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Low Income Taxpayer Clinic
> Access to Representation
Pack age and Guidelines
L ow Income Taxpayer Clinics ensure the fairness and
integrity of the tax system by educating low income
taxpayers about their rights and responsibilities, by
providing pro bono representation to taxpayers in tax
disputes with the IRS, by conducting outreach and
education to taxpayers who speak English as a second
language, and by identifying and advocating for issues
that impact low income taxpayers.
2012 Grant Application
> Outreach and Education for Taxpayers
Who Speak English as a Second Language
IMPORTANT CONTACT INFORMATION
LITC PROGRAM MANAGEMENT CONTACTS
Grant Program Office
Internal Revenue Service
Office: 202-622-4711
Taxpayer Advocate Service
E-Fax – 877-477-3520
LITC Program Office
E-mail: [email protected]
Attention:
TA:LITC, Room 1034
1111 Constitution Ave., NW
Washington, DC 20224
Hours of Operation: 8:00 a.m. – 4:30 p.m. EST
LITC Grant Program on IRS.gov
http://www.taxpayeradvocate.irs.gov/Tax-Professionals/Low-Income-Taxpayer-Clinics
Dun and Bradstreet Data Universal Numbering Systems (DUNS) Number
866-705-5711
http://fedgov.dnb.com/webform
Central Contractor Registration (CCR)
www.ccr.gov
Online Grant Announcement and Application Submission
www.grants.gov
Department of Health and Human Services (HHS) Payment Management System
www.dpm.psc.gov
Current Poverty Guidelines
http://aspe.hhs.gov/poverty/
Definition of Income per U.S. Bureau of the Census
http://www.census.gov/population/www/cps/cpsdef.html
Civil Rights Reporting
Director, Civil Rights Division (External Civil Rights Team)
202-927-0180
Office of Management and Budget (OMB)
http://www.whitehouse.gov/omb/circulars_index-ffm
IRS CONTACTS
Taxpayer Advocate Service
http://www.taxpayeradvocate.irs.gov
Tax Forms
http://www.irs.gov/formspubs/index.html?portlet=3
Federal Tax Compliance Verification (Internal Revenue Service)
877-829-5500
IRS Tax Exempt and Government Entities Customer Service Line
877-829-5500
http://www.irs.gov/charities/article/0,,id=156733,00.html
General IRS Information
800-829-1040
Becoming an IRS Partner to Help in Your Community
http://www.irs.gov/individuals/article/0,,id=119374,00.html
Obtaining a Special Order for Student Practice
Rita C. Barnett
IRS Office of Professional Responsibility
202-622-3530
UNITED STATES TAX COURT CONTACTS
Tax Court Pro Bono Program
http://www.ustaxcourt.gov/clinics.htm
How to Gain Admission to Practice Before the Tax Court
See Tax Court Rule 200, available at www.ustaxcourt.gov
MAY 2011
Dear Prospective Low Income Taxpayer Clinic Grant Applicant:
I am pleased to announce the opening of the 2012 Low Income Taxpayer Clinic
(LITC) grant application period, which runs through July 15, 2011. The Taxpayer
Advocate Service (TAS) is committed to enhancing the LITC Program’s quality
and coverage.
We have incorporated substantial revisions to Publication 3319 this year. We listened
to the comments and suggestions offered by those working in the clinics and the LITC
Program Office staff to improve both the application and reporting processes. The
Program Office conducted extensive research and collaborated with LITCs to develop
performance measures. The required performance measures have been incorporated
into the Publication. They will serve to better identify issues faced by low income taxpayers and will assist clinics in identifying best practices.
In addition to the changes made to the Publication, the Program Office has adopted
some policy changes as well. To assist new clinics with their standup and first year
of operation, the LITC Program Office will now schedule Orientation visits with all
new clinics, followed by an Operational Review and Assistance visit within the first
year to evaluate the clinics’ progress.
Clinics are required to provide a dollar-for-dollar match for all grant funds received.
The Program Office has reviewed its policies on eligible matching funds and has
determined that clinics may use Legal Services Corporation grants as matching funds.
Some of the specific improvements include:
Revising the Interim and Year-End Report Forms to help clinics better
capture the nature of their work;
Providing a Glossary of Terms to assist in understanding the guidelines
outlined in this Publication; and
Providing line item instructions for completing Standard Forms 424 and
424A to address questions received by the Program Office this past year.
We are pleased that we have funded at least one clinic in all 50 states, the District
of Columbia and Puerto Rico during the 2011 grant cycle. The Taxpayer Advocate
Service remains committed to achieving maximum access to representation for low
income taxpayers under the terms of this grant program. Thus, in awarding 2012
LITC grants, we will continue to work toward the following program goals:
Ensuring that each state (plus the District of Columbia and Puerto Rico)
continues to be served by at least one clinic; and
Ensuring that grant recipients demonstrate that they are serving geographic
areas that have sizable populations eligible for and requiring LITC services.
To better identify areas most in need of LITC services, the Program Office has again
evaluated the areas serviced. Based on the findings of this assessment, we are
particularly interested in organizations that meet at least one of the following criteria:
(1) organizations currently receiving a grant for the 2011 cycle, or (2) organizations
servicing the following areas (whether or not they are receiving a grant for 2011):
Target Metropolitan Areas for New Clinic Applications
Los Angeles, California, including the following counties:
Los Angeles, Kern, Riverside, Ventura
Sacramento, California, including the following counties:
El Dorado, Placer, Sacramento, San Joaquin, Stanislaus
Philadelphia, Pennsylvania, including the following counties:
Berks, Delaware, Philadelphia
St. Louis, Missouri, including the following counties:
Cape Girardeau, Jefferson, St. Francois, St. Louis
Target States for New Clinic Applications
Nebraska, Montana, Wyoming
We also encourage existing clinics to consider expanding their services to cover
these areas, where possible.
Although we are proud to be funding at least one clinic in each state, the District
of Columbia and Puerto Rico, not all clinics offer both controversy services and
outreach and education services to English as a second language (ESL) taxpayers. An overriding goal of the Taxpayer Advocate Service is to provide both types
of services in each state, the District of Columbia and Puerto Rico. To that end,
we are also interested in applications from clinics in target states that currently lack
either controversy or ESL services. During the 2011 grant cycle, all states receive
controversy funding, however the following states are in need of an ESL program:
Target States for New ESL Applications
Connecticut, Kentucky, Montana, New Mexico, South Dakota
Notwithstanding the criteria detailed above, all applications for clinics from all areas
will receive serious consideration.
The LITC Program Office may award grants to qualifying organizations to fund oneyear to three-year project periods. Any clinic currently receiving an LITC grant that
does not expect to use all of its funds must contact the LITC Program Office immediately so that other clinics and taxpayers may benefit from those funds. Moreover, any
2
Low Income Taxpayer Clinic
clinic currently receiving a grant that does not intend to apply for a 2012 grant must
notify the LITC Program Office immediately so we can solicit coverage of that service
area by other applicants.
An organization awarded a grant for providing controversy services must have at least
90 percent of the taxpayers represented or referred with incomes that do not exceed 250
percent of the Federal Poverty Guidelines. The LITC Income Guidelines were recently
updated on January 20, 2011 and can be found in section II.D.ii.a of this Publication.
This package contains current program guidelines, eligibility criteria, application materials, instructions on how to file an application, and detailed reporting requirements. The
cost of preparing and submitting an application is the responsibility of each applicant.
To be considered for 2012 LITC Program grant funding, all applications must be
submitted by July 15, 2011. Applications may be submitted either electronically
via www.grants.gov or in hard copy by U.S.P.S. mail, private delivery service, or
hand delivery to:
Internal Revenue Service
Taxpayer Advocate Service - LITC Program Office
Attention: LITC Applications
TA:LITC, Room 1034
1111 Constitution Ave., NW
Washington, DC 20224
The LITC Program Office will notify each applicant whether it will be awarded a
grant no later than November 28, 2011.
If you have questions about the LITC Program or grant application process,
please contact the LITC Program Office at 202-622-4711 or by e-mail at
[email protected].
I appreciate your interest in the LITC Program and look forward to working with the
2012 Low Income Taxpayer Clinic grantees to improve the fairness and quality of
federal tax administration.
Sincerely,
Nina E. Olson
National Taxpayer Advocate
3
GENERAL TABLE OF CONTENTS
I Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
A Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
B What is Included in Publication 3319? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
C Contacting the Program Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
D What’s New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
E LITC Program Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
II Applying For A Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
A Administrative / Eligibility Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
B LITC Grant Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
C Standards of Operation for All Clinics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
D Standards of Operation for Controversy Clinics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
E Standards of Operation for ESL Clinics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
F Office of Management and Budget (OMB) Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
G Matching Funds Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
H Managing Grant Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
I Grant Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
J Assurances & Certifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
K Completion of the LITC Program Grant Application Package . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
L LITC Program Grant Application Assembly and Submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
M Selection of Grant Recipients and Award Notification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
N Payments to LITC Program Grantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
III Post Award Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
A Grantee Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
B Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
IV LITC Program Office Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
A General Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
B Site Visits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
DETAILED TABLE OF CONTENTS
I Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
A Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
B What is Included in Publication 3319? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
C Contacting the Program Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
D What’s New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
E LITC Program Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
i History of the LITC Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
ii Overview of IRC § 7526 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
II Applying For A Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
A Administrative / Eligibility Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
i Core Term Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
ii Matching Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
iii Startup Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
iv Fees 13
B LITC Grant Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
i Single-Year Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
ii Multi-Year Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
iii Termination of a Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
C Standards of Operation for All Clinics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
i Required Staff Positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
ii General Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
D Standards of Operation for Controversy Clinics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
i Controversy Representation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
ii 90/250 Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
a Poverty Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
b Definition of Income for Purposes of the 90/250 Requirement . . . . . . . . . . . . . . . . . . . 24
c Definition of Family Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
iii Amount in Controversy Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
iv Tax Return Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
v Registration with the United States Tax Court Pro Bono Program . . . . . . . . . . . . . . . . . . . . . 25
DETAILED TABLE OF CONTENTS
E Standards of Operation for ESL Clinics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
i Identifying a Target Audience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
ii Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
iii Tax Return Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
F Office of Management and Budget (OMB) Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
G Matching Funds Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
H Managing Grant Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
i Accessing Grant Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
ii Maintaining Funds in an FDIC Insured Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
iii Interest on Advances of Grant Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
iv Adjustments to Program Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
v Non-Use of Grant Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
vi Allowable/Unallowable Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
I Grant Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
J Assurances & Certifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
i OMB Circular A-133 Audit Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
ii Civil Rights Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
iii Civil Rights Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
iv Assurance of Compliance with Lobbying Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
v Trafficking Victims Protection Act of 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
vi Federal Funding Accountability and Transparency Act (FFATA) (2 CFR Part 170) . . . . . . 42
vii Central Contractor Registration and Universal Identifier Requirements . . . . . . . . . . . . . . . 42
viii Other Applicable Laws and Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
K Completion of the LITC Program Grant Application Package . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
i LITC Program Grant Application Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
ii Application for Federal Assistance, Standard Form 424 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
iii Background Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
iv Program Performance Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
v Budget/Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
vi Completing the Standard Form 424A, Budget Information – Non-Construction Programs . . 54
vii Completing the Detailed Budget Worksheet and Narrative . . . . . . . . . . . . . . . . . . . . . . . . . . 59
L LITC Program Grant Application Assembly and Submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
M Selection of Grant Recipients and Award Notification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
i Eligibility Screening . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
ii Evaluation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
a Technical Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
b Program Office Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
DETAILED TABLE OF CONTENTS
iii Notification of Award Decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
N Payments to LITC Program Grantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
III Post Award Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
A Grantee Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
i Student Representation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
ii Changes in LITC Program Award-Supported Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
iii LITC Contact Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
iv LITC Program Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
v Withdrawal from LITC Program or Termination of Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
vi Client Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
B Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
i Interim Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
a Interim Financial Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
b Interim Program Narrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
ii Year-End Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
a Year-End Financial Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
b Year-End Program Narrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
IV LITC Program Office Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
A General Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
B Site Visits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Paperwork Reduction Act Notice:
This application package is provided for awards under the Low Income Taxpayer Clinic Grant Program. The
information is requested from the applicants in order to determine their eligibility for an LITC grant and
evaluate their grant proposals. Applicants are not required to respond to this collection of information unless
it displays a currently valid OMB number. The estimated average burden associated with this collection
of information is 60 hours per respondent for program sponsors and 2 hours for student and program
participants. Comments concerning the accuracy of this burden estimate and suggestions for reducing
this burden should be directed to the IRS, Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP,
1111 Constitution Ave., NW, IR-6526, Washington, DC 20224. Do not send grant application forms to this
address. Grant applications should be sent to: Internal Revenue Service, Taxpayer Advocate Service, LITC
Program Office, TA:LITC, Room 1034, 1111 Constitution Ave., NW, Washington, DC 20224.
Catalog of Federal Domestic Assistance Number: 21.008 OMB Approval No. 1545-1648
I
INTRODUCTION
A. Mission Statement
Low Income Taxpayer Clinics (LITCs) ensure the fairness and integrity of the tax system by educating low income taxpayers about their rights and responsibilities, by providing pro bono representation to taxpayers in tax disputes with the IRS, by conducting outreach and education to taxpayers who speak English as a second language
(ESL), and by identifying and advocating for issues that impact low income taxpayers.
Important Dates for LITC Grantees in the 2012 Grant Cycle
Application period
May 31 – July 15, 2011
Program Office review and evaluation
August – October 2011
Notification of selection/non-selection
November 2011
Program period
January 1, 2012 – December 31, 2012
Interim report due
July 31, 2012
Year-End report due
April 1, 2013
B. What Is Included In Publication 3319?
Publication 3319 outlines requirements for operating a qualified Low Income
Taxpayer Clinic under Internal Revenue Code (IRC) § 7526. This publication
contains:
i. eligibility requirements, including mandatory assurances and certifications;
ii. standards of operation;
iii. application forms and instructions; and
iv. reporting forms and instructions.
This publication, including the accompanying Appendixes, should be retained for
future reference.
C. Contacting The Program Office
Potential applicants may direct questions concerning the LITC Program or the
application process to the LITC Program Office via:
E-mail: [email protected];
Phone: (202) 622-4711 (not a toll-free number); or
8
Low Income Taxpayer Clinic
Mail:
Internal Revenue Service
Taxpayer Advocate Service
LITC Program Office
TA:LITC, Room 1034
1111 Constitution Ave., NW
Washington, DC 20224.
Grantees should direct questions about reporting or program requirements
directly to their assigned Advocacy Analyst.
D. What’s New
There are many changes throughout this year’s Publication 3319. We have
simplified the application process, provided more instructions on the reporting
requirements, and incorporated many of the comments and suggestions we
received from clinics and the Program Office staff about how to improve the
program. Some of these improvements are:
P
erformance Measures – The Program Office has developed performance measures and integrated them throughout the Publication. These
measures were developed in consultation with a team of LITCs, and the
Program Office has used them to reorganize and rationalize both the application and reporting processes.
More Program Office Staff – The Program Office has added additional
staff to assist in program administration. The staff has grown at all levels
and we will be able to offer more support and assistance to grantees.
Legal Services Corporation (LSC) Funds – The Program Office has
reviewed its policies on eligible matching funds and has determined that
clinics may use Legal Services Corporation grants as matching funds.
Glossary – This package now contains a glossary of terms used
throughout the Publication. The definitions are useful in understanding
program standards and complying with the reporting requirements.
New Reporting Forms – The Program Office has revised the reporting
forms used by grantees to report on successes and challenges. At the
time of the printing of this Publication, the forms are still undergoing
modifications, however the forms will be distributed in advance of the
2012 grant cycle.
Orientation Visits – The Program Office staff will conduct an Orientation
visit to assist clinics with their standup and first year. An Orientation visit
will be scheduled with all new clinics within the first 120 days of the grant
cycle. An Operational Review and Assistance visit will take place subsequent to the Orientation visit. (More information on Operational Review
and Assistance visits can be found in section IV.B, Site Visits.).
9
E. LITC Program Overview
i. History Of The LITC Program
As part of the Internal Revenue Service (IRS) Restructuring and Reform Act
of 1998 (RRA’98), Congress authorized funding for the LITC grant program.
The program is designed to provide access to representation for low income
taxpayers, so that achieving a correct outcome in an IRS dispute does not
depend on the taxpayer’s ability to pay for representation, and to encourage
the creation of programs to inform individuals for whom English is a second
language about their rights and responsibilities as taxpayers.
The IRS created the LITC Program Office in 1999 to provide oversight, guidance,
and assistance to LITC grantees and prospective applicants. In 2003, the LITC
Program Office was transferred from the IRS Wage and Investment (W&I) operating division to the Taxpayer Advocate Service (TAS). The Director of the LITC
Program Office reports directly to the National Taxpayer Advocate.
In 1999, grants were awarded to 34 clinics. As of 2011, there are 165 clinics
funded through the LITC Program, with at least one in each of the 50 states, the
District of Columbia and Puerto Rico.
ii. Overview of IRC § 7526
IRC Section 7526, enacted by the RRA’98, authorizes the Secretary of the
Treasury to award matching grants of up to $100,000 per year to qualifying
organizations that represent low income taxpayers involved in controversies
with the IRS and conduct outreach and education to ESL taxpayers. Education
and outreach to low income taxpayers about their rights and responsibilities as
taxpayers is an integral part of these activities.
Low income status is determined by reference to the Federal Poverty Guidelines, which are updated annually by the Department of Health and Human
Services (HHS) (usually in January). The current LITC Income Guidelines can
be found in section II.D.ii.a, Poverty Guidelines, of this publication.
Grant awards may cover periods of up to three years duration. Funding is
provided for one-year periods, subject to the availability of annually appropriated
funds. The grant cycle begins on January 1 and ends on December 31. With
respect to multi-year grant awards, the second and third years will be funded
subject to satisfactory performance, compliance with grant terms, and availability
of appropriated funds. All grant funds awarded to a grantee must be used for the
LITC program specifically authorized in the award letter.
10
Low Income Taxpayer Clinic
II
APPLYING FOR A GRANT
A. Administrative / Eligibility Requirement
To receive an LITC grant, an organization must be a qualified clinic that
represents low income individual taxpayers in controversies with the IRS
or operates programs to inform ESL taxpayers about their rights and
responsibilities as U.S. taxpayers. Additionally, qualified clinics must offer
services for free or for no more than a nominal fee.
A clinic may provide qualifying LITC services within a broader spectrum of activity.
A clinic may provide representation in nontax matters as well as representation in
tax matters as long as LITC grant funds are used only to support the representation in tax matters.
A clinic may not make a subgrant of LITC grant funds to another organization. A
subgrant is a payment to carry out a controversy or ESL program as compared to
a payment for providing goods and services to the grantee. For example, a clinic
may not pay another organization to prepare and conduct its ESL educational
activities, although the clinic could pay a firm to translate its educational materials
into another language.
At the time this publication is being issued, federal law prohibits the award of LITC
funds to the Association of Community Organizations for Reform Now (ACORN) or
any of its subsidiaries. This prohibition may be lifted by fiscal year 2012 appropriations. Contact the Program Office for up-to-date information about this prohibition.
i. Core Term Definitions
The term “clinic” includes, but is not limited to:
A clinical program at an accredited law, business or accounting school in
which students represent low income taxpayers in controversies with the IRS;
An organization that operates programs to inform ESL taxpayers about
their rights and responsibilities as U.S. taxpayers; and
An organization described in IRC § 501(c) and exempt from tax under
IRC § 501(a) that either directly represents taxpayers or refers taxpayers
to qualified representatives.
A “taxpayer” eligible for assistance from a clinic is an individual rather than
an entity. However, if the individual owns a sole proprietorship, and the
sole proprietorship has a tax controversy (e.g., employment tax, excise tax),
a clinic may provide assistance with the tax controversy, as the individual
is ultimately the taxpayer responsible for the tax liability. Similarly, if an
11
individual is the sole shareholder in an S corporation and the S corporation
has a tax controversy which impacts the individual’s income tax liability, the
clinic may provide assistance.
A “controversy” is a dispute between a taxpayer and the IRS concerning the
amount or collection of a federal tax liability.
To “represent” a taxpayer in a controversy means to act as an agent of
the taxpayer in an advocacy capacity in a matter before the IRS, the United
States Tax Court, or other federal court.
A “one-on-one consultation” is a discussion with a taxpayer designed to
provide advice or counsel about a specific tax matter that does not result in
representation of the taxpayer.
A “program to inform” is one in which the clinic educates ESL taxpayers about
their rights and responsibilities as U.S. taxpayers. Education activities may be
conducted to a group of taxpayers or through one-on-one consultations.
The “referral” activity for which grant funds may be spent is the referral of low
income taxpayers to a pro bono panel.
A “pro bono panel” consists of qualified representatives, nonprofit entities or
other organizations that do not charge for representing low income taxpayers.
A “qualified representative” is an individual who is authorized to practice before the IRS (e.g., attorney, certified public accountant, enrolled
agent) or applicable court. All controversy programs must have a staff
member who is admitted to practice before the United States Tax Court
or a pro bono panel member who is admitted to practice before the Tax
Court and to whom the clinic can refer litigation matters. All ESL programs must maintain a pro bono panel or have an arrangement with an
LITC that provides representation services to which taxpayers with controversy matters can be referred. See Tax Court Rule 200, available at
www.ustaxcourt.gov for information about gaining admission to practice
before the Tax Court.
ii. Matching Funds
The LITC Program is a matching grant program. All grantees must provide
matching funds on a dollar-for-dollar basis for all federal funds received from
the LITC Program. Only funds that are used in support of the LITC Program
qualify as matching funds.
12
Low Income Taxpayer Clinic
The Uniform Administrative Requirement for Grants and Agreements With
Institutions of Higher Education, Hospitals, and Other Non-profit Organizations, 2 CFR Part 215 (formerly OMB Circular A-110), states that all contributions, including cash and third-party in-kind, shall be accepted as part of the
grantee’s cost sharing or matching when such contributions:
Are verifiable from the (grantee’s) records;
Are not included as contributions for any other federally assisted project
or program;
Are necessary and reasonable for proper and efficient accomplishment
of project or program objectives;
Are allowable under the applicable cost principles;
Are not paid by the federal government under another award, except where
authorized by the federal statute to be used for cost sharing or matching;
Are provided for in the approved budget when required by the federal
awarding agency; and
Conform to other provisions of [2 CFR Part 215], when applicable.
For more detailed information regarding the matching fund requirement, see
section II.G, Matching Funds Requirement.
iii. Start-up Expenses
Start-up operations qualify for grant funding. A clinic may be awarded an
LITC grant although it anticipates that it will not begin serving taxpayers
until after the close of the grant cycle for which the grant is awarded. Such
applicants still must satisfy the statutory matching funds requirement during
the year covered by the grant and must meet all reporting requirements to
provide information on the status of the start-up. In addition, LITC grants to
these applicants will be conditioned on the conduct of qualifying activities
during the immediately succeeding grant cycle.
iv. Fees
IRC § 7526 provides that a clinic must not charge more than a nominal fee
for clinic services, in addition to reimbursement of actual costs incurred (e.g.,
photocopying and court costs). If a clinic is charging a fee, the clinic must
charge that same fee to everyone, regardless of the services being sought.
Remember: The goal of the LITC Program is to enhance access to
legal services for low income taxpayers. If the amount that a clinic
charges results in fewer taxpayers served, the goal of the Program is
not being achieved and that amount is not nominal.
13
A clinic may not charge a separate or additional fee (even if it is nominal) for the
preparation of a tax return (except for reimbursement of actual costs incurred,
e.g., photocopying).
B. LITC Grant Agreement
Awardees will execute a grant agreement with the IRS which incorporates by reference the requirements specified in this publication. All funding will be based on
the availability of IRS annually appropriated funds.
The IRS is authorized to award grants to provide matching funds for the development, expansion, or continuation of qualified LITCs.
Any clinic currently receiving an LITC grant that does not expect to use all of its
funds must contact the LITC Program Office immediately. The LITC Program Office must reobligate the funds no later than September 30 of the grant year.
i. Single-year Grants
All applicants may apply for a single-year grant. New clinics are only eligible
for a single year of grant funding.
ii. Multi-year Grants
The LITC Program may award grants for up to a three-year grant cycle to
clinics evaluated under the award process. Awarding of multi-year grants is
at the discretion of the LITC Program Office. Thus, applicants that apply for a
multi-year grant may be awarded a single-year grant. Clinics awarded multiyear grant based on acceptance of their program performance plans will be
permitted to submit an abbreviated application for the second- and third-year
selection and award process. However, multi-year awardees will be reviewed
annually for satisfactory performance and progress in meeting goals and objectives as well as compliance with grant terms. The funding level for subsequent years will be reviewed annually and may be increased or decreased at
the discretion of the LITC Program Office, and is subject to the availability of
funds annually appropriated for the LITC Program.
iii. Termination of a Grant
IRC § 7526 does not require the IRS to provide grant recipients an opportunity
for hearing or appeal. Although the LITC program generally adheres to 2 CFR
Part 215 (formerly Circular A-110), the provision in 2 CFR § 215.62(b) regarding hearings and appeals does not apply to LITC grant recipients. 2 CFR
Part 215 requires only that an awarding agency provide grant recipients with
14
Low Income Taxpayer Clinic
an opportunity for a hearing, appeal, or other administrative proceeding if the
statute or regulation authorizing the particular grant program provides for one.
Therefore, the necessity for renegotiation, suspension, or termination of a
grant agreement will be determined solely by the IRS and will not be subject
to appeal. Terminations of grant agreements shall be handled in accordance
with 2 CFR Part 215.
C. Standards Of Operation For All Clinics
The LITC Program Office has developed baseline standards of operation for LITC
grant recipients. The standards ensure that all LITCs provide consistent and
quality service to low income and ESL taxpayers. The performance measures
have been integrated throughout these standards. All LITCs are responsible for
complying with the following requirements.
i. Required Staff Positions
Qualified Tax Expert (QTE) – The QTE is a staff member with sufficient tax law
expertise to oversee technical substantive tax matters. In general, the QTE
must be an attorney, CPA, or enrolled agent currently authorized to practice
before the IRS. However, consideration may be given to an applicant who can
demonstrate tax expertise because of a related academic degree, documented
experience, or Continuing Professional Education credits. Funding will not be
released until the QTE has been designated and is on staff.
Qualified Business Administrator (QBA) – The QBA is a staff member with
sufficient business administration expertise to oversee the clinic’s business
operations. If a department, as opposed to a single individual, fulfills this
requirement, please provide detail about the staff member who oversees the
department. The QBA must demonstrate education or experience with business or program administration, such as, but not limited to, internal controls;
management of federal, state or local grant funding; budget administration
and procurement; or the equivalent.
Clinic Director – The Clinic Director is 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’s office.
ii. General Requirements
Confidentiality – Tax professionals have ethical requirements to maintain client
15
confidentiality. See, for example, American Bar Association Model Rule of
Professional Responsibility 1.6 and IRC §7525. Subject to certain exceptions,
a grantee shall not disclose information relating to the representation of a
client unless the client gives informed consent. Only those who have a need
to know to effect a resolution of the controversy should be allowed access to
taxpayer information.
Training Materials
Client information must be removed from materials before being used for
training. This includes deletion of names, addresses, taxpayer identification numbers and any other information that could reasonably lead to
identification of the client.
Media Requests
If a news reporter approaches clinic personnel to prepare a story about a
taxpayer served by the clinic, clinic personnel cannot provide details about
any particular taxpayer’s case; a newspaper or other media reporter does
not have a “need to know” taxpayer information.
If a client approaches clinic personnel and asks the clinic to participate in a
news article, the clinic must obtain a written waiver for the disclosure of the client’s taxpayer information and be confident that the client fully understands the
possible ramifications that could occur from disclosing taxpayer information.
In terms of a client discussing with the media the particulars of his or her case,
there is nothing in the LITC Program Guidelines that would prohibit such an
interview. However, this is an area in which clinics should proceed cautiously.
Although a publicized interview may be an effective way to advertise the clinic’s
services, this goal cannot outweigh the best interests of the client.
By suggesting a potential interview to a client, the client may misunderstand
and think the clinic is encouraging him or her to participate in the interview or
that he or she is under an obligation to participate as a way of recompensing
the clinic for the services provided. Clinic staff should communicate to the
client explicitly that he or she is under no obligation to be interviewed. Make
sure the client fully understands the possible ramifications that could occur
from disclosing personal information to a reporter. The client may be dealing
with other non-tax issues (e.g., custody or support battles, other creditors,
immigration) that could be brought to light as a result of the media coverage.
In summary, any time a clinic receives a request from the media for an article
about a client, clinic staff must act, first and foremost, in the best interests of the client. If the client chooses to participate in the interview, suggest
to the client that he or she make it a condition of the interview that the story be
produced without photos and names.
Restrictions Under IRC § 7526
16
Low Income Taxpayer Clinic
While generally a grantee, its employees, and volunteers are not treated
as tax return preparers for purposes of preparer penalties, the Treasury
Regulations under IRC § 7216 define “tax return preparer” more broadly
and generally prohibit a grantee, its employees, and volunteers from
disclosing or using a taxpayer’s return information except when the tax
return preparer has obtained prior written consent from the taxpayer in a
manner that complies with the procedures set forth in the regulations and
other guidance issued by the IRS. See generally 26 CFR § 301.7216-2.
The regulations authorize disclosure or use without consent only in very
limited situations. These situations include disclosures made pursuant to
an order of a court or a federal or state agency, and uses for purposes of
preparation or audit of state or local tax returns. For unauthorized disclosure or use, IRC § 7216 imposes a sanction of up to one year in prison or
a $1,000 fine, or both. In addition, IRC § 6713 imposes a civil penalty of
$250 for each disclosure or use, up to $10,000 per calendar year.
Files and Records Security
Clinics must keep taxpayer information in a secure location. Before clinic
employees or volunteers leave the office each day, they must make sure
that taxpayer information is stored in a locked area. If it is necessary to take
taxpayer information out of the office, it should be safeguarded at all times.
Outreach – Grantees are responsible for developing an outreach plan to effectively publicize the LITC Program to low income taxpayers and ESL taxpayers. Outreach activities are efforts designed to provide information about the clinic and its
services directly to targeted taxpayers or indirectly through other organizations or
groups that serve the targeted taxpayers. ESL programs should identify targeted
linguistic populations; controversy programs may target low income taxpayers in
a geographic area or a specific segment of the low income taxpayer community.
Outreach plans should be completed in advance of the start of the period during
which representation and other assistance will be offered.
Brochures, flyers, or other clinic information distributed in IRS offices must
contain language to indicate the following two key principles: (1) Although the
clinic receives funding from the IRS, the clinic, its employees, and volunteers
are not affiliated with the IRS, and (2) A taxpayer’s decision to utilize services
from an LITC will not affect the taxpayer’s rights before the IRS.
Such disclaimers need not be worded exactly as above, but must convey these
principles.
Although LITCs may prepare tax returns and claims for refund in two
limited contexts (if related to a controversy or an ancillary part of an ESL
program discussed in sections II.D.iv and II.E.iii, Tax Return Preparation,
of this publication, respectively), publicity materials and announcements
17
to advertise the services provided by an LITC may not mention tax return
preparation or refund claim assistance.
LITCs should also implement a process that tracks how taxpayers seeking
services learn about the program and the services offered. For example, an
intake form could be used to request this information from low income taxpayers
requesting controversy representation. For ESL education activities, the clinic
could request that attendees indicate on a sign-in sheet how they learned about
the seminar. The sign-in sheet also allows the clinic to keep track of the number
of attendees served, without requiring individual names or signatures.
Networking – LITCs should develop and maintain relationships with other
community-based organizations that serve low income and ESL individuals and
families. In the application, the LITC must identify networks within the community or organizations with which it can work to reach its target audience.
Mentoring – Mentors and other sources of technical assistance should be
available for clinic staff and volunteers. The LITC Program Office may ask
experienced LITCs to informally assist less experienced clinics with operational
inquiries and technical matters or issues. All clinics are encouraged to identify
best practices and submit them to the LITC Program Office for sharing with
other clinics to improve the overall quality of the LITC Program. We encourage
clinics to make contact with other clinics to discuss common issues and
strategies for providing services to low income taxpayers and ESL taxpayers.
In addition, clinics will report technical assistance consultations provided. A
technical assistance consultation is a discussion with a practitioner or other
service provider designed to give brief advice about a tax issue.
Qualified Volunteers – Each LITC will develop a written application process or
volunteer position description to determine qualifications of volunteers, such
as training, educational background, and other qualifications relevant to the
services offered by the clinic.
Referral Services – To expand clinic coverage, LITCs may refer taxpayers
with tax controversies to a pro bono panel of qualified representatives who
have agreed to provide free representation or other assistance to taxpayers.
Clinics may refer taxpayers only to individuals authorized to practice before
the IRS. ESL programs must maintain a pro bono panel to refer taxpayers
for controversy representation. Clinics may have their own referral panel, a
relationship with an existing referral panel, or both.
LITCs are expected to have adequate procedures and a monitoring system
in place to ensure such referrals are handled expeditiously and that the
actual representation by individuals is, in fact, pro bono. Pro bono repre-
18
Low Income Taxpayer Clinic
sentatives may not charge any fees for services (other than reimbursement
of expenses such as photocopying and court filing fees).
An LITC may only refer cases to other pro bono organizations, including a panel maintained by a state bar association or a state or local
society of accountants. Even if a taxpayer does not meet the eligibility
requirements, an LITC cannot refer the taxpayer to a representative who
charges a fee; instead, an LITC should refer such a taxpayer to a state
bar association; a state or local society of accountants; enrolled agents;
or another tax professional association that provides pro bono or nominal
fee referrals. If that pro bono organization ends up referring the taxpayer
to a representative who charges more than a nominal fee, the LITC has
still made an appropriate referral.
Generally, no person associated with the clinic should provide representation
in a declined case. Additionally, no one employed by the clinic or who
serves as a volunteer should continue providing representation for a fee
in an accepted case or represent a clinic client in a subsequent, separate
matter on a fee-for-service basis. For example, an LITC holds an ESL
outreach program where an accountant who is the QTE for the clinic serves
as a speaker. An ESL taxpayer who attended the outreach session later
seeks to engage the accountant on a fee-for-service basis. Although the
ESL taxpayer did not approach the LITC for representation, the accountant
must decline representation of the ESL taxpayer unless the accountant is
willing to represent the ESL taxpayer on a pro bono basis.
P
ro Bono Panel – Controversy clinics are encouraged to maintain a pro bono
referral panel to which they may refer federal tax controversies. A clinic can
also refer taxpayers to another LITC; however, controversy funding will not be
awarded to an organization that is solely making referrals to another LITC.
Programs that inform ESL taxpayers about their federal taxpayer rights
and responsibilities are required to maintain a pro bono referral panel to
which they may refer federal tax controversies. An ESL clinic can also refer
taxpayers to another LITC.
Examples of pro bono panels to which taxpayers may be referred include:
A panel of qualified representatives maintained by the clinic to whom the
clinic refers matters and who agrees to provide pro bono representation
to low income taxpayers;
A panel maintained by a state bar association that makes referrals, for
free or for a nominal fee, to qualified representatives who have agreed to
provide pro bono representation; and
19
A panel maintained by a state or local society of accountants that makes
referrals, for free or for a nominal fee, to qualified representatives who
have agreed to provide pro bono assistance to taxpayers.
C
ontinuing Professional Education (CPE) – Each clinic must provide quality
training to the clinic staff, volunteers, and other program participants to increase
knowledge and skills necessary to effectively deliver the services for which the
clinic is funded. The QTE will be required to ensure and document that the
LITC staff, volunteers, and other program participants receive appropriate training to enhance skills. The QTE, QBA, and Clinic Director are encouraged to
attend CPE programs run by the IRS and professional organizations.
T
ax Library – LITCs should have access to an adequate tax library and
research materials. Each clinic must have access to a current hard copy
version of the Internal Revenue Code and related Treasury Regulations.
A
nnual LITC Conference – All clinics must attend the annual LITC
conference. The cost of attending the LITC Conference (e.g.,
transportation, hotel) is an allowable expense under the grant and should
be included in an applicant’s budget.
The Clinic Director is required to attend the annual LITC conference in its
entirety. If the Clinic Director is not the QTE, we encourage both to attend
the annual conference. If a clinic wishes to send more than two staff
members to the conference, the clinic must submit a written request to the
Director of the LITC Program Office no later than two weeks in advance of
the conference. Please note, however, that clinics cannot use LITC grant
funds or matching funds for more than two attendees, except with respect to
new clinics described below.
A request by a Clinic Director to be excused from attending all or part of the
annual LITC conference must be submitted in writing to the Director of the LITC
Program Office no later than two weeks prior to the conference. The request
should identify the critical reason for the exception request, and the name, title,
and duties of any other clinic staff member who will attend the annual conference.
For New Clinics
In addition to the Clinic Director, the QBA must attend a mandatory conference call that will be held prior to the annual LITC Conference. That
individual is not required to attend the conference (unless he or she is also
the Clinic Director), but may choose to attend.
Internal Controls – LITCs must create written procedures explaining the
process for approving expenditures from grant funds to ensure compliance
20
Low Income Taxpayer Clinic
with the applicable cost rules and to safeguard assets. The procedures
should address which individuals have approval authority, when written
approval is required, and what documentation must be submitted for an
expense to be approved by the approving official. The approval process may
differ based on size and type of expense.
LITCs must have written procedures to track the clinic’s fixed assets and
tangible personal property.
R
ecordkeeping – LITCs must maintain both adequate client records and
adequate financial records. Client records must be kept in a secure location
(e.g., a locking file cabinet or password-protected electronic files).
Retention policies for client records must comply with all applicable IRS and
state record retention requirements. State bars and other professional licensing
organizations may apply additional recordkeeping requirements for case files.
Clinic records should be sufficiently detailed to substantiate a claim for an
attorneys’ fee award. In certain situations, attorneys’ fees (including fees for pro
bono services) may be awarded in a judgment or settlement of an administrative
or judicial proceeding concerning the determination, collection, or refund of
tax, interest, or penalty. See IRC § 7430. Thus, a clinic doing controversy
work should keep detailed contemporaneous records so that if the situation
arises, the clinic has adequate records to support an award for attorneys’ fees.
Records should include all time spent by employees, volunteers, and students
of the clinic. The records should describe what work was performed by each
individual, the position of the individual (e.g., paralegal, attorney, volunteer,
student), and the amount of time spent on each task. The services provided
by the clinic should be described in sufficient detail to enable the IRS and the
court to assess the reasonableness of the amount of time expended in relation
to the service performed and to identify duplicated efforts by multiple clinic
personnel. The services can be identified using classifications such as initial
client interview; research (issue described); pertinent facts gathering (describe
information sought); preparation of court document; preparation of letter (identify
recipient and subject matter); analysis of records (identify records); consultation
with third-party (describe relevance to case); and telephone conversations
(identify the parties and the subject matter).
Federal award recipients must maintain financial records and supporting
documents to substantiate compliance with grant requirements. Generally,
such records must be maintained for a period of three years from the date of
submission of the Year-End Report. See 2 CFR § 215.53(b).
C
ase Management Systems – A clinic may use grant funds to acquire case
management software to efficiently track and report its program activities. A
21
case management system can be used to capture intake information, calculate client financial eligibility, track case status and outcomes, input case
notes, maintain timekeeping records, record outreach and training activities,
and generate data for Interim and Year-End reports.
R
ecommended Back-up File System – A clinic should have an offsite backup file system in place for information stored on its computers. This is good
business practice and enables resumption of business in case of disaster or
other work stoppage. LITC funds may be used to purchase and develop a
back-up file system.
T
ax Compliance – A clinic must be in full compliance with its federal tax
responsibilities when applying for an LITC grant and also throughout the grant
cycle. To facilitate the resolution of any potential tax compliance issues, we
strongly encourage each clinic that is part of a larger organization (e.g., a
university) to submit with its application package a completed Tax Information
Authorization Form (Form 13424-I) so that the LITC Program Office may
contact the Clinic Director directly without violating IRC § 6103. For those
clinics that are part of a larger organization, the absence of a completed form
may require additional time to resolve any potential tax compliance issues and
could result in a delay in the receipt of grant funds.
D. Standards Of Operation For Controversy Clinics
i. Controversy Representation
Controversy clinics represent low income taxpayers in tax controversies with
the IRS or state and local tax authorities when the clinic is representing the
taxpayer in a related federal matter. The representation may take place at any
stage, including, but not limited to:
Accounts Management;
Exam;
Collection;
Appeals; or
Litigation.
ii. 90/250 Requirement
A low income taxpayer is an individual whose income does not exceed 250
percent of the Federal Poverty Guidelines published annually by the Department of Health and Human Services (HHS). At least 90 percent of taxpayers
represented or referred must have incomes, as defined below, that do not
exceed 250 percent of the Federal Poverty Guidelines.
22
Low Income Taxpayer Clinic
A clinic must use the LITC Program’s poverty guidelines to determine whether
an individual seeking representation is a low income taxpayer for purposes of
LITC Program funding. A clinic must determine whether a taxpayer satisfies the
income requirement based on current income information. The taxpayer must
provide this information on an intake form (or similar form) at the time the taxpayer
seeks the clinic’s assistance. Changes in financial status during representation
do not disqualify clients from continuing to receive clinic representation.
Whether the 90/250 income requirement is met is determined based on the
taxpayers actually represented. For this purpose, representation occurs when
the arrangement is memorialized through a letter of engagement, a pro bono
representation agreement, or when a Form 2848, Power of Attorney and Declaration of Representative, is executed for purposes of representation.
A clinic must maintain records for the total number of taxpayers represented
in controversies with the IRS and the number of taxpayers represented in
controversies with the IRS who have incomes that do not exceed 250 percent
of the Federal Poverty Guidelines. To determine the total number of taxpayers
represented in controversies with the IRS, include both those who do and do
not meet the income requirements. Representation of two taxpayers with respect to a joint liability – i.e., arising from a married-filing-jointly return – counts
as two taxpayers assisted. If only one spouse on a joint return is represented
or referred, the represented spouse counts as one taxpayer assisted.
Satisfaction of the 90/250 income requirement is determined based on the
income of family units, not on the average income of the taxpayers represented. For example, suppose a clinic has the following clients: 97 unrelated individuals (i.e., 97 family units) and one family unit of three related
taxpayers. For purposes of determining whether the 90/250 income requirement is satisfied, at least 90 percent of the 98 family units must have
incomes that do not exceed 250 percent of the Federal Poverty Guidelines.
a. Poverty Guidelines
The LITC Program Office updates the income guidelines for the LITC
Program annually after HHS publishes the Federal Poverty Guidelines
each year. Clinics must adopt the new income guidelines for determining
LITC low income representation eligibility within 30 days from the date of
publication of the HHS Federal Poverty Guidelines in the Federal Register
(generally in January).
Based on the Federal Poverty Guidelines published at 76 F.R. 3637 on
January 20, 2011, the current LITC income ceilings for controversy representation are as follows:
23
LITC Income Guidelines (250% of Federal Poverty Guidelines)
Size of Family Unit
48 Contiguous States,
Puerto Rico, and D.C
Alaska
Hawaii
1
$27,225
$34,000
$31,350
2
$36,775
$45,950
$42,325
3
$43,325
$57,900
$53,300
4
$55,875
$69,850
$64,275
5
$65,425
$81,800
$75,250
6
$74,975
$93,750
$86,225
7
$84,525
$105,700
$97,200
8
$94,075
$117,650
$108,175
For each additional
person, add
$9,550
$11,950
$10,975
b. Definition of Income for Purposes of the 90/250 Requirement
“Income” is defined in accordance with the definition used by the U.S. Bureau
of the Census. See http://www.census.gov/population/www/cps/cpsdef.html
for the complete list of items included in the definition of income.
Income includes total annual cash receipts before taxes, subject to the exceptions provided below. For example, income includes gross salaries before payroll deductions, net earnings from self-employment (gross receipts
less business expenses), alimony, child support, federally funded and other
public assistance, social security, pensions and retirement income, workers
compensation, scholarships, dividends, interest, net gambling winnings, and
survivor benefits or annuity payments.
Income does not include proceeds received from the sale of property
(including stocks, bonds, a house, a car), withdrawals from a bank account,
tax refunds, gifts, loans, lump sum inheritances, insurance payments, or
noncash benefits (e.g., employer-paid or union-paid portion(s) of employee
fringe benefits).
c. Definition of Family Unit
For purposes of this grant program, a family unit is 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, or adoption who live together. However, if related individuals live together, but the
person seeking assistance from the clinic is financially independent, then
that person may be treated as a family unit. If two unrelated individuals live
together, they constitute two family units.
24
Low Income Taxpayer Clinic
iii. Amount in Controversy Limit
The amount in controversy for any taxable year generally should not exceed the
amount specified in IRC § 7463 (currently $50,000). The amount in controversy
includes penalties, but does not include interest. A clinic may represent a taxpayer in a case in which the amount in controversy exceeds $50,000. However,
the clinic must disclose the number of such cases and an explanation of why
each case was accepted for representation in its Interim and Year-End reports.
iv. Tax Return Preparation
Generally, if low income taxpayers require tax return preparation assistance,
they should be referred to a Volunteer Income Tax Assistance (VITA) program
or a Tax Counseling for the Elderly (TCE) site (including a co-located independently funded program), or an IRS Taxpayer Assistance Center, where available.
Grant funds awarded to an LITC must be used for the LITC activities authorized
in the grant agreement and cannot be used to fund VITA or TCE activities.
A controversy clinic can, however, provide assistance with a federal tax return
or a claim for refund if such assistance is related to a dispute with the IRS
(e.g., amended return or a nonfiler).
Tax return preparation assistance that is directly related to a controversy is not considered “ancillary” and is permitted under the definition of “controversy.” The clinic
may not charge a fee (even if it is a nominal fee) for the preparation of a tax return.
v. Registration With the United States Tax Court Pro Bono Program
Controversy clinics are strongly encouraged to participate in the United States
Tax Court Pro Bono Program. The Court recognizes that pro bono taxpayer
clinics provide important advice and assistance to many low income, otherwise
unrepresented taxpayers who have disputes with the IRS. The Court permits
approved registered clinics to submit a letter containing the clinic’s contact
information which will be included in Tax Court mailings. More information on
registering with the Court can be found at http://ustaxcourt.gov/clinics.htm.
E. Standards Of Operation For ESL Clinics
i. Identifying a Target Audience
ESL clinics must identify a target audience to whom outreach and education activities will be directed. LITCs receiving funding for qualifying ESL
activities must advertise and promote themselves as providing informa-
25
tion and education to help ESL individuals understand the federal tax
system. For example, an LITC could advertise a community meeting to
acquaint ESL individuals with their rights and responsibilities under the
federal tax system.
ii. Education
ESL clinics must identify targeted linguistic populations and develop an
education strategy to reach that audience. Educational activities are
designed to instruct ESL taxpayers about their federal taxpayer rights
and responsibilities. Clinics are encouraged to address a wide range of
substantive tax issues in their educational programs and materials (e.g.,
when to file, what forms to file, eligibility for filing status, dependency
exemptions, the Earned Income Tax Credit (EITC), information about the
audit and appeals process, collection alternatives, or employee versus
independent contractor status). Materials should be prepared in languages
appropriate for the target audience of ESL taxpayers.
Examples of educational programs include but are not limited to:
Making a presentation about federal taxpayer rights and responsibilities
to an ESL class at a local community college;
Presenting a workshop for ESL taxpayers on collection alternatives or
employee versus independent contractor status;
Conducting one-on-one consultations to provide brief advice directly to
an ESL taxpayer about his or her specific tax matter;
Setting up a booth or staffing a table at a community event and handing
out clinic brochures and educational materials about various tax issues,
and then answering questions and scheduling appointments for interested taxpayers; and
Holding a weekly discussion series at a community center during the filing season to educate ESL taxpayers about tax return preparer choices,
family and education credits, refund anticipation loans, Individual Taxpayer Identification Numbers (ITINs), and other related issues.
Whenever possible, clinics are encouraged to use face-to-face contact
(whether in one-on-one consultations or in a group workshop), as it is an
excellent method for educating taxpayers.
iii. Tax Return Preparation
Generally, if ESL taxpayers require tax return preparation assistance, they
should be referred to a Volunteer Income Tax Assistance (VITA) program or
a Tax Counseling for the Elderly (TCE) site (including a co-located independently funded program), or an IRS Taxpayer Assistance Center, where available.
26
Low Income Taxpayer Clinic
Grant funds awarded to an LITC must be used for the LITC activities authorized
in the grant agreement and cannot be used to fund VITA or TCE activities.
An ESL clinic can, however, provide assistance with a federal tax return or a
claim for refund and not be considered a tax return preparer if such assistance
is an ancillary part of the clinic’s program. The term “ancillary” means incidental. That is, the LITC’s program must focus on outreach and education and
not tax return preparation. If, for example, an ESL client requests help with a
tax return in the course of an LITC conducting outreach or education activities,
the LITC may not provide such assistance unless it arises from the LITC’s
primary activity of outreach and education. Clinics that engage in ancillary tax
return preparation cannot charge a separate fee (even if it is a nominal fee)
for this service. For more information on the definition of “tax return preparer,”
see 26 CFR § 301.7701-15(f).
Tax return preparation assistance that is directly related to a controversy is not
considered “ancillary” and is permitted under the definition of “controversy.” The
clinic may not charge a fee for the preparation of a tax return.
F. Office Of Management And Budget (Omb) Requirements
Grant award administrative requirements are set forth in OMB Circulars. The
basic administrative requirements applicable to individual Grant Agreements are
contained in:
2 CFR Part 215 (formerly OMB Circular No. A-110), Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher
Education, Hospitals, and Other Non-Profit Organizations;
OMB Circular A-133, Audits of States, Local Governments, and NonProfit Organizations;
2 CFR Part 220 (formerly OMB Circular A-21), Cost Principles for
Educational Institutions; and
2 CFR Part 230 (formerly OMB Circular A-122), Cost Principles for NonProfit Organizations.
All applicable provisions of these circulars, as revised, and any existing and further supplements and revisions are incorporated into these program requirements
and into all grant agreements entered into between the IRS and clinics. With
the exception of Circular A-133, each of the Circulars has been incorporated into
Title 2 of the Code of Federal Regulations (CFR). The electronic CFR is updated
regularly and is located at http://ecfr.gpoaccess.gov. In addition, the Circulars can
be found at http://www.whitehouse.gov/omb/circulars_index-ffm.
27
Which Circular Should I Follow?
Administrative
Requirements
Cost Principles
Source of Rules
2 CFR Part 215
2 CFR Part 220
Educational
Institutions
X
X
Non-Profit
Organizations
X
Audits
2 CFR Part 230
A-133
X
X
X
G. Matching Funds Requirement
All grantees must provide matching funds on a dollar-for-dollar basis for all LITC
Program grant funds received. In general, 2 CFR Part 215 (formerly OMB
Circular A-110), provides that all contributions, including cash and third-party inkind, can be accepted as matching funds when such contributions are:
Verifiable from the grantee’s records;
Not used as a match for any other federally-assisted project or program;
Necessary and reasonable for proper and efficient accomplishment of
the program;
Allowable under the applicable cost principles;
Not paid by the federal government under another award, except when
authorized by federal statute;
Provided for in the grantee’s approved budget; and
In conformity with other provisions of OMB Circular A-110.
Valuation of Matching Funds. Contributions of goods and services provided
by a grantee must be valued in accordance with applicable cost principles.
These principles generally limit values to the amount a prudent person
would pay for the goods or services in an arm’s length transaction under
the circumstances prevailing at the time the cost was incurred or fair market
value. Third-party in-kind contributions, which represent the value of noncash contributions provided by parties other than the recipient or federal
government, must be valued in accordance with the principles stated in 2
CFR §215.23. Third-party in-kind contributions include the value of goods,
space, or volunteer services donated to the LITC by third parties.
Volunteer Services. The rates for volunteer services shall be determined
consistent with the principles stated in 2 CFR §215.23. In general, the rates
used to value volunteer in-kind services must be consistent with those paid
for similar work in the applicant’s organization and may include a reasonable
amount for fringe benefits.
When the applicant does not have staff performing similar work, the rates used
28
Low Income Taxpayer Clinic
must be consistent with those paid for similar work in the labor market in which
the applicant competes for the kind of services involved. One source of wage
rates by geographic area can be found on the Bureau of Labor Statistics (BLS)
website (http://www.bls.gov/bls/blswage.htm). However, note that the BLS data
represents a wage rate only and can be adjusted upward by a reasonable fringe
benefits amount in determining a volunteer in-kind valuation rate.
The regulation requires that LITCs use “labor rates” and not “billing rates” for
purposes of valuing in-kind volunteer services.
Finally, if an employer other than the applicant furnishes the services of an
employee to the LITC Program, these services are valued at the employee’s
regular rate of pay (plus benefits but excluding overhead costs), provided the
services are in the same skill set for which the employee is normally paid. We
encourage clinics with questions about how to value volunteer services to
contact the Program Office for assistance.
Documentation of Matching Funds Sources. LITCs must maintain adequate
records to substantiate the source of all matching funds. For example, if the clinic
is counting services provided by a volunteer as matching funds, the clinic must
track the amount of time the volunteer spends working on LITC activities (e.g., a
clinic can use sign-in sheets, timesheets, or a similar method to track the time).
The Program Office will provide a Volunteer / Pro Bono Time Reporting Form
that can be used to track the services provided by volunteers. The Form will be
provided along with the reporting forms in advance of the 2012 grant cycle .
While grant awards may be made based on good faith estimates of matching
funds, including verifiable pledge commitment(s) or likely sources of funding,
clinics must provide adequate documentation regarding the committed sources
of matching funds. For a clinic to obtain a grant payment in advance of actual
disbursement or receipt of the required nonfederal match, the clinic generally
must have firm commitments for the required matching funds. A firm commitment
consists of a binding written agreement between the grantee and the source of
the matching funds that is conditioned solely upon the availability of federal assistance (and such other conditions as approved in advance by the IRS).
See “Managing Grant Funds” Section II.H for additional examples of qualifying
and ineligible matching funds.
Qualified Matching Funds include (but are not limited to):
Cash contributions;
Grantee contributions, including payments for:
• Salaries, including fringe benefits, paid to clinic staff;
• Equipment and supplies used in the clinic;
29
• Rent and utilities costs; and
• Other costs necessary to the operation of the program;
Third-party in-kind contributions, including the value of:
• Volunteer services furnished by professional and technical personnel;
consultants and other skilled and unskilled labor;
• The fair market value of donated equipment and supplies; and
• The fair rental value of donated space.
Program income, including nominal fees charged, from activities that are
directly related to the clinic’s objectives.
The LITC Program Office permits grantees to use Legal Services Corporation
funds to meet the matching funds requirement under IRC § 7526(c)(5).
Ineligible Matching Funds include (but are not limited to):
Expenses incurred for the purchase, construction, repair, or rehabilitation
of any building or any portion thereof;
Expenses incurred that do not support or benefit the program;
Services provided by students in exchange for academic credit;
Federal work-study funds;
Funds from other federal grants unless specifically authorized by statute
(See OMB Circular A-110, 2 CFR § 215.23(a)(5)); and
Indirect costs, including general overhead of the institution sponsoring
the clinic.
H. Managing Grant Funds
i. Accessing Grant Funds
Grant funds are paid through the Payment Management System (PMS)
maintained by the Department of Health and Human Services Division of
Payment Management (DPM). Grantees must obtain a username and
password to use the system. PMS allows a grantee to make an online
request for payment of federal funds. After a request is processed and
approved, funds are directly deposited into the grantee’s bank account
through a process called Electronic Funds Transfer (EFT). Funds are
generally available within one business day of the request. Grantees may
request funds to reimburse for allowable expenses already paid or that will be
paid within three business days of receipt.
The DPM has an online tutorial for those who are not familiar with the system.
Grantees are encouraged to visit the DPM website (www.dpm.psc.gov) to view the
tutorial and training. Grantees who have received a username and password to
request funds, but who are experiencing problems accessing funds should contact
the help desk at 1-877-614-5533 or send an e-mail to [email protected].
30
Low Income Taxpayer Clinic
ii. Maintaining Funds in an FDIC Insured Bank
Grantees must maintain advances of federal grant funds in interest-bearing
accounts at a bank with Federal Deposit Insurance Corporation (FDIC)
insurance coverage. The balance exceeding the FDIC coverage must be
collaterally secured unless:
The grantee receives less than $120,000 in federal awards per year;
The best reasonably available interest-bearing account would not be
expected to earn interest in excess of $250 per year on federal cash
balances; or
The depository would require an average or minimum balance so
high that an interest-bearing account would not be feasible, given the
grantee’s expected federal and nonfederal cash resources.
iii. Interest on Advances of Grant Funds
Grantees must annually remit to the federal government any interest in
excess of $250 per year earned on advances of federal grant funds. A
grantee may keep up to $250 of interest earned per year. Interest remittances should be made via EFT to PMS, which acts as the governmentwide agent for collection.
iv. Adjustments to Program Expenses
Clinics wishing to shift expenses among spending categories within a program (e.g., shifting funds from travel to supplies in a controversy program)
are not required to request approval unless the shift would substantially
change a program plan. The movement of funds between ESL and Controversy programs is considered to be a major change and requires written
approval from the LITC Program Office. A request to shift funds between
programs must be made no later than September 10, 2012. To request approval to move funds between programs, clinics must submit an e-mail to
[email protected] with the following information:
The amount to be moved and from which program the funds are to
be moved;
The reason for the request to move funds between programs; and
The impact, if any, on future grant cycles funding (e.g., this is a one-time
situation, or the clinic anticipates it will not be able to use the funds for the
same reason in ensuing years and thus will ask for less funds in the future).
v. Non-Use of Grant Funds
The LITC Program Office will monitor clinics’ use of funds throughout the year
to ensure all grant funds will be expended. If a clinic determines that it will not
31
spend its entire grant award, the clinic should immediately notify the LITC Program Office by sending an e-mail to [email protected]. The e-mail
should contain the following information:
The amount of grant funds being returned;
The reason for the return of funds; and
The impact the return of funds will have on future grant cycles (e.g., this
is a one-time situation, or the grantee anticipates that its future funding
needs will be permanently reduced).
The notification to the LITC Program Office should be as soon as the issue
arises but no later than September 10, 2012 to ensure that the grant funds
can be reobligated to another clinic by the end of the federal government’s
fiscal year (September 30).
vi. Allowable/Unallowable Expenses
Grant funds must be used for expenses in accordance with 2 CFR Part 230
(formerly OMB Circular A-122), and 2 CFR Part 220 (formerly OMB Circular
A-21). Generally, for an expense to be allowable, the expense must be:
Reasonable;
Incurred to benefit the program; and
Consistent with market prices.
Grantees should refer to 2 CFR Part 220, and 2 CFR Part 230 for detailed
rules regarding allowable and unallowable expenses or contact the clinic’s assigned analyst with questions regarding expenses. Below is a table that lists
examples of some common expenses:
32
Allowable Expenses
Unallowable Expenses
Salaries, wages, and personnel benefits
Purchase, construction, repair, or
rehabilitation of any building or any portion
thereof
Reasonable office supplies and equipment
costs
Expenses incurred that do not support or
benefit the program or which are unnecessary
in carrying out the program
Rent, utilities, and custodial services
Certain advertising and public relations costs
as described in the OMB Circulars
Low Income Taxpayer Clinic
Allowable Expenses
Unallowable Expenses
Printing, postage, insurance
Alcoholic beverages
Indirect costs (as use of federal funds)
Indirect costs (as matching funds)
Audit services
Lobbyist registration fees
Publicity and training costs directly associated
with the program
Costs of goods or services for personal use
(as opposed to business use) of the clinic
staff
Installation of telephone lines necessary to
provide clinic services to taxpayers
Costs incurred outside the performance
period of the award, unless specifically
excepted by the Program Office*
Travel performed by program staff to conduct
clinic business
Application fee to become an Attorney, CPA,
or enrolled agent
Costs incurred for two individuals to attend
the annual LITC Conference
Professional dues for attorneys and CPAs
Interpreter services for hearing-impaired or
non-English speaking taxpayers
Enrolled agents’ license renewal fee
Legal research and reference materials
including the IRC and Treasury Regulations
Entertainment costs
Non-alcoholic refreshments for community
outreach events or one-on-one consultations
Fines and penalties
*The LITC Program Office permits returning clinics to use grant funds awarded
for the current grant year to attend the following year’s grantee conference (e.g.,
a clinic may use funds awarded for the 2011 grant cycle to attend the 2012 annual
LITC conference, which will be held in December, 2011).
Tips on Determining Allowable versus Unallowable Expenses
To help ensure taxpayers have convenient access to low-cost representation, clinics are strongly encouraged to provide a toll-free number.
A clinic may use grant funds for providing refreshments to volunteers so long as
the costs are reasonable. However, a clinic generally may not use grant funds to
buy refreshments for its employees, unless their workload requires those employees to work outside the normal hours of clinic operation.
While maintaining professional credentials is generally a personal expense and
therefore unallowable, a clinic may nonetheless use grant funds to pay for continuing education courses if such courses will increase the vocational effectiveness of
employees. See 2 CFR § 220, J.51 and 2 CFR § 230, Appendix B.49.
33
Pens, Mugs, and Other Promotional Items
A grantee cannot spend grant funds on pens, t-shirts, mugs, or other
memorabilia to promote its services to taxpayers or for the personal use
of employees. Grantees can purchase pens and other office supplies for
the business use of clinic staff.
However, grantees may use federal funds to acquire pens, mugs, and other
small items of memorabilia for pro bono representatives working with the
clinic, provided the cost is reasonable and consistent with market prices.
Tips for Treatment of Indirect Expenses
The grantee must include a copy of its indirect cost rate agreement with
its budget. See Section II.K.v.5.
Unallowable expenses may not be included in the indirect cost rate.
Inquiries about obtaining an indirect cost agreement should be directed
to the LITC Program Office.
While indirect expenses are an allowable expenditure of grant funds, IRC § 7526(c)(5)
prohibits clinics from counting indirect costs as matching funds.
I. Grant Reporting Requirements
The LITC Program requires the timely submission of two reports during a grant
cycle – an Interim report and a Year-End report. The LITC Program Office will
measure the effectiveness of LITC operations by the quality of service provided to
low income taxpayers and ESL taxpayers. Detailed instructions for reporting are
found in section III.B, Reporting Requirements.
J. Assurances & Certifications
i. OMB Circular A-133 Audit Requirement
OMB Circular A-133 describes the audit requirements applicable to grantees.
If a grantee expends less than $500,000 a year in total federal awards, no
OMB audit requirements are applicable. Total federal awards include all
sources of federal funding, not just the funds received from the IRS in support
of the LITC. See OMB Circular A-133, Subpart B, § .200(a). The IRS, however, has the right to audit expenditures of LITC funds regardless of the dollar
amount of federal funding received by the grantee.
A grantee that expends $500,000 or more a year in federal awards must
provide the IRS with a copy of the results of an audit performed in compliance with OMB Circular A-133. Such grantees must arrange for an audit
by an independent auditor in accordance with the Government Auditing
Standards developed by the Comptroller General of the United States.
34
Low Income Taxpayer Clinic
The costs of audits performed in compliance with OMB Circular A-133 are
allowable LITC grant expenses.
An audit under OMB Circular A-133 is organization-wide. The auditor must
determine whether:
The grantee’s financial statements present fairly its financial position and
the results of its operations in accordance with generally accepted accounting principles;
An internal control structure exists to provide reasonable assurance that
the grantee is managing federal awards in compliance with applicable
laws and regulations and to ensure compliance with the laws and regulations that could have a material impact on the financial statements; and
The grantee has complied with laws and regulations that may have a
direct and material effect on its financial statement amounts and on each
major federal program.
Financial records, supporting documents, statistical records, and all other
records pertinent to an award shall be retained for a period of three years from
the date of submission of the Year-End report for the grant cycle, subject to
certain exceptions set forth in 2 CFR Part 215.
Requesting Payment History Information for an A-133 Audit
A-133 audits often require historical grant payment information. This information
is not available from the LITC Program Office. Those seeking information
pertaining to payment or transaction history from the Payment Management System
should visit the HHS Division of Payment Management Services (PMS) website at
http://www.dpm.psc.gov/news_events/audit_confirmation_procedures.aspx.
For recipients unable to access PMS inquiries online, payment history requests
may be faxed to 301-443-3586, Attention: Sheila Swedenburg. You may also
e-mail requests to: [email protected].
ii. Civil Rights Reporting Requirements
Applicants must provide information necessary to enforce Title VI of the
Civil Rights Act of 1964, as amended, which prohibits discrimination on the
basis of race, color, or national origin in any program or activity receiving
federal funds; Title IX of the Education Amendments of 1972, as amended,
which prohibits discrimination on the basis of sex in any education program
or activity receiving federal funds; Section 504 of the Rehabilitation Act
of 1973, as amended, which prohibits discrimination on the basis of
disability in any program or activity receiving federal funds; and the Age
35
Discrimination Act of 1975, as amended, which prohibits discrimination on
the basis of age in any program or activity receiving federal funds.
This section describes the data collection and reporting requirements required
of LITC grant applicants by the IRS to meet its responsibilities under these
laws. This information is required pursuant to the civil rights statutes and the
regulations of the Department of Justice and the Department of the Treasury.
This information is mandatory and required of every applicant annually. As a
condition of eligibility under the LITC Program, the applicant must provide the
following information in its grant application package:
a. A list of active lawsuits or complaints naming the applicant which allege discrimination on the basis of race, color, national origin, age, sex,
or disability with respect to service or benefits being provided. The list
should include the date the lawsuit or complaint was filed; a summary
of the allegation; and the status of the lawsuit or complaint, including
whether the parties to a lawsuit have entered into a consent decree.
b. A description of all pending applications for financial assistance and all
financial assistance currently provided by other federal agencies. For all
applicants for IRS financial assistance, this information should be relevant to the organizational entity actually submitting the application, not
necessarily the larger agency or department of which the entity is a part.
c. A summary of all civil rights compliance review activities conducted in
the last three years. The summary shall include the purpose or reason
for the review; a summary of the findings and recommendations of the
review; and a report on the status or disposition of such findings and
recommendations. For all applicants for IRS financial assistance, this
information should be relevant to the organizational entity actually submitting the application, not necessarily the larger agency or department
of which the entity is a part.
d. A signed and dated Standard Form 424, with box 21 checked (see Appendix A) agreeing to the statement of assurance concerning civil rights
compliance, including posting of the Civil Rights Poster, Publication 4025.
Responses to these civil rights questions must be directly related to the clinic and
not the sponsoring organization. If the clinic does not have any information to
report on these questions, a negative response is required.
iii. Civil Rights Review
The External Civil Rights Team of the IRS may request additional data only to
the extent that it is readily available or can be compiled with reasonable effort,
and is found to be necessary to make a civil rights compliance determination.
Examples of data and information which to the extent necessary and appropri-
36
Low Income Taxpayer Clinic
ate for determining compliance with applicable civil rights statutes and implementing regulations may be as follows but are not limited to:
The manner in which services are or will be provided by the program
in question and related data necessary for determining whether any
persons are or will be denied such services on the basis of prohibited
discrimination;
The population eligible to be served by race, color, national origin, age,
sex, or disability;
Data regarding covered employment, including use or planned use of
bilingual public contact employees serving beneficiaries of the program
where necessary to permit effective participation by beneficiaries unable
to speak or understand English;
The location of existing or proposed facilities connected with the program
and related information adequate for determining whether the location
has or will have the effect of unnecessarily denying access to any persons on the basis of prohibited discrimination;
The present or proposed membership, by race, color, national origin,
sex, age, or disability, in any planning or advisory body which is an integral part of the program; and
Data, such as demographic maps of the racial composition of affected
neighborhoods or census data.
Each multi-year applicant shall update the civil rights reporting requirement
information annually. Each application for financial assistance shall be reviewed
for its civil rights reporting requirements by an External Civil Rights Team staff
member. Upon completion, the reviewer shall forward a letter of compliance to
the applicant indicating the civil rights determination. Financial assistance shall
not be awarded to the applicant until the civil rights reviewer has issued a finding of compliance or conditional compliance. Department of Justice regulations
state that all federal agency staff determinations of Title VI compliance shall be
made by or be subject to review by the agency’s civil rights office.
Each Low Income Taxpayer Clinic is required to display the Civil Rights
Poster, Publication 4025.
If an applicant needs additional information on Civil Rights requirements, it
should contact the Director, Civil Rights Division (External Civil Rights Team):
Executive Director, Office of Equity, Diversity, and Inclusion
External Civil Rights Team
1111 Constitution Avenue NW, Room 2422
Washington, DC 20224
(202) 927-0180
37
iv. Assurance of Compliance with Lobbying Restrictions
L
obbying activities: There are two types of lobbying activities – direct lobbying
and grassroots lobbying.
Direct lobbying includes contacting a member of Congress, a state or local
legislator, or any of their staff members to influence the legislator to take a
position or action on a specific piece of legislation or potential legislation.
Grassroots lobbying includes activities that encourage third parties, members
of special interest groups or the general public to contact federal, state, or local government officials in support of or in opposition to a legislative policy or
appropriations matter. This applies to activities both before and after introduction of the legislation.
General rule: No federal grant funds or matching grant funds may be used,
either directly or indirectly, to support the enactment, modification, or adoption
of any law, regulation, or policy at any level of government. Some exceptions to
this general rule may exist pursuant to an express authorization by Congress.
Any entity receiving grant funds from another federal source, either directly or indirectly, may be subject to additional restrictions on lobbying. For example, the Legal
Services Corporation imposes its own lobbying restrictions on grant recipients.
Grantees are prohibited from using federal grant funds and matching
funds to:
a. Visit or send letters to members of Congress or state or local legislators,
urging them to favor or oppose specific legislation pending under their
jurisdiction;
b. Develop materials designed to advocate for the enactment or repeal of
any legislation or provide such materials to anyone;
c. Draft or assist in the drafting of legislation or provide comments on draft
legislation;
d. Pay, directly or indirectly, for any efforts intended to or designed to influence a Member of Congress or a state legislature to favor or oppose any
legislation or appropriation, whether before or after introduction; or
e. Engage in any legislative liaison activities, including attendance at legislative sessions or committee hearings, gathering information regarding
legislation, or analyzing the effect of legislation, when such activities are
carried out in support of or in knowing preparation for an effort to engage
in unallowable lobbying.
38
Low Income Taxpayer Clinic
Employees whose salaries are paid from federal grant funds or matching funds
are prohibited from engaging in any lobbying activities during the portion of time
that their salaries cover.
Grantees are permitted to use federal grant funds and matching funds to:
a. Educate the public or constituents on legislative issues, so long as
the education is not part of a broader effort to directly or indirectly
(grassroots lobbying) influence legislators on a specific piece of
legislation or legislative issue;
b. Expend non-federal funds (i.e., neither federal grant nor matching grant
funds) on lobbying activities. However, under the Byrd Amendment
(31 USC § 1352), grantees may still be required to disclose lobbying
activities conducted with non-federal funds if the activities relate
to lobbying regarding the making or awarding of a grant and the
organization receives more than $100,000 in federal grant funds;
c. Respond to documented requests from members of Congress, state
legislatures or other officials;
d. Interact with agency liaisons, such as the National Taxpayer Advocate or
Local Taxpayer Advocates, regarding program-related issues;
e. Contact government officials regarding broad social, economic, or
other issues, so long as the contact is not part of an effort to influence
Congress or the state legislature on an actual or potential specific piece
of legislation; or
f. Discuss broad social, economic, or other issues on listservs or blogs, so
long as the contact is not part of an effort to influence Congress or the
state legislature on an actual or potential specific piece of legislation.
39
ources of guidance on lobbying activities: The table below details the main
S
sources of authority that regulate lobbying by LITCs:
Source of
Restriction
Type of Funds
Affected by
Restriction
Lobbying topics
covered by
Restriction?
Stage of legislation
covered by restriction
Applies to
Grassroots Lobbying?
Byrd Amendment 31 USC § 1352
Publicity and Propaganda/
Appropriations Laws
Restrictions
Restriction applies to
Federal Grant Funds
and Matching Grant
Funds. Although the
Federal Grant
restriction does not
Federal Grant Funds and
Funds and
apply to non-federal
Matching Funds
Matching Funds
grant funds, contacts
with members of
Congress may need to
be disclosed.
Limited to lobbying
regarding the making
or awarding of a
grant; it does not
appear to apply to
lobbying on general
program legislation
(i.e., to expand the
All subject matters
All subject matters
subject matter of the
program, as opposed
to the amount of
money awarded for
program purposes
which may increase
the award to the
grantee).
All stages,
including before
introduction
Yes,
it is prohibited
All stages, including
before introduction.
No, it is not
prohibited, so long
as no federal funds
are used for the
grassroots lobbying
effort.
Legislation pending
before Congress
Yes,
it is prohibited
Yes,
prohibition applies
Applies to advocating
to state level
at the state level?
activities
No, prohibition does
not apply to state
level activities.
No, prohibition does
not apply to state level
activities
Yes, there is an
exception which
permits a response
to a documented
request
Yes, there is an
exception which
permits a response
to a documented
request.
Not applicable
Exception for when
information is
specifically requested
by member
of Congress?
40
2 CFR Part 230/
2 CFR Part 220
Low Income Taxpayer Clinic
This chart describes restrictions on the use of federal grant funds and matching grant
funds for lobbying. In addition, IRC § 501(c)(3) organizations are subject to lobbying
limits under the Internal Revenue Code. In general, an IRC § 501(c)(3) organization
may conduct an insubstantial amount of lobbying and still maintain its tax-exempt
status. For additional information, see Publication 4221-PC, Compliance Guide for
501(c)(3) Public Charities: http://www.irs.gov/pub/irs-pdf/p4221pc.pdf.
Examples of activities with possible lobbying implications:
A grantee may send an e-mail to the independently sponsored LITC listserv to
gather support or opposition for legislation. Although such an e-mail is an attempt to influence legislation, so long as appropriated grant funds are not used,
the grantee has not violated Title 31 or Title 18. If the grantee has a requirement under Title 31 to report lobbying activities, the e-mail activity would need to
be disclosed, including any research or background work performed in connection with the e-mail to the listserv.
For purposes of IRC § 501(c), sending a single e-mail to the listserv would
likely constitute an “insubstantial” amount of lobbying. Because the use of a
listserv is free, the grantee should not have substantial expenditures in connection with the sending of the e-mail. Keep in mind that if a grantee anticipates devoting a large amount of time to the endeavor (e.g., researching the
issue, drafting proposed legislation, responding to comments on the listserv
about the proposal), the activity could rise to the level of being more than
insubstantial, in which case the grantee may choose to make a lobbying election under IRC § 501(h).
For more information about making a lobbying election, refer to:
IRC § 501(h) and IRC § 4911;
Treas. Reg. §§ 1.501(h)-1 through 1.501(h)-3;
Treas. Reg. §§ 56.4911-1 through 56.4911-10; and
Publication 557, Tax-Exempt Status for Your Organization.
LITCs receiving Legal Services Corporation (LSC) funds should not confuse the
above rules on lobbying with LSC restrictions. There may be some lobbying
activities that are acceptable under LITC guidance that are prohibited under LSC
requirements and vice versa.
Additional information: The LITC Program recognizes that this list of
prohibited and permitted activities will not answer every situation that arises.
Accordingly, if a grantee has any question as to whether an anticipated
activity could be implicated under these rules, it should contact the LITC
Program Office prior to engaging in such activity.
41
v. Trafficking Victims Protection Act of 2000
The Trafficking Victims Protection Act of 2000, (22 U.S.C. § 7104) as amended,
requires any agency that awards grants to include a condition authorizing the
agency to terminate the grant if the grantee engages in certain activities related
to trafficking in persons. As part of the implementation of the Act, the Office of
Federal Financial Management has established terms that must be included in
every grant agreement. See 2 C.F.R. § 175.15 (2007). Thus, grantees under
this program and their employees may not:
a. Engage in severe forms of trafficking in persons during the period of time
that the award is in effect;
b. Procure a commercial sex act during the period of time that the award is
in effect; or
c. Use forced labor in the performance of the award or sub-awards under
the award.
The IRS, as the federal awarding agency may unilaterally terminate an award,
without penalty, if a grantee is a private entity:
Is determined to have violated a prohibition in items (i) – (iii) above; or
Has an employee who is determined by the IRS official authorized to
terminate the award to have violated a prohibition in items (i) – (iii) above
through conduct that is either
• Associated with performance under this award; or
• Imputed to the grantee using the standards and due process for imputing the conduct of an individual to an organization that are provided
in 2 CFR Part 180, OMB Guidelines to Agencies on Governmentwide
Debarment and Suspension (Non-Procurement), as implemented by the
Department of the Treasury at 31 CFR Part 19.
vi. Federal Funding Accountability and Transparency Act (FFATA)
(2 CFR Part 170)
The Federal Funding Accountability and Transparency Act (FFATA) of 2006, as
amended, is intended to empower Americans with the ability to hold the government accountable for each spending decision. Each applicant must ensure it
has the necessary processes and systems in place to comply with the FFATA
reporting requirements should it receive funding. OMB has issued guidance to
establish requirements for grantees to report information about executive compensation in certain circumstances. See 2 CFR Part 170.
vii. C
entral Contractor Registration and Universal Identifier
Requirements
Applicants are required to register with the Central Contractor Registration
42
Low Income Taxpayer Clinic
(CCR) prior to submitting a grant application and are required to maintain an
active CCR registration with current information at all times during which it
has an active federal award or an application under consideration. To remain
registered in the CCR database after the initial registration, the applicant is
required to review and update on an annual basis from the date of the initial
registration or subsequent updates its information in the CCR database to
ensure it is current, accurate, and complete.
Applicants are also required to provide a Data Universal Numbering System
(DUNS) number with each application. For more information, see 2 CFR Part 25.
Data Universal Numbering System (DUNS) is a unique nine-digit identification
number provided by Dun & Bradstreet, Inc. The federal government requires that all
applicants for federal grants and cooperative agreements with the exception of individuals other than sole proprietors have a DUNS number. The federal government
will use the DUNS number to better identify related organizations that are receiving
funding under grants and cooperative agreements, and to provide consistent name
and address data for electronic grant application systems. A DUNS number may
be obtained by calling (866) 705-5711 (for applicants in Alaska and Puerto Rico,
(800) 234-3867) or applying online at http://fedgov.dnb.com/webform.
viii. Other Applicable Laws and Regulations
Programs involving use of federal funds are governed by a wide variety of
federal laws and regulations. These include:
Restrictions on political activities at 18 U.S.C. §§ 595, 598, 600-603;
The preservation requirements in the National Historic Preservation Act
(16 U.S.C. § 470 et seq.) and the Archeological and Historic Preservation Act of l966 (16 U.S.C. § 469a-1 et seq.);
Environmental requirements of the Clean Air Act (42 U.S.C. § 7401 et
seq.); and
The non-pollution requirement of the Federal Water Pollution Control
Provisions (33 U.S.C. § 1251 et seq.).
Assurances of compliance are required for LITC funding, according to
the “common rule” on non-procurement, debarment, and suspension
adopted by Department of Treasury at 31 CFR, Part 19, Subpart C. An
applicant must certify that its organization and Clinic Director are not
presently debarred or suspended from covered transactions by any federal
agency. In addition, an applicant must indicate that within the three-year
period before applying for a grant, its organization and Clinic Director
have not been convicted of or had a civil judgment rendered against them
for fraud, theft or certain other offenses, and have not had one or more
public transactions terminated for cause or default. An applicant must also
43
indicate that its organization and Clinic Director are not presently criminally
or civilly charged with certain offenses.
Additional assurances are required according to the government-wide
requirements for a drug-free workplace (41 U.S.C. §§ 702-707), adopted by
the Department of the Treasury at 31 CFR Part 20, Subpart B and C, and
assurance of civil rights compliance, as specified above.
A signature is no longer required on individual Certification forms.
An applicant certifies by signing the Standard Form 424 and checking the box on line 21 marked “I agree” to indicate acceptance of the
assurances provisions. The assurance provisions that accompany
Standard Form 424 appear in Appendix A.
K. Completion Of The Litc Program Grant Application Package
To be considered for 2012 LITC Program grant funding, all applications must be
submitted by July 15, 2011. Applications may be submitted either electronically
via www.grants.gov or in hard copy by U.S.P.S. mail, private delivery service,
or hand delivery. See section II.L, LITC Program Grant Application Assembly
and Submission, for details about electronic submission and procedures for
assembling paper applications.
An application may be withdrawn at any time during the application process or
prior to the time grant money is awarded. All withdrawals must be made in writing
to the above address.
Tips for Preparing the LITC Program Grant Application Package
A complete new application for grant year 2012 must be submitted by any current
grantee whose single-year or multi-year period will end on December 31, 2011.
A complete new application must be submitted by an applicant that has previously
been awarded a multi-year LITC grant and wishes to switch its designation during
the multi-year period (e.g., in 2011 the clinic is providing only controversy services,
but in 2012 the clinic wishes to provide controversy and ESL services).
All pages in the application must be consecutively numbered.
Grant applications may be released in response to Freedom of Information
Act (FOIA) requests. Do not include any individual taxpayer information in the
grant application.
44
Low Income Taxpayer Clinic
i. LITC Program Grant Application Contents
It is very important that the LITC Program Grant Application Package
be assembled correctly. Copies of all required application forms and
certifications are included in Appendix A of this publication.
List of Required Components (paper applications should be compiled in
the following order):
a. Completed Form 13424, IRS Low Income Taxpayer Clinic (LITC)
Application Information Sheet.
b. Standard Form 424, Application for Federal Assistance, prepared
according to instructions (section II.K.ii, Application for Federal
Assistance, Standard Form 424).
c. Applicant Information:
1. Background Information, prepared according to instructions
(section II.K.iii, Background Information);
2. Copy of the determination letter issued by IRS recognizing
organization as exempt under IRC § 501(c), if applicable; and
3. Copy of letter of academic accreditation for affiliated college,
university or other institution of higher learning, if applicable.
Applicants requesting funding for the second or third year of a multi-year grant are
not required to submit item c.
d. Program Performance Plan prepared according to instructions (section
II.K.iv, Program Performance Plan).
Applicants requesting funding for the second or third-year of a multi-year grant are
not required to submit item d. However if the applicant intends to modify the Plan
submitted with the year one application, a letter indicating any proposed program
modifications must be included.
e. Budget/Financial Information prepared according to instructions
(section II.K.v, Budget/Financial Information).
1. Standard Form 424A, Budget Information – Non-Construction
Programs, prepared according to instructions (section II.K.vi,
Completing the Standard Form 424A, Budget Information – NonConstruction Programs);
2. Detailed Budget Worksheet (Form 13424-J) and Narrative, prepared
according to instructions (section II.K.vii, Completing the Detailed
Budget Worksheet and Narrative). This budget worksheet should
explain the expenses stated on Standard Form 424A;
3. Copy of most recent audited or unaudited financial statement;
45
4. Copy of the applicant’s most recent Single Audit Data Collection
Form (Form SF-SAC), or a statement that the applicant is exempt
from the A-133 Audit requirement because it expends less than
$500,000 a year in federal awards; and
5. A copy of any indirect cost rate agreement.
f. Additional Required Forms
1. Civil Rights Statement as described in section II.J.ii, Civil Rights
Reporting Requirements;
2. Standard Form LLL, Disclosure of Lobbying Activities (required by 31
CFR § 21.100(c)); and
3. Tax Information Authorization Form, (Form 13424-I) if applicable.
Inclusion of Form 13424-I is encouraged, but not required.
An original and three copies of the entire application (all forms and attachments)
must be included if the application is not submitted through www.grants.gov. The
original must be signed in blue ink.
ii. Application for Federal Assistance, Standard Form 424
Who must complete this section?
All applicants
Things to note:
The EIN and DUNS number should be reviewed for accuracy.
The contact information should be reviewed for accuracy.
For information that will not fit into the space allowed on the SF-424, a
blank sheet may be attached with the additional information. Indicate the
block number from the SF-424 to which the information relates. Multiple
blocks may be addressed continuously on the same page.
This form is required for all grant applications. Applicants must provide a
DUNS number and EIN. Although a DUNS number and EIN may both be
obtained fairly quickly when applying online or by phone, applying for an EIN
with the IRS by fax or by mail will take longer.
Central Contractor Registration (CCR) is the primary registrant database for
the U.S. federal government. The purpose of the CCR is to facilitate paperless
payment through electronic funds transfer. CCR also provides basic information
relevant to procurement and financial transactions. All applicants are required to
register and maintain an active account with the CCR at the time of their application. To complete the CCR process, a DUNS number is required. The complete
resource for CCR registration is located at www.ccr.gov.
Please complete the SF-424 as shown in the instructions below. Additional
information may be found in the instructions for the SF-424. It is important to
46
Low Income Taxpayer Clinic
use the correct version of the SF-424 (Rev. 10/2005) because it includes all
required fields. Use of earlier versions could result in non-consideration if key
fields are not present. Items missing from some of the earlier versions include
the DUNS number, the certification and assurances section, etc.
The following instructions are provided to assist in the completion of the
SF-424 for the LITC Grant.
Block
Title
1.
Type of Submission
For LITC purposes check the Application box.
2.
Type of Application
Check New when applying for a single-year grant or
year one of a multi-year grant. Check Continuation
when applying for years 2 or 3 of a multi-year grant.
3.
Date Received
Leave blank for LITC purposes.
4.
Applicant Identifier
Leave blank for LITC purposes.
5a.
Federal Entity Identifier
Leave blank for LITC purposes.
5b.
Federal Award Identifier
Leave blank for LITC purposes.
6.
Date Received by State
Leave blank for LITC purposes.
7.
State Application Number
Leave blank for LITC purposes.
8a.
Legal Name
Enter Legal Name of the Organization. Do not use an
acronym unless it is the legal name. This should be the
name used on the CCR registration.
8b.
Employer Identification
Number
Enter EIN assigned by the IRS. This is not a Social
Security number. This number will be used to conduct
a tax compliance check.
8c.
Organizational DUNS
Enter the identification number assigned by the Dunn
& Bradstreet organization. This information is required
for all organizations that receive federal grant funds.
The link to the website to apply for a DUNS number is:
http://fedgov.dnb.com/webform.
8d.
Address
8e.
Organizational Unit
Mark as N/A.
Name and Contact
Information
When completing the contact information, please
remember that if the Program Office needs to contact
the applicant for information there will be tight
deadlines. Therefore, it is important to provide a phone
number at which the contact person is accessible. It
can be a cell phone, home phone, or office phone.
8f.
Comments
Enter Address of Organization. This should be the
address for the organization’s physical location.
47
Block
Title
9.
Type of Applicant
10.
Name of Federal Agency
11
Catalog of Federal
Domestic Assistance
Number
Enter 21.008 in the CFDA Number box and Low
Income Taxpayer Clinic in the CFDA Title box.
12
Funding Opportunity
Number
Enter TREAS-GRANTS-052012-001 in the Funding
Opportunity Number box and Low Income Taxpayer
Clinic in the Title box.
13
Competition Identification
Number
Mark as N/A.
14
Areas Affected by Project
Provide county where services will be provided. If
multiple counties, enter each. If an entire state, enter
the state name and note All Counties. If more space is
required, attach an additional sheet.
15
Descriptive Title of
Applicant’s Project
Refer to the general instructions provided with SF-424
in Appendix A for the appropriate code.
Enter Internal Revenue Service.
Enter Low Income Taxpayer Clinic.
Congressional Districts
Enter the congressional district of the applicant on line
16a, and the congressional districts to be serviced by the
clinic. Enter in the following format: two-character state
abbreviation – two-character district number, e.g., CA-05
for California’s fifth district or NC-10 for North Carolina’s
tenth district. If all congressional districts in a state are
affected, enter All for the district number, e.g., MD-All for
all congressional districts in Maryland. If more space is
required, continue on an additional sheet and attach.
Proposed Project
For all applicants, enter 1/1/2012 as the start date.
The end date should be entered as 12/31/2012 or the
end of the multi-year grant, if later (i.e., 12/31/2013 or
12/31/2014 as applicable).
18a-f
Estimated Funding
18a. Enter the amount of federal grant funds requested
for 2012 (if the applicant is a multi-year grantee,
remember to only list the amount requested for 2012).
This amount cannot exceed $100,000.
18b-e. Enter the amount of matching funds by source.
These are all funds offered as match. The amount needs
to be equal or exceed the amount on line 18a. Remember
a dollar-for-dollar match is required for this grant.
18f. Enter any program income the organization expects
to receive.
18g
Total
19
Is Applicant Subject to
Review by State Under
Executive Order 12372
Process?
16
17
48
Comments
Low Income Taxpayer Clinic
Add the amounts in 18a through 18f.
Mark as N/A.
Block
Title
20
Is the Applicant
Delinquent on any Federal
Debt?
Check Yes or No. If Yes, provide an explanation.
Certification and
Assurance and Authorized
Representative
This section covers agreement to the certifications and
assurances required as part of this package. Check
I Agree after reviewing the certification section of
the application notice. Complete this section with
the name, contact and signature of the individual
authorized to submit grants on behalf of the applicant.
21
Comments
iii. Background Information
Who must complete this section?
Applicants applying for a single-year grant or year one of a multi-year grant
must submit background information. Applicants requesting funding
for the second or third-year of a multi-year grant are not required to
submit background information.
Things to note:
The application may contain internal references. There is no need to
reprint text printed elsewhere in the application.
This section is limited to 12 pages, double-spaced, Arial font, size 12.
The page limitation does not include attachments.
Begin each response by annotating the number that corresponds to the
appropriate plan section.
If a section is not applicable, please indicate N/A.
Clearly label all attachments.
This section is designed to solicit information concerning an applicant’s
qualifications. The information will be used to determine whether the
organization has sufficient experience in delivering services to low income
and ESL individuals and the infrastructure to properly manage federal
funds. Provide specific responses for each of the following requirements
and keep comments concise and relevant. Begin each response by
annotating the letter that corresponds to the appropriate requirement.
Experience
a. Describe the applicant’s experience in delivering services (e.g., representation, outreach, and education) to low income and ESL individuals and families. Include type of service provided, languages served,
number of individuals reached, and geographic area covered.
b. Describe the applicant’s experience in coordinating an LITC Program.
Do not include information about the experience of specific individuals here.
49
c. Describe the applicant’s existing affiliations with other organizations,
such as schools, governmental bodies, or other charitable organizations.
d. Describe the applicant’s experience in supervising staff, students, and
volunteers and providing technical assistance to other organizations.
e. Describe the applicant’s experience networking with other communitybased organizations with which it can work to reach its target audience.
Financial Responsibility
f. Describe the applicant’s ability to properly spend and account
for program funds. Include examples of experience in managing
federal grants, if any, and a description of the organization’s existing
accounting system and accounting support staff. Include copies
of relevant internal accounting procedures, and other pertinent
information. Specifically describe the following:
i. Accounting procedures;
ii. The method for allocating allowable expenses and matching funds
between qualifying LITC activities and other nonqualifying activities
or programs, if applicable;
iii. The plans for audits and controls;
iv. The procedures that will be used for proper cost allocation for LITC
Program grant funds if the organization seeks to operate an LITC
Program in conjunction with a VITA or TCE program; and
v. The qualifications and relevant expertise of the Qualified
Business Administrator (QBA) with business administration and
managing federal grants.
iv. Program Performance Plan
Who must complete this section?
Applicants applying for a single-year grant or year one of a multi-year grant
must submit a Program Performance Plan. Applicants requesting funding for the second or third-year of a multi-year grant are not required to
submit a Program Performance Plan. However if the applicant intends to
modify the Plan submitted with the year one application, a statement indicating any proposed program modifications must be included.
50
Things to note:
The application may contain internal cross-references. There is no
need to reprint text printed elsewhere in the application.
This section is not limited in length.
Begin each response by annotating the number that corresponds to the
appropriate plan section.
If a section is not applicable, please indicate N/A.
Clearly label all attachments.
Low Income Taxpayer Clinic
This section of the application is designed to solicit information concerning the
ability of an applicant to operate a quality LITC. Provide specific responses
for each of the following requirements and keep comments concise and
relevant. Begin each response by annotating the letter that corresponds to
the appropriate requirement.
Program Staff
a. Describe the qualifications and specific tax expertise of the:
1. The Qualified Tax Expert (QTE); and
2. The Clinic Director.
b. List the titles, responsibilities, and qualifications of clinic staff other than
the QTE, QBA, or Clinic Director.
c. If students will be used to provide clinic services, indicate the number and
type of students (law students, graduate accounting students, etc.), and
1. whether a special order from the Office of Professional Responsibility will
be obtained to allow students to represent taxpayers before the IRS; and
2. whether permission will be obtained from the United States Tax
Court for students to practice before the Court.
d. Identify clinic staff authorized to represent taxpayers before the IRS.
e. Identify clinic staff admitted to practice before the U.S. Tax Court.
f. Indicate the amount of time that clinic staff and students devote to clinic
activities. Detail the method used to track staff and student time.
Volunteers
g. Describe the applicant’s pro bono panel and how panel members will be
identified and recruited.
h. Describe the procedures used to assign cases to volunteers, monitor
case progress, and evaluate services to ensure that taxpayers receive
quality assistance.
i. Detail the method used to track volunteer time.
Training and Resources
j. Describe the training to be provided to clinic staff, students, and
volunteers.
k. Identify the continuing professional education (CPE) activities of the
clinic staff and volunteers.
l. Describe the clinic’s tax library and any plans to provide access to other
research resources.
Clinic Operations
m. Describe the clinic’s publicity plan, including potential venues for outreach to low income taxpayers. Identify the methods and media that the
clinic will use to reach taxpayers.
n. Describe plans to protect taxpayer privacy and to maintain confidentiality
51
of taxpayer information and any tax return information. Describe the
procedures used to safeguard client records. Is there a private office or
conference room to meet with clients?
o. Indicate the dates, days, and hours of clinic operation. State whether
the clinic will be open full-time and year-round. Describe plans for staffing the clinic during periods of student absences if the LITC is part of an
academic institution. Specifically state whether the clinic will accept new
cases during periods of student absences or merely refer taxpayers to
other organizations.
Year-round, full-time access is preferable to part-time or partial-year access for
clients. In making grant awards, consideration will be given to whether clinics are
open full-time and year-round. If the clinic is awarded a grant premised on operating full-time and year-round and later changes the operating schedule, the LITC
Program Office may make a reduction in funding during the year.
p. Describe the clinic’s plans for charging nominal fees, if any, and the amount.
Program Plan
q. Describe the proposed program plan for the period for which the grant is
requested. If the clinic will be providing both Controversy and ESL
services, submit a separate program plan and goals for each. If the
program goals extend beyond one year, state goals in annual increments
of up to three years.
Controversy Plan
1. Describe the type of controversy services to be provided.
2. Briefly describe the procedure for intake, assignment, and monitoring
of controversy cases.
3. Describe the method used to track the 90/250 income requirement.
4. Describe the method used to track the amount in controversy for any
taxable year and state the policy that will be used to accept cases
when the amount in controversy exceeds the amount specified in
IRC § 7463 (currently $50,000).
5. Project numerical goals for:
i. New representation cases; and
ii. One-on-one consultations.
ESL Plan
6. Describe the type of ESL outreach and educational activities to be
provided, including educational topics to be addressed.
7. Describe the target population for ESL outreach and education.
8. Describe the plans for tracking the number of ESL taxpayers served.
9. Project numerical goals for:
i. Educational activities to be conducted;
ii. ESL taxpayers to be reached; and
iii. One-on-one consultations.
52
Low Income Taxpayer Clinic
Program Monitoring and Evaluation
r. Describe the strategy for monitoring and evaluating program results
(in short and long-term), including how success will be defined and
measured.
s. Indicate how the clinic intends to measure client satisfaction
Geographic and Demographic Information
t. Identify geographic area(s) the clinic will serve. Provide demographic information including the total population, number of low income residents,
and number of ESL residents. Identify languages in which the clinic
provides services. Specify if interpreters are available.
Other Information
u. Describe plans, if any, to make name or organizational changes.
Requests to approve name or organizational status changes must be submitted in
writing to the LITC Program Office in advance of the effective dates of proposed
changes with sufficient time to afford program evaluation and legal review.
v. Budget/Financial Information
This section is designed to solicit information concerning the applicant’s
budget request for the grant cycle. All applicants must submit the following
budget and financial Information:
a. Standard Form 424A, Budget Information – Non-Construction Programs.
This form is used to provide a budget for the grant cycle. An applicant
that is applying for both Controversy and ESL funding should submit only
one Standard Form 424A, which will include budget information for both
programs. The applicant will identify the Controversy and ESL program
requests separately on the form. Detailed instructions for completing the
form are provided below.
b. Detailed Budget Worksheet (Form 13424-J) and Narrative. This worksheet
and accompanying narrative provides a breakdown of budgeted expense
items in accordance with the budget categories listed in section B of Standard Form 424A. A single worksheet should include information related to
both Controversy and ESL programs, if applicable, as well as information
related to the proposed use of federal funds and matching funds. Detailed
instructions for completing the worksheet and narrative are provided below.
An example of a properly prepared worksheet and narrative is also provided.
c. Copy of the applicant’s most recent audited or unaudited financial statement. If an unaudited financial statement is submitted, please explain why
an audited financial statement is not available. If a financial statement is
not available, please include a profit and loss statement.
53
d. Copy of the applicant’s most recent Single Audit Data Collection Form
(Form SF-SAC), or a statement that the applicant is exempt from the
A-133 audit requirement because it expends less than $500,000 a year
in federal awards.
e. A copy of the applicant’s indirect cost rate agreement, if applicable.
Failure to provide this information will result in non-consideration of the
application.
Things to note:
Each budget item does not require a dollar-for-dollar match, but the total
matching funds must equal or exceed the total federal funds requested for
each program.
Federal funds are those funds the applicant is requesting from the IRS in
support of the LITC Program.
Non-federal funds are funds the applicant has or will have available to
spend on the LITC Program. These are considered matching funds.
2 CFR Part 220 (formerly OMB Circular A-21) and 2 CFR Part 230 (formerly
OMB Circular A-122) provide guidance about allowable and unallowable expenses. Also, see section II.H.vi, Allowable/Unallowable Program Expenses,
for a list of common expenses that are allowable or unallowable.
2 CFR Part 215 (formerly OMB Circular A-110) provides guidance about
matching funds requirements.
Please round figures to whole dollars only and no cents.
vi. Completing the Standard Form 424A, Budget Information –
Non-Construction Programs
A Standard Form 424A, Budget Information – Non-Construction Programs, is
required for this application. The term “non-federal funds” is used interchangeably with “matching funds.” The following table provides information on how to
complete the SF 424A. Applicants should also review the instructions provided
with SF 424A in Appendix A.
54
Low Income Taxpayer Clinic
Section A – Budget Summary
SF 424A Title
Explanation
Grant Program Function or Activity
(a): Line 1
Enter the word “Controversy” on line 1 of the
application. Include all requests for Controversy
resources on this line.
Grant Program Function or Activity
(a): Line 2
Enter the word “ESL” on line 2 of the application.
Include all requests for ESL resources on this line.
An applicant seeking to operate only an ESL program may enter “ESL” and the
corresponding funding request on line 1 of the SF 424A, and leave line 2 blank.
An applicant seeking to operate only a Controversy program may leave line 2
blank. These instructions are applicable throughout the rest of this application.
Lines 3(a) – (g) and 4(a) – (g)
No entry required or may contain all zeroes.
Catalog of Federal Domestic
Assistance Number (b)
Enter 21.008 on lines 1 and 2 as appropriate.
Estimated Unobligated Funds: Federal
(c) and Non-Federal (d)
No entry required or may contain all zeroes.
New or Revised Budget: Federal (e)
This section is used to capture the amount of federal
funds requested from IRS for performance of this grant
in grant cycle 2012. On line 1(e) enter the total amount
of money requested from the IRS for Controversy. On
line 2(e), enter the total amount of money requested
from the IRS for ESL.
New or Revised Budget: NonFederal (f)
This section is used to capture the amount of nonfederal funds proposed for matching. This grant
requires a dollar-for-dollar match. Enter on line 1(f) the
total amount of matching funds for Controversy. The
amount in this column must be equal to or greater than
the amount on line 1(e). Enter on line 2(f) the total
amount of matching funds for ESL. The amount in this
column must be equal to or greater than the amount on
line 2(e).
New or Revised Budget: Total (g)
This is the sum of columns (e) and (f).
Grant Program Function or Activity
(a): Line 5 – Totals
Enter the totals for each column (c) – (g).
TIP: The amounts on line 5(e) - (g) of the SF 424A should agree with amounts in section 18 on
the SF 424, as follows:
The amount on SF 424A, line 5(e) should equal the amount on SF 424, block 18(a);
The amount on SF 424A, line 5(f) should equal the sum of SF 424, blocks 18(b) - (e); and
The amount on SF 424A, line 5(g) should equal the amount on SF 424, block 18(g).
Also, the amounts on line 5(e) - (g) of the SF 424A should agree with amounts in section D –
Forecasted Cash Needs in the Total for first year, as follows:
The amount on SF 424A, line 5(e) should equal SF 424A, block 13;
The amount on SF 424A, line 5(f) should equal SF 424A, block 14; and
The amount on SF 424A, line 5(g) should equal SF 424A, block 15.
55
Section B – Budget Categories
SF 424A Title
Explanation
The amounts entered in section B, columns (1) and (2), must correspond with the totals shown
by program in the Detailed Budget Worksheet. NOTE: The data captured in this section also
corresponds to lines (1) and (2) entered in section A, Budget Summary.
� The data that is entered in column (1) in section B corresponds to the total amount entered on line
(1) of section A (e.g., section B, column (1), item 6(k) should equal section A, item 1(g)).
� The data that is entered in column (2) in section B corresponds to the total amount entered on line
(2) of section A (e.g., section B, column (2), item 6(k) should equal section A, item 2(g)).
56
6. Object Class Categories
Enter the combined federal and non-federal funds
from section A by object class category in columns (1)
and (2). Columns (1) and (2) will correspond to the
specific program – Controversy or ESL – noted in lines
(1) and (2) of section A. Columns (3) and (4) should
be blank. The total of columns (1) and (2) is captured
in column (5). Reminder: Review the allowable and
unallowable expenses in this publication and applicable
OMB Circulars before completing this application.
a. Personnel
This category represents wages and salaries paid to LITC
staff. Do not include fringe benefits on this line. This
number will reflect both federal and non-federal dollars.
b. Fringe Benefits
This category includes the fringe benefits for the
personnel listed in the personnel section and includes
both federal and non-federal dollars.
c. Travel
This category covers travel costs for the LITC
program. Travel for unrelated seminars, meetings, etc.
is not allowed.
d. Equipment
This category covers all equipment for the program,
including the value of any donated equipment.
e. Supplies
This category covers all supplies for the program,
including the value of donated supplies.
f. Contractual
This category covers the cost of rent, utilities, and other
contracted items or services that will be used in the
program, including the value of donated space.
g. Construction
This line must be blank or all zeroes. Construction
costs are not covered by the grant.
h. Other
This category covers all other direct expenses that do
not fit in the above categories. The value of volunteer
in-kind services is included in this category.
i. Total Direct Charges (sum of 6(a) 6 (h))
Total direct charges from line 6a through 6h.
j. Indirect Charges
Enter indirect charges allocable to the plan or all zeroes.
k. TOTALS (sum of 6(i) and 6(j))
Total both direct and indirect charges.
Low Income Taxpayer Clinic
SF 424A Title
7. Program Income
Explanation
If the clinic charges a nominal fee for services, program
income would be included in the appropriate column.
Program income may be used to finance the nonfederal share of the program (i.e., it may be used as part
of the clinic’s matching funds).
Section C – Non-Federal Resources
SF 424A Title
Explanation
8(a) Grant Program
The information entered here should be identical to
that entered in section A line 1(a) on the SF 424A. For
Controversy programs, enter “Controversy” on this
line. For ESL only programs, enter “ESL” on this line.
Columns (b) through (e) will contain the corresponding
data for the applicant’s Controversy or ESL only
program.
8(b) Applicant
This is the amount of matching that will come directly
from the applicant. Enter the amount on line 8(b).
8(c) State
Enter the amount of the state’s cash and in-kind
contribution if the applicant is not a state or state
agency.
8(d) Other Sources
Enter the amount of cash and in-kind contributions to
be made from all other sources.
8(e) TOTALS
Total the amount on line 8, columns (a) – (d). This
amount must match the amount on line 1(f) NonFederal in section A.
Line 9(a) through (d)
For applicants applying for Controversy and ESL
funding, use the instructions above and enter data for
the ESL program on line 9(a) through (d).
9(e) TOTALS
Total the amount on line 9, columns (a) – (d). This
amount must match the amount on line 2(f) NonFederal in section A.
Lines 10-11
No entries required (or enter all zeroes).
Line 12 TOTAL (sum of lines 8-11)
Total columns (b) – (e).
TIP: All cash and in-kind contributions must be addressed in the Detailed Budget Worksheet
and Narrative. An explanation of the sources and amounts of matching funds to be provided, as
well as an explanation of the methods used to value in-kind contributions, must be included in
the narrative.
57
Section D – Forecasted Cash Needs
SF 424A Title
Explanation
Line 13 Federal
Enter the amount of federal funds needed by quarter
during grant cycle 2012. Total should equal section A
line 5(e).
Line 14 Non-Federal
Enter the amount of funds from all other sources
needed by quarter during grant cycle 2012. Total
should equal section A line 5(f).
Line 15 TOTAL (sum of lines 13 and
14)
Enter the total of lines 13 and 14. Total year should
equal section A line 5(g).
Section E – Budget Estimates of Federal Funds Needed for Balance of the Project
The section is only required if the applicant organization
has applied for a multi-year grant.
SF 424A Title
58
Explanation
Lines 16(a) Grant Program
Enter in column (a) the same grant program titles
shown in section A column 1(a).
Lines 17(a) Grant Program
Enter in column (a) the same grant program titles
shown in section A column 2(a), if applicable.
Lines 18(a) – (e) and 19(a) – (e)
Leave blank.
16(b) First Future Funding Period
Estimate the amount of federal funds needed for
Controversy or ESL programs for 2013.
16(c) Second Funding Period
Estimate the amount of federal funds needed for
Controversy or ESL programs for 2014.
16(d) Third and (e) Fourth
Leave blank.
17(b) First Future Funding Period
For clinics that have both Controversy and ESL
programs, estimate the amount of federal funds needed
for ESL programs for 2013.
17(c) Second Future Funding Period
For clinics that have both Controversy and ESL
programs, estimate the amount of federal funds needed
for ESL programs for 2014.
Line 20 TOTAL (sum of lines 16-19)
Enter the total amounts for the First (b) and Second (c)
future funding periods.
Low Income Taxpayer Clinic
Section F – Other Budget Information
SF 424A Title
Explanation
Line 21. Direct Charges
Leave blank.
Line 22. Indirect Charges
Leave blank.
Line 23. Remarks
Leave blank.
The Detailed Budget Worksheet and Narrative that is required to be submitted
with the grant application will include all explanations of direct and indirect charges. The requirements of the Detailed Budget Worksheet and Narrative follow.
vii. Completing the Detailed Budget Worksheet and Narrative
In addition to the SF 424A, a Detailed Budget Worksheet (Form 13424-J) with
accompanying Narrative Explanation must be submitted to explain how federal grant funds and matching funds will be spent by the program. A sample
Detailed Budget Worksheet has been provided in Appendix B. A narrative explanation of all expense categories from section B, Budget Categories of the
SF 424A must be included to explain how the expenses are calculated; how
the expenses are allocated between Controversy and ESL programs, if applicable; and the amount and sources of matching funds. All expenses must be
reasonable, necessary, and allocable to this grant. Each line item does not
require a dollar-for-dollar match, but the total matching funds must equal
or exceed the total federal funds requested for each program. Grant
applicants should refer to 2 CFR Part 220 or 2 CFR Part 230 (formerly OMB
Circulars A-21 and A-122, respectively) as appropriate, for further guidance on
each expense category and 2 CFR Part 215 (formerly OMB Circular A-110) for
guidance on matching funds.
A. Personnel
This budget category is used to report salaries and wages that will be paid to LITC staff. Do not
include fringe benefits in this category (fringe benefits should be accounted for in category B).
List each staff member’s position, rate of pay (hourly wage or annual salary), and time devoted
to clinic activities (hours of service or percentage of annual salary).
In the narrative, indicate the amount of full-time (40 hour) equivalents (FTEs) for each position.
If a staff member works in both the Controversy and ESL programs, state the percentage of time
devoted to each program. Also, state the portion of each staff member’s salary or wages to be
paid from federal and matching funds, as well as the source of the matching funds.
Volunteer in-kind services should not be included under the Personnel category. They should
be included under category H, Other.
The Personnel Total (for Controversy and ESL) should equal that on the Standard Form
424A, line 6(a).
59
B. Fringe Benefits
This budget category is used to report fringe benefits that will be paid on behalf of LITC staff
whose wages and salaries are reported in personnel costs (category A above).
In the narrative, state the fringe benefits rate (or rates, if different percentages are used for
different staff positions), the items that constitute the fringe benefits, what portion will be
paid by federal funds and matching funds, and the source of matching funds. Identify the rate
applicable to each staff position if varying rates apply by position.
The Fringe Benefits Total should equal that on the Standard Form 424A, line 6(b).
C. Travel
This budget category covers travel costs, including costs associated with attendance at the annual
LITC conference and other travel expenses directly related to conducting LITC business or activities.
In the budget narrative, identify the travel costs being requested, whether the costs will be
paid with federal or matching funds, the source of the matching funds, and how costs will be
allocated between the Controversy and ESL programs, if applicable.
The Travel Total should equal that on the Standard Form 424A, line 6(c).
D. Equipment
This budget category covers the cost of equipment that will be purchased or leased by the applicant
and used in operating a Controversy or ESL program. Donated equipment may be included as
matching funds and is valued at the fair market value of the property at the time of the donation.
In the budget narrative, identify the equipment to be purchased, leased or donated, whether
the associated costs will be paid using federal or matching funds, the source of the matching
funds, and how costs will be allocated between the Controversy and ESL programs. If there are
third-party in-kind contributions of equipment, identify the equipment, the donor, and how the
valuation was determined.
The Equipment Total should equal that on the Standard Form 424A, line 6(d).
E. Supplies
This budget category includes the cost of supplies that will be used in operating the LITC.
Donated supplies may be included as matching funds and are valued at the fair market value of
the property at the time of the donation.
In the budget narrative, identify the supplies to be used, whether the associated costs will
be paid using federal or matching funds, the source of the matching funds, and how costs
will be allocated between the Controversy and ESL programs. If there are third-party in-kind
contributions of supplies, explain the amount of the supplies contributed and how the valuation
was determined, as well as the source of the donation.
The Supplies Total should equal that on the Standard Form 424A, line 6(e).
60
Low Income Taxpayer Clinic
F. Contractual
This budget category includes the cost of rent, utilities, and other contracted items or services
that will be used in operating a Controversy or ESL program. Donated space may be included as
matching funds and the value assigned may not exceed the fair rental value of comparable space.
The narrative explanation should identify the nature of the expense, whether the associated
costs will be paid using federal or matching funds, the source of the matching funds, and how
costs will be allocated between the Controversy and ESL programs.
If a contracted item or service pertains to other programs in addition to LITC activities, only
the portion directly attributable to the LITC activities may be included in the budget, and the
narrative must explain the methodology used to apportion costs between the LITC activities
and other programs.
The Contractual Total should equal that on the Standard Form 424A, line 6(f).
G. Construction
This category is not applicable to this grant. No expenses are allowed.
H. Other
This budget category includes all other direct costs that will be incurred in operating a LITC
program that are not properly included in categories A through G. The value of volunteer inkind services is included in this category as matching funds.
The narrative should identify the type of cost, whether the cost will be paid using federal or
matching funds, the source of the matching funds, and how the cost will be allocated between
the Controversy and ESL programs. The narrative must also disclose the rate or rates that will
be used to value volunteer in-kind services and the number of volunteer hours estimated to be
provided by type of volunteer.
Rules for valuing volunteer in-kind services are found in 2 CFR § 215.23. See section II.G,
Matching Funds Requirement, for more information.
The Other Total should equal that on the Standard Form 424A, line 6(h).
I. Total Direct Charges
The total of the direct charges is the sum of lines 6(a) through 6(h) on Standard Form 424A.
I. Total Direct Charges
The total of the direct charges is the sum of lines 6(a) through 6(h) on Standard Form 424A.
61
J. Indirect Costs
Indirect costs are charges not directly related to the LITC program, but incurred as part of the
general overhead and administration of the applicant. Indirect charges may be budgeted as a
use of federal funds based upon an approved Indirect Cost Rate Agreement. However, indirect
charges are not allowable as matching funds.
The budget narrative should identify the indirect cost rate and the base that will be used to
allocate indirect costs. A copy of the applicant’s Indirect Cost Rate Agreement should be
attached, if available.
The Indirect Charges Total should equal that on the Standard Form 424A, line 6(j).
Matching Funds
The narrative must include an explanation of the sources and amounts of matching funds. If
the sponsoring organization plans to provide matching funds, the applicant must state explicitly
that such funds (1) are not used as matching funds for any other federal program and (2) are
not funds received from any other federal grant unless specifically authorized by statute to be
used as matching funds.
Detailed Budget Worksheet and Narrative Example
An example of a properly prepared Detailed Budget Worksheet and Narrative is provided in
Appendix B. In the example, ABC Low Income Taxpayer Clinic is requesting a grant in the
amount of $90,000 for calendar year 2012; $80,000 of federal funds is budgeted to operate
a Controversy program and $10,000 of federal funds is budgeted to operate an ESL program.
The applicant plans to provide $122,750 in matching funds (which exceeds the $90,000 dollarfor-dollar match required under the terms of the grant). Matching funds will be provided using
Legal Services Corporation funds and the value of volunteer in-kind services.
L. LITC Program Grant Application Assembly And Submission
Applicants are encouraged to submit applications via www.grants.gov. Use
of grants.gov provides assurance that required entries are not left blank on the
standard forms and provides receipt acknowledgement when the application is
downloaded by the LITC Program Office. To submit an electronic application, go
to www.grants.gov to apply through the Federal Grants website. For applicants
applying through the Federal Grants website, the Funding Number is TREASGRANTS-052012-001.
Applications submitted through www.grants.gov constitute submission as
electronically signed applications. Applicants must register the individual who
is able to make legally binding commitments for the applicant organization as
the authorized organization representative. When an application is submitted
throughwww.grants.gov the name of your authorized organization representative on file will be inserted into the signature line of the application.
62
Low Income Taxpayer Clinic
If the application is not submitted electronically, the Application Package must
be assembled in the order prescribed in the section II.K, Completion of the LITC
Program Grant Application Package, and submitted as an original and three copies
(i.e., four sets). All application documents must be typed and consecutively
numbered at the bottom of the page. The original must be signed in blue ink.
Paper applications may be submitted by U.S.P.S. mail, sent by private delivery
service, or hand-delivery to the LITC Program Office in Washington, D.C.
Applications submitted in hard copy should be sent to the following address:
Internal Revenue Service
Taxpayer Advocate Service
LITC Program Office
Attention: LITC Applications
TA:LITC
Room 1034
1111 Constitution Ave., NW
Washington, DC 20224
All applications must be postmarked, sent by private delivery service, hand-delivered to the LITC Program Office in Washington, D.C., or submitted (if filed electronically) by July 15, 2011, to be considered for 2012 LITC Program grant funding.
M. Selection Of Grant Recipients And Award Notification
In making grant award decisions, the IRS seeks to fund qualified organizations,
including academic institutions and non-profit organizations throughout the United
States, to provide tax representation on behalf of low income individuals and education and outreach to ESL taxpayers. The IRS may, at its discretion, award grant
funds based on controversy, ESL, or a combination of program plans to achieve
the goals of the LITC Program.
An overriding goal of the LITC Program is to provide both types of services in
each state, the District of Columbia and Puerto Rico. To that end, the IRS encourages applications from clinics in target states that currently lack either controversy
or ESL services. The chart below lists the states in need of services and the type
of service needed:
Target States for New ESL Applications
Connecticut, Kentucky, Montana, New Mexico, South Dakota
63
In addition, the LITC Program has identified the following areas as underserved and
in need of LITC services. The IRS encourages applications from new clinics within
these locales or from existing grantees wishing to expand their coverage to service
these areas.
Target Metropolitan Areas for New Clinic Applications
Los Angeles, California, including the following counties:
Los Angeles, Kern, Riverside, Ventura
Sacramento, California, including the following counties:
El Dorado, Placer, Sacramento, San Joaquin, Stanislaus
Philadelphia, Pennsylvania, including the following counties:
Berks, Delaware, Philadelphia
St. Louis, Missouri, including the following counties:
Cape Girardeau, Jefferson, St. Francois, St. Louis
Target States for New Clinic Applications
Nebraska, Montana, Wyoming
Notwithstanding the criteria detailed above, all applications for clinics from all
areas will receive serious consideration.
The IRS may award grants with one-year to three-year project periods to qualified
applicants. Organizations awarded a multi-year grant based on the 2012 selection and award process will not undergo formal evaluation of their program plans
during the second or third-year cycle selection and award process. However,
multi-year recipients will be reviewed annually for satisfactory performance and
progress in meeting goals and objectives as well as compliance with grant terms.
The funding level for subsequent years will be reviewed annually and may be
increased or decreased at the discretion of the LITC Program Office. All funding
will be based on the availability of annually appropriated funds. Awarding of
multi-year grants is at the discretion of the LITC Program Office.
All applications will undergo a preliminary eligibility screening. Applications that do
not meet all eligibility screening criteria will be eliminated from the award process.
Applications that pass the eligibility screening will then be evaluated based on their
technical merit, the amount of funding requested, and other considerations.
i. Eligibility Screening
Applications will be reviewed to determine the following information:
Length of Grant Requested (one year to three years);
Type of Program Proposed (Controversy, ESL, or both); and
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Low Income Taxpayer Clinic
Status of Organization (prior LITC grant recipient or new applicant).
Applications will be reviewed further to determine if all required items are included in the application package and to ensure that the grantee has an active
CCR registration.
ii. Evaluation Process
Applications that pass the eligibility screening process will undergo a twotiered evaluation process. Applications will be subject to both a technical
evaluation and a Program Office evaluation.
a. Technical Evaluation
During the technical evaluation, each application will be reviewed using the
criteria listed below and awarded points based on the information provided in
the application. If an applicant seeks funds to operate both a controversy and
ESL program, each program plan will be evaluated separately. Applicants can
receive a maximum of 100 points per program. In scoring applications, the IRS
will evaluate each program plan based on how it will assist in accomplishment
of the LITC Program goals as stated elsewhere in the application package.
Only information contained in the application will be considered during the technical evaluation process. Therefore, it is extremely important that a submission
contain all required information in order to achieve the maximum scoring.
Points will be assigned as follows:
� Experience
Experience in operating a low income taxpayer clinic or delivering
services to low income and ESL taxpayers. (Maximum 10 points).
� Financial Responsibility
Quality of grant administration and internal accounting procedures.
(Maximum 10 points).
� Program Plan
Quality of programs offered to assist low income taxpayers or ESL
taxpayers. Evaluation criteria include the qualifications, training, and
supervision of the clinic staff, students, and volunteers; amount of time
devoted to the program by clinic staff; comprehensiveness of services
to be provided; procedures for ensuring the confidentiality of taxpayer
information; publicity and outreach plans; and the dates and days and
hours of clinic operation. (Maximum 75 points).
� Program Coverage
Number of low income or ESL taxpayers in geographic area(s) and
proposed efforts to reach these taxpayers. (Maximum 5 points).
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b. Program Office Evaluation
After the completion of the technical evaluation, applications will undergo a
secondary review by the LITC Program Office. This evaluation will be based
on the information contained in the program plan, as well as the clinic’s
performance history in the LITC Program, if applicable.
� New Applicants. The LITC Program Office will perform a general
review of the application and proposed program plan. The review will
consider the quality of the proposed program, the soundness of the
proposed budget, and any significant concerns identified during the
technical evaluation.
� Prior Grantees. The LITC Program Office will perform a general review of the application and program plan, as well as a more detailed
review of the clinic’s performance history in the LITC Program. The
review will consider:
1. Timeliness and completeness of Interim and Year-End reports;
2. Any significant concerns identified by Operational Review and Assistance visits and how the grantee addressed those concerns;
3. Whether the grantee’s activities match its program plan;
4. Grantee’s involvement with other tax clinics, community groups, the
Taxpayer Advocate Service (TAS), and the LITC Program Office;
5. Whether the grantee has a history of not drawing down funds in a
timely manner; and
6. Whether the grantee has failed to use all funds awarded in prior
years.
All applicants will also undergo a review of the organization’s federal
tax compliance status. Grant funds may be withheld or denied based
on an applicant’s failure to be in full compliance with all current federal
tax obligations.
The decision of whether or not to award grant funds will be based on
the technical evaluation, Program Office evaluation, and the following
additional considerations:
T
o foster parity regarding clinic availability and accessibility for low
income and ESL taxpayers nationwide, the LITC Program Office will
consider an applicant’s geographic coverage area, the number of
low income and ESL taxpayers served, and the languages in which
assistance will be provided to taxpayers.
If applications are submitted by more than one clinic sponsored by the
same institution or organization, the LITC Program Office will consider all
66
Low Income Taxpayer Clinic
factors surrounding the operation of the clinics, including the geographic
area(s) served by the clinics and the comprehensiveness of the services
to be provided, in determining whether and in what amount grants will be
made to one or more such clinics.
For academic clinics, which may serve fewer taxpayers than nonacademic clinics because of the time involved in teaching and mentoring students, the LITC Program Office will consider additional ways
in which academic clinics can accomplish LITC Program goals (e.g.,
providing technical assistance, training, and mentoring to other LITC
programs, publishing articles about the LITC Program, commenting on
proposed Treasury regulations that affect low income or ESL taxpayers,
and monitoring graduates to determine whether they perform pro bono
work on behalf of or otherwise assist low income taxpayers).
The existence of other clinics serving the same population.
Appropriateness of funds sought for the quantity and quality of services
to be offered.
Other sources of funding available to the clinic.
Final funding decisions are made by the National Taxpayer Advocate, unless
recused. In recusal situations, final funding decisions are made by the Deputy
National Taxpayer Advocate.
iii. Notification of Award Decisions
The LITC Program Office will notify all applicants no later than November 28,
2011, whether or not they have been selected to receive a 2012 grant award.
However, no specific award amount information will be available until after
Congress appropriates funding for fiscal year 2012. The Program Office will
issue a written notification of grant award to each grantee after final award
amounts are determined. The LITC Program Office may, at its discretion,
conduct a site inspection visit to a prospective grantee prior to awarding grant
funds.
N. PAYMENTS TO LITC PROGRAM GRANTEES
Grantees must have a signed grant award agreement on file with the LITC Program
Office prior to the payment of any funds. If an applicant incurs expenses and a
grant is not awarded, all costs incurred will be the responsibility of the applicant.
Electronic Funds Transfer (EFT) payments shall be timed in accordance with the
actual, immediate cash requirements of the recipient organization in carrying out
the purpose of the approved program or project. The timing and amount of EFT
payments shall be as close as is administratively feasible to the actual disburse-
67
ments by the recipient organization for direct program or project costs and the
proportionate share of any allowable indirect costs.
LITC Program grant payments will be disbursed through EFT. Information regarding the EFT procedure is available on the Division of Payment Management segment of the HHS website at www.dpm.psc.gov. Questions regarding upcoming
disbursements should be directed to the clinic’s assigned analyst. For information
about seeking historical payment information see section II.J.i, OMB Circular
A-133 Audit Requirement.
Advances of federal grant funds must be maintained in insured accounts. In
addition, the grantee is required to remit to the U.S. Treasury, at least annually,
interest in excess of $250 earned on advances of federal grant funds. Grantees
may keep $250 of interest earned per calendar year. See section II.H.iii, Interest
on Advances of Grant Funds, for more information.
The LITC Program Office will monitor clinics’ use of funds throughout the year.
If a clinic determines that it will not use all of the funds awarded for the grant
cycle, the clinic should notify the LITC Program Office immediately in writing,
by sending an e-mail to the clinic’s assigned analyst, and then following up with
a letter. The letter should state the amount being released and the reason that
the funds are not required. Clinics are advised to provide sufficient notice to
allow the LITC Program Office time to reobligate those funds to other clinics
prior to September 30 (the end of the federal government’s fiscal year).
III
POST AWARD REQUIREMENTS
A. GRANTEE RESPONSIBILITIES
Grantees are responsible for providing administrative support for the clinic by acting
as managers or program leaders for students, volunteers, and LITC employees.
Grantees must comply with all applicable Standards of Operation outlined in
sections II.C-E.
i. Student Representation
Clinics intending to use students to represent taxpayers before the IRS must
obtain a special order from the IRS Office of Professional Responsibility. If
the clinic needs information about how to request a special order, please
contact Rita C. Barnett with the Office of Professional Responsibility at (202)
622-3530. Only students who are enrolled in graduate business or accounting
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Low Income Taxpayer Clinic
classes or law school programs qualify for authorization by special order. See
sections 10.7 and 10.92 of Circular 230. The Office of Professional Responsibility authorization is limited to IRS practice. Permission must be obtained from
the courts for student representation. LITCs that receive student authorization
from the Office of Professional Responsibility must have their students revoke
any existing Forms 2848 on file with the IRS before leaving the program. If
clinic students encounter difficulty with getting Forms 2848 processed or
with getting IRS personnel to recognize students as authorized representatives, please contact the LITC Program Office at (202) 622-4711.
ii. Changes in LITC Program Award-Supported Activities
Organizations should immediately notify the LITC Program Office of developments that have a significant impact on the award-supported activities. Grantees
must notify the LITC Program Office in the case of problems, delays, or adverse
conditions that materially impair the ability to meet the objectives of the award.
This notification shall include a statement of the action taken or contemplated,
and any assistance needed to resolve the situation. Failure to notify the LITC
Program Office may result in freezing of funds or termination of the grant.
iii. LITC Contact Information
C
linics are required to immediately notify the LITC Program Office about proposed
changes in key personnel, including the Clinic Director, QTE, or QBA, as well as
any changes in their contact information (telephone number and e-mail address);
the clinic address (both the physical address and the mailing address) telephone
number, and fax number; the days and hours of operation; and the beginning and
ending dates clinic services will be provided. These notifications ensure that the
Program Office has the most up-to-date information on each clinic.
Notification should be made by submitting a revised Form 13424, Low Income
Taxpayer Clinic (LITC) Application Information, preferably by e-mail to the assigned program analyst or e-fax at (877) 477-3520. If the Program Office is
unable to locate the clinic or contact the clinic, it may be necessary to freeze
the clinic’s funds or terminate the grant.
iv. LITC Program Materials
Grantees are responsible for creating, printing, and distributing the educational program materials used to inform individuals of their taxpayer rights and
responsibilities. If the LITC is part of a larger parent organization, the LITC
must be prominently featured and referenced in the parent organization’s
phone menu, website, and promotional brochures.
69
v. Withdrawal from LITC Program or Termination of Grant
A clinic must notify the LITC Program in writing before it withdraws from the
Program or ceases to exist. All unused funds must be returned to the IRS
within two weeks of the date of withdrawal or the date of termination.
The federal government is generally obligated to charge interest on any amount
that is not repaid in a timely fashion. See 31 C.F.R. § 901.9. Thus, for any funds
the LITC Program Office requests to be returned to the IRS, failure to repay those
funds on time may result in the clinic having to pay interest on those funds.
If clinic activity is terminated prior to the expiration of the period of the grant
agreement or if a clinic withdraws from the LITC Program, a final financial
report and program narrative must be submitted within 90 days of final clinic
activity or withdrawal from the program. Similarly, if the LITC Program Office
terminates a grant because of a clinic’s failure to comply with the LITC Program requirements, the clinic must submit a final financial report and program
narrative within 90 days of the termination.
Employees and volunteers of the clinic who are lawyers must adhere to their responsibilities as attorneys, not just the responsibilities within the parameters of the
LITC Program. The American Bar Association (ABA) has model rules of professional conduct that are applicable when a lawyer is terminating representation. In
this regard, ABA Model Rule 1.16 provides that upon terminating representation of
a client, a lawyer must take reasonable steps to protect a client’s interests, which
includes giving notice to the client, allowing the client time to find other representation, and returning papers/property to the client. The state bar may have a
similar rule of professional responsibility that provides guidance for terminating
representation. In addition, if the clinic has an agreement with the U.S. Tax Court,
the clinic must notify the Tax Court that the clinic will not be continuing in the LITC
Program so that the Tax Court does not refer taxpayers to that clinic.
vi. Client Satisfaction
Clinics should solicit client comments regarding services provided and use
such observations to improve clinic services. Clinics should create a method
of soliciting these assessments that is appropriate, depending on the services
provided to the client. Clients should be advised that their participation in
surveys is voluntary.
B. REPORTING REQUIREMENTS
The LITC Program requires the timely submission of two reports during a grant
cycle – an Interim Report and a Year-End Report. The LITC Program Office uses
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Low Income Taxpayer Clinic
the reports to assess the grantee’s progress in meeting its goals and objectives
and to measure the quality of clinic operations, including the services provided to
low income and ESL taxpayers. Quality of operations is measured by determining
how well grantees fulfill the prongs of the LITC mission statement and the related
performance measures. The IRS also compiles and analyzes data from the
reports to assess the overall success of the LITC Program. Thus, it is important
that grantees provide accurate and complete reports.
A report should be submitted as a single, complete package. If a grantee uses
multiple preparers when completing a report, the grantee should assemble all
necessary parts before submitting the report to the Program Office.
In certain instances, clinics may request an extension of time to submit the
Interim or Year-End report. However, a report will still be considered late if
submitted after the due date, notwithstanding any extensions that may be
granted. The request must be submitted in writing to the LITC Program Office
prior to the due date of the report, and must include an explanation justifying the
extension. Please submit an extension request to the LITC Program Office via
e-mail at [email protected].
Failure to timely submit required reports to the LITC Program Office may
result in any or all of the following:
Restricted access to grant funds;
Reduction of future award amount; or
Termination of grant.
Interim and Year-End reports may be released under the Freedom of Information Act
(FOIA). In response to a FOIA request, the LITC Program Office may release these
reports after appropriate redactions to ensure confidentiality of taxpayer information.
i. Interim Reports
Interim reports must be submitted to the LITC Program Office by July 31, 2012.
The Interim report covers the first half of the grant cycle (January 1 through June
30) and consists of an Interim financial report and an Interim program narrative.
a. Interim Financial Report
The interim financial report must contain the following information:
1. Form 425
A completed Standard Form 425 for the period from January 1,
2012 through June 30, 2012 is required. Only one Form 425
is required, even if a clinic has been funded for both ESL and
Controversy programs.
71
2. Statement of Grant Expenditures and Explanations
The Statement of Grant Expenditures and Explanations is used
to report how grant funds were expended during the period
beginning January 1, 2012 through June 30, 2012. This statement follows the same format as the Detailed Budget Worksheet
that the clinic submitted with its application. A single statement
should include expenditures made for both Controversy and ESL
programs, if applicable, as well as information for both federal
and matching funds. The total amount shown on this statement
is the amount spent as of June 30, 2012, not the amount drawn
down from DPM. Explanations for expenditures made using
grant funds and matching funds should be provided in the same
format as used in the Narrative that accompanied the Detailed
Budget Worksheet.
3. Matching Funds
An explanation of the sources and amounts of matching funds
spent during the period January 1, 2012 through June 30, 2012 is
required. In addition, the clinic must state whether it anticipates
any difficulties in securing sufficient matching funds for the grant
cycle. The LITC Program Office recognizes that some clinics may
receive some of their matching funds later in the year, so that
grant funds and matching funds may not be evenly spent as of
June 30. Thus, if the clinic’s Standard Form 425 for the Interim
Report reflects that the clinic has spent less in matching funds
than grant funds, include sufficient details for the Program Office
to ascertain whether the clinic will have adequate matching funds
for the entire grant cycle.
4. Unused Grant Funds
The clinic must state whether it intends to spend its entire 2012
grant award before the end of the grant cycle. In the event the
clinic does not anticipate spending its entire award, the clinic must
report the amount it plans to deobligate from each program. If the
amount is over $500, include the reason(s) for the deobligation
and whether this was due to a one-time occurrence or an ongoing
issue. In the event that the clinic will be unable to use its entire
grant award, it must contact the LITC Program Office as soon as
possible to arrange for a formal release of LITC grant funds so
that the LITC Program Office may distribute the funds to other
clinics prior to September 30.
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Low Income Taxpayer Clinic
All users of the Department of Payment Management’s (DPM) web-based Payment
Management System (which includes all LITC grantees) are required on a quarterly
basis to complete Standard Form 425 in the Payment Management System. This requirement applies whether or not the user has actually drawn down any funds. Failure
to complete the form could result in DPM restricting access to grant funds until the
delinquent form(s) are completed. This requirement is separate and distinct from the
LITC Program Office requirement to submit Standard Form 425 with the Interim and
Year-End reports.
5. Additional Funding Request
If a clinic wishes to request additional funding, it should submit a
separate letter with its Interim report indicating the total amount of
additional funds being requested for each program and how these
funds will be spent. The clinic’s initial grant award and the amount
of additional funding requested for the grant cycle may not exceed
$100,000. See IRC § 7526(c)(2).
b. Interim Program Narrative
The Interim program narrative must contain the following information, numbered in accordance with the information requested below. A response is
required for each narrative item. If not applicable, state “N/A.” Please limit
responses to activities conducted between January 1 and June 30, 2012.
1. Program Plan Progress
Provide a detailed explanation of the progress made in implementing
the 2012 program plan(s). The explanation must address the following:
i. the progress in meeting the proposed goals (including numeric
goals) and objectives and the efforts taken to achieve those
results; and
ii. a description of any impediments to meeting established goals
and objectives, and efforts made to overcome them.
2. Grant Requirements
Provide information about the following items:
i. changes in LITC staff or how staff is deployed, if applicable;
ii. a description of the training provided to clinic staff, students,
and volunteers;
iii. a description of any mentoring or networking activities conducted;
iv. a description of the outreach activities reported on Form 13424A, line 1c;
v. a description of the types of issues addressed in the technical
assistance consultations reported on Form 13424-A, line 7;
vi. a description of the types of cases referred to the Taxpayer Advocate Service reported on Form 13424-A, line 9;
vii. an explanation of the circumstances surrounding the representa-
73
tion of taxpayers whose amount in controversy exceeds $50,000
as reported on Form 13424-K, line 3;
viii. any changes in days or hours of operation, if applicable; and
ix. a description of any other activities, not described previously,
through which the clinic contributed to ensuring the fairness
and integrity of the tax system with regard to low income or ESL
taxpayers.
3. Emerging Issues
Briefly describe any emerging tax issues or trends identified through
the clinic’s work on behalf of low income or ESL taxpayers during the
reporting period. Do not include specific taxpayer identifying information.
4. Success Stories
Briefly describe any relevant success stories. These may include
stories about a particular case or activity; however, do not include
specific taxpayer identifying information.
5. Required Forms
The LITC reporting forms for grant cycle 2012 listed below must be
completed and submitted with the Program Narrative:
� Form 13424-A, General Information;
� Form 13424-K, Controversy Case Information (if applicable);
� Form 13424-B, Controversy Issues (if applicable); and
� Form 13424-C, Systemic Advocacy Information.
The Program Office has created Form 13424-F to assist grantees with tracking of
volunteer hours. The form is for internal clinic use only and is not required to be
submitted with either the Interim or Year-End Report. The form will be provided
along with the required reporting forms prior to the start of the grant cycle.
The LITC Program Office will publish and distribute 2012 LITC reporting forms and instructions in or about November 2011.
The Interim Report must be submitted by July 31, 2012 in one of the
following ways:
E-fax: (877) 477-3520;
E-mail: [email protected]; or
Mail: Internal Revenue Service
Taxpayer Advocate Service
LITC Program Office
Attention: Interim Report
TA:LITC, Room 1034
1111 Constitution Ave., NW
Washington, DC 20224
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Low Income Taxpayer Clinic
ii. Year-End Reports
Year-End reports must be submitted to the LITC Program Office by April 1, 2013.
The Year-End report covers the entire grant cycle (January 1, 2012 through
December 31, 2012) and consists of a Year-End financial report and a Year-End
program narrative.
a. Year-End Financial Report
The Year-End financial report must contain the following information:
1. Form 425
A completed Standard Form 425 for the period from January 1, 2012
through December 31, 2012 is required. Only one Form 425 is required even if a clinic has been funded for both ESL and Controversy
programs.
2. Statement of Grant Expenditures and Related Explanation
The Statement of Grant Expenditures and Explanations is used to
report how grant funds were expended during the period beginning January 1, 2012 through December 31, 2012. This statement
follows the same format as the Detailed Budget Worksheet that
the clinic submitted with its application. A single statement should
include expenditures made for both Controversy and ESL programs,
if applicable, as well as information for both federal and matching
funds. The total amount shown on this statement is the amount
spent for the grant cycle, not the amount drawn down from DPM.
Explanations for expenditures made using grant funds and matching
funds should be provided in the same format as used in the Narrative
that accompanied the Detailed Budget Worksheet.
3. Matching Funds
An explanation of the sources and amounts of matching funds spent
during the period January 1, 2012 through December 31, 2012 is
required. If the clinic did not meet its dollar-for-dollar matching funds
requirement for the grant cycle, an explanation of the reason why
must be included. Failure to provide adequate matching funds will
require a reduction in the grant award. If the clinic has drawn down
funds in excess of the reduced award amount, the clinic must reimburse the LITC Program for the amount of excess funds taken.
4. Unused Grant Funds
In the event that the clinic did not spend its entire 2012 grant award
during the grant cycle, the clinic must report the amount for each program. If more than $500 was not spent, please provide an explanation of why the funds were not spent and whether this was due to a
one-time occurrence or an ongoing issue. The LITC Program Office
will deobligate all unspent amounts.
75
b. Year-End Program Narrative
The Year-End program narrative must contain the following information
numbered in accordance with the information requested below. A response
is required for each narrative item. If not applicable, state “N/A.”
1. Program Plan Accomplishments
Provide a detailed explanation of the results achieved in implementing
the 2012 program plan(s). The explanation must address the following:
i. the results in meeting the proposed goals (including numeric
goals) and objectives and the efforts taken to achieve those
results; and
ii. a description of any impediments to meeting established goals
and objectives, and efforts made to overcome them.
2. Grant Requirements
Provide information about the following items:
i. changes in LITC staff or how staff is deployed, if applicable;
ii. a description of the training provided to clinic staff, students, and
volunteers;
iii. a description of any mentoring or networking activities conducted;
iv. a description of the outreach activities reported on Form 13424A, line 1c;
v. a description of the types of issues addressed in the technical
assistance consultations reported on Form 13424-A, line 7;
vi. a description of the types of cases referred to the Taxpayer Advocate Service reported on Form 13424-A, line 9;
vii. an explanation of the circumstances surrounding the representation of taxpayers whose amount in controversy exceeds $50,000
as reported on Form 13424-K, line 3;
viii. any changes in days or hours of operation, if applicable; and
ix. a description of any other activities, not described previously,
through which the clinic contributed to ensuring the fairness
and integrity of the tax system with regard to low income or
ESL taxpayers.
3. Emerging Issues
Briefly describe any emerging tax issues or trends identified through
the clinic’s work on behalf of low income or ESL taxpayers during
the reporting period. Do not include specific taxpayer identifying
information.
4. Success Stories
Briefly describe any relevant success stories. These may include
stories about a particular case or activity; however, do not include
specific taxpayer identifying information.
5. Last Year in LITC Program
If the grantee will not be continuing in the LITC Program for the 2013
grant cycle, please detail the steps taken to resolve any open cases
76
Low Income Taxpayer Clinic
or obtain new representation for current clients.
6. Required Forms
The LITC reporting forms for grant cycle 2012 listed below must be
completed and submitted with the Program Narrative:
� Form 13424-A, General Information;
� Form 13424-K, Controversy Case Information (if applicable);
� Form 13424-B, Controversy Issues (if applicable); and
� Form 13424-C, Systemic Advocacy Information.
The LITC Program Office will publish and distribute 2012 LITC reporting forms and instructions in or about November 2011.
The Year-End Report must be submitted by April 1, 2013 in one of the
following ways:
� E-fax: (877) 477-3520;
� E-mail: [email protected]; or
� Mail: Internal Revenue Service
Taxpayer Advocate Service
LITC Program Office
Attention: Year-End Report
TA:LITC, Room 1034
1111 Constitution Ave., NW
Washington, DC 20224
Subject to OMB approval, the LITC Program Office may require additional reporting information from LITC grantees. Please refer to www.irs.gov/advocate prior to
submitting your application for updates to information reporting requirements.
IV
LITC PROGRAM OFFICE RESPONSIBILITIES
A. GENERAL RESPONSIBILITIES
The LITC Program Office will assist applicants and grantees in various ways,
including:
1. Furthering the clinics’ understanding of the LITC program and their roles
within the program;
2. Answering questions from potential LITC applicants and current grantees;
3. Providing technical assistance, suggestions, recommendations, and guidance to LITCs regarding operation of their programs;
4. Maintaining Publication 4134, which lists all federally funded LITCs and
ensuring that the publication is included in appropriate IRS mailings and
77
mentioned in appropriate IRS publications;
5. Informing the public about the availability of LITCs, as appropriate, and
to the extent permitted by law, including references on the IRS website at
www.irs.gov;
6. Coordinating and making periodic site visits;
7. Providing information on how to obtain a special order for student practice
from the IRS Office of Professional Responsibility; and
8. Coordinating access to e-services products offered by the IRS.
B. SITE VISITS
The LITC Program Office will periodically perform site visits to selected clinics. Site
visits are a means of providing assistance to and oversight of grantees. Site visits
provide an opportunity for the Program Office to share information with grantees
about program issues and identify areas where clinic services can be improved.
Site visits also provide an opportunity for clinic personnel to ask questions and
share information about problems they may be encountering and to identify best
practices that can be shared with all LITCs. In addition, site visits are an integral
part of the performance measures verification process and help to ensure that grant
funds are being used appropriately and that the grantee is complying with the terms
and conditions of the LITC grant agreement and Program guidelines.
Generally, there are three types of site visits: an orientation visit, an operational
review visit, and a Local Taxpayer Advocate (LTA) visit.
All new grantees will receive an orientation visit within the first 120 days of their
initial funding year. An orientation visit provides an opportunity to familiarize a
new grantee 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 organization may need to improve and or create processes or systems to
meet the requirements of the LITC program. The LITC Program Office will issue
a written report of the orientation visit within 30 days of the visit.
All clinics will receive periodic operational review visits. The purpose of an operational review visit is to evaluate a clinic’s internal and administrative controls. 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 at any time.
During an operational review visit, an LITC program analyst will observe and evaluate a grantee’s program activities and services, and discuss with clinic personnel
the progress made in achieving program goals and objectives. The analyst may
review a clinic’s processes and procedures, including internal controls, personnel
78
Low Income Taxpayer Clinic
policies, training plans, privacy and confidentiality policies, and financial records.
The analyst may examine intake procedures, systems for monitoring and tracking cases handled by clinic staff or referred to volunteers, outreach plans and
materials, education curricula, fee policies, and client satisfaction instruments. In
addition, the analyst may interview clinic staff, students, and volunteers who provide services to taxpayers. As part of monitoring and evaluating clinic activities,
however, the LITC Program Office will be mindful of the clinic’s duty to protect
confidential information.
Prior to an operational review visit, the LITC program analyst will conduct a previsit assessment that will include a review of the grantee’s application, program
plan, budget, and prior period reports. Based on this assessment, the analyst will
identify items to be reviewed and will provide the clinic director with a preliminary
list of items and topics to be reviewed during the site visit. Additional items may
be requested during or after the site visit. The grantee should have all requested
documents, including adequate records to support the sources and uses of funds,
available for review during the site visit. The grantee must be prepared to demonstrate compliance with all standards of operation.
The LITC Program Office will issue a written report of the operational review visit,
including findings, recommendations, and required corrective actions, generally
within 90 days of the visit.
In years when the LITC Program Office does not conduct an operational review
visit, a grantee should expect to receive at least one visit from its LTA. The LTA
visit is designed to help foster the relationship between the clinic and its local
Taxpayer Advocate Office.
79
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APPENDIX A
Low Income Taxpayer Clinics (LITCs)
Application Information
Grant Period Request (Check one)
Single year request
Multi-year request
1st of 3 years
Grant Amount Requested for 2012
Controversy
2nd of 3 years
3rd of 3 years
ESL
Total
Applicant Information
Legal name of sponsoring organization
Primary contact name
Title
Phone number
Fax number
Email address
Applicant's Mailing Address
Street
Street address line 2
City
State
ZIP + 4 code
Clinic Information
Name of clinic
Public telephone number
Toll-Free telephone number (if applicable)
FAX number
Languages served in addition to English
Clinic Street Address
Street
City
Clinic Mailing Address
Street
State
Clinic Director Information
Name
ZIP + 4 code
City
State
Telephone number
Licenses/Certifications (Check all that apply)
Qualified Tax Expert (QTE)
Name
Attorney
CPA
Qualified Business Administrator (QBA)
Name
Attorney
Enrolled Agent
Other
Email address
CPA
Telephone number
Catalog Number 36126D
ZIP + 4 code
Email address
Telephone number
Licenses/Certifications (Check all that apply)
Form 13424 (Rev. 5-2011)
Website address (if applicable)
www.irs.gov
Enrolled Agent
Other
Email address
Department of the Treasury-Internal Revenue Service
Low Income Taxpayer Clinics (LITCs)
LITC Tax Information Authorization
As provided for in Publication 3319, all applicants for an LITC grant must be in compliance with Federal tax responsibilities. The LITC
Program Office will conduct compliance checks on organizations applying for an LITC grant and will also conduct periodic checks
throughout the grant period. Therefore, any LITC that is part of a larger organization (e.g., university) will need to have an authorized
official from the larger organization complete the following authorization:
Name of Academic Institution or other Parent Organization
Name of Low Income Taxpayer Clinic
I authorize the Internal Revenue Service to disclose the following return information, as that term is defined in Internal Revenue Code
section 6103(b), of the Academic Institution or Parent Organization (listed above) to the Director of the Low Income Taxpayer Clinic
(listed above) in connection with the clinic’s application for a low income taxpayer clinic matching grant and continued entitlement to
such grant. Specifically, I authorize the Internal Revenue Service to disclose that the Academic Institution or Parent Organization has
an outstanding federal tax liability (amount, type of tax, and periods) that may affect the approval of the clinic’s grant application by the
Internal Revenue Service or the clinic’s continued entitlement to such grant.
I am aware that without this authorization the return information of the Academic Institution or Parent Organization is confidential and is
protected by law under the Internal Revenue Code. I certify that I am authorized by law to bind the Academic Institution or Parent
Organization and that I have authority to execute this consent to disclose return information.
Taxpayer name
Street
City
State
ZIP + 4 code
Employer Identification Number (EIN)
Name of Authorized Person
Title of Authorized Person
Telephone number
Signature of Authorized Person
Date signed
Form 13424-I (5-2011)
Catalog Number 57683F
www.irs.gov
Department of the Treasury-Internal Revenue Service
OMB Number: 4040-0004
Expiration Date: 01/31/2009
Version 02
Application for Federal Assistance SF-424
* 1. Type of Submission:
* 2. Type of Application:
Preapplication
New
Application
Continuation
Changed/Corrected Application
Revision
* 3. Date Received:
* If Revision, select appropriate letter(s):
* Other (Specify)
4. Applicant Identifier:
5a. Federal Entity Identifier:
* 5b. Federal Award Identifier:
State Use Only:
6. Date Received by State:
7. State Application Identifier:
8. APPLICANT INFORMATION:
* a. Legal Name:
* b. Employer/Taxpayer Identification Number (EIN/TIN):
* c. Organizational DUNS:
d. Address:
* Street1:
Street2:
* City:
County:
* State:
Province:
* Country:
USA: UNITED STATES
* Zip / Postal Code:
e. Organizational Unit:
Department Name:
Division Name:
f. Name and contact information of person to be contacted on matters involving this application:
Prefix:
* First Name:
Middle Name:
* Last Name:
Suffix:
Title:
Organizational Affiliation:
* Telephone Number:
* Email:
Fax Number:
OMB Number: 4040-0004
Expiration Date: 01/31/2009
Application for Federal Assistance SF-424
9. Type of Applicant 1: Select Applicant Type:
Type of Applicant 2: Select Applicant Type:
Type of Applicant 3: Select Applicant Type:
* Other (specify):
* 10. Name of Federal Agency:
11. Catalog of Federal Domestic Assistance Number:
CFDA Title:
* 12. Funding Opportunity Number:
* Title:
13. Competition Identification Number:
Title:
14. Areas Affected by Project (Cities, Counties, States, etc.):
* 15. Descriptive Title of Applicant's Project:
Attach supporting documents as specified in agency instructions.
Version 02
OMB Number: 4040-0004
Expiration Date: 01/31/2009
Version 02
Application for Federal Assistance SF-424
16. Congressional Districts Of:
* a. Applicant
* b. Program/Project
Attach an additional list of Program/Project Congressional Districts if needed.
17. Proposed Project:
* a. Start Date:
* b. End Date:
18. Estimated Funding ($):
* a. Federal
* b. Applicant
* c. State
* d. Local
* e. Other
* f. Program Income
* g. TOTAL
* 19. Is Application Subject to Review By State Under Executive Order 12372 Process?
.
a. This application was made available to the State under the Executive Order 12372 Process for review on
b. Program is subject to E.O. 12372 but has not been selected by the State for review.
c. Program is not covered by E.O. 12372.
* 20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes", provide explanation.)
Yes
No
21. *By signing this application, I certify (1) to the statements contained in the list of certifications** and (2) that the statements
herein are true, complete and accurate to the best of my knowledge. I also provide the required assurances** and agree to
comply with any resulting terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims may
subject me to criminal, civil, or administrative penalties. (U.S. Code, Title 218, Section 1001)
** I AGREE
** The list of certifications and assurances, or an internet site where you may obtain this list, is contained in the announcement or agency
specific instructions.
Authorized Representative:
Prefix:
* First Name:
Middle Name:
* Last Name:
Suffix:
* Title:
* Telephone Number:
Fax Number:
* Email:
* Signature of Authorized Representative:
Authorized for Local Reproduction
* Date Signed:
Standard Form 424 (Revised 10/2005)
Prescribed by OMB Circular A-102
OMB Number: 4040-0004
Expiration Date: 01/31/2009
Application for Federal Assistance SF-424
* Applicant Federal Debt Delinquency Explanation
The following field should contain an explanation if the Applicant organization is delinquent on any Federal Debt. Maximum number of
characters that can be entered is 4,000. Try and avoid extra spaces and carriage returns to maximize the availability of space.
Version 02
INSTRUCTIONS FOR THE SF-424
This is a standard form required for use as a cover sheet for submission of pre-applications and applications and related information under discretionary
programs. Some of the items are required and some are optional at the discretion of the applicant or the federal agency (agency). Required fields on the
form are identified with an asterisk (*) and are also specified as “Required” in the instructions below. In addition to these instructions, applicants must
consult agency instructions to determine other specific requirements.
Item
1.
2.
Entry:
Type of Submission: (Required) Select one type of submission
in accordance with agency instructions.
• Pre-application
• Application
• Changed/Corrected Application – Check if this submission is to
change or correct a previously submitted application. Unless
requested by the agency, applicants may not use this form to
submit changes after the closing date.
Type of Application: (Required) Select one type of application in
accordance with agency instructions.
• New – An application that is being submitted to an agency for
the first time.
• Continuation - An extension for an additional funding/budget
period for a project with a projected completion date. This can
include renewals.
• Revision - Any change in the federal government’s financial
obligation or contingent liability from an existing obligation. If a
revision, enter the appropriate letter(s). More than one may be
selected. If "Other" is selected, please specify in text box
provided.
3.
4.
5a.
5b.
6.
7.
8.
A. Increase Award
D. Decrease Duration
B. Decrease Award
E. Other (specify)
C. Increase Duration
Date Received: Leave this field blank. This date will be assigned
by the Federal agency.
Applicant Identifier: Enter the entity identifier assigned buy the
Federal agency, if any, or the applicant’s control number if
applicable.
Federal Entity Identifier: Enter the number assigned to your
organization by the federal agency, if any.
Federal Award Identifier: For new applications leave blank. For a
continuation or revision to an existing award, enter the previously
assigned federal award identifier number. If a changed/corrected
application, enter the federal identifier in accordance with agency
instructions.
Date Received by State: Leave this field blank. This date will be
assigned by the state, if applicable.
State Application Identifier: Leave this field blank. This identifier
will be assigned by the state, if applicable.
Applicant Information: Enter the following in accordance with
agency instructions:
a. Legal Name: (Required) Enter the legal name of applicant that
will undertake the assistance activity. This is the organization that
has registered with the Central Contractor Registry (CCR).
Information on registering with CCR may be obtained by visiting
www.Grants.gov.
b. Employer/Taxpayer Number (EIN/TIN): (Required) Enter the
employer or taxpayer identification number (EIN or TIN) as
assigned by the Internal Revenue Service. If your organization is
not in the US, enter 44-4444444.
Item:
10.
Entry:
Name Of Federal Agency: (Required) Enter the name of the
federal agency from which assistance is being requested with this
application.
11.
Catalog Of Federal Domestic Assistance Number/Title:
Enter the Catalog of Federal Domestic Assistance number and
title of the program under which assistance is requested, as found
in the program announcement, if applicable.
Funding Opportunity Number/Title: (Required) Enter the
Funding Opportunity Number and title of the opportunity under
which assistance is requested, as found in the program
announcement.
12.
13.
Competition Identification Number/Title: Enter the competition
identification number and title of the competition under which
assistance is requested, if applicable.
14.
Areas Affected By Project: This data element is intended for use
only by programs for which the area(s) affected are likely to be
different than the place(s) of performance reported on the SF-424
Project/Performance Site Location(s) Form. Add attachment to
enter additional areas, if needed.
15.
Descriptive Title of Applicant’s Project: (Required) Enter a
brief descriptive title of the project. If appropriate, attach a map
showing project location (e.g., construction or real property
projects). For pre-applications, attach a summary description of
the project.
16.
Congressional Districts Of: 15a. (Required) Enter the
applicant’s congressional district. 15b. Enter all district(s) affected
by the program or project. Enter in the format: 2 characters state
abbreviation – 3 characters district number, e.g., CA-005 for
California 5th district, CA-012 for California 12 district, NC-103 for
North Carolina’s 103 district. If all congressional districts in a state
are affected, enter “all” for the district number, e.g., MD-all for all
congressional districts in Maryland. If nationwide, i.e. all districts
within all states are affected, enter US-all. If the program/project
is outside the US, enter 00-000. This optional data element is
intended for use only by programs for which the area(s) affected
are likely to be different than place(s) of performance reported on
the SF-424 Project/Performance Site Location(s) Form. Attach an
additional list of program/project congressional districts, if needed.
Proposed Project Start and End Dates: (Required) Enter the
proposed start date and end date of the project.
17.
18.
c. Organizational DUNS: (Required) Enter the organization’s
DUNS or DUNS+4 number received from Dun and Bradstreet.
Information on obtaining a DUNS number may be obtained by
visiting www.Grants.gov.
19.
d. Address: Enter address: Street 1 (Required); city (Required);
County/Parish, State (Required if country is US), Province,
Country (Required), 9-digit zip/postal code (Required if country
US).
20.
Estimated Funding: (Required) Enter the amount requested, or
to be contributed during the first funding/budget period by each
contributor. Value of in-kind contributions should be included on
appropriate lines, as applicable. If the action will result in a dollar
change to an existing award, indicate only the amount of the
change. For decreases, enclose the amounts in parentheses.
Is Application Subject to Review by State Under Executive
Order 12372 Process? (Required) Applicants should contact the
State Single Point of Contact (SPOC) for Federal Executive Order
12372 to determine whether the application is subject to the State
intergovernmental review process. Select the appropriate box. If
“a.” is selected, enter the date the application was submitted to
the State.
Is the Applicant Delinquent on any Federal Debt?
(Required) Select the appropriate box. This question applies to
the applicant organization, not the person who signs as the
authorized representative. Categories of federal debt include; but,
may not be limited to: delinquent audit disallowances, loans and
taxes. If yes, include an explanation in an attachment.
e. Organizational Unit: Enter the name of the primary
organizational unit, department or division that will undertake the
assistance activity.
9.
f. Name and contact information of person to be contacted on
matters involving this application: Enter the first and last name
(Required); prefix, middle name, suffix, title. Enter organizational
affiliation if affiliated with an organization other than that in 7.a.
Telephone number and email (Required); fax number.
Type of Applicant: (Required) Select up to three applicant type(s)
in accordance with agency instructions.
M. Nonprofit
A. State Government
N. Private Institution of
B. County Government
Higher Education
C. City or Township
O. Individual
Government
P. For-Profit Organization
D. Special District
(Other than Small
Government
Business)
E. Regional Organization
Q. Small Business
F. U.S. Territory or
R. Hispanic-serving
Possession
Institution
G. Independent School
S. Historically Black
District
Colleges and
H. Public/State Controlled
Universities (HBCUs)
Institution of Higher
T. Tribally Controlled
Education
Colleges and
I.
Indian/Native American
Universities (TCCUs)
Tribal Government
U. Alaska Native and
(Federally Recognized)
Native Hawaiian
J. Indian/Native American
Serving Institutions
Tribal Government
V. Non-US Entity
(Other than Federally
W. Other (specify)
Recognized)
K. Indian/Native American
Tribally Designated
Organization
L. Public/Indian Housing
Authority
21.
Authorized Representative: To be signed and dated by the
authorized representative of the applicant organization. Enter the
first and last name (Required); prefix, middle name, suffix. Enter
title, telephone number, email (Required); and fax number. A
copy of the governing body’s authorization for you to sign this
application as the official representative must be on file in the
applicant’s office. (Certain federal agencies may require that this
authorization be submitted as part of the application.)
ASSURANCES AND CERTIFICATIONS
Signing the certification on SF 424 certifies that the Applicant will comply with the Assurances and Certifications listed below if an award is made.
Certain of these Assurances and Certifications may not be applicable to the Applicant. An Applicant may not modify any of the Assurances and
Certifications.
A.
Standard Form 424B: Assurances -- Non-Construction Programs
As the duly authorized representative of the Applicant, I certify that the Applicant:
1.
Has the legal authority to apply for Federal assistance, and the institutional,
managerial and financial capability (including funds sufficient to pay the nonFederal share of project costs) to ensure proper planning, management and
completion of the project described in this Application.
2.
Will give the awarding agency, the Comptroller General of the United States, and if
appropriate, the State, through any authorized representative, access to and the
right to examine all records, books, papers, or documents related to the award; and
will establish a proper accounting system in accordance with generally accepted
accounting standards or agency directives.
3.
Will establish safeguards to prohibit employees from using their positions for a
purpose that constitutes or presents the appearance of personal or organizational
conflict of interest, or personal gain.
4.
Will initiate and complete the work (activities in Application) within the applicable
time frame after receipt of approval of the awarding agency.
5.
Will comply with the Intergovernmental Personnel Act of 1970 (42 U.S.C. 47284763) relating to prescribed standards for merit systems for programs funded
under one of the nineteen statutes or regulations specifies in Appendix A of OPM’s
Standards for a Merit System of Personnel Administration (5 CFR 900, Subpart F).
6.
Will comply with all Federal statutes relating to nondiscrimination. These include
but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L.88-352) which
prohibits discrimination on the basis of race, color or national origin; (b) Title IX of
the Education Amendments of 1972, as amended (20 U.S.C.1681-1683, 16851686), which prohibits discrimination on the basis of sex; (c) Section 504 of the
Rehabilitation Act of 1973, as amended (29 U.S.C.794), which prohibits
discrimination on the basis of handicaps; (d) the Age Discrimination Act of 1975, as
amended (42 U.S.C.6101-6107), which prohibits discrimination on the basis of
age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as
amended, relating to nondiscrimination on the basis of drug abuse; (f) the
Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and
Rehabilitation Act of 1970 (P.L.91-616), as amended, relating to nondiscrimination
on the basis of alcohol abuse or alcoholism; (g) Sections 523 and 527 of the
Public Health Service Act of 1912 (42 U.S.C. 290 dd-3 and 290 ee-3), as
amended, relating to confidentiality of alcohol and drug abuse patient records; (h)
Title VIII of the Civil Rights Act of 1968 (42 U.S.C.3601 et seq.), as amended,
relating to nondiscrimination in the sale, rental or financing of housing; (i) any other
nondiscrimination provisions in the specific statute(s) under which Application for
Federal assistance is being made; and (j) the requirements of any other
nondiscrimination statutes which may apply to the Application.
7.
Will comply, or has already complied, with the requirements of Titles II and III of the
Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970
(P.L. 91-646) which provide for fair and equitable treatment of persons displaced or
whose property is acquired as a result of Federal or federally assisted programs.
These requirements apply to all interests in real property acquired for project
purposes regardless of Federal participation in purchases.
8.
Will comply with the provisions of the Hatch Act (5 U.S.C.1501-1508 & 7324-7328)
which limit the political activities of employees whose principal employment
activities are funded in whole or in part with Federal funds.
9.
Will comply, as applicable, with the provisions of the Davis-Bacon Act (40 U.S.C.
276a to 276a-7), the Copeland Act (40 U.S.C. 276c and 18 U.S.C. 874), and the
Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333), regarding
labor standards for federally assisted construction subagreements.
10. Will comply, if applicable, with flood insurance purchase requirements of Section
102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires
recipients in a special flood hazard area to participate in the program and to
purchase flood insurance if the total cost of insurable construction and acquisition
is $10,000 or more.
11. Will comply with environmental standards which may be prescribed pursuant to the
following: (a) institution of environmental quality control measures under the
National Environmental Policy Act of 1969 (P.L.91-190) and Executive Order
11514; (b) notification of violating facilities pursuant to EO 11738; (c) protection of
wetlands pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in
accordance with EO 11988; (e) assurance of project consistency with the approved
State management program developed under the Coastal Zone Management Act
of 1972 (16 U.S.C. 1451et seq.); (f) conformity of Federal actions to State
Implementation Plans under Section 176(c) of the Clear Air Act of 1955, as
CDFI Fund, Form CDFI-0020
- 72 -
12.
13.
14.
15.
16.
17.
18.
amended (42 U.S.C. 7401 et seq.); (g) protection of underground sources of
drinking water under the Safe Drinking Water Act of 1974, as amended, (P.L.93523); and (h) protection of endangered species under the Endangered Species Act
of 1973, as amended, (P.L.93-205).
Will comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C. 1271 et seq.)
related to protecting components or potential components of the national wild and
scenic rivers system.
Will assist the awarding agency in assuring compliance with Section 106 of the
National Historic Preservation Act of 1966, as amended (16 U.S.C. 470), EO
11593 (identification and protection of historic properties), and the Archaeological
and Historic Preservation Act of 1974 (16 U.S.C. 469a-1 et seq.).
Will comply with P.L. 93-348 regarding the protection of human subjects involved in
research, development, and related activities supported by this award of
assistance.
Will comply with the Laboratory Animal Welfare Act of 1966 (P.L. 89-544, as
amended, 7 U.S.C. 2131 et seq.) pertaining to the care, handling, and treatment of
warm blooded animals held for research, teaching, or other activities supported by
this award of assistance.
Will comply with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4801
et seq.) which prohibits the use of lead based paint in construction or rehabilitation
of residence structures.
Will cause to be performed the required financial and compliance audits in
accordance with the Single Audit Act of 1984.
Will comply with all applicable requirements of all other Federal laws, executive
orders, regulations and policies governing this program.
B. Additional Certifications
In addition to the assurances and certifications provided by the Applicant pursuant to
OMB Standard Form 424B, the Applicant hereby assures and certifies that:
1.
It is duly organized and validly existing under the laws of the jurisdiction in which it
was incorporated or otherwise established, and is (or within 30 days will be)
authorized to do business in any jurisdiction in which it proposes to undertake
activities specified in this Application;
2.
3.
4.
5.
6.
C.
1.
2.
Its Board of Directors (or similar governing body) has by proper resolution or
similar action authorized the filing of this Application, including all understandings
and assurances contained herein, and directed and authorized the person
identified as the authorized representative of the Applicant to act in connection with
this Application and to provide such additional information as may be required;
It will comply with all applicable requirements of the Community Development
Banking and Financial Institutions Act of 1994 (the Act) [12 U.S.C. 4701 et seq.],
regulations implementing the Act and all other applicable Department of the
Treasury regulations and implementing procedures (and any regulations or
procedures which are later promulgated to supplement or replace them);
It will comply, as applicable and appropriate, with the requirements of OMB
Circulars (e.g., A-110 and A-133) and any regulations and circulars which are later
promulgated to supplement or replace them, including standards for fund control
and accountability;
It has not knowingly and willfully made or used a document or writing containing
any false, fictitious or fraudulent statement or entry as part of this Application or
any related document, correspondence or communication. (The Applicant and its
authorized representative should be aware that, under 18 U.S.C. 1001, whoever
knowingly and willfully makes or uses such document or writing shall be fined or
imprisoned for not more than five years, or both); and
The information in this Application, and in these assurances and certifications in
support of the Application, is true and correct to the best of the Applicant’s
knowledge and belief and the filing of this Application has been duly authorized.
Certification Regarding Debarment, Suspension, and Other Responsibility
Matters -- Primary Covered Transactions: Instructions for Certification
By signing and submitting this Application, the prospective primary participant (the
Applicant) is providing the certification set out below.
The inability of a person to provide the certification required below will not
necessarily result in the denial of participation in this covered transaction. The
prospective Applicant shall submit an explanation of why it cannot provide the
certification set out below. The certification or explanation will be considered in
connection with the Fund’s determination whether to enter into this transaction
(approval and funding of the Application). However, failure of the Applicant to
FY 2008 CDFI Program Application
3.
4.
5.
6.
7.
8.
9.
10.
D.
1.
2.
E.
1.
furnish a certification or an explanation shall disqualify such person from
(b) establishing a drug-free awareness program to inform employees about:
participation in this transaction.
(i) the dangers of drug abuse in the workplace;
This certification is a material representation of fact upon which reliance is placed
(ii) the Applicant’s policy of maintaining a drug-free workplace;
when the Fund determines to enter into this transaction. If it is later determined
(iii) any available drug counseling, rehabilitation, and employee assistance
that the Applicant knowingly rendered an erroneous certification, in addition to
program;
other remedies available to the Federal Government, the Fund may terminate this
(iv) the penalties that may be imposed upon employees for drug abuse
transaction for cause or default.
violations occurring in the workplace
The Applicant shall provide immediate written notice to the Fund if at any time the
(c) making it a requirement that each employee to be engaged in the
Applicant learns that its certification was erroneous when submitted or has become
performance of the award be given a copy of the statement required by
erroneous by reason of changed circumstances.
subparagraph (a);
The terms “covered transactions,” “debarred,” “suspended,” “ineligible,” “lower tier
(d) notifying the employee in the statement required by subparagraph (a) that,
covered transaction,” “participant,” “person,” “primary covered transaction,”
as a condition of employment in such grant, the employee will:
“principal,” “proposal”, and “voluntarily excluded,” as used in this clause
(i) abide by the terms of the statement; and
(certification), have the meanings set out in the Definitions and Coverage sections
(ii) notify the employer of any criminal drug use statute conviction for a
of the rules implementing Executive Order 12549. You may contact the Fund for
violation occurring in the workplace no later than five calendar days
assistance in obtaining a copy of those regulations (31 CFR part 19).
after such conviction;
The Applicant agrees by submitting this Application that, should the proposed
(e) notifying the granting agency in writing, within ten calendar days after
covered transaction be entered into, it shall not knowingly enter into any lower tier
receiving notice of a conviction under subparagraph (d) (ii) from an
covered transaction with a person who is debarred, suspended, declared ineligible,
employee or otherwise receiving actual notice of such conviction;
or voluntarily excluded from participation in this covered transaction, unless
(f)
taking one of the following actions, within 30 days of receiving notice under
authorized by the Fund.
subparagraph (d)(ii), with respect to any employee who is so convicted:
The Applicant further agrees by submitting this Application that it will include the
(i) taking appropriate personnel action against such an employee, up to
clause titled “Certification Regarding Debarment, Suspension, Ineligibility and
and including termination, consistent with the requirements of the
Voluntary Exclusion-Lower Tier Covered Transaction,” to be provided by the Fund,
Rehabilitation Act of 1973, as amended; or
without modification, in all lower tier covered transactions and in all solicitations for
(ii) requiring such employee to participate satisfactorily in a drug abuse
lower tier covered transactions (see 31 CFR part 19, Appendix B).
assistance or rehabilitation program approved for such purposes by a
A participant in a covered transaction may rely upon a certification of a prospective
Federal, State, or local health, law enforcement, or other appropriate
participant in a lower tier covered transaction that it is not debarred, suspended,
agency; and
ineligible, or voluntarily excluded from the covered transaction, unless it knows that
(g) making a good faith effort to continue to maintain a drug-free workplace
the certification is erroneous. A participant may decide the method and frequency
through implementation of subparagraphs (a), (b), (c), (d), (e), and (f).
by which it determines the eligibility of its principals. Each participant may, but is
2.
The Applicant may insert in the space provided below the site(s) for the
not required to, check the Nonprocurement List.
performance of work (activities carried out by the Applicant) to be done in
Nothing contained in the foregoing shall be construed to require establishment of a
connection with the award (Place of Performance (Street Address, City, County,
system of records in order to render in good faith the certification required by this
State and zip Code)):
clause. The knowledge and information of a participant is not required to exceed
Not Applicable
that which is normally possessed by a prudent person in the ordinary course of
business dealings.
F. Certification Regarding Lobbying
Except for transactions authorized under paragraph 6 of these instructions, if a
1.
The Applicant certifies, to the best of its knowledge and belief, that:
participant in a covered transaction knowingly enters into a lower tier covered
transaction with a person who is suspended, debarred, ineligible, or voluntarily
(a) No Federal appropriated funds have been paid or will be paid, by or on
excluded from participation in this transaction, in addition to other remedies
behalf of the Applicant, to any person for influencing or attempting to
available to the Federal Government, the Fund may terminate this transaction for
influence an officer or employee of any agency, a Member of Congress, an
cause or default.
officer or employee of Congress, or an employee of a Member of Congress
in connection with the awarding of any Federal contract, the making of any
Certification Regarding Debarment, Suspension, and Other Responsibility
Federal grant, the making of any Federal loan, the entering into of any
Matters -- Primary Covered Transactions
cooperative agreement, and the extension, continuation, renewal,
The prospective primary participant (the Applicant) certifies to the best of its
amendment, or modification of any Federal contract, grant, loan, or
knowledge and belief, that it and its principals:
cooperative agreement;
(a) are not presently debarred, suspended, proposed for debarment, declared
(b) If any funds other than Federal appropriated funds have been paid or will be
ineligible, or voluntarily excluded from covered transactions by any Federal
paid to any person for influencing or attempting to influence an officer or
department or agency;
employee of any agency, a Member of Congress, an officer or employee of
(b) have not within a three-year period preceding this Application been
Congress, or an employee of a Member of Congress in connection with this
convicted of or had a civil judgment rendered against them for commission of
Application, the undersigned shall complete and submit Standard Form LLL,
fraud or a criminal offense in connection with obtaining, attempting to obtain,
“Disclosure Form to Report Lobbying, “ in accordance with its instructions;
or performing a public (Federal, State or local) transaction or contract under
and
a public transaction; violation of Federal or State antitrust statutes or
(c) The Applicant shall require that the language of this certification be included
commission of embezzlement, theft, forgery, bribery, falsification or
in the award documents for all subawards of all tiers (including subcontracts,
destruction of records, making false statements, or receiving stolen property;
subgrants, and contracts under grants, loans, and cooperative agreements)
(c) are not presently indicted for or otherwise criminally or civilly charged by a
and that all subrecipients shall certify and disclose accordingly.
governmental entity (Federal, State or local) with commission of any of the
2. This certification is a material representation of fact upon which reliance is placed
offenses enumerated in paragraph (1)(b) of this certification; and
when this transaction is made or entered into. Submission of this certification is a
(d) Have not within a three-year period preceding this Application had one or
prerequisite for making or entering into this transaction imposed by section 1352,
more public transactions (Federal, State or local) terminated for cause or
title 31, U.S. Code. Any person who fails to file the required certification shall be
default.
subject to a civil penalty of not less than $10,000 and not more than $100,000 for
Where the Applicant is unable to certify to any of the statements in this certification,
each such failure.
such Applicant shall attach an explanation to this proposal.
Certification Regarding Drug-Free Workplace Requirements
The Applicant certifies that it will provide a drug-free workplace by:
(a) publishing a statement notifying employees that the unlawful manufacture,
distribution, dispensing, possession, or use of a controlled substance is
prohibited in the Applicant’s workplace and specifying the actions that will be
taken against employee for violations of such prohibition;
CDFI Fund, Form CDFI-0020
- 73 -
FY 2008 CDFI Program Application
Totals
0.00
0.00
0.00
0.00
$
(5)
Total
Total
(g)
0.00
Previous Edition Usable
7. Program Income
k. TOTALS (sum of 6i and 6j)
j. Indirect Charges
$
$
$
0.00
$
$
Authorized for Local Reproduction
0.00
0.00
$
$
$
$
0.00
0.00
Standard Form 424A (Rev. 7-97)
Prescribed by OMB Circular A-102
0.00
0.00
0.00
i. Total Direct Charges (sum of 6a-6h)
0.00
0.00
h. Other
0.00
0.00
g. Construction
0.00
0.00
f. Contractual
0.00
0.00
0.00
e. Supplies
$
0.00
$
0.00
d. Equipment
$
(3)
$
0.00
$
(2)
GRANT PROGRAM, FUNCTION OR ACTIVITY
$
c. Travel
$
$
SECTION B - BUDGET CATEGORIES
$
0.00
$
(1)
$
b. Fringe Benefits
a. Personnel
6. Object Class Categories
5.
0.00
$
Non-Federal
(f)
4.
$
Federal
(e)
0.00
$
Non-Federal
(d)
New or Revised Budget
3.
$
Federal
(c)
Estimated Unobligated Funds
0.00
Catalog of Federal
Domestic Assistance
Number
(b)
OMB Approval No. 0348-0044
2.
1.
Grant Program
Function
or Activity
(a)
SECTION A - BUDGET SUMMARY
BUDGET INFORMATION - Non-Construction Programs
$
3rd Quarter
0.00
(a) Grant Program
23. Remarks:
21. Direct Charges:
20. TOTAL (sum of lines 16-19)
19.
18.
17.
16.
1st Quarter
0.00 $
$
2nd Quarter
0.00 $
$
0.00
0.00 $
$
Authorized for Local Reproduction
22. Indirect Charges:
SECTION F - OTHER BUDGET INFORMATION
$
$
(b) First
0.00 $
$
$
$
$
$
$
4th Quarter
(e) Fourth
0.00
0.00
Standard Form 424A (Rev. 7-97) Page 2
0.00
FUTURE FUNDING PERIODS (Years)
(c) Second
(d) Third
SECTION E - BUDGET ESTIMATES OF FEDERAL FUNDS NEEDED FOR BALANCE OF THE PROJECT
0.00 $
15. TOTAL (sum of lines 13 and 14)
$
0.00
0.00 $
Total for 1st Year
14. Non-Federal
13. Federal
SECTION D - FORECASTED CASH NEEDS
0.00 $
0.00
0.00 $
12. TOTAL (sum of lines 8-11)
$
0.00
0.00
11.
$
0.00
$
(e) TOTALS
10.
$
(d) Other Sources
0.00
$
SECTION C - NON-FEDERAL RESOURCES
(b) Applicant
(c) State
9.
8.
(a) Grant Program
INSTRUCTIONS FOR THE SF-424A
Public reporting burden for this collection of information is estimated to average 180 minutes per response, including time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for
reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (0348-0044), Washington, DC 20503.
PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT AND BUDGET.
SEND IT TO THE ADDRESS PROVIDED BY THE SPONSORING AGENCY.
General Instructions
This form is designed so that application can be made for funds
from one or more grant programs. In preparing the budget,
adhere to any existing Federal grantor agency guidelines which
prescribe how and whether budgeted amounts should be
separately shown for different functions or activities within the
program. For some programs, grantor agencies may require
budgets to be separately shown by function or activity. For other
programs, grantor agencies may require a breakdown by function
or activity. Sections A, B, C, and D should include budget
estimates for the whole project except when applying for
assistance which requires Federal authorization in annual or
other funding period increments. In the latter case, Sections A, B,
C, and D should provide the budget for the first budget period
(usually a year) and Section E should present the need for
Federal assistance in the subsequent budget periods. All
applications should contain a breakdown by the object class
categories shown in Lines a-k of Section B.
Section A. Budget Summary Lines 1-4 Columns (a) and (b)
For applications pertaining to a single Federal grant program
(Federal Domestic Assistance Catalog number) and not requiring
a functional or activity breakdown, enter on Line 1 under Column
(a) the Catalog program title and the Catalog number in Column
(b).
For applications pertaining to a single program requiring budget
amounts by multiple functions or activities, enter the name of
each activity or function on each line in Column (a), and enter the
Catalog number in Column (b). For applications pertaining to
multiple programs where none of the programs require a
breakdown by function or activity, enter the Catalog program title
on each line in Column (a) and the respective Catalog number on
each line in Column (b).
For applications pertaining to multiple programs where one or
more programs require a breakdown by function or activity,
prepare a separate sheet for each program requiring the
breakdown. Additional sheets should be used when one form
does not provide adequate space for all breakdown of data
required. However, when more than one sheet is used, the first
page should provide the summary totals by programs.
Lines 1-4, Columns (c) through (g)
For new applications , leave Column (c) and (d) blank. For each
line entry in Columns (a) and (b), enter in Columns (e), (f), and
(g) the appropriate amounts of funds needed to support the
project for the first funding period (usually a year).
For continuing grant program applications , submit these forms
before the end of each funding period as required by the grantor
agency. Enter in Columns (c) and (d) the estimated amounts of
funds which will remain unobligated at the end of the grant
funding period only if the Federal grantor agency instructions
provide for this. Otherwise, leave these columns blank. Enter in
columns (e) and (f) the amounts of funds needed for the
upcoming period. The amount(s) in Column (g) should be the
sum of amounts in Columns (e) and (f).
For supplemental grants and changes to existing grants, do not
use Columns (c) and (d). Enter in Column (e) the amount of the
increase or decrease of Federal funds and enter in Column (f) the
amount of the increase or decrease of non-Federal funds. In
Column (g) enter the new total budgeted amount (Federal and
non-Federal) which includes the total previous authorized
budgeted amounts plus or minus, as appropriate, the amounts
shown in Columns (e) and (f). The amount(s) in Column (g)
should not equal the sum of amounts in Columns (e) and (f).
Line 5 - Show the totals for all columns used.
Section B Budget Categories
In the column headings (1) through (4), enter the titles of the
same programs, functions, and activities shown on Lines 1-4,
Column (a), Section A. When additional sheets are prepared for
Section A, provide similar column headings on each sheet. For
each program, function or activity, fill in the total requirements for
funds (both Federal and non-Federal) by object class categories.
Line 6a-i - Show the totals of Lines 6a to 6h in each column.
Line 6j - Show the amount of indirect cost.
Line 6k - Enter the total of amounts on Lines 6i and 6j. For all
applications for new grants and continuation grants the total
amount in column (5), Line 6k, should be the same as the total
amount shown in Section A, Column (g), Line 5. For
supplemental grants and changes to grants, the total amount of
the increase or decrease as shown in Columns (1)-(4), Line 6k
should be the same as the sum of the amounts in Section A,
Columns (e) and (f) on Line 5.
Line 7 - Enter the estimated amount of income, if any, expected
to be generated from this project. Do not add or subtract this
amount from the total project amount, Show under the program
SF-424A (Rev. 7-97) Page 3
INSTRUCTIONS FOR THE SF-424A (continued)
narrative statement the nature and source of income. The
estimated amount of program income may be considered by the
Federal grantor agency in determining the total amount of the
grant.
Line 15 - Enter the totals of amounts on Lines 13 and 14.
Section C. Non-Federal Resources
Lines 16-19 - Enter in Column (a) the same grant program titles
shown in Column (a), Section A. A breakdown by function or
activity is not necessary. For new applications and continuation
grant applications, enter in the proper columns amounts of Federal
funds which will be needed to complete the program or project over
the succeeding funding periods (usually in years). This section
need not be completed for revisions (amendments, changes, or
supplements) to funds for the current year of existing grants.
Lines 8-11 Enter amounts of non-Federal resources that will be
used on the grant. If in-kind contributions are included, provide a
brief explanation on a separate sheet.
Column (a) - Enter the program titles identical to
Column (a), Section A. A breakdown by function or
activity is not necessary.
Column (b) - Enter the contribution to be made by the
applicant.
Column (c) - Enter the amount of the State’s cash and
in-kind contribution if the applicant is not a State or
State agency. Applicants which are a State or State
agencies should leave this column blank.
Column (d) - Enter the amount of cash and in-kind
contributions to be made from all other sources.
Column (e) - Enter totals of Columns (b), (c), and (d).
Line 12 - Enter the total for each of Columns (b)-(e). The amount
in Column (e) should be equal to the amount on Line 5, Column
(f), Section A.
Section D. Forecasted Cash Needs
Section E. Budget Estimates of Federal Funds Needed for
Balance of the Project
If more than four lines are needed to list the program titles, submit
additional schedules as necessary.
Line 20 - Enter the total for each of the Columns (b)-(e). When
additional schedules are prepared for this Section, annotate
accordingly and show the overall totals on this line.
Section F. Other Budget Information
Line 21 - Use this space to explain amounts for individual direct
object class cost categories that may appear to be out of the
ordinary or to explain the details as required by the Federal grantor
agency.
Line 22 - Enter the type of indirect rate (provisional, predetermined,
final or fixed) that will be in effect during the funding period, the
estimated amount of the base to which the rate is applied, and the
total indirect expense.
Line 23 - Provide any other explanations or comments deemed
necessary.
Line 13 - Enter the amount of cash needed by quarter from the
grantor agency during the first year.
Line 14 - Enter the amount of cash from all other sources needed
by quarter during the first year.
SF-424A (Rev. 7-97) Page 4
DISCLOSURE OF LOBBYING ACTIVITIES
Approved by OMB
Complete this form to disclose lobbying activities pursuant to 31 U.S.C. 1352
0348-0046
(See reverse for public burden disclosure.)
1. Type of Federal Action:
2. Status of Federal Action:
3. Report Type:
a. contract
a. bid/offer/application
a. initial filing
b. grant
b. initial award
b. material change
c. cooperative agreement
c. post-award
For Material Change Only:
d. loan
year _________ quarter _________
e. loan guarantee
date of last report ______________
f. loan insurance
4. Name and Address of Reporting Entity:
5. If Reporting Entity in No. 4 is a Subawardee, Enter Name
Subawardee
and Address of Prime:
Prime
Tier ______, if known :
Congressional District, if known :
7. Federal Program Name/Description:
Congressional District, if known :
6. Federal Department/Agency:
CFDA Number, if applicable : _____________
8. Federal Action Number, if known :
9. Award Amount, if known :
10. a. Name and Address of Lobbying Entity
( if individual, last name, first name, MI ):
$
b. Individuals Performing Services (including address if
different from No. 10a )
( last name, first name, MI ):
(attach Continuation Sheet(s) SF-LLLA, if necessary)
11. Amount of Payment (check all that apply ):
$ ___________
actual
13. Type of Payment (check all that apply ):
a. retainer
planned
b. one-time fee
12. Form of Payment (check all that apply ):
a. cash
b. in-kind; specify:
c. commission
d. contingent fee
nature __________
value __________
e. deferred
f. other; specify: _________________________
14. Brief Description of Services Performed or to be Performed and Date(s) of Service, including officer(s),
employee(s), or Member(s) contacted, for Payment Indicated in Item 11:
(attach Continuation Sheet(s) SF-LLLA, if necessary)
15. Continuation Sheet(s) SF-LLLA attached:
16.
Information requested through this form is authorized by title 31 U.S.C. section
1352. This disclosure of lobbying activities is a material representation of fact
upon which reliance was placed by the tier above when this transaction was made
or entered into. This disclosure is required pursuant to 31 U.S.C. 1352. This
information will be reported to the Congress semi-annually and will be available for
public inspection. Any person who fails to file the required disclosure shall be
subject to a civil penalty of not less that $10,000 and not more than $100,000 for
each such failure.
Federal Use Only:
Yes
No
Signature:
Print Name:
Title:
Telephone No.: _______________________ Date:
Authorized for Local Reproduction
Standard Form LLL (Rev. 7-97)
INSTRUCTIONS FOR COMPLETION OF SF-LLL, DISCLOSURE OF LOBBYING ACTIVITIES
This disclosure form shall be completed by the reporting entity, whether subawardee or prime Federal recipient, at the initiation or receipt of a covered Federal
action, or a material change to a previous filing, pursuant to title 31 U.S.C. section 1352. The filing of a form is required for each payment or agreement to make
payment to any lobbying entity for influencing or attempting to influence an officer or employeeof any agency, a Member of Congress, an officer or employee of
Congress, or an employeeof a Member of Congress in connection with a covered Federal action. Use the SF-LLLA Continuation Sheet for additional information if
the space on the form is inadequate. Complete all items that apply for both the initial filing and material change report. Refer to the implementing guidance
published by the Office of Management and Budget for additional information.
1. Identify the type of covered Federal action for which lobbying activity is and/or has been secured to influence the outcome of a covered Federal action.
2. Identify the status of the covered Federal action.
3. Identify the appropriate classification of this report. If this is a followup report caused by a material change to the information previously reported, enter
the year and quarter in which the change occurred. Enter the date of the last previously submitted report by this reporting entity for this covered Federal
action.
4. Enter the full name, address, city, State and zip code of the reporting entity. Include Congressional District, if known. Check the appropriateclassification
of the reporting entity that designates if it is, or expects to be, a prime or subaward recipient. Identify the tier of the subawardee,e.g., the first subawardee
of the prime is the 1st tier. Subawards include but are not limited to subcontracts, subgrants and contract awards under grants.
5. If the organization filing the report in item 4 checks "Subawardee," then enter the full name, address, city, State and zip code of the prime Federal
recipient. Include Congressional District, if known.
6. Enter the name of the Federal agency making the award or loan commitment. Include at least one organizationallevel below agency name, if known. For
example, Department of Transportation, United States Coast Guard.
7. Enter the Federal program name or description for the covered Federal action (item 1). If known, enter the full Catalog of Federal Domestic Assistance
(CFDA) number for grants, cooperative agreements, loans, and loan commitments.
8. Enter the most appropriate Federal identifying number available for the Federal action identified in item 1 (e.g., Request for Proposal (RFP) number;
Invitation for Bid (IFB) number; grant announcement number; the contract, grant, or loan award number; the application/proposal control number
assigned by the Federal agency). Include prefixes, e.g., "RFP-DE-90-001."
9. For a covered Federal action where there has been an award or loan commitment by the Federal agency, enter the Federal amount of the award/loan
commitment for the prime entity identified in item 4 or 5.
10. (a) Enter the full name, address, city, State and zip code of the lobbying entity engaged by the reporting entity identified in item 4 to influence the covered
Federal action.
(b) Enter the full names of the individual(s) performing services, and include full address if different from 10 (a). Enter Last Name, First Name, and
Middle Initial (MI).
11. Enter the amount of compensationpaid or reasonablyexpectedto be paid by the reporting entity (item 4) to the lobbying entity (item 10). Indicate whether
the payment has been made (actual) or will be made (planned). Check all boxes that apply. If this is a material change report, enter the cumulative
amount of payment made or planned to be made.
12. Check the appropriatebox(es). Check all boxes that apply. If payment is made through an in-kind contribution, specify the nature and value of the in-kind
payment.
13. Check the appropriate box(es). Check all boxes that apply. If other, specify nature.
14. Provide a specific and detailed description of the services that the lobbyist has performed, or will be expected to perform, and the date(s) of any services
rendered. Include all preparatory and related activity, not just time spent in actual contact with Federal officials. Identify the Federal official(s) or
employee(s) contacted or the officer(s), employee(s), or Member(s) of Congress that were contacted.
15. Check whether or not a SF-LLLA Continuation Sheet(s) is attached.
16. The certifying official shall sign and date the form, print his/her name, title, and telephone number.
According to the Paperwork Reduction Act, as amended, no persons are required to respond to a collection of information unless it displays a valid OMB Control
Number. The valid OMB control number for this information collection is OMB No. 0348-0046. Public reporting burden for this collection of information is
estimated to average 30 minutes per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the collection of information. Send comments regarding the burden estimate or any other aspect of this collection of
information, including suggestions for reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (0348-0046), Washington,
DC 20503.
This page intentionally left blank.
APPENDIX B
Form
13424-J (5-2011)
K. Totals
J. Indirect Charges
I. Total Direct Charges
4.
3.
2.
1.
H. Other Expenses
G. Construction
3.
2.
1.
F. Contractual
E. Supplies
D. Equipment
C. Travel
B. Fringe Benefits
4.
3.
2.
1.
A. Personnel
Subtotals
Subtotals
Subtotals
Catalog Number 57758V
Expense Categories
Name of Low Income Taxpayer Clinic
Federal
Match
www.irs.gov
Total
Controversy Program
Federal
Match
ESL Program
From
Grant Period
Detailed Budget Worksheet
Federal
Match
Totals
Total
Department of the Treasury - Internal Revenue Service
Total
To
Subtotals
Catalog Number 57758V
80,000
K. Totals
13424-J (5-2011)
13,333
J. Indirect Charges Rate = 20% of Direct Charges
Form
66,667
2,250
I. Total Direct Charges
Subtotals
0
3. In-kind services (Clerical) - $18.75/hr x 200 hrs
4.
0
2,250
2. In-kind services (Attorneys) - $37.50/hr x 250 hrs
1. Tax Library
H. Other Expenses
G. Construction
0
0
2. Utilities
3.
0
2,650
0
2,704
11,813
1. Rent
F. Contractual
E. Supplies
D. Equipment
C. Travel
X
47,250
13,500
0
27,000
6,750
A
108,037
108,037
9,375
0
9,375
0
14,400
3,600
10,800
1,800
1,800
0
16,132
64,530
M
10,001
1,667
8,334
250
0
0
250
0
0
0
1,200
0
321
1,313
5,250
1,500
0
3,000
750
Federal
14,713
14,713
3,750
3,750
0
0
E
1,600
400
1,200
200
200
0
1,793
7,170
1,500
420
3,000
2,250
Match
ESL Program
From 01/01/2012
Grant Period
PL
www.irs.gov
188,037
13,333
174,704
11,625
0
9,375
2,250
14,400
3,600
10,800
4,450
1,800
2,704
27,945
111,780
27,000
13,500
3,780
54,000
27,000
Total
3,780
27,000
20,250
Match
Controversy Program
Federal
E
Subtotals
B. Fringe Benefits Rate = 25% of Salaries
4. Clerical - $15/hr x 2000 hrs
3. QBA - $35/hr x 120 hrs
2. LITC Staff Attorney - $30/hr x 2000 hrs
1. QTE / Clinic Director - $50/hr x 600 hrs
A. Personnel
Expense Categories
Name of Low Income Taxpayer Clinic
ABC Low Income Taxpayer Clinic
Detailed Budget Worksheet
90,001
15,000
75,001
2,500
0
0
2,500
0
0
0
3,850
0
3,025
13,126
52,500
15,000
0
30,000
7,500
Federal
122,750
122,750
13,125
3,750
9,375
0
16,000
4,000
12,000
2,000
2,000
0
17,925
71,700
15,000
4,200
30,000
22,500
Match
212,751
15,000
197,751
15,625
3,750
9,375
2,500
16,000
4,000
12,000
5,850
2,000
3,025
31,051
124,200
30,000
4,200
60,000
30,000
Total
Department of the Treasury - Internal Revenue Service
24,714
1,667
23,047
4,000
3,750
0
250
1,600
400
1,200
1,400
200
321
3,106
12,420
3,000
420
6,000
3,000
Total
Totals
To 12/31/2012
Detailed Budget Narrative Explanations
ABC Low Income Taxpayer Clinic — 2012 Grant Cycle
A. Personnel:
Personnel costs represent the salaries paid to the following clinic staff:
• QTE/Clinic Director (0.30 FTE)—paid 25% from federal funds and 75% from State Legal
Services funds.
• Staff Attorney (1.00 FTE)—paid 50% from federal funds and 50% from State Legal Services
funds.
• QBA (0.06 FTE)—paid 100% from state Legal Services funds.
• Clerical Assistant (1.00 FTE)—paid 50% from federal funds and 50% from State Legal
Services funds.
Clinic staff devotes 90% of their time to the Controversy Program and 10% of their time to the ESL
Program.
PL
E
B. Fringe Benefits:
The recipient’s fringe benefit rate is 25% of salaries. Fringe benefits represent the cost of Social
Security and Medicare taxes, federal and state unemployment taxes, health insurance premiums,
and pension contributions paid by the recipient on behalf of clinic staff. Fringe benefits are paid
using federal funds and state Legal Services funds in the same ratios as used for personnel costs.
M
C. Travel:
Travel expenses represent the cost of attending the Annual LITC Conference and the cost of
traveling to and from sites to conduct ESL education and outreach activities. All travel costs are
paid using federal funds.
X
A
D. Equipment:
Equipment expenses represent the purchase of two laptop computers that are used exclusively by
the Staff Attorney and Clerical Assistant. The recipient used state Legal Services funds to purchase
the computers.
E
E. Supplies:
Supplies represent the cost of paper, envelopes, postage, printing, and other office supplies used in
the clinic. In general, the cost of supplies used in the clinic is allocated 90% to the Controversy
Program and 10% to the ESL Program. However, certain costs, such as printing flyers and
materials in Spanish and Vietnamese that are used exclusively in ESL outreach and education
activities, are charged to the ESL Program. The recipient used $3,850 of federal funds and $2,000
of state Legal Services funds to purchase supplies.
F. Contractual:
Contractual expenses represent the share of rent and utilities paid for the portion of space occupied
by the clinic within the recipient’s facility. These costs are determined using a pro rated percentage
based on square footage. The recipient used state Legal Services funds to pay all rent and utilities
costs.
G. Construction:
Not applicable.
1
Detailed Budget Narrative Explanations
ABC Low Income Taxpayer Clinic — 2012 Grant Cycle
H. Other Expenses:
Other expenses represent the cost of maintaining a tax library and the value of volunteer in-kind
services. The tax library costs include the purchase of a copy of the Internal Revenue Code and
Regulations, as well as a subscription to an online tax research network. All tax library costs are
paid with federal funds.
E
In-kind services represent the value of services provided by volunteer attorneys who provide pro
bono representation on behalf of low income taxpayers in controversies with the IRS and clerical
volunteers who assist in arranging ESL education and outreach activities. The rate used to value
volunteer attorney hours is $37.50/hour which represents the wage rate ($30/hr) plus related fringe
benefit rate (25%) paid to the clinic’s Staff Attorney. The rate used to value clinical volunteer hours
is $18.75/hour which represents the wage rate ($15/hr) plus the related fringe benefit rate (25%)
paid to the clinic’s Clerical Assistant.
PL
J. Indirect Costs:
Indirect costs represent a charge for certain administrative expenses of the recipient based on a rate
established by the Department of Health & Human Services. The rate of 20% of federal direct
charges is the provisional rate in effect throughout this grant period.
E
X
A
M
Matching Funds:
Total matching funds for this period were $122,750. The recipient provided $109,625 from state Legal
Services funds and $13,125 represent the value of in-kind services provided by volunteers.
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COMMONLY USED
ACRONYMS
COMMONLY USED ACRONYMS
ABA
ACS
AES
AGI
AICPA
ALS
ARC
ASED
ASFR
AUR
BALDU
BLS
BMF
BWH
CAF
CAP
CCR
CDP
CFP
CID
CNC
COB
CODI
COIC
CPA
CPE
CPU
CSED
DPM
DUNS
EFS
EFT
EIN
EITC
ESL
FDIC
FFATA
FICA
FOIA
FPLP
FY
HHS
IA
IRA
American Bar Association
Automated Collection System
Automated Examination System
Adjusted Gross Income
American Institute of Certified Public Accountants
Automated Lien System
Annual Report to Congress
Assessment Statute Expiration Date
Automated Substitute for Return
Automated Underreporter Program
Balance Due
Bureau of Labor Statistics
Business Master File
Backup Withholding
Centralized Authorization File
Collection Appeals Program
Central Contractor Registration
Collection Due Process
Civil Fraud Penalty
Criminal Investigation Division
Currently not Collectable
Close of Business
Cancellation of Debt Income
Centralized Offer-in-Compromise
Certified Public Accountant
Continuing Professional Education
Central Processing Unit
Collection Statute Expiration Date
Division of Payment Management
Data Universal Numbering System
Electronic Filing System
Electronic Funds Transfer
Employer Identification Number
Earned Income Tax Credit
English as a Second Language
Federal Deposit Insurance Corporation
Federal Funding Accountability and Transparency Act
Federal Insurance Contribution Act
Freedom of Information Act
Federal Payment Levy Program
Fiscal Year
Department of Health and Human Services
Installment Agreement
Individual Retirement Account
IRC
Internal Revenue Code
IRM
Internal Revenue Manual
ITIN
Individual Taxpayer Identification Number
LITC
Low Income Taxpayer Clinic
LB&I
Large Business & International
LSC
Legal Services Corporation
LTA
Local Taxpayer Advocate
MSP
Most Serious Problem
NFTL
Notice of Federal Tax Lien
NOPA
Notice of Proposed Adjustment
NTA
National Taxpayer Advocate
OIC
Offer-in-Compromise
OMB
Office of Management and Budget
PII
Personally Identifiable Information
PIN
Personal Identification Number
PMS
Payment Management System
POA
Power of Attorney
QBA Qualified Business Administrator
QTE Qualified Tax Expert
RCP
Reasonable Collection Potential
RO
Revenue Officer
RRA98
IRS Restructuring and Reform Act of 1998
RSED
Refund Statute Expiration Date
SB/SE
Small Business/Self-Employed
SNOD
Statutory Notice of Deficiency
SSN
Social Security Number
TAO
Taxpayer Assistance Order
TAS
Taxpayer Advocate Service
TCE
Tax Counseling for the Elderly
TEFRA
Tax Equity and Fiscal Responsibility Act of 1982
TE/GE
Tax Exempt & Government Entities
TIGTA
Treasury Inspector General for Tax Administration
TY
Tax Year
UDOC
Uniform Definition of Child
URP
Underreporter Program
USPS
United States Postal Service
VITA
Volunteer Income Tax Assistance
W&I
Wage & Investment
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GLOSSARY
GLOSSARY
90/250 Income Requirement – the provision of IRC §7526 that requires at least 90
percent of taxpayers represented by a clinic must have incomes that do not exceed
250 percent of the Federal Poverty Guidelines published annually by the Department
of Health and Human Services (HHS).
Allowable Expenses – expenses chargeable to an LITC grant in accordance with
the principles outlined in 2 CFR Part 230 (formerly OMB Circular A-122), and 2 CFR
Part 220 (formerly OMB Circular A-21). Generally, in order for an expense to be
allowable, the expense must be reasonable, incurred for the benefit of the program,
and consistent with market prices.
Ancillary Tax Return Preparation – tax return preparation that is incidental to an
ESL program’s primary activity of outreach and education.
Case Tracking – the process or method used to control assignment and progress of
controversy cases and ESL activity by LITC personnel, students, and volunteers.
Congressional District – an electoral constituency, apportioned by population,
which elects a member of Congress.
Consultation – a one-on-one consultation is a discussion with a taxpayer designed
to provide brief advice about a specific tax matter that does not result in representation of the taxpayer. A technical assistance consultation is a discussion with a practitioner or other service provider designed to give brief advice about a tax issue.
Continuing Legal Education (CLE) – an accredited professional educational program for attorneys. CLE requirements vary among jurisdictions, and accreditation is
granted on a jurisdiction-by-jurisdiction basis.
Continuing Professional Education (CPE) – an accredited educational program
required to maintain a professional license, such as a Certified Public Accountant or
Enrolled Agent designation.
Controversy Representation– representation of a taxpayer in a dispute with the
IRS at any stage of the proceedings, including, but not limited to: Accounts Management, Exam, Collection, Appeals, or litigation. In order for the relationship to rise to
the level of representation, advocacy on behalf of the taxpayer, not just fact-finding,
must occur.
Data Universal Numbering System (DUNS) – a unique nine-digit identification
number provided by Dunn & Bradstreet Corporation. The federal government requires that all applicants for federal grants with the exception of individuals other
than sole proprietors have a DUNS number. The federal government will use
the DUNS number to better identify related organizations that are receiving grant
funding, and to provide consistent name and address data for electronic grant
application systems.
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.
Deobligated Funds – grant funds that a grantee does not intend to draw down and
spend during the grant cycle which are relinquished back to the LITC Program Office
so that the funds may be obligated to another grantee.
Direct Costs – costs that can be identified specifically with a particular award or
other direct activity of an organization, such as a controversy or ESL program.
However, a cost may not be assigned to an award as a direct cost if any other cost
incurred for the same purpose, in like circumstance, has been allocated to an award
as an indirect cost.
Direct Lobbying – contacting a member of Congress, a state or local legislator, or
any of their staff members to influence the legislator to take a position or action on a
specific piece of legislation or potential legislation.
Educational Activities – events designed to provide information to taxpayers about
their taxpayer rights and responsibilities, including technical tax topics.
Employer Identification Number (EIN) – a permanent number issued by the IRS to
identify a business entity; also known as a Federal Tax Identification Number.
ESL Taxpayers – taxpayers who speak English as a second language.
Family Unit – an unrelated individual or a family. An unrelated individual is a person 15 years old or over who is not living with persons related by birth, marriage,
or adoption. A family is a group of two or more persons related by birth, marriage,
or adoption who live together. However, if related individuals live together, but the
person seeking assistance from the clinic is financially independent, then that person
may be treated as a family unit. If two unrelated individuals live together, they constitute two family units.
Fringe Benefits – a form of non-wage compensation for the performance of services. Examples of fringe benefits include the employer’s share of Social Security
and Medicare taxes, federal and state unemployment taxes, health and life insurance premiums, and pension contributions. Federal funds and matching funds may
be used to pay fringe benefits that are reasonable, allowable, and allocable to clinic
operations.
Grassroots Lobbying – activities that encourage third parties, members of special
interest groups or the general public to contact federal, state or local government
officials in support of or in opposition to a legislative policy or appropriations matter.
This applies to activities both before and after introduction of the legislation.
Indirect Costs – costs not directly related to the LITC program, but incurred as
part of the general overhead and administration of the grantee. A cost may not
be allocated to an award as an indirect cost if any other cost incurred for the
same purpose, in like circumstances, has been assigned to an award as a direct
cost. Indirect costs may be budgeted as a use of federal funds based upon an
approved Indirect Cost Rate Agreement. However, indirect costs are not allowable as matching funds.
Intake – a process used by clinic staff to gather information from a taxpayer seeking
assistance to determine eligibility for services.
Individual Taxpayer Identification Number (ITIN) – a unique nine-digit number
used for tax administration purposes that is issued by the IRS to individuals who are
not eligible to obtain a Social Security number (SSN).
Low Income Taxpayer Clinic (LITC) – an organization that represents low income
taxpayers in controversies with the IRS or operates programs to inform individuals
for whom English is a second language about their taxpayer rights and responsibilities for free or for a nominal charge.
Low Income – for purposes of the LITC Program, this includes taxpayers who
whose incomes do not exceed 250 percent of the Federal Poverty Guidelines.
Local Taxpayer Advocate (LTA) – an advocate located in a local office who reports
to the National Taxpayer Advocate. IRC §7803(c)(2)(D)(i)(I) requires that each state
have at least one LTA. An LTA provides essential guidance and assistance to the
LITCs within his or her geographic area.
Matching Funds – the portion of program costs not funded by federal funds.
Grantees must provide matching funds on a dollar-for-dollar basis for all LITC
grant funds received.
National Taxpayer Advocate (NTA) – the official who supervises and directs the
Office of the Taxpayer Advocate. The NTA reports directly to the IRS Commissioner
and serves as the advocate for taxpayers within the IRS and before Congress. The
NTA is appointed by the Secretary of the Treasury following consultations with the
IRS Commissioner and the IRS Oversight Board.
Office of Professional Responsibility (OPR) – the office that establishes and
enforces consistent standards of competence, integrity and conduct for tax
professionals authorized to practice before the IRS.
Office of Management and Budget (OMB) – the 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.
OMB Circulars – directives issued by the Office of Management and Budget (OMB)
that provide guidance relating to administration of federal grant awards, including the
following which are relevant for the LITC program: OMB Circular No. A-110, Uniform
Administrative Requirements for Grants and Agreements; OMB Circular No. A-133,
Audits of States, Local Governments, and Non-Profit Organizations; OMB Circular
No. A-21, Cost Principles for Educational Institutions; and OMB Circular No. A-122,
Cost Principles for Non-Profit Organizations.
Operational Review Visit – a site visit conducted by LITC Program Office staff to
observe and evaluate a grantee’s program activities and services, and discuss with
clinic personnel the progress made in achieving program goals and objectives.
Orientation Visit – a site visit conducted within the the first 120 days of a new
grantee’s initial funding year to familiarize the grantee with LITC program requirements and to measure the progress of its start-up activities.
Outreach Activities – efforts designed to provide information about the clinic and
its services directly to targeted taxpayers or indirectly through other organizations
or groups that serve the targeted taxpayers. ESL programs should identify targeted
linguistic populations; Controversy programs may target low income taxpayers in a
geographic area or a specific segment of the low income taxpayer community.
Payment Management System (PMS) – an electronic system maintained by the
Department of Health and Human Services Division of Payment Management that allows grantees to review grant award and disbursement records and submit requests
for payment of federal funds.
Publicity – see Outreach Activities.
Referral Activity – a referral of a low income taxpayer to a pro bono panel member
who provides representation for free or for a nominal fee.
Standards of Operation – baseline operational requirements applicable to all clinics
developed by the LITC Program Office to ensure that all programs provide consistent and quality service to low income and ESL taxpayers. The standards of operation are an integral part of the LITC Program’s performance measures.
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 or over who cannot afford professional assistance.
Third Party In-Kind Contributions – the value of non-cash contributions provided
by parties other than the federal government or grantee. Third party in-kind contributions may be in the form of goods, space, or services donated to the LITC by third
parties and must be used to accomplish the objectives of the LITC program in order
to count as a source of matching funds.
Unallowable Expenses – expenses for which LITC grant funds may not be used according to guidelines published by OMB and the LITC Program Office.
Underserved Area– an identifiable geographic area where the need for LITC services exceeds the capacity available from current grantees.
Unused Funds – the portion of grant funds awarded to clinics that have not been
spent, whether or not those funds have been drawn down from the Payment Management System.
Volunteer Income Tax Assistance (VITA) – an IRS initiative designed to promote
and support free tax return preparation for low to moderate income individuals who
cannot afford professional assistance.
INDEX
INDEX
90/250 Requirement 22-24
Additional Funding Request 73
Amount in Controversy Limit 25
Application
A-133 Audit Requirement 34-35
Background Information 49-50
Budget/Financial Information 53-54
Contents 45
Detailed Budget Worksheet and Narrative 59-62
Program Performance Plan 50-53
Standard Form 424 46-49
Standard Form 424A 54-59
Submission Process 62-63
Case Management System 21-22
Back-up File System 22
Central Contractor Registration 42-43, 46
Changes in Program Activities 69
Civil Rights Reporting Requirements 35-37
Clinic, defined 11
Clinic Director 15
Confidentiality 15-17
Continuing Professional Education (CPE) 20
Controversy, defined 12
Controversy Representation 22
Data Universal Numbering System 42-43
Education 26
Expenses 32-34
Allowable 32-34
Unallowable 32-34
Family Unit, defined 24
Fees 13-14, 18-19, 21
Grant Award 10, 14-15, 31-32, 63-67
Single-year grants 14
Multi-year grants 14
Termination/Withdrawal of the grant 14-15, 70
Grant Recipients Selection Process 1-3, 63-67
Eligibility Screening 64-65
Evaluation 65-67
Income, defined 24
Internal Controls 20-21
LITC Conference 20, 33
Lobbying Restrictions 38-41
Managing Grant Funds 30-34
Matching Funds Requirement 12-13, 28-30, 62
Media Requests 16-17
Mentoring 18, 67
Networking 18
OMB Requirements 27-28, 34-35
One-on-One Consultation, defined 12
Outreach 17-18
Payments to LITC Grantees 67-68
Poverty Guidelines 23-24
Pro Bono Panel 12, 19-21
Program Office 8-10, 66-67, 77-79
Contact Information 8-9
Responsibilities 77-79
Program to Inform, defined 12
Promotional Items 34
Qualified Business Administrator (QBA) 15
Qualified Representative, defined 12
Qualified Tax Expert (QTE) 15
Qualified Volunteers 18
Recordkeeping 21
Referral, defined 12
Referral Services 18-19
Reporting Requirements 34-36, 70-77
Interim 70-74
Year-End 75-77
Site Visits 78-79
Start-up Expenses 13
Standards of Operation 15-27
All clinics 15-22
Controversy clinics 22-25
ESL clinics 25-27
Student Representation 68-69
Tax Compliance 22
Tax Library 20
Tax Return Preparation 17-18, 25-27
Controversy 25
ESL 26-27
Taxpayer,defined 11
Termination of a Grant 14-15, 70
Unused Grant Funds 72-73, 75
U.S. Tax Court Pro Bono Program 25
Publication 3319 (Rev. 5-2011) Catalog Number 26939S Department of the Treasury Internal Revenue Service www.irs.gov
| File Type | application/pdf |
| File Title | Publication 3319 (Rev. 5-2011) |
| Subject | Low-Income Taxpayer Clinics Grant Application Package Book |
| Author | TAS |
| File Modified | 2011-05-26 |
| File Created | 2011-05-26 |