
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC7526]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                  CHAPTER 77--MISCELLANEOUS PROVISIONS
 
Sec. 7526. Low-income taxpayer clinics


(a) In general

    The Secretary may, subject to the availability of appropriated 
funds, make grants to provide matching funds for the development, 
expansion, or continuation of qualified low-income taxpayer clinics.

(b) Definitions

    For purposes of this section--

              (1) Qualified low-income taxpayer clinic

        (A) In general

            The term ``qualified low-income taxpayer clinic'' means a 
        clinic that--
                (i) does not charge more than a nominal fee for its 
            services (except for reimbursement of actual costs 
            incurred); and
                (ii)(I) represents low-income taxpayers in controversies 
            with the Internal Revenue Service; or
                (II) operates programs to inform individuals for whom 
            English is a second language about their rights and 
            responsibilities under this title.

        (B) Representation of low-income taxpayers

            A clinic meets the requirements of subparagraph (A)(ii)(I) 
        if--
                (i) at least 90 percent of the taxpayers represented by 
            the clinic have incomes which do not exceed 250 percent of 
            the poverty level, as determined in accordance with criteria 
            established by the Director of the Office of Management and 
            Budget; and
                (ii) the amount in controversy for any taxable year 
            generally does not exceed the amount specified in section 
            7463.

                             (2) Clinic

        The term ``clinic'' includes--
            (A) a clinical program at an accredited law, business, or 
        accounting school in which students represent low-income 
        taxpayers in controversies arising under this title; and
            (B) an organization described in section 501(c) and exempt 
        from tax under section 501(a) which satisfies the requirements 
        of paragraph (1) through representation of taxpayers or referral 
        of taxpayers to qualified representatives.

                    (3) Qualified representative

        The term ``qualified representative'' means any individual 
    (whether or not an attorney) who is authorized to practice before 
    the Internal Revenue Service or the applicable court.

(c) Special rules and limitations

                      (1) Aggregate limitation

        Unless otherwise provided by specific appropriation, the 
    Secretary shall not allocate more than $6,000,000 per year 
    (exclusive of costs of administering the program) to grants under 
    this section.

             (2) Limitation on annual grants to a clinic

        The aggregate amount of grants which may be made under this 
    section to a clinic for a year shall not exceed $100,000.

                        (3) Multi-year grants

        Upon application of a qualified low-income taxpayer clinic, the 
    Secretary is authorized to award a multi-year grant not to exceed 3 
    years.

                       (4) Criteria for awards

        In determining whether to make a grant under this section, the 
    Secretary shall consider--
            (A) the numbers of taxpayers who will be served by the 
        clinic, including the number of taxpayers in the geographical 
        area for whom English is a second language;
            (B) the existence of other low-income taxpayer clinics 
        serving the same population;
            (C) the quality of the program offered by the low-income 
        taxpayer clinic, including the qualifications of its 
        administrators and qualified representatives, and its record, if 
        any, in providing service to low-income taxpayers; and
            (D) alternative funding sources available to the clinic, 
        including amounts received from other grants and contributions, 
        and the endowment and resources of the institution sponsoring 
        the clinic.

                  (5) Requirement of matching funds

        A low-income taxpayer clinic must provide matching funds on a 
    dollar-for-dollar basis for all grants provided under this section. 
    Matching funds may include--
            (A) the salary (including fringe benefits) of individuals 
        performing services for the clinic; and
            (B) the cost of equipment used in the clinic.

    Indirect expenses, including general overhead of the institution 
    sponsoring the clinic, shall not be counted as matching funds.

(Added Pub. L. 105-206, title III, Sec. 3601(a), July 22, 1998, 112 
Stat. 774.)


                             Effective Date

    Pub. L. 105-206, title III, Sec. 3601(c), July 22, 1998, 112 Stat. 
776, provided that: ``The amendments made by this section [enacting this 
section] shall take effect on the date of the enactment of this Act 
[July 22, 1998].''
