Program Office strives to conduct an operational review visit to each clinic at least once every three years. However, the LITC Program Office may conduct an operational review visit at any time.

Orientation Visit – a site assistance visit conducted by LITC Program Office staff to a grant recipient that did not receive a grant in the previous year. An orientation visit generally occurs during the first 120 days of the grant year. An orientation visit provides an opportunity to familiarize a new grant recipient with LITC Program requirements and to measure the progress of its start-up activities. Specifically, an orientation visit allows the LITC Program Office to assess the status of newly funded clinics and to identify potential areas where the grant recipient may need to create systems or improve processes to meet the requirements of the LITC Program.

P

Payment Management System (PMS) – an electronic system maintained by the Department of Health and Human Services that is used to pay federal funds. New grant recipients must create an account with PMS and obtain a username and password to use the system. PMS allows a grant recipient to make an online request for payment of federal funds. After a request is processed and approved, funds are directly deposited into the grant recipient’s bank account through a process called Electronic Funds Transfer (EFT).

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Q

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

Qualified Tax Expert (QTE) – generally, a staff member of the clinic (or a volunteer in the case of the ESL Education Program) with sufficient tax law expertise to oversee technical substantive and procedural tax matters. The QTE must be a qualified representative. The QTE is also responsible for reviewing all educational materials for accuracy before distribution.

R

Representation – acting as an agent of the taxpayer in an advocacy capacity in a matter before the IRS, the U.S. Tax Court, or another federal court, or before a state or local tax authority when the clinic is representing the taxpayer in a related federal tax controversy. Fact finding or advice alone does not constitute representation.

S

Special Appearance Authorization – a letter issued by the Director of the LITC Program Office that authorizes students and law graduates working at an LITC or Student Tax Clinic Program to represent taxpayers before the IRS. Practice under a special appearance authorization is limited to students and law graduates at an LITC or Student Tax Clinic Program working under the direct supervision of an individual authorized to practice before the IRS. For additional information, see Section VI.C.xii, Representing Low-Income Taxpayers.

Standards of Operation – baseline operational requirements developed by the LITC Program Office and applicable to all clinics to ensure that all programs provide consistent and quality service to low-income and English as a second language (ESL) taxpayers.

Support Staff – a group of people within an organization who perform such activities as answering the phone, scheduling appointments, copying materials, maintaining information on employees or volunteers, and maintaining timekeeping records.

Systemic Advocacy – identifying and advocating for issues that impact low-income and ESL taxpayers utilizing a variety of methods, including but not limited to:

n Participating in advocacy projects with professional organizations;

n Commenting on proposed IRS regulations and guidance;

n Preparing and filing an amicus brief to alert a court about the concerns of low-income or ESL taxpayers;

n Authoring articles in scholarly journals or general interest publications;

n Appearing on television or radio to raise awareness about tax issues that affect low-income or ESL taxpayers;

n Producing public service announcements; or

n Submitting issues to the Systemic Advocacy Management System (SAMS), available through the IRS website

at www.irs.gov/advocate/systemic-advocacy-management-system-sams.

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Glossary

T

Tax Compliance Officer (TCO) – an authorized individual responsible for handling the organization’s federal tax matters and with whom the LITC Program Office can address any issues identified during federal tax compliance reviews of applicants and grant recipients. If the applicant is part of a larger organization ( e.g., academic institution that operates a clinic), the LITC Program Office must be able to verify that the sponsoring organization does not have a federal tax compliance issue before awarding grant funds. Applicants must also provide documentation ( e.g., articles of incorporation, Form 2848) that shows the individual identified as the TCO on Form 13424-M is properly authorized to receive tax information to prevent the IRS from making an unauthorized disclosure.

Tax Counseling for the Elderly (TCE) – an IRS initiative designed to promote and support free tax counseling and basic income tax return preparation for individuals aged 60 years or over who cannot afford professional assistance. Cooperative grant agreements are entered into between the IRS and eligible organizations to provide the free tax return preparation assistance.

Tax Return Preparation – an LITC can provide assistance with a federal tax return, a claim for refund, or an ITIN application if such assistance is necessary to resolve a controversy with the IRS or limited preparation may be done when ancillary to an LITC’s ESL education program.

Technical Assistance Consultation – a discussion with a practitioner or other service provider designed to give brief advice about a tax issue.

Third Party In-Kind Contributions – the value of non-cash contributions (property or services) that benefit a project or program funded by a federal award and are contributed by a non-federal third party, without charge, to the grant recipient. Third-party in-kind contributions may be in the form of goods, office space, or services donated to the LITC.

U

Unallowable Expenses – expenses for which LITC grant funds may not be used according to restrictions published by OMB, the LITC Program Office, appropriations language, or conditions outlined in the grant recipient’s Notice of Award.

Underserved Area – an identifiable geographic area where the need for LITC services exceeds the capacity available from current grant recipients.

Uniform Guidance – comprehensive principles issued by OMB that provide guidance relating to the administration of federal grant awards. Grant award administrative requirements are set forth in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR Part 200 (and U.S. Department of the Treasury has implemented those requirements at 2 CFR Part 1000). The Uniform Guidance helps ensure the highest integrity in the financial management and operation of federal grant programs and strengthens accountability for federal funds by improving policies that protect against waste, fraud, and abuse. In addition, the guidance aims to minimize the time applicants and grant recipients must spend complying with administrative requirements.

Unique Entity Identifier (UEI) – the official identifier for doing business with the government and is assigned and managed through the System for Award Management (SAM.gov). The UEI replaced the Data Universal Numbering System (DUNS) number.

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Unused Funds – the portion of grant funds awarded to clinics that has not been spent, whether or not those funds have been drawn down from PMS. If a grant recipient determines that it will not spend its entire award, the grant recipient should immediately notify the LITC Program Office.

V

Volunteer Income Tax Assistance (VITA) – an IRS initiative designed to promote and support free tax return preparation service for the underserved through various community partner organizations. This service helps low- to moderate-income individuals, persons with disabilities, the elderly, and limited English speakers file their tax return each year. The IRS awards matching funds to these support organizations that offer free tax return preparation services during the tax filing season at locations in all 50 states and the District of Columbia.

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www.TaxpayerAdvocate.irs.gov/LITC

Publication 3319 (Rev. 5-2026) Catalog Number 26939S Department of the Treasury Internal Revenue Service www.irs.gov