Kewal Krishan & Co, Chartered Accountants
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Facing IRS Disputes? New IRS Grant Program Offers Hope and Help!

If you’re a US resident living abroad, handling IRS issues can be daunting. Fortunately, a new initiative by the IRS promises to simplify this process significantly and make it more accessible. The IRS has announced that it will accept applications for Low Income Taxpayer Clinic (LITC) matching grants, specifically aimed at assisting low-income and ESL (English as a Second Language) taxpayers. This initiative could transform the way you address your tax disputes by providing crucial support and education on your rights and responsibilities.

Empowering Taxpayers Through Education and Assistance

The LITC program, administered by the IRS’s Office of the Taxpayer Advocate, goes beyond legal representation; it’s a comprehensive effort to ensure fairness and integrity within the tax system. The program focuses on several key areas:

– Pro Bono Representation: Offering assistance to low-income taxpayers in resolving their disputes with the IRS. These services are crucial in helping individuals who may otherwise lack the resources to effectively represent themselves against complex tax issues.

– Education for ESL Taxpayers: Providing specialized support to help taxpayers for whom English is a second language to fully understand their tax obligations and rights. This education is vital in preventing misunderstandings and ensuring compliance.

– Advocacy on Systemic Issues: Identifying and advocating on issues that disproportionately affect low-income and ESL taxpayers. This includes pushing for changes in policy or practice that can make the tax system more equitable.

Application Period and Funding Details

From April 22, 2024, to June 12, 2024, qualified organizations can apply for the LITC grants. With a budget allocation of $28 million for 2024 and proposals for sustained support in 2025, the IRS plans to award up to $200,000 per clinic. This funding is dedicated to developing, expanding, or maintaining LITCs that can offer services either free of charge or for a nominal fee to qualifying taxpayers.

Special Focus on Underserved Areas

The IRS has identified specific geographic areas that are in desperate need of these services, including several counties in Florida, and the entire states of Hawaii, Kansas, Nevada, North Dakota, South Dakota, West Virginia, as well as the territory of Puerto Rico. Organizations in these areas are particularly encouraged to apply, with the objective of expanding access to justice for taxpayers who currently have limited resources locally available.

How Can This Benefit You?

For US residents abroad, the complexities of interacting with and accessing IRS services can often be overwhelming. LITCs serve as a crucial resource, ensuring that you have support in managing IRS disputes. Whether it’s a disagreement over your tax bill or uncertainties about filing requirements, LITCs provide the necessary guidance and support to effectively address these challenges.

Conclusion:

These new IRS grants offer a beacon of hope for low-income and ESL taxpayers, ensuring they receive the necessary support and education to effectively manage their tax obligations. Kewal Krishan & Co is committed to helping you leverage these opportunities, providing expert advice and guidance tailored to your unique needs as a U.S. resident living abroad.

Need Assistance?

Don’t miss this opportunity to secure the support you need. If you represent a qualifying organization, consider applying for an LITC grant to help serve our community more effectively. For individuals facing tax issues, reaching out to existing LITCs for assistance can provide significant relief and support. If you require further guidance on managing your tax responsibilities or taking advantage of these services, contact our COO, Anshul Goyal, at anshul@kkca.io. At Kewal Krishan & Co, we are dedicated to helping you manage your tax obligations, wherever you are in the world.

About Us

As a leading tax service provider across the United States, Kewal Krishan & Co specializes in assisting US residents abroad with IRS and FINCEN compliances. Our certified public accountants and Enrolled Agents are authorized to represent US businesses and taxpayers before federal and state tax authorities, providing exceptional guidance and representation.

Disclaimer

This blog post is for informational purposes only and should not be construed as legal or tax advice. Please consult with a qualified professional tailored to your individual circumstances.

FAQs

1. What are Low-Income Taxpayer Clinics (LITCs)?
LITCs are organizations that provide free or low-cost assistance to low-income taxpayers in resolving their IRS disputes.

2. Who can benefit from LITC services?
Low-income taxpayers and taxpayers for whom English is a second language can benefit from LITC services.

3. How does one qualify for LITC assistance?
Eligibility for LITC assistance typically depends on income level and the nature of the tax issue.

4. What services do LITCs provide?
LITCs offer pro bono legal representation, tax education, and advocacy on systemic issues affecting taxpayers.

5. When is the application period for the LITC grants?
The application period for 2024 LITC grants runs from April 22 to June 12.

6. How much funding is available for each LITC?
Organizations can apply for up to $200,000 in grant funding per clinic for the 2025 grant year.

7. What changes have been made to LITC eligibility criteria?
The IRS has expanded eligibility criteria to allow more organizations to provide educational and advocacy services without requiring direct tax controversy representation.

8. Can LITCs still represent taxpayers in disputes with the IRS?
Yes, many LITCs provide direct representation in disputes with the IRS, although some may focus more on education and advocacy.

9. Are there specific areas where LITC services are needed most?
The IRS has identified several underserved areas, including multiple states and counties, where there is a high demand for LITC services.

10. How can organizations apply for LITC funding?
Organizations can apply for LITC funding through the IRS by submitting an electronic application by the deadline and following the guidelines provided in IRS Publication 3319.

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