B. HISTORY OF THE LITC PROGRAM

The LITC Program was established in 1998 as part of the IRS Restructuring and Reform Act of 1998 to authorize funding for the LITC Program. ⁴ The IRS created the LITC Program Office in 1999 to manage and administer the grants and provide guidance, assistance, and oversight to LITCs and prospective applicants. The LITC Program Office operates under the Office of the Taxpayer Advocate (commonly referred to as TAS). TAS is led by the National Taxpayer Advocate, who reports to the IRS Commissioner.

In 1999, the IRS issued grants totaling nearly $1.5 million to 34 entities in 18 states and the District of Columbia. The LITC Program has since expanded its coverage, and in 2026, there are 138 clinics funded with nearly $20 million. The LITC Program Office’s history of recruiting qualified federal grant recipients has fostered the growth of a nationwide network of independent organizations working toward a common purpose in their local communities. The maximum statutory award amount of $100,000 per clinic had remained constant since the creation of the program until the passage of the 2023 Appropriations legislation, when it was increased to $200,000 for that year. That increase has been continued in subsequent appropriations acts. Despite the general funding limitations, LITCs have consistently delivered tremendous results, new clinics join each year, and the program continues to expand coverage into underserved areas of the country.

4 See IRS Restructuring and Reform Act of 1998, Pub. L. No. 105-206, § 3601, 112 Stat. 685, 774 (July 22, 1998).

LOW INCOME TAXPAYER CLINICS 3