# Plain Language Summary: Low-Income Tax Clinic Modernization Act

This bill increases funding and expands the scope of low-income taxpayer clinics, which are organizations that provide free tax help to people who can't afford professional tax preparation. Right now, these clinics receive limited government grants to operate, but this bill significantly boosts those resources. The total amount available to all clinics nationwide would jump from $6 million to $20 million per year, and the maximum grant any single clinic can receive would increase from $100,000 to $500,000 annually. This means more clinics could open in underserved areas, and existing clinics could hire more staff to help more people.

The bill also makes it easier for clinics to get started and operate. New clinics wouldn't have to match the government's funding dollar-for-dollar during their first two years, which removes a major barrier for organizations just getting off the ground. The bill also allows the Treasury Secretary to be more flexible about matching fund requirements if it helps clinics expand their services. Additionally, the bill adds a new type of eligible clinic—organizations that provide technical support and legal help to other low-income tax clinics, creating a network effect where clinics can learn from and support each other.

To keep things sustainable, the bill caps how much clinics can spend on overhead and administration at 10 percent of their grant money, ensuring most funding goes directly to helping people. The bill also includes automatic adjustments for inflation starting in 2024, so the funding amounts will grow over time to keep pace with rising costs. For everyday people, this means better access to free tax help, especially in communities that currently have few or no resources available.

Low-Income Tax Clinic Modernization Act

Davis, Danny K.

Low-Income Tax Clinic Modernization Act This bill modifies provisions relating to clinics that provide free representation to low-income taxpayers in tax controversies before the Internal Revenue Service (IRS). It expands the definition of low-income taxpayer clinics to require clinics to provide technical advice and litigation support for its programs. The bill also increases the aggregate amount that the IRS may allocate for grants to such clinics and the annual amount of such grants.