Taxpayer Bill of Rights  

II. Explanation of the Bill

Title III. Taxpayer Protections & Rights
G. Low-Income Taxpayer Clinics

(Sec. 3601 of the Bill and new Sec. 7526 of the Code)

Present Law

There are no provisions in present law providing for assistance to clinics that assist low income taxpayers.

Reasons for Change

The Committee believes that the provision of tax services by accredited nominal fee clinics to low-income individuals and those for whom English is a second language will improve compliance with the Federal tax laws and should be encouraged.

Explanation of Provision

The Secretary is authorized to provide up to $3,000,000 per year in matching grants to certain low-income taxpayer clinics. No clinic could receive more than $100,000 per year.

Eligible clinics would be those that charge no more than a nominal fee to either represent low-income taxpayers in controversies with the IRS or provide tax information to individuals for whom English is a second language.

A "clinic" would include (1) a clinical program at an accredited law school, an accredited business school, or an accredited accounting school, in which students represent low-income taxpayers, or (2) an organization exempt from tax under Code section 501(c) which either represents low-income taxpayers or provides referral to qualified representatives.

Effective Date

The provision is effective on the date of enactment.

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