The IRS has a program where they give out grants to organizations who advocate for taxpayers. These Low Income Taxpayer Clinics (LITC) can receive up to $100k per year, and work independently helping people who are seeking assistance from tax law enforcement across America! In 2021, LITC Program awarded over $12 million in grants to 130 organizations across 47 states and DC!
The low income taxpayer clinics represent individuals whose incomes are generally at or below 250% of the federal poverty guideline and who are seeking to resolve tax problems with the IRS, such as audits, appeals and tax collection disputes.
What are latest federal poverty guidelines? Posted on HealthCare.gov, the federal poverty level (FPL) income numbers for 2021 are listed below. Unfortunately, this means those who make more than these levels can't receive help from low income clinics.
$12,880 for individuals x 250% = $32,200
$17,420 for a family of 2 x 250% = $43,550
$21,960 for a family of 3 x 250% = $54,900
$26,500 for a family of 4 x 250% = $66,250
$31,040 for a family of 5 x 250% = $77,600
$35,580 for a family of 6 x 250% = $88,950
$40,120 for a family of 7 x 250% = $100,300
$44,660 for a family of 8 x 250% = $111,650
How many taxpayers have received assistance from LITCs? The low income clinics have represented nearly 20,000 taxpayers, this is wonderful news, especially reading about the taxpayer mentioned in the article who was helped. However, consider the latest IRS SOI Tax Stats - IRS Data Book, there were 8,426,950 taxpayers who received delinquency notices and 687,427 taxpayers who experienced IRS enforcement actions like liens and levies, even property seizures in 2020 alone.
We can help all taxpayers but especially those who can't get help from LITC due to limited staff or income. If you are experiencing any IRS or state tax agency enforcement action or know of anyone who is, share this post with them or reach out to us. You can also visit https://www.lenoreinc.com/taxdebtfreedom to learn about our all-inclusive service that resolves tax debt and reduces or eliminates taxes for next year and beyond.
Low Income Taxpayer Clinics exist for the taxpayer, and so do we!
IRS encourages LITC applications in the following states. The IRS is currently seeking applications from qualified organizations that want to establish Low Income Tax Credit (LITC) programs in the states indicated in the map below, as there are currently no LITCs established in these states.