News & Updates

The LITC Program is a federal grant program administered by the Taxpayer Advocate Service, led by National Taxpayer Advocate Erin M. Collins. LITCs represent individuals whose incomes are generally at or below 250% of the federal poverty guideline and who are seeking to resolve tax problems with the IRS, such as audits, appeals and tax collection disputes. LITCs can represent taxpayers in court as well as before the IRS. They also can provide information about taxpayer rights and responsibilities in different languages for ESL taxpayers. LITCs provide services for free or a small fee. They receive IRS grants but work independently to assist and advocate for taxpayers.

Thousands of taxpayers assisted

During 2020, LITCs represented nearly 20,000 taxpayers dealing with an IRS tax controversy and provided consultations or advice to another 18,000 taxpayers. They helped taxpayers secure more than $5.8 million in tax refunds and reduced or corrected taxpayers' liabilities by over $116 million. They also brought more than 2,900 taxpayers back into payment compliance.

Through outreach and education activities, LITCs strived to ensure individuals understood their rights as U.S. taxpayers by conducting more than 1,000 educational activities that were attended by nearly 134,000 individuals. Some 1,500 volunteers contributed to the success of LITCs by volunteering over 42,000 hours of their time. Nearly 65% of the volunteers were attorneys, certified public accountants or enrolled agents.

LITCs used a variety of approaches to successfully advocate for taxpayers. These included utilizing collection alternatives to resolve issues administratively within the IRS, litigating cases in the United States Tax Court and other federal courts, and elevating systemic issues through the Taxpayer Advocate Service's Systemic Advocacy Management System.

One success story among many

Here is one example of how an LITC assisted a taxpayer in need: A low-income taxpayer was working in a local grocery store making minimum wage. She was the sole breadwinner for her family of four and had never filed a federal income tax return.

The IRS sent her Statutory Notices of Deficiency for four tax years, asserting that she owed several thousands of dollars based on unreported income. Unsure what she could do to resolve the issue, the taxpayer sought help from an LITC.

The LITC evaluated the case and explained that she needed to contest the notices in the U.S. Tax Court. The LITC helped her file a Tax Court petition and argued that the taxpayer did not owe tax but instead was due refunds, as she was eligible for the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC).

The LITC's advocacy on the taxpayer's behalf was a success. She ultimately received over $16,000 in refunds, providing the taxpayer with a valuable financial lifeline. In addition to helping the taxpayer resolve her tax issue, the LITC educated her about tax administration and the tax law, including how to have future tax returns prepared and filed for free at a local Volunteer Income Tax Assistance site, and the availability of anti-poverty tax benefits such as the EITC and the CTC.

The full report contains extensive details about the LITC Program and more stories about the extraordinary results that LITCs achieved on behalf of their clients.

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Often, individuals and families can get these expanded tax benefits, even if they have little or no income from a job, business or other source. This means that many people who don't normally need to file a return should consider doing so this year. Because claiming these benefits could result in tax refunds for many people, individuals should file an accurate return electronically and choose direct deposit to avoid processing delays and speed delivery of their refund.

Expanded tax benefits

A new fact sheet, FS-2022-10, available now on IRS.gov, describes many of these expanded tax benefits. But the IRS emphasized that these benefits are only available to people who file a 2021 federal income tax return. Benefits include:

• An expanded Child Tax Credit: Families can claim this credit, even if they received monthly advance payments during the last half of 2021.

• An increased Child and Dependent Care Credit: Families who pay for daycare so they can work or look for work can get a tax credit worth up to $4,000 for one qualifying person and $8,000 for two or more qualifying persons.

• A more generous Earned Income Tax Credit: The American Rescue Plan boosted the EITC for childless workers. There are also changes that can help low- and moderate-income families with children.

• The Recovery Rebate Credit: Those who missed out on last year's third-round of Economic Impact Payments (EIP3), also known as stimulus payments, may be eligible to claim the RRC. This credit can also help eligible people whose EIP3 was less than the full amount, including those who welcomed a child in 2021.

• A deduction for gifts to charity: The majority of taxpayers who take the standard deduction can deduct eligible cash contributions they made during 2021. Married couples filing jointly can deduct up to $600 in cash donations and individual taxpayers can deduct up to $300 in donations. In addition, itemizers who make large cash donations often qualify to deduct the full amount in 2021.

See the fact sheet for more information.

The IRS reminds early filers that by law, the agency cannot issue EITC refunds before mid-February. The same rule applies to refunds that include the Additional Child Tax Credit (ACTC). This year, the ACTC is typically claimed by Americans abroad who did not have a main home in the United States for more than half of 2021. Normally, the mid-February restriction does not apply to the Refundable Child Tax Credit (RCTC) claimed by people who had a main home in the U.S., unless they also claim the EITC.

Helpful reminders

The IRS urges everyone to make sure they have all their year-end statements in hand before filing their 2021 return. Besides all W-2s and 1099s, this includes two statements issued by the IRS -- Letter 6419, showing their total advance Child Tax Credit payments, and Letter 6475, showing their total EIP3 payments. Individuals can also use IRS Online Account to see the total amounts of their third round of Economic Impact Payments or advance Child Tax Credit payments. Married spouses who received joint payments will each need to sign into their own account to retrieve their separate amounts.

For most Americans, the tax-filing deadline is April 18, 2022. For residents of Maine and Massachusetts, the deadline is April 19, 2022. For Americans who live and work abroad, it's June 15, 2022. Anyone who needs more time to file can get an automatic extension until Oct. 17, 2022.

Taxpayers can find answers to questions, forms and instructions and easy-to-use tools online at IRS.gov. They can use these resources to get help when it's needed at home, at work or on the go.

This news release is part of a series called the Tax Time Guide, a resource to help taxpayers file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax.

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These FAQs (FS-2022-09 PDF) were updated:

• 2021 Recovery Rebate Credit — Topic A: General Information – Q3
• 2021 Recovery Rebate Credit — Topic D: Claiming the 2021 Recovery Rebate Credit – Q1, Q2, Q6
• 2021 Recovery Rebate Credit — Topic F: Receiving the Credit on a 2021 Tax Return – Q8, Q9
• 2021 Recovery Rebate Credit — Topic G: Finding the Third Economic Impact Payment Amount to Calculate the 2021 Recovery Rebate Credit – Q2

Individuals who did not qualify for, or did not receive, the full amount of the third Economic Impact Payment may be eligible to claim the 2021 Recovery Rebate Credit based on their 2021 tax year information. Individuals may have received their third Economic Impact Payment through initial and "plus-up" payments in 2021.

Note: Third Economic Impact Payments are different than the monthly advance Child Tax Credit payments that the IRS disbursed from July through December 2021.

Most eligible people already received their Economic Impact Payments and won't include any information about their payment when they file. However, people who are missing stimulus payments should review the information on the Recovery Rebate Credit page to determine their eligibility and whether they need to claim a Recovery Rebate Credit for tax year 2021.

To claim any remaining credit for 2021, eligible people must file a 2021 tax return, even if they usually do not file taxes. Also, people who did not receive all of their first and second Economic Impact Payments in 2020 can receive those amounts only by filing a 2020 tax return (or amending a previously filed return) and claiming the 2020 Recovery Rebate Credit. They should review the Recovery Rebate Credit page to determine their eligibility.

The 2021 Recovery Rebate Credit can reduce any taxes owed or be included in the tax refund for the 2021 tax year. Filers must ensure to not mix information from their 2020 and 2021 tax years. In particular, filers should take care to NOT include any information regarding the first and second Economic Impact Payments received in 2020, or the 2020 Recovery Rebate Credit, on their 2021 return. They will need the total of the third payment received to accurately calculate the 2021 Recovery Rebate Credit when they file their 2021 federal tax return in 2022.

Individuals can now view this information in their online account.

People can also locate this information on Notice 1444-C, which they received from the IRS during 2021 after each payment, as well as Letter 6475, which the IRS will mail to them through March 2022.

The FAQ's cover most questions relating to claiming the credit and are for use by taxpayers and tax professionals and are being issued as expeditiously as possible.

File for free and use direct deposit

Taxpayers with income of $73,000 or less can file their federal tax returns electronically for free through the IRS Free File Program. The fastest way to receive a tax refund is to file electronically and have it direct deposited into a financial account. Refunds can be directly deposited into bank accounts, prepaid debit cards or mobile apps as long as a routing and account number is provided.

More information about reliance is available.

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During the transition, the IRS will quickly develop and bring online an additional authentication process that does not involve facial recognition. The IRS will also continue to work with its cross-government partners to develop authentication methods that protect taxpayer data and ensure broad access to online tools.

"The IRS takes taxpayer privacy and security seriously, and we understand the concerns that have been raised," said IRS Commissioner Chuck Rettig. "Everyone should feel comfortable with how their personal information is secured, and we are quickly pursuing short-term options that do not involve facial recognition."

The transition announced today does not interfere with the taxpayer's ability to file their return or pay taxes owed. During this period, the IRS will continue to accept tax filings, and it has no other impact on the current tax season. People should continue to file their taxes as they normally would.

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TACs provide taxpayers with in-person help. Select TACs are open from 9 a.m. to 4 p.m., February 12, March 12, April 9 and May 14. Normally, these centers are not open on Saturdays. No appointments are required.

"The IRS continues to do everything we can to help people during this unprecedented period," said IRS Commissioner Chuck Rettig. "Opening these assistance centers for special Saturday hours is designed to provide yet another way for people to get the help they need. We encourage people to review the details on these special Saturday hours so we can help serve them. I'm also extremely grateful to our employees who have stepped up to provide this special assistance."

People can receive walk-in help on all services, however, the TACs will not accept cash payments on these Saturdays. During the extra operating hours, people can also ask about reconciling advance Child Tax Credit payments and receive other help.

Come prepared

To arrive prepared, individuals should bring the following information:

• Current government-issued photo identification,
• Social Security cards and/or ITIN numbers for members of their household, including spouse and dependents (if applicable) and
• Any IRS letters or notices received and related documents.

During the visit, IRS staff may also request the following information:

• A current mailing address,
• An email address and
• Bank account information, to receive payments or refunds by direct deposit.

"We encourage people to receive payments and their tax refunds via direct deposit, which is faster and more secure than other payment methods," said IRS Wage & Investment Commissioner and Taxpayer Experience Officer Ken Corbin. "People who don't have a bank account should visit the Federal Deposit Insurance Corporation website for details on opening an account online. They can also use the FDIC's BankFind tool to find an FDIC-insured bank."

BankOn, American Bankers Association, Independent Community Bankers of America, National Credit Union Administration have lists of banks and credit unions that allow opening an account online. Veterans can use the Veterans Benefits Banking Program to learn about financial services at participating banks.

Services provided

The IRS's Contact Your Local Office site lists all services provided at specific TACs.

If someone has a question(s) about a tax bill or an IRS audit, or needs help resolving a tax problem, they will receive assistance from IRS employees specializing in these services. If these employees are not available, the individual will receive a referral for these services. Taxpayer Advocate Service employees may also be available to assist with issues that meet certain criteria.

IRS staff will schedule appointments for a later date for Deaf or Hard of Hearing individuals who need sign language interpreter services. Foreign language interpreters will also be available.

The IRS follows Centers for Disease Control social distancing guidelines for COVID-19, and availability may change without notice. People are required to wear face masks and social distance at these events.

People who need assistance preparing tax returns can visit a Volunteer Income Tax Assistance Center (VITA) or Tax Counseling for the Elderly location. VITA sites offer free tax help to qualified individuals who need assistance in preparing their own tax returns, including:

• People who earn $58,000 or less,
• Persons with disabilities and
• Limited English-speaking taxpayers.

People who need to pay their federal taxes with cash can visit IRS.gov/payments to get information on several payment options.

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