IRS Form 13424-B – In the complex world of tax compliance and disputes, low-income individuals often face significant challenges when dealing with the Internal Revenue Service (IRS). That’s where Low Income Taxpayer Clinics (LITCs) come in, providing free or low-cost assistance to eligible taxpayers. As part of their grant obligations, these clinics must submit detailed reports to the IRS, including IRS Form 13424-B, the Low Income Taxpayer Clinic (LITC) Case Issues Report. This form plays a crucial role in tracking the types of tax controversies handled by LITCs, ensuring transparency and program effectiveness. In this SEO-optimized guide, we’ll explore what Form 13424-B is, its purpose, who uses it, how to complete it, and recent developments in LITC reporting requirements.
Whether you’re an LITC administrator searching for “IRS Form 13424-B instructions” or a taxpayer curious about clinic operations, this article draws from official IRS sources to provide clear, up-to-date insights.
What Are Low Income Taxpayer Clinics (LITCs)?
Before diving into Form 13424-B, it’s essential to understand the LITC program. Established under Internal Revenue Code Section 7526, LITCs are independent organizations—often affiliated with legal aid societies, law schools, or accounting programs—that receive federal grants from the IRS to assist low-income taxpayers and those who speak English as a second language (ESL). These clinics offer:
- Representation: Free or nominal-fee help in IRS audits, appeals, collection disputes, and federal tax litigation (typically for cases where the amount in controversy is $50,000 or less per tax year).
- Education and Outreach: Workshops, seminars, and materials to inform taxpayers about their rights and responsibilities.
- Advocacy: Identifying systemic issues and recommending changes to improve tax administration.
In 2023, LITCs assisted over 20,000 taxpayers in resolving IRS issues and conducted more than 1,800 educational activities reaching nearly 92,000 individuals. Eligibility for services is based on income (generally at or below 250% of federal poverty guidelines) and language needs. For the latest income guidelines and clinic locations, refer to IRS Publication 4134, Low Income Taxpayer Clinic List.
What Is IRS Form 13424-B?
IRS Form 13424-B is a specialized reporting document used by LITCs to detail the specific tax issues addressed in controversy cases during a given period. Revised in April 2016, this one-page form (OMB No. 1545-1648) categorizes issues into sections like income, deductions, credits, and collections, allowing the IRS to aggregate data on clinic activities. It’s part of a suite of forms (e.g., 13424-A for general information, 13424-K for case details) submitted as attachments to interim and year-end reports via the GrantSolutions.gov portal.
The form helps the IRS evaluate the scope of services provided, ensuring grants support underrepresented taxpayers effectively. Data from these reports is compiled into annual summaries, such as Publication 5066, the LITC Program Report, which highlights program-wide impacts.
Purpose of Form 13424-B
The primary goal of Form 13424-B is to report the issues worked on in controversy cases—disputes involving tax determination, collection, or refunds. This includes advocating on behalf of taxpayers to the IRS or courts. Key purposes include:
- Tracking Clinic Activity: It captures all issues from cases open during the reporting period, even those carried over from prior years.
- Ensuring Accountability: Helps verify that LITCs meet grant requirements, such as serving at least 90% low-income clients and matching federal funds dollar-for-dollar.
- Program Improvement: Aggregated data informs IRS decisions on funding and highlights common taxpayer issues, like Earned Income Tax Credit (EITC) disputes or collection alternatives.
Note that only issues actively advocated (not just discussed with clients) are counted. For example, if a case involves multiple issues like filing status and EITC eligibility, each is reported separately.
Who Needs to File Form 13424-B?
Only IRS-funded LITCs providing controversy representation must complete and submit Form 13424-B. Clinics focused solely on ESL education (without casework) are exempt from this form but must file others like 13424-A and 13424-N. Grant recipients, which can receive up to $200,000 annually (as of FY 2025 appropriations of $28 million), are required to report to maintain funding eligibility.
Failure to submit accurate, timely reports can lead to fund restrictions, grant termination, or reduced future awards. Reports may be released under the Freedom of Information Act (FOIA) after redacting sensitive information.
Key Sections of Form 13424-B and How to Fill Them Out
Form 13424-B is structured as a checklist of 60 lines across seven categories. Enter the clinic name, grant year, and reporting period (interim or year-end). Then, report the number of cases worked for each issue. Here’s a breakdown:
| Category | Lines | Examples of Issues |
|---|---|---|
| Income Issues | 1-14 | Wages, interest/dividends, business income (Schedule C), IRA/pensions, cancellation of debt, settlement proceeds. |
| Deduction Issues | 15-27 | Alimony, education expenses, medical/dental, home mortgage interest, business expenses (Schedule C). |
| Credit Issues | 28-33 | Child and dependent care credit, education credits, EITC, first-time homebuyer credit. |
| Status Issues | 34-43 | SSN/ITIN, filing status, innocent spouse, identity theft (employment or refund-related), worker classification. |
| Tax/Refund/Return/Statute Issues | 44-51 | Self-employment tax, return preparer fraud, refunds, assessment/refund/collection statute of limitations. |
| Penalty Issues | 52-54 | Trust fund recovery penalty, other civil penalties, additional tax on retirement distributions. |
| Collection Issues | 55-60 | Payments, installment agreements, offers-in-compromise, liens, levies. |
- Total Controversy Issues: Add lines 1-60 at the bottom.
- Counting Rules: Count each distinct issue once per case, regardless of tax years involved. If one case has multiple issues, report each separately. Do not count consultations or unadvocated discussions.
For accurate completion, use case management systems to export data, map to categories, and reconcile totals. Maintain supporting records for audits.
Reporting Periods and Deadlines for Form 13424-B
- Interim Report: Covers January 1 to June 30; due July 31 (or next business day).
- Year-End Report: Covers the full grant year (January 1 to December 31); due March 31 of the following year.
Submit via GrantSolutions.gov. Extensions require approval from the LITC Program Office.
Tips for Accurate and Efficient Reporting
- Use Consistent Classification: Develop a data dictionary to avoid miscategorization.
- Avoid Double-Counting: Each issue is counted once per period, even if revisited.
- Reconcile with Other Forms: Ensure totals align with Form 13424-K (case information).
- Spot-Check Data: Review exports and perform math checks before submission.
- Prepare Early: Log into GrantSolutions.gov ahead of deadlines to troubleshoot issues.
Recent Updates: Transition to Form 13424-R
As of October 2025, the IRS introduced Form 13424-R, Low Income Taxpayer Clinic (LITC) Program Report, which replaces several forms, including 13424-B, to streamline reporting and reduce burden. This new form eliminates rarely used issue categories and no longer requires issue counts to match case numbers exactly. Clinics should check the latest Publication 3319 for guidance and confirm requirements in their grant terms. For the 2026 grant year, transition to 13424-R may be mandatory, but historical data from 13424-B remains relevant for understanding LITC operations.
Conclusion
IRS Form 13424-B is a vital tool for documenting the impactful work of LITCs in resolving tax disputes for vulnerable populations. By accurately reporting case issues, clinics not only comply with grant rules but also contribute to broader tax system improvements. If you’re involved in an LITC, download the form from the IRS website (e.g., https://www.irs.gov/pub/irs-pdf/f13424b.pdf) and consult Publication 3319 for full guidelines. For more on LITC grants or applications, visit the Taxpayer Advocate Service website or contact the LITC Program Office at [email protected].
Stay informed on tax reporting changes to optimize your clinic’s operations and better serve low-income taxpayers.