§ 7526. — Lowincome taxpayer clinics.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 26USC7526]
TITLE 26--INTERNAL REVENUE CODE
Subtitle F--Procedure and Administration
CHAPTER 77--MISCELLANEOUS PROVISIONS
Sec. 7526. Low-income taxpayer clinics
(a) In general
The Secretary may, subject to the availability of appropriated
funds, make grants to provide matching funds for the development,
expansion, or continuation of qualified low-income taxpayer clinics.
(b) Definitions
For purposes of this section--
(1) Qualified low-income taxpayer clinic
(A) In general
The term ``qualified low-income taxpayer clinic'' means a
clinic that--
(i) does not charge more than a nominal fee for its
services (except for reimbursement of actual costs
incurred); and
(ii)(I) represents low-income taxpayers in controversies
with the Internal Revenue Service; or
(II) operates programs to inform individuals for whom
English is a second language about their rights and
responsibilities under this title.
(B) Representation of low-income taxpayers
A clinic meets the requirements of subparagraph (A)(ii)(I)
if--
(i) at least 90 percent of the taxpayers represented by
the clinic have incomes which do not exceed 250 percent of
the poverty level, as determined in accordance with criteria
established by the Director of the Office of Management and
Budget; and
(ii) the amount in controversy for any taxable year
generally does not exceed the amount specified in section
7463.
(2) Clinic
The term ``clinic'' includes--
(A) a clinical program at an accredited law, business, or
accounting school in which students represent low-income
taxpayers in controversies arising under this title; and
(B) an organization described in section 501(c) and exempt
from tax under section 501(a) which satisfies the requirements
of paragraph (1) through representation of taxpayers or referral
of taxpayers to qualified representatives.
(3) Qualified representative
The term ``qualified representative'' means any individual
(whether or not an attorney) who is authorized to practice before
the Internal Revenue Service or the applicable court.
(c) Special rules and limitations
(1) Aggregate limitation
Unless otherwise provided by specific appropriation, the
Secretary shall not allocate more than $6,000,000 per year
(exclusive of costs of administering the program) to grants under
this section.
(2) Limitation on annual grants to a clinic
The aggregate amount of grants which may be made under this
section to a clinic for a year shall not exceed $100,000.
(3) Multi-year grants
Upon application of a qualified low-income taxpayer clinic, the
Secretary is authorized to award a multi-year grant not to exceed 3
years.
(4) Criteria for awards
In determining whether to make a grant under this section, the
Secretary shall consider--
(A) the numbers of taxpayers who will be served by the
clinic, including the number of taxpayers in the geographical
area for whom English is a second language;
(B) the existence of other low-income taxpayer clinics
serving the same population;
(C) the quality of the program offered by the low-income
taxpayer clinic, including the qualifications of its
administrators and qualified representatives, and its record, if
any, in providing service to low-income taxpayers; and
(D) alternative funding sources available to the clinic,
including amounts received from other grants and contributions,
and the endowment and resources of the institution sponsoring
the clinic.
(5) Requirement of matching funds
A low-income taxpayer clinic must provide matching funds on a
dollar-for-dollar basis for all grants provided under this section.
Matching funds may include--
(A) the salary (including fringe benefits) of individuals
performing services for the clinic; and
(B) the cost of equipment used in the clinic.
Indirect expenses, including general overhead of the institution
sponsoring the clinic, shall not be counted as matching funds.
(Added Pub. L. 105-206, title III, Sec. 3601(a), July 22, 1998, 112
Stat. 774.)
Effective Date
Pub. L. 105-206, title III, Sec. 3601(c), July 22, 1998, 112 Stat.
776, provided that: ``The amendments made by this section [enacting this
section] shall take effect on the date of the enactment of this Act
[July 22, 1998].''
