II. Explanation of the Bill
(Sec. 3601 of the Bill and new Sec. 7526 of the Code)
There are no provisions in present law providing for assistance to clinics that assist low
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.
The provision is effective on the date of enactment.