IRS Publication 3319 - Home | Taxpayer Advocate Service (TAS)

176 Pages·2013·2.96 MB·English

2014 Grant application
Package and Guidelines

IMPORTANT CONTACT INFORMATION
GRANT ADMINISTRATION AND ELIGIBILITY INFORMATION
Grant Program Office
Internal Revenue Service Office: 202-622-4711
Taxpayer Advocate Service Fax: [phone]
LITC Program Office E-mail: [email protected]
Attention: Hours of Operation: 8:00 a.m. – 4:30 p.m. EST
TA:LITC Room 1034
1111 Constitution Ave., NW
Washington, DC 20224
LITC Toolkit (only available to funded grantees)
www.litctoolkit.com/
LITC Grant Program on IRS.gov
www.taxpayeradvocate.irs.gov/Tax-Professionals/Low-Income-Taxpayer-Clinics
Dun and Bradstreet Data Universal Numbering Systems (DUNS) Number
fedgov.dnb.com/webform
866-705-5711
System for Award Management (SAM)
www.sam.gov
Online Grant Application Submission
www.grants.gov
Helpdesk: 800.518.4726
Email: [email protected]
Non-Competitive Continuation (NCC) Entry
www.grantsolutions.gov
Department of Health and Human Services (HHS) Payment Management System
www.dpm.psc.gov
Current Poverty Guidelines
aspe.hhs.gov/poverty
Definition of Income per U.S. Bureau of the Census
www.census.gov/cps/about/cpsdef.html
Civil Rights Reporting
Director, Civil Rights Division (External Civil Rights Team)
202-927-0180
Office of Management and Budget (OMB)
www.whitehouse.gov/omb/circulars_index-ffm
INTERNAL REVENUE SERVICE INFORMATION
Tax Forms
www.irs.gov/Forms-&-Pubs
Federal Tax Compliance Verification (Internal Revenue Service)
877-829-5500 (tax exempt and government entity returns)
800-829-4933 (business and specialty tax returns)
866-699-4096 (excise tax and Form 2290 returns)
IRS Tax Exempt and Government Entities Customer Service Line
www.irs.gov/Charities-&-Non-Profits/Where-Is-My-Exemption-Application%3F
Helpdesk: 877-829-5500
General IRS Information
www.irs.gov
Helpdesk: 800-829-1040
Becoming an IRS Partner to Help in Your Community
www.irs.gov/Individuals/Become-an-IRS-Partner-to-Help-in-Your-Community
TAXPAYER TOOLKIT
Smartphone
Interactive
Taxpayer Advocate Service
Scan Here
www.taxpayeradvocate.irs.gov
UNITED STATES TAX COURT CONTACTS
United States Tax Court Clinical Program
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 2013
Dear Prospective Low Income Taxpayer Clinic Grant Applicant:
I am pleased to announce the opening of the 2014 Low Income Taxpayer Clinic (LITC)
grant application period, which runs through July 12, 2013. The Taxpayer Advocate
Service (TAS) is committed to enhancing the LITC Program’s quality and coverage.
LITCs are charged to provide representation, education, and advocacy on behalf of low
income taxpayers and taxpayers who speak English as a second language. The LITC
program office facilitates that mission by providing guidance and assistance to grant-
ees and potential applicants.
In an effort to improve the application process and reporting for organizations
awarded a grant, we have transitioned to a paperless process through www.grants.gov
and www.grantsolutions.gov. I am aware that time spent completing applications and
reports, while necessary, takes time that could be spent assisting taxpayers. These
changes are meant to simplify the application and reporting process and make them
as painless as possible.
Some of the specific changes include:
• Changes to the Application Nomenclature – Beginning with the 2014 grant year,
first year applications will be referred to as “grant applications.” The term “grant
application” refers to both single year applications and the first year of a multi-
year grant request. A request for second or third year funding will be referred to
as a “non-competitive continuation (NCC).”
• New Procedure for Submitting LITC Grant Applications or NCCs – All applications
for a single year grant or for the first year of a multi-year grant must be submitted
electronically through www.grants.gov. All NCCs for the second or third year of a
multi-year grant must be submitted through www.grantsolutions.gov.
TAS remains committed to achieving maximum access to representation for low
income taxpayers under the terms of this grant program. Thus, in awarding 2014 LITC
grants, we will continue to work toward the following program goals:
• Ensuring that each state (plus the District of Columbia and Puerto Rico) is
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 2013 year, or (2) organizations
servicing the following areas (whether or not they are receiving a grant for 2013). We
welcome all new applicants, but also encourage existing clinics to consider expanding
their services to cover these states, where possible:
Identified States for New or Existing Clinics
CONTROVERSY ESL
Alabama, Colorado, Connecticut, Georgia,
Alaska, Alabama, Kansas, North Dakota,
Louisiana, Montana, New Mexico,
South Dakota
North Dakota, South Dakota
In addition, the LITC Program Office has identified the following areas as underserved
areas in need of LITC services. The IRS encourages applications from new clinics
within these locales:
Identified Metropolitan Areas for New Clinic Applications
Los Angeles, California,
Los Angeles, Kern, Riverside, Ventura
including the following counties:
Sacramento, California, El Dorado, Placer, Sacramento,
including the following counties: San Joaquin, Stanislaus
Philadelphia, Pennsylvania,
Berks, Delaware, Philadelphia
including the following counties:
St. Louis, Missouri, Cape Girardeau, Jefferson, St. Francois,
including the following counties: St. Louis
Notwithstanding the criteria detailed above, applications or NCCs from all areas will
receive serious consideration.
The LITC Program Office may award grants to qualifying organizations to fund one-
year to three-year project periods. Any clinic currently receiving an LITC grant that
does not expect to use all of its funds during the 2013 grant year must contact the
LITC Program Office immediately so that other clinics and taxpayers may benefit from
those funds. Moreover, any clinic currently receiving a grant that does not intend to
apply for a 2014 grant must notify the LITC Program Office immediately so we can
solicit coverage of that service area.
At least 90 percent of the taxpayers represented by a clinic receiving federal funding
to operate a controversy program must have incomes that do not exceed 250 percent
of the Federal Poverty Guidelines. The Department of Health and Human Services
updated the guidelines on January 24, 2013, which can be found in section II.D.ii of
this Publication.
This package contains current program guidelines, eligibility criteria, application
materials, instructions on how to file an application or an NCC, and detailed reporting
requirements. The cost of preparing and submitting an application or an NCC is the
responsibility of each applicant.
To be considered for 2014 LITC Program grant funding, all applications and NCCs must
be submitted electronically by July 12, 2013, via www.grants.gov or www.grantsolutions.
gov, respectively.
The LITC Program Office will notify each applicant whether it will be awarded a grant
no later than November 27, 2013.
If you have questions about the LITC Program or grant application/NCC process,
please contact the LITC Program Office at 202-622-4711 (not a toll-free call) or by
email at [email protected].
I appreciate your interest in the LITC Program and look forward to working with the
2014 Low Income Taxpayer Clinic grantees to improve the fairness and quality of
federal tax administration.
Sincerely,
Nina E. Olson
National Taxpayer Advocate
GENERAL TABLE OF CONTENTS
I INTRODUCTION..........................................................1
A Mission Statement..........................................................1
B What is Included in Publication 3319?.........................................1
C Contacting the Program Office ...............................................1
D What’s New ............................................................... 2
E LITC Program Overview..................................................... 3
II APPLYING FOR A GRANT................................................. 6
A Administrative / Eligibility Requirements..................................... 6
B Notice of Grant Award..................................................... 10
C Standards of Operation for all Clinics ........................................11
D Standards of Operation for Controversy Clinics .............................. 22
E Standards of Operation for ESL Clinics ...................................... 29
F Office of Management and Budget (OMB) Requirements . . . . . . . . . . . . . . . . . . . . . .31
G Matching Funds Requirement .............................................. 32
H Managing Grant Funds .................................................... 35
I Grant Reporting Requirements ............................................. 39
J Assurances and Certifications..............................................40
K Completion of the LITC Program Grant Application Package ..................49
L Completion and Submission of a Non-Competitive Continuation (NCC).........51
M Selection of Grant Recipients and Award Notification......................... 52
N Payments to LITC Program Grantees........................................ 57
III POST AWARD REQUIREMENTS .......................................... 58
A Grantee Responsibilities ................................................... 58
B Reporting Requirements ................................................... 62
IV LITC PROGRAM OFFICE RESPONSIBILITIES ............................... 65
A General Responsibilities ................................................... 65
B Site Assistance Visits...................................................... 65
Table of ConTenTs
DETAILED TABLE OF CONTENTS
I INTRODUCTION..........................................................1
A Mission Statement..........................................................1
B What is Included in Publication 3319?.........................................1
C Contacting the Program Office ...............................................1
D What’s New ............................................................... 2
E LITC Program Overview..................................................... 3
i History of the LITC Program............................................. 3
ii Overview of IRC § 7526................................................. 3
II APPLYING FOR A GRANT................................................. 6
A Administrative / Eligibility Requirements..................................... 6
i Core Term Definitions................................................... 6
ii Matching Funds........................................................ 8
iii Startup Expenses....................................................... 9
iv Fees................................................................... 9
B Notice of Grant Award..................................................... 10
i Single-year Grants..................................................... 10
ii Multi-year Grants ..................................................... 10
iii Termination of a Grant................................................. 10
C Standards of Operation For All Clinics........................................11
i Staffing................................................................11
ii Infrastructure and Resources ............................................11
a Taxpayer Representation ............................................11
b Physical Location ...................................................12
c Training............................................................12
d Tax Library .........................................................12
e Annual LITC Conference.............................................12
iii Outreach and Community Partnerships...................................13
a Focused Outreach ..................................................13
b Publicity Materials..................................................13
c Community Partnerships ............................................14
d Identifying Successful Outreach Strategies............................15
iv Networking and Mentoring..............................................15
a Networking ........................................................15
b Mentoring .........................................................15
c Technical Assistance................................................15
v Systemic Advocacy.....................................................15
vi Confidentiality .........................................................16
a Disclosure .........................................................16
b Training Materials ..................................................16
c Media Requests ....................................................17
vii Volunteers.............................................................18
a Quality Assurance Process ..........................................18
b Pro Bono Panel......................................................18
c Referrals of Taxpayers to Volunteers..................................18
viii Preparing Tax Returns and ITIN Applications..............................19
ix Recordkeeping and File Management....................................20
a Grant Expenditure Records .........................................20
b File Retention......................................................20
c Case Management Systems ........................................20
d Recommended Back-Up File System..................................21
e Security............................................................21
f Records Retention ..................................................21
x Tax Compliance and Federal Debts.......................................21
xi Name or Organizational Status Changes................................. 22
D Standards of Operation For Controversy Clinics.............................. 22
i Controversy Representation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
ii Low Income Taxpayers and the 90/250 Requirement..................... 23
a Poverty Guidelines................................................. 24
b Definition of Income for Purposes of the 90/250 Requirement......... 24
c Definition of Family Unit............................................ 26
iii Amount in Controversy Limit ........................................... 26
iv Preparing Tax Returns and ITIN Applications............................. 27
v Participation in the United States Tax Court Clinical Program .............. 28
vi Education............................................................. 28
E Standards of Operation For ESL Clinics...................................... 29
i Identifying an Audience................................................ 29
ii Education............................................................. 29
iii Preparing Tax Returns and ITIN Applications.............................30
F Office of Management and Budget (OMB) Requirements . . . . . . . . . . . . . . . . . . . . . .31
G Matching Funds Requirement .............................................. 32
i Valuation of Matching Funds ........................................... 32
ii Volunteer Services Generally ........................................... 33
iii Volunteer Services of a Qualified Representative ......................... 33
iv Documentation of Matching Funds Sources.............................. 34
H Managing Grant Funds .................................................... 35
i Accessing Grant Funds................................................. 35
ii Maintaining Funds in an FDIC Insured Bank.............................. 36
iii Interest on Advances of Grant Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
iv Adjustments to Program Expenses...................................... 36
v Non-Use of Grant Funds ............................................... 37
vi Allowable/Unallowable Expenses....................................... 37
I Grant Reporting Requirements ............................................. 39
J Assurances and Certifications..............................................40
i OMB Circular A-133 Audit Requirement .................................40
ii Civil Rights Reporting Requirements......................................41