A bill to amend the Internal Revenue Code of 1986 to modify the matching funds requirement for grants provided to low-income taxpayer clinics.

119th Congress Introduced by Roger Marshall and 1 co-sponsor

The bill amends the internal revenue code to modify how LITC grant matching funds are calculated and sourced, potentially easing or tightening fundraising requirements.

Introduced in Senate

Overview

Bill: S. 4881 (119th Congress)
Title: A bill to amend the Internal Revenue Code of 1986 to modify the matching funds requirement for grants provided to low-income taxpayer clinics.
Status: Introduced and referred to the Senate Committee on Finance (as of the latest action: 2026-06-24). Read twice and referred to the Committee on Finance.
Sponsors: Co-sponsors Roger Marshall and Peter Welch.

Purpose and intent

The bill proposes changes to the matching funds requirement attached to grants awarded to Low-Income Taxpayer Clinics (LITCs).

The core aim is to modify how matching funds are calculated or required in relation to these grants, potentially altering the share of funding that must come from non-federal sources and/or changing eligible sources of matching funds.

Key provisions and changes (as described)

Amends the Internal Revenue Code of 1986 to alter the matching funds requirement for LITC grants.

Specific textual provisions are not provided in the summary, but the reform generally targets:

The amount of non-federal funds that must be contributed as a match.
The source types eligible to count toward the match (e.g., state/local funds, private contributions, in-kind support).
The calculation method for determining the required match (e.g., percentage of grant amount, sliding scale by program size, or other metrics).
Potential adjustments or waivers under certain conditions (e.g., for small organizations, geographic considerations, or periods of economic hardship).

Affected parties and impact

Primary recipients: Low-Income Taxpayer Clinics that receive federal grants under relevant IRS or Treasury programs.

Other impacted stakeholders: Sub-recipients and partner entities supporting LITCs through in-kind or cash contributions, as well as organizations assisting eligible taxpayers with tax-related issues.

Potential effects:

If the matching requirement is reduced or broadened to include more sources, LITCs may experience easier fundraising and greater ability to leverage federal dollars.
If the requirement becomes more stringent or narrower in eligible match sources, LITCs could face greater fundraising pressure, potentially affecting program sustainability or scope.
Could influence the overall funding capacity and reach of LITCs, thereby impacting tax assistance availability to low-income taxpayers.

Procedural and timeline considerations

Committee action: Referral to the Senate Committee on Finance for review, potential markup, and reporting.

Next steps: If the committee reports the bill favorably, it would proceed to the Senate floor for debate and a vote; thereafter, potential passage and conference with the House (if applicable) before enactment.

Effective dates: Not specified in the summary; typical tax code amendments include effective dates upon enactment or phased implementations. The bill text would clarify any transition provisions or retroactive applicability.

Notes and context

LITCs provide free or low-cost tax assistance to low-income individuals, often focusing on issues like tax controversy, FAFSA-related aid, and general tax preparation.

Matching funds requirements are a common mechanism to ensure stakeholders contribute to program costs and to enhance the leverage and accountability of federal grants.

If you’d like, I can tailor this summary to emphasize a particular angle (e.g., fiscal impact, administrative considerations, or implications for LITC operations) or pull in related background on how LITC grants are currently funded.