Press Releases

Today, Reps. Brad Wenstrup, D.P.M. (R-OH), Danny K. Davis (D-IL), Carol Miller (R-WV), and Jamie Raskin (D-MD) introduced the bipartisan Low Income Taxpayer Clinic Modernization Act of 2024, a bill that would improve access to taxpayer services for low-income Americans by eliminating the per-clinic funding cap on Low-Income Taxpayer Clinics (LITCs).

The constraints of the existing cap became reality for two Ohio clinics covering dozens of counties recently as they merged earlier this year. Under the current cap, the newly formed Legal Aid of Southeast and Central Ohio will be forced to serve the same total population of Ohioans on substantially less funding, reducing the total number of taxpayers represented and stretching the services they can provide.

“Low-Income Taxpayer Clinics help thousands of Americans navigate the complex tax system, giving a voice to those in rural and underserved communities when they face a controversy with the IRS,” said Rep. Wenstrup, D.P.M. “By removing the ‘per-clinic cap’ on the grants LITCs receive, we can help these Americans receive vital tax guidance and representation."

“I am proud to partner with Reps. Wenstrup, Raskin, and Miller to modernize the Low-Income Tax Clinic program that successfully assists vulnerable taxpayers in resolving tax problems,” said Rep. Davis. “The bill will add important flexibilities to the LITC program so it can serve more low-income taxpayers and fund clinics in areas that currently lack this essential program.”

“West Virginians have been at a major disadvantage since our only Low-Income Tax Clinic closed in 2023. This bill will make it easier for a LITC to be reestablished in West Virginia,  and once again help our communities with the tax relief they deserve,” said Rep. Miller.

“Low Income Taxpayer Clinics (LITCs) help low-income taxpayers resolve complicated tax issues with the IRS,”  said Rep. Raskin. “LITCs also conduct outreach in our communities and provide educational resources to taxpayers. Our bipartisan bill makes a much-needed update to the current per-clinic cap on federal funding which has not been updated since the program’s creation more than 25 years ago. Our bill will empower LITCs across the country to reach and serve even more taxpayers in our communities. I am honored to co-lead this effort alongside Representatives Wenstrup, Davis, and Miller that will make a positive difference in taxpayers’ lives.”

“Removing the cap on grants LITCs receive would allow us to continue to grow and expand our services to meet the growing demand of the taxpayers of southeast and central Ohio,” said Megan Sullivan, Low Income Taxpayer Clinic Director at Legal Aid of Southeast and Central Ohio. "With the removal of the per-clinic-cap, we would no longer have to turn away taxpayers who need assistance with the IRS and it would dramatically benefit the services we administer."

Background:

• In 2022, LITCs represented around 20,000 taxpayers, secured $10 million in tax refunds, and reduced or corrected taxpayers’ liabilities by more than $41 million.
• Currently, the grants LITCs receive are capped at $100,000 per clinic, with a temporary waiver of up to $200,000, regardless of how many Americans they represent.
• By removing the per-clinic cap, LITCs around the country will be able to receive the funding they need to serve all Americans in need.
• Additionally, LITC grants are limited to dollar-for-dollar matching from private donations. Many clinics report that they are not able to match the current $100,000 maximum grant but would find it much more challenging to scale donations in order to receive a larger grant.
• This legislation would solve that problem by giving the Secretary of the Treasury the authority to lower the matching funds requirement (but not below 25 percent) where doing so would improve access to taxpayer services.
• These two provisions are included as a Top 10 Legislative Recommendation for 2024 by the Taxpayer Advocate Service, an independent organization within the IRS dedicated to ensuring every taxpayer is treated fairly.

Read the full legislation here.

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