A. ELIGIBLE APPLICANTS

IRC § 7526 broadly defines the concept of a clinic to include:

1. A clinical program at an accredited law, business, or accounting school whose students represent low-income taxpayers in controversies with the IRS under the supervision of a qualified representative (and when necessary, refer to qualified volunteers to provide representation when the students cannot do so);

2. An organization whose employees and volunteers represent low-income taxpayers in controversies with the IRS;

3. An organization exempt from tax under IRC § 501(a) whose employees and volunteers represent low-income taxpayers in controversies with the IRS or refer low-income taxpayers to qualified representatives to provide representation;

4. An organization described in Examples 1-3 that also operates a program to inform ESL taxpayers about their taxpayer rights and responsibilities under the IRC; and

5. An organization that operates a program to inform ESL taxpayers about their taxpayer rights and responsibilities under the IRC.

While IRC § 7526 provides that an organization is eligible to receive a matching grant if it either represents lowincome taxpayers in controversies with the IRS or operates an ESL taxpayer education program, the mission of the LITC Program is best served by requiring all organizations to provide both services. Organizations that can provide both controversy and education services are generally stronger and able to serve taxpayers more effectively. For example, organizations sometimes assist taxpayers initially through outreach and education and later through representation in a controversy; in these cases, the ability to provide both services not only ensures seamless assistance for taxpayers but also provides extensive protection of taxpayer rights. Thus, the Program Office will award funds only to an organization that is operating a program to inform ESL individuals in addition to providing representation to low-income taxpayers. The only exception is the ESL Education Program, under which a grant may be awarded solely to operate a program that informs ESL taxpayers about their taxpayer rights and responsibilities.