People with low incomes are often entitled to special tax treatment that could lower their bills from the Internal Revenue Service. But some of these breaks, such as the earned income tax credit or child dependency rules, are complex and create additional problems for eligible individuals.

In many cases, lower-income taxpayers who could benefit from the tax laws can't afford to hire a tax specialist for help in deciphering them. Their tax troubles are compounded if they must battle the IRS alone in resolving post-filing tax disputes. Watch "Free tax help"

To help fill this assistance void, schools and nonprofit groups nationwide provide low-cost -- and in some cases free -- tax clinics. The services are supported in part by financial help from the IRS through its National Taxpayer Advocate office. Each year, the agency solicits applications nationwide from tax clinics, and selected clinics can receive up to $100,000 in matching federal grants.

Personnel and volunteers at these locations are available to represent low-income taxpayers before the IRS in audit, appeals and collection issues and other federal tax litigation for free or for a nominal charge.

Clinics target neediest taxpayers
To get the federal cash, a clinic must provide legal assistance to low-income taxpayers who are disputing an IRS ruling. A clinic that provides non-English-speaking taxpayers advice and guidance on their tax rights and responsibilities also is eligible for the federal money.

The clinics may be run by tax-exempt organizations or by law, business or accounting schools whose students represent citizens in tax disputes. The amount of tax in question must be less than $50,000 and a clinic cannot charge more than a nominal fee for its services.

Grant guidelines also require that at least 90 percent of a clinic's patrons meet income limits. For the 2008 grant year cycle, those limits were:

Guideline limits

Interest in program grows
The IRS reports that interest in the low-income taxpayer clinic, or LITC, program continues to grow. When the effort began in 1999, only $1.5 million was granted.

For the 2008 grant cycle, the IRS awarded almost $9 million in matching LITC grants to 154 organizations representing all 50 states, plus the District of Columbia, Puerto Rico and Guam.

The IRS publishes on its Web site a list of the current clinics. You also can use the agency's interactive map to find a clinic in your area.

Both the text list and map resource provide details on the type of services the clinic offers, the languages that are spoken there and a local phone number that you can call for more information and location specifics.

While the clinics are welcomed by taxpayers who could not otherwise obtain help in sorting out tax problems, clinic sponsors say that their tax-aid volunteers also benefit from the program. A Government Accountability Office study found that at tax clinics affiliated with law schools or graduate accounting and business programs, participating students gain educational and practical experience by dealing with real-life clients and preparing cases.

Freelance writer Kay Bell writes Bankrate's tax stories from her home in Austin,
Texas, and blogs on tax topics at Don't Mess with Taxes.