Southern West Virginia News

Today, Congresswoman Carol Miller (R-WV) joined Congressmen Brad Wenstrup, D.P.M. (R-OH), Danny K. Davis (D-IL), and Jamie Raskin (D-MD) in introducing the bipartisan Low Income Taxpayer Clinic Modernization Act of 2024. This 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).

“West Virginians have been at a major disadvantage since our 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,” said Congresswoman Miller.

“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 Congressman Wenstrup. “By removing the ‘per-clinic cap’ on the grants LITCs receive, we can help these Americans receive vital tax guidance and representation."

“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,” said Congressman Davis. “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.”

“Low Income Taxpayer Clinics (LITCs) help low-income taxpayers resolve complicated tax issues with the IRS,” said Congressman Raskin. “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. Our bill will empower LITCs across the country to reach and serve even more taxpayers in our communities. I am honored to co-lead this effort alongside Representatives Wenstrup, Davis, and Miller that will make a positive difference in taxpayers’ lives.”

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

By removing the per-clinic cap, LITCs around the country will be able to receive the funding they need to serve all Americans in need.

Additionally, LITC grants are limited to dollar-for-dollar matching from private donations. Many clinics report that they are not able to match the current $100,000 maximum grant but would find it much more challenging to scale donations to receive a larger grant.

This legislation would solve that problem by giving the Secretary of the Treasury authority to lower the matching funds requirement (but not below 25 percent) where doing so would improve access to taxpayer services.

These two provisions are included as a Top 10 Legislative Recommendation for 2024 by the Taxpayer Advocate Service, an independent organization within the IRS dedicated to ensuring every taxpayer is treated fairly.

Read full legislation here.