I.R.C. § 7526(a) In General
The Secretary may, subject to the availability of appropriated funds, make grants
to provide matching funds for the development, expansion, or continuation of qualified
low-income taxpayer clinics.
I.R.C. § 7526(b) Definitions
For purposes of this section--
I.R.C. § 7526(b)(1) Qualified Low-Income Taxpayer Clinic
I.R.C. § 7526(b)(1)(A) In General
The term “qualified low-income taxpayer clinic”
means a clinic that--
I.R.C. § 7526(b)(1)(A)(i)
does not charge more than a nominal fee for its services (except for reimbursement
of actual costs incurred);
I.R.C. § 7526(b)(1)(B) Representation Of Low-Income Taxpayers
A clinic meets the requirements of subparagraph (A)(ii)(I) if--
I.R.C. § 7526(b)(1)(B)(i)
at least 90 percent of the taxpayers represented by the clinic have incomes which
do not exceed 250 percent of the poverty level, as determined in accordance with
criteria established by the Director of the Office of Management and Budget; and
I.R.C. § 7526(b)(1)(B)(ii)
the amount in controversy for any taxable year generally does not exceed the amount
specified in section 7463.
I.R.C. § 7526(b)(2) Clinic
The term “clinic” includes--
I.R.C. § 7526(b)(2)(A)
a clinical program at an accredited law, business, or accounting school in which
students represent low-income taxpayers in controversies arising under this title;
I.R.C. § 7526(b)(2)(B)
an organization described in section 501(c) and exempt from tax under section 501(a) which satisfies the requirements of paragraph (1) through representation of taxpayers or referral of taxpayers to qualified representatives.
I.R.C. § 7526(b)(3) Qualified Representative
The term “qualified representative” means any individual (whether or not an attorney)
who is authorized to practice before the Internal Revenue Service or the applicable
I.R.C. § 7526(c) Special Rules And Limitations
I.R.C. § 7526(c)(1) Aggregate Limitation
Unless otherwise provided by specific appropriation, the Secretary shall not allocate
more than $6,000,000 per year (exclusive of costs of administering the program) to
grants under this section.
I.R.C. § 7526(c)(2) Limitation On Annual Grants To A Clinic
The aggregate amount of grants which may be made under this section to a clinic
for a year shall not exceed $100,000.
I.R.C. § 7526(c)(3) Multi-Year Grants
Upon application of a qualified low-income taxpayer clinic, the Secretary is authorized
to award a multi-year grant not to exceed 3 years.
I.R.C. § 7526(c)(4) Criteria For Awards
In determining whether to make a grant under this section, the Secretary shall consider
I.R.C. § 7526(c)(4)(A)
the numbers of taxpayers who will be served by the clinic, including the number of
taxpayers in the geographical area for whom English is a second language;
I.R.C. § 7526(c)(4)(C)
the quality of the program offered by the low-income taxpayer clinic, including the
qualifications of its administrators and qualified representatives, and its record,
if any, in providing service to low-income taxpayers; and
I.R.C. § 7526(c)(4)(D)
alternative funding sources available to the clinic, including amounts received from
other grants and contributions, and the endowment and resources of the institution
I.R.C. § 7526(c)(5) Requirement Of Matching Funds
A low-income taxpayer clinic must provide matching funds on a dollar-for-dollar basis
for all grants provided under this section. Matching funds may include--
I.R.C. § 7526(c)(5)(A)
the salary (including fringe benefits)
of individuals performing services for the clinic; and
I.R.C. § 7526(c)(5)(B)
the cost of equipment used in the clinic.
Indirect expenses, including general overhead of the institution sponsoring the clinic,
shall not be counted as matching funds.
I.R.C. § 7526(c)(6) Provision Of Information Regarding Qualified Low-Income Taxpayer Clinics
Notwithstanding any other provision of law, officers and employees of the Department
of the Treasury may—
I.R.C. § 7526(c)(6)(A)
advise taxpayers of the availability of, and eligibility requirements for receiving,
advice and assistance from one or more specific qualified low-income taxpayer clinics
receiving funding under this section, and
I.R.C. § 7526(c)(6)(B)
provide information regarding the location of, and contact information for, such clinics.
(Added Pub. L. 105-206, title III, Sec. 3601(c), July 22, 1998, 112 Stat 685; Pub. L. 116-25, title I, Sec. 1402(a), July 1, 2019, 133 Stat. 981.)
Subsec. (c)(6). Pub. L. 116-25, title I, Sec. 1402(a), added par.(6).
EFFECTIVE DATE OF 2019 AMENDMENT
Amendment by Pub. L. 116-25, title I, Sec. 1402(a), effective on the date of the enactment of this Act [Enacted:
July 1, 2019].
Section 3601(c) of Pub. L. 105-206 provided that this section take effect on the date of enactment [Enacted: July 22,