26 U.S.C. § 7526 — Low-income taxpayer clinics

(a) General rule. If appropriated funds are available, the Secretary^* may make grants providing matching funds to develop, expand, or continue qualified low-income taxpayer^* clinics.

(b) Definitions. (1)(A) A “qualified low-income taxpayer clinic” is a clinic that charges no more than a nominal fee, except reimbursement of actual costs, and either represents low-income taxpayers in disputes with the Internal Revenue Service or runs programs informing people for whom English is a second language about their rights and responsibilities under this title. (B) A clinic qualifies through representation if at least 90 percent of the taxpayers it represents have incomes no higher than 250 percent of the poverty level under criteria set by the Office of Management and Budget Director, and the amount disputed for any tax year generally does not exceed the amount in section 7463. (2) “Clinic” includes a clinical program at an accredited law, business, or accounting school where students represent low-income taxpayers in disputes under this title, and a section 501(c) organization exempt under section 501(a) that meets paragraph (1) by representing taxpayers or referring them to qualified representatives. (3) “Qualified representative” means any individual, whether or not an attorney, authorized to practice before the Internal Revenue Service or the applicable court.

(c) Special rules and limits. (1) Unless a specific appropriation says otherwise, the Secretary may not allocate more than $6,000,000 per year, excluding program-administration costs, to grants under this section. (2) A clinic may receive no more than $100,000 in grants for a year. (3) On a qualified clinic’s application, the Secretary may award a grant lasting several years, but no more than 3 years. (4) In deciding whether to award a grant, the Secretary must consider: (A) how many taxpayers the clinic will serve, including people in its area for whom English is a second language; (B) other clinics serving the same people; (C) the program’s quality, including administrator and representative qualifications and the clinic’s service record; and (D) other funding sources, including grants and contributions, and the sponsoring institution’s endowment and resources. (5) A clinic must provide dollar-for-dollar matching funds for every grant. Matching funds may include salaries, including fringe benefits, of people serving the clinic and equipment costs. Indirect expenses, including the sponsoring institution’s general overhead, do not count. (6) Despite other law, Treasury officers and employees may tell taxpayers that specific funded qualified clinics exist and explain eligibility for their help, and may give the clinics’ locations and contact information.