Clermont Times

On June 1, 2024, Representatives Brad Wenstrup (R-OH), Danny K. Davis (D-IL), Carol Miller (R-WV), and Jamie Raskin (D-MD) introduced the bipartisan Low Income Taxpayer Clinic Modernization Act of 2024. The bill aims to improve access to taxpayer services for low-income Americans by eliminating the per-clinic funding cap on Low-Income Taxpayer Clinics (LITCs).

The constraints of the existing cap became evident when two Ohio clinics merged earlier this year. Under the current cap, the newly formed Legal Aid of Southeast and Central Ohio will be forced to serve the same population with substantially less funding, reducing the number of taxpayers represented and stretching their services.

“Low-Income Taxpayer Clinics help thousands of Americans navigate the complex tax system, giving a voice to those in rural and underserved communities when they face a controversy with the IRS,” said Rep. Wenstrup. “By removing the ‘per-clinic cap’ on the grants LITCs receive, we can help these Americans receive vital tax guidance and representation."

Rep. Davis expressed his support for modernizing the program: “I am proud to partner with Reps. Wenstrup, Raskin, and Miller to modernize the Low-Income Tax Clinic program that successfully assists vulnerable taxpayers in resolving tax problems. The bill will add important flexibilities to the LITC program so it can serve more low-income taxpayers and fund clinics in areas that currently lack this essential program.”

Rep. Miller highlighted how West Virginians have been affected since their only Low-Income Tax Clinic closed in 2023: “This bill will make it easier for a LITC to be reestablished in West Virginia and once again help our communities with the tax relief they deserve.”

Rep. Raskin emphasized both service provision and outreach: “Low Income Taxpayer Clinics (LITCs) help low-income taxpayers resolve complicated tax issues with the IRS. LITCs also conduct outreach in our communities and provide educational resources to taxpayers. Our bipartisan bill makes a much-needed update to the current per-clinic cap on federal funding which has not been updated since the program’s creation more than 25 years ago.”

Megan Sullivan, Director at Legal Aid of Southeast and Central Ohio's Low Income Taxpayer Clinic, noted potential benefits: “Removing the cap on grants LITCs receive would allow us to continue to grow and expand our services to meet growing demand... With removal of the per-clinic-cap, we would no longer have to turn away taxpayers who need assistance with the IRS.”

In 2022, LITCs represented around 20,000 taxpayers, secured $10 million in tax refunds, and reduced or corrected liabilities by over $41 million. Currently capped at $100,000 per clinic—with a temporary waiver up to $200,000—regardless of how many Americans they represent.

Additionally, LITC grants are limited by dollar-for-dollar matching from private donations; many clinics report difficulty meeting even current maximums but would struggle further if required for larger grants.

The legislation proposes giving authority to lower matching funds requirements where doing so would improve access without dropping below 25 percent.

These provisions are included as a Top 10 Legislative Recommendation for 2024 by an independent organization within IRS dedicated ensuring fair treatment for every taxpayer.

Read full legislation here.

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