IRS Form 13424-K Guide: LITC Case Information Report Rules

1. Introduction: What is Form 13424-K?

IRS Form 13424-K, officially titled the Low Income Taxpayer Clinic (LITC) Case Information Report, is an administrative grant reporting form issued by the Internal Revenue Service (IRS). The IRS is a bureau of the United States Department of the Treasury responsible for administering the federal tax code and collecting government revenue.

Rather than being used by ordinary wage earners to report personal taxes, Form 13424-K is an institutional performance report used by organizations that operate a federally funded Low Income Taxpayer Clinic. The LITC program is administered independently by the Taxpayer Advocate Service (TAS) through the national LITC Program Office.

Under Section 7526 of the Internal Revenue Code, the federal government awards matching grants to qualifying legal aid societies, law schools, and non-profit organizations that represent low-income taxpayers in disputes with the IRS. Form 13424-K serves as the primary tracking document where clinics report active case volume, verify client poverty guidelines compliance, and detail the tangible financial outcomes achieved for taxpayers.

2. Purpose of the Form

When legal aid organizations receive federal grant dollars to represent low-income taxpayers, the government requires clear proof that the funds are serving eligible individuals. Congress specifically mandates that LITCs represent taxpayers whose income does not exceed 250% of the federal poverty guidelines and who are involved in active tax controversies.

While other LITC reporting forms capture community education or itemize specific tax issues, Form 13424-K captures the actual casework volume and relief delivered. It answers fundamental oversight questions: How many cases did the clinic handle? Were clients low-income? At what administrative stage were disputes resolved? How much money was saved for taxpayers?

Form 13424-K tracks essential metrics such as tax liabilities reduced, penalties abated, refunds recovered, and debts resolved through settlement programs. The IRS and the National Taxpayer Advocate compile this data to demonstrate program effectiveness to Congress and justify ongoing federal funding for free legal representation.

3. Who Needs to File This Form

Form 13424-K is an institutional compliance document filed strictly by organizations currently managing an active LITC grant award, including:

• Legal Aid Societies: 501(c)(3) civil legal service providers that offer free controversy representation to low-income filers.
• Academic Clinics: Law school, business school, and accounting clinical programs where students represent taxpayers under the supervision of qualified faculty.
• Community Non-Profit Clinics: Independent charitable organizations authorized to deliver tax controversy representation under an approved LITC grant agreement.

The form is completed and certified by the Clinic Director, Qualified Tax Expert (QTE), or designated grant reporting administrator. Individual taxpayers who receive legal help from a clinic never see, complete, or file this form.

4. Who Is Exempt / Not Required to File

Because Form 13424-K is an operational performance report for active LITC grant recipients, most entities and taxpayers do not need to file it:

• Everyday Taxpayers: Low-income individuals represented by a clinic do not file Form 13424-K; their casework data is anonymized and aggregated into clinic totals.
• Commercial Tax Preparers: For-profit accounting practices, commercial enrolled agents, and private law firms do not use this form.
• Prospective Grant Applicants: Organizations applying for an LITC grant for the first time complete Form 13424 and Form 13424-M; Form 13424-K is only filed after an award is received.
• Volunteer Tax Preparation Sites (VITA/TCE): Volunteer programs operating under the IRS SPEC division focus on tax return preparation and report through separate volunteer channels.
• Unfunded Legal Charities: Non-profit legal programs providing pro bono tax representation without federal LITC grant funding are exempt from filing this form.

5. When to File

Form 13424-K operates on a semi-annual schedule aligned with the standard calendar grant year, which runs from January 1 through December 31:

• Interim Report: Covers casework performed between January 1 and June 30. This report is typically due to the LITC Program Office in late July (usually July 30 or 31).
• Year-End Report: Covers casework performed during the full cumulative grant year from January 1 through December 31. This report is generally due in late January or early February following the close of the grant year.

Filing deadlines are published annually in IRS Publication 3319. If unexpected operational emergencies prevent timely submission, clinic directors must request an administrative extension in advance from their assigned LITC Advocacy Analyst.

6. Where and How to File

Form 13424-K cannot be filed through consumer tax preparation software. It must be submitted through authorized federal grant management platforms.

Grant recipients typically upload completed Form 13424-K reports through designated online grant administration portals (such as GrantSolutions or the IRS LITC Grants Portal) as part of their comprehensive Interim or Year-End reporting package. In certain administrative situations, the LITC Program Office may instruct clinics to email secured, password-protected PDF or spreadsheet files directly to their assigned grant analyst.

If instructed to send hard-copy verification files or audit samplings by mail, clinics must deliver materials to the specific IRS address as per instructions outlined in IRS Publication 3319. Always maintain digital copies of your submitted reports along with underlying database exports in your permanent clinic records.

7. Step-by-Step Instructions to Fill the Form

Form 13424-K is organized into four core functional sections: Case Inventory, Client Demographics, Closure Stages, and Financial Outcomes. Clinic staff compile data from their legal case management software (such as LegalServer) to complete each line.

Section	Reporting Category	Required Information & Instructions
Header	Grantee Identification	Enter the official clinic name, LITC grant number, grant year, and check whether this is an Interim or Year-End report.
Section 1	Case Inventory Counts	Report cases open at the start of the period (Line 1A), new cases opened (Line 1B), total cases worked (Line 1C), cases closed (Line 1D), and cases remaining open (Line 1E).
Section 2	Demographics & Poverty Guidelines	Report the number of clients at or below 250% of the federal poverty guidelines, clients qualifying under the 10% exception rule, and English as a Second Language (ESL) counts.
Section 3	Representation Stage at Closure	Record the specific procedural stage where closed cases were resolved (e.g., Audit/Exam, IRS Appeals, Collections, or U.S. Tax Court).
Section 4	Financial Relief Outcomes	Report exact dollar amounts for tax liabilities reduced, penalties abated, interest eliminated, refunds recovered, and debts resolved through collections programs.

Understanding the Mathematical Inventory Formulas

Section 1 of Form 13424-K uses strict mathematical balance formulas that must reconcile correctly before submission:

• Total Cases Worked (Line 1C): This figure is calculated by adding cases open at the beginning of the period (Line 1A) to new cases opened during the period (Line 1B). Formula: 1A + 1B = 1C.
• Cases Remaining Open (Line 1E): This figure is calculated by subtracting cases closed during the period (Line 1D) from total cases worked (Line 1C). Formula: 1C - 1D = 1E.
• The Form 13424-B Tie-Out Rule: The total number of substantive tax controversy issues reported on Form 13424-B must always be greater than or equal to Line 1C on Form 13424-K. Because every controversy case involves at least one issue, an issue count lower than Line 1C will cause your submission to be rejected.

The 250% Poverty Guideline and 10% Exception Rule

Under IRC Section 7526, at least 90% of taxpayers represented by an LITC must have household incomes at or below 250% of the federal poverty guidelines. Up to 10% of total cases worked may involve taxpayers whose income exceeds 250%, provided the clinic documents special circumstances—such as high medical expenses, significant family debts, or high local costs of living—that prevent them from affording private counsel.

8. Required Documents/Information Needed Before Filling

To ensure that Form 13424-K reconciles cleanly with IRS records, assemble the following source records prior to completing the form:

• Case Management Database Export: A detailed report listing every controversy case open, opened, or closed during the reporting period, including client intake dates and closing dates.
• Income Verification Worksheets: Client intake records and tax documents confirming household income and family size evaluated against the federal poverty guidelines.
• Draft Form 13424-B: The companion Case Issues Report to verify that total reported issues equal or exceed Line 1C.
• Official IRS Notices & Closing Documents: IRS audit closing reports, Appeals settlement agreements, Tax Court decisions, or account transcripts confirming exact dollar reductions and refunds.
• LITC Grant Agreement: Your active grant identification number and approved casework targets to evaluate progress against annual goals.

9. Common Mistakes to Avoid

Errors on Form 13424-K can trigger administrative inquiries from your LITC grant analyst or delay grant disbursements. Watch out for these frequent mistakes:

• Math Inventory Errors: Entering numbers in Section 1 that do not balance (such as Line 1C not equaling 1A plus 1B) is the most frequent reason reports are returned for correction.
• Failing the Form 13424-B Tie-Out: If your total issues worked on Form 13424-B are fewer than the total cases worked on Form 13424-K (Line 1C), your reporting package will fail review.
• Exceeding the 10% Income Cap: Allowing more than 10% of your represented clients to exceed the 250% federal poverty guideline without prior approval or documented hardship will violate statutory grant terms.
• Including Brief Consultations: Brief advice calls and diagnostic intake sessions belong on Form 13424-A. Only taxpayers who signed formal representation agreements and had open controversy files can be counted on Form 13424-K.
• Estimating Financial Outcomes: Never guess dollar amounts for tax reductions or refunds. Every dollar reported in Section 4 must be supported by official IRS documentation or Tax Court orders.

10. Penalties for Non-Filing or Errors

Because Form 13424-K is an administrative grant performance report rather than an individual tax return, there are no civil tax penalties or personal fines for failing to file it. However, the federal grant consequences for the sponsoring organization are significant:

• Grant Payment Holds: The IRS LITC Program Office can suspend grant drawdowns and withhold reimbursement payments until delinquent reports are submitted and approved.
• Corrective Action Plans: Grantees that submit persistent reporting errors or fail to meet the 90% low-income client threshold may be placed on formal administrative probation.
• Termination of Multi-Year Awards: Continued reporting non-compliance can result in early termination of a clinic’s multi-year grant agreement.
• Loss of Future Grant Eligibility: Negative performance records are entered into federal tracking databases, harming the organization’s ability to secure future federal grant awards.
• False Statements Liability: Intentionally fabricating case volume numbers, falsifying client income eligibility, or inflating financial relief outcomes on federal grant forms violates 18 U.S.C. Section 1001, exposing individuals and organizations to criminal fines and civil False Claims Act prosecution.

11. Related Forms or Schedules

Form 13424-K is a central component of the LITC grant compliance family. Key related forms and publications include:

• Form 13424: Low Income Taxpayer Clinic (LITC) Application Information
• Form 13424-A: Low Income Taxpayer Clinic (LITC) General Information Report
• Form 13424-B: Low Income Taxpayer Clinic (LITC) Case Issues Report
• Form 13424-C: Low Income Taxpayer Clinic (LITC) Advocacy Information Report
• Form 13424-F: Volunteer / Pro Bono Time Reporting
• Form 13424-J: Detailed Budget Worksheet
• Form 13424-L: Statement of Grant Expenditures
• Form 13424-M: Low Income Taxpayer Clinic (LITC) Application Narrative
• Form 13424-N: Low Income Taxpayer Clinic (LITC) Program Narrative Report
• Publication 3319: Low Income Taxpayer Clinic Grant Application Package and Guidelines
• Publication 4134: Low Income Taxpayer Clinic List

12. Frequently Asked Questions

What is the difference between Form 13424-K and Form 13424-A?

Form 13424-K tracks formal legal controversy casework where the clinic entered into a representation agreement with a client. Form 13424-A tracks aggregate, non-litigation activities such as community outreach presentations, educational workshops, referrals, and brief consultations.

What is the 250% poverty guidelines rule on Form 13424-K?

Under federal law, at least 90% of an LITC’s clients must have incomes at or below 250% of the federal poverty guidelines based on their family size. Clinics use federal poverty tables published annually by the Department of Health and Human Services (HHS) to verify eligibility during client intake.

Can a clinic represent a taxpayer whose income exceeds 250% of the poverty guidelines?

Yes, but no more than 10% of total cases worked may involve taxpayers above the 250% threshold. The clinic must document compelling circumstances—such as catastrophic medical bills, unusual debts, or high living costs—that demonstrate the taxpayer cannot afford private representation.

How does Form 13424-K tie out with Form 13424-B?

Total cases worked on Form 13424-K (Line 1C) must be less than or equal to the total number of issues reported on Form 13424-B. Because every case involves at least one substantive tax issue, and many cases involve multiple issues, Form 13424-B issue counts must equal or exceed your case count.

Does Form 13424-K report client names or Social Security Numbers?

No. Form 13424-K collects only aggregate numerical counts and total dollar figures. Client names, addresses, and Social Security Numbers are never reported on the form, preserving client confidentiality under federal privacy laws.

What counts as a “financial outcome” in Section 4?

Financial outcomes include verified reductions in proposed tax liabilities, abated penalties, cancelled interest, refunds secured from the IRS, or debts placed into collection relief programs (such as Currently Not Collectible status or approved Offers in Compromise).

13. Conclusion: Key Takeaways Summarized

IRS Form 13424-K is the primary casework report verifying that Low Income Taxpayer Clinics are achieving their statutory mission. Keep these primary points in mind:

• Casework Accountability: Form 13424-K records active controversy case inventory, poverty demographic compliance, resolution stages, and financial relief outcomes.
• Semi-Annual Deadlines: Submit the report twice each calendar grant year—once for the Interim Report (covering January through June) and once for the Year-End Report (covering the full year).
• Check Your Formulas: Ensure that your inventory math balances (Line 1A + 1B = 1C, and 1C – 1D = 1E) and that total issues on Form 13424-B equal or exceed Line 1C.
• Verify Income Thresholds: Confirm that at least 90% of represented clients meet the 250% federal poverty guideline requirement.
• Submit via Proper Portals: Deliver your completed report electronically through authorized federal grant portals in accordance with the specific IRS address as per instructions in Publication 3319.