IRS Form 13424-R Guide: LITC Program Report Instructions

1. Introduction: What is Form 13424-R?

IRS Form 13424-R, officially titled the Low Income Taxpayer Clinic (LITC) Program Report, is a consolidated administrative grant reporting document published by the Internal Revenue Service (IRS). The IRS operates as a federal bureau under the United States Department of the Treasury, administering the internal revenue laws and supervising federally authorized tax assistance programs.

Unlike personal tax returns filed by wage earners or corporate tax filings submitted by businesses, Form 13424-R is an institutional performance report. It is administered independently by the Taxpayer Advocate Service (TAS) through the national Low Income Taxpayer Clinic (LITC) Program Office.

Under Section 7526 of the Internal Revenue Code, the federal government awards competitive matching grants to qualifying non-profit legal aid organizations and academic clinics that represent low-income taxpayers or educate individuals who speak English as a Second Language (ESL). Form 13424-R serves as the primary master progress report where funded clinics submit their operational data, casework volumes, advocacy achievements, and narrative performance evaluations.

2. Purpose of the Form

In previous grant cycles, LITC grantees were required to complete and submit multiple separate reporting forms to account for their activities—such as Form 13424-A for general outreach, Form 13424-B for case issues, Form 13424-C for advocacy, Form 13424-K for case inventory, and Form 13424-N for narrative progress. Managing multiple disparate forms created unnecessary administrative overhead for clinic staff.

To reduce paperwork burden and modernize grant administration, the IRS introduced Form 13424-R as an all-in-one consolidated reporting vehicle. It integrates these separate reporting functions into a single comprehensive report, streamlining how clinics demonstrate compliance with federal grant requirements.

Form 13424-R provides the IRS, the National Taxpayer Advocate, and Congress with a complete assessment of each clinic’s operations. It verifies that clinics are adhering to statutory low-income client guidelines, tracks the specific tax controversies resolved, and measures the tangible financial relief secured for taxpayers across the country.

3. Who Needs to File This Form

Form 13424-R is an institutional grant management document. It must be completed and submitted by organizations currently operating an active, grant-funded Low Income Taxpayer Clinic, including:

• Legal Aid Societies: 501(c)(3) non-profit civil legal aid organizations that provide free controversy representation to low-income taxpayers.
• Academic Clinical Programs: Law school, business school, and accounting clinical programs where students assist taxpayers under faculty supervision.
• Community Non-Profit Clinics: Independent non-profit organizations funded to deliver controversy representation or ESL taxpayer education.

The form is completed and certified by the Clinic Director, Qualified Tax Expert (QTE), or designated grant reporting administrator on behalf of the grantee organization. Individual taxpayers assisted by a clinic never complete or file this form.

4. Who Is Exempt / Not Required to File

Because Form 13424-R is exclusively a post-award operational report for active LITC grant recipients, most entities and taxpayers do not need to file it:

• Individual Taxpayers: Low-income clients receiving free tax help or legal representation never complete or file this document.
• Commercial Tax Preparers: For-profit CPA practices, private law offices, and commercial tax preparation businesses do not use this form.
• New Grant Applicants: Organizations applying for an LITC grant for the first time complete the application proposal on Form 13424-M; Form 13424-R is filed only after a grant has been awarded.
• Volunteer Tax Preparation Sites (VITA/TCE): Programs operating under the Volunteer Income Tax Assistance or Tax Counseling for the Elderly umbrellas focus on basic tax return preparation and report through separate volunteer systems.
• Unfunded Legal Programs: Bar associations and charitable groups that provide volunteer tax assistance without federal LITC grant funds do not submit Form 13424-R.

5. When to File

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

• Interim Report: Covers clinic operations and casework conducted during the first half of the grant year from January 1 through June 30. This report is typically due to the LITC Program Office by July 30.
• Year-End Report: Covers cumulative operations, financial outcomes, and casework for the entire calendar year from January 1 through December 31. This comprehensive report is generally due by March 30 following the close of the grant year.

Form 13424-R is submitted alongside Form 13424-L (Statement of Grant Expenditures) for both reports, and Standard Form 425 (SF-425) for the Year-End report. If an unexpected administrative emergency arises, clinics must request an extension in advance from their assigned LITC Advocacy Analyst.

6. Where and How to File

Form 13424-R cannot be submitted through consumer tax preparation software or standard public e-filing channels. It must be filed electronically through authorized federal grant administration platforms.

Grant recipients must submit Form 13424-R online through the official LITC Grants Portal (or GrantSolutions, as designated in annual program guidance) as part of their comprehensive reporting package. Clinics complete the standardized digital modules and upload any required supporting attachments directly within the portal.

If instructed to send hard-copy documentation, audited records, or specialized verification 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-R is organized into integrated modules that capture both quantitative casework metrics and qualitative narrative explanations. Review the table below for a section-by-section breakdown.

Module Name	Reporting Scope	Required Information & Instructions
Header / Identification	Grantee Profile	Enter the official clinic name, LITC grant number, grant year, and indicate whether this is an Interim or Year-End submission.
Case Inventory	Casework Counts	Report cases open at the start of the period, newly opened cases, total cases worked, cases closed, and cases remaining open.
Demographics & Poverty	Eligibility Verification	Report the number of clients at or below 250% of the federal poverty guidelines, documented 10% exception cases, and ESL counts.
Tax Controversy Issues	Issues Worked	Itemize the specific substantive tax issues handled across open cases (e.g., income, deductions, credits, penalties, and collections).
Financial Outcomes	Measurable Relief	Record exact dollar amounts for tax liabilities reduced, penalties abated, interest eliminated, refunds recovered, and debts resolved.
Outreach & Education	Community Activities	Report educational workshops for low-income and ESL taxpayers, outreach events, consultations, referrals, and pro bono volunteer hours.
Systemic Advocacy	Policy & Media	Document SAMS submissions, published educational articles, television/radio appearances, and public service announcements.
Program Narrative	Qualitative Evaluation	Explain program accomplishments, evaluate progress toward annual goals, justify goal variances, and describe operational challenges.

Understanding Core Inventory and Reconciliation Rules

When compiling your data within Form 13424-R, clinic administrators must adhere to several key reconciliation rules:

• Inventory Math Formulas: The case inventory module must balance mathematically. Cases open at the beginning of the period plus new cases opened must equal total cases worked. Total cases worked minus cases closed must equal cases remaining open.
• The Controversy Issue Rule: The total number of substantive tax controversy issues worked must always be greater than or equal to the total number of cases worked. Because every controversy case involves at least one issue, and many involve several, your total issue count should never be lower than your active case count.
• The 250% Poverty Guideline Rule: Under IRC Section 7526, at least 90% of represented clients must have household incomes at or below 250% of the federal poverty guidelines. Up to 10% may exceed this cap if the clinic documents special circumstances—such as high medical expenses or high living costs—that prevent them from affording private counsel.

8. Required Documents/Information Needed Before Filling

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

• Case Management Software Exports: Detailed reports from software like LegalServer or Clio tracking open, closed, and active cases during the reporting window.
• Form 13424-L Financial Reports: The companion Statement of Grant Expenditures to verify that operational achievements align with grant spending.
• Poverty Guideline Intake Worksheets: Client intake records and income documentation verifying compliance with the 250% federal poverty guideline standard.
• Official IRS Closing Documents: IRS audit closing reports, Appeals settlement agreements, Tax Court decisions, or account transcripts confirming exact dollar reductions and refunds.
• Outreach Logs and Media Records: Sign-in sheets, agendas, partner collaboration letters, published articles, and SAMS confirmation numbers.

9. Common Mistakes to Avoid

Because Form 13424-R combines multiple reporting areas into one document, accuracy is essential. Avoid these frequent reporting errors:

• Inventory Calculation Errors: Submitting case counts where the inventory numbers do not balance mathematically is the most common reason reports are returned for revision.
• Exceeding the 10% Income Threshold: Allowing more than 10% of your represented clients to exceed the 250% poverty guidelines without documenting specific financial hardship violates statutory grant terms.
• Including Client Identifying Information: Never include client names, Social Security Numbers, or personal identifying facts in the narrative modules. All client summaries must be completely anonymous under Internal Revenue Code Section 6103.
• Leaving Goal Variances Unexplained: If your actual casework or outreach numbers fell short of the projections made in your application, you must provide a clear explanation in the narrative section.
• Confusing Consultations with Cases: Brief informational phone calls and diagnostic intakes belong in the consultation section, not in the active controversy casework inventory.

10. Penalties for Non-Filing or Errors

Because Form 13424-R is an administrative grant performance report rather than a tax return, failing to file does not trigger personal tax penalties or interest charges. However, the federal grant consequences for the sponsoring organization are significant:

• Payment Management System Freezes: The LITC Program Office can place an administrative hold on grant drawdowns in PMS, preventing reimbursement of clinic operating expenses until delinquent reports are approved.
• Administrative Corrective Action Plans: Grantees that submit persistent reporting errors or fail to demonstrate required program progress may be placed on formal administrative probation.
• Termination of Multi-Year Awards: Continued reporting delinquencies or failure to meet statutory low-income client thresholds can lead to early termination of a clinic’s multi-year grant agreement.
• Adverse Federal Past-Performance Records: Non-compliance is recorded in federal grant databases, impairing the organization’s ability to win future grants across all federal agencies.
• False Statements Liability: Intentionally fabricating casework volume, falsifying client income eligibility, or inflating financial relief outcomes on federal grant forms violates 18 U.S.C. Section 1001, carrying criminal fines and potential False Claims Act prosecution.

11. Related Forms or Schedules

Form 13424-R operates at the center of the modernized LITC grant compliance family. Key related forms and publications include:

• Form 13424-L: Statement of Grant Expenditures
• Standard Form 425 (SF-425): Federal Financial Report
• Form 13424: Low Income Taxpayer Clinic (LITC) Application Information
• Form 13424-J: Detailed Budget Worksheet
• Form 13424-M: Low Income Taxpayer Clinic (LITC) Application Narrative
• Form 13424-P: Application for Special Appearance Authorization
• Form 13424-Q: LITC or STCP Student and Law Graduate Information Chart
• Publication 3319: Low Income Taxpayer Clinic Grant Application Package and Guidelines
• Publication 4134: Low Income Taxpayer Clinic List

12. Frequently Asked Questions

What legacy forms does Form 13424-R replace?

Form 13424-R is a consolidated form designed to replace several legacy LITC reporting documents, including Form 13424-A (General Information), Form 13424-B (Case Issues), Form 13424-C (Advocacy), Form 13424-K (Case Information), and Form 13424-N (Program Narrative).

Is Form 13424-R submitted alone or with other documents?

Form 13424-R is submitted alongside Form 13424-L (Statement of Grant Expenditures) for both the Interim and Year-End reporting periods. For the Year-End report, clinics must also include Standard Form 425 (Federal Financial Report).

What is the difference between the Interim Report and the Year-End Report?

The Interim Report covers operations and casework during the first six months of the grant year (January 1 through June 30). The Year-End Report covers cumulative operations and final outcomes for the entire calendar grant year (January 1 through December 31).

How does Form 13424-R verify compliance with poverty guidelines?

The form requires clinics to report the exact number of clients served whose incomes fall at or below 250% of the federal poverty guidelines, as well as the number qualifying under the 10% exception rule, ensuring the clinic satisfies the statutory 90% low-income mandate.

Can an individual taxpayer use Form 13424-R to request free legal help?

No. Individual taxpayers do not complete Form 13424-R. This form is strictly an administrative progress report filed by funded legal clinics and law schools. Taxpayers needing help should consult IRS Publication 4134 to locate an approved clinic in their area.

Does Form 13424-R require client names or Social Security Numbers?

No. Form 13424-R collects aggregate numerical counts, total financial relief figures, and anonymized narrative case summaries. Individual client names and Social Security Numbers are never reported on the form, preserving strict client confidentiality under federal tax privacy laws.

13. Conclusion: Key Takeaways Summarized

IRS Form 13424-R modernizes and consolidates performance reporting for Low Income Taxpayer Clinics across the country. Keeping your casework and operational records organized ensures a smooth reporting process. Remember these core takeaways:

• Consolidated Master Report: Form 13424-R combines casework inventory, poverty demographics, controversy issues, financial relief, outreach, and narrative highlights into one form.
• Semi-Annual Deadlines: Submit the report twice each calendar grant year—the Interim Report by July 30 and the Year-End Report by March 30.
• Strict Mathematical Reconciliation: Ensure that your case inventory numbers balance mathematically and that total controversy issues equal or exceed active cases worked.
• Protect Client Privacy: Ensure that all case summaries and narrative descriptions are completely anonymized to comply with federal tax confidentiality laws.
• Submit via Portal: Deliver your completed report through the designated online grant portal in accordance with the specific IRS address as per instructions in Publication 3319.