Are you aware of the Taxpayer Bill of Rights? We are reminded, especially during tax season, that taxpayers have 10 essential rights when dealing with the Internal Revenue Service. The IRS expects its employees to understand and apply taxpayer rights throughout the process of either an IRS audit or an appeal. What are the 10 essential rights of a U.S. taxpayer?
The Right to Be Informed. U.S. Taxpayers have the right to know what they need to do to comply with all tax laws. They are entitled to clear explanations of the law and IRS procedures in all tax forms, instructions, publications, notices, and correspondence. They have the right to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes.
The Right to Quality Service. Taxpayers have the right to receive prompt, courteous, and professional assistance in their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS, and to talk to a supervisor about inadequate service.
The Right to Pay No More than the Correct Amount of Tax. Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.
The Right to Challenge the Position of the IRS and its employees and Be Heard. Taxpayers have the right to object to the actions or process of the IRS and its agents, to provide additional information or documentation, and to raise relevant objections in response to IRS actions or proposed actions. The U.S. taxpayer has the right to expect timely consideration of any submitted response, documentation, or objection promptly and fairly. The agency must provide a substantive response if the IRS disagrees with the taxpayer’s position.
The Right to Appeal an IRS Decision in an Independent Forum. U.S. taxpayers have the right to an impartial and fair administrative appeal in most cases. This includes the notice of determination at the end of an audit and many penalties. U.S. taxpayers have the right to a written response regarding any decision by the IRS Office of Appeals. Taxpayers usually also have the right to take their case to court when necessary.
The Taxpayer Bill of Rights also establishes the Right to Finality. The agency must provide the taxpayer with information regarding the maximum allotted time to challenge an IRS action or decision, as well as the maximum look-back period associated with the agency’s right to audit any given tax year or collect associated debt. The taxpayer must be informed when the IRS has completed any audit.
The Right to Privacy. U.S. taxpayers enjoy privacy protections that extend to any inquiry, audit, examination, or enforcement undertaken by the IRS. The agency must comply with all laws, respect the rights of due process and search and seizure protections, and, when applicable, provide a collection due process hearing. The IRS is required to be “no more intrusive than necessary.”
The Right to Confidentiality. All information provided to the IRS is protected from disclosure unless authorized by law or the taxpayer. Taxpayers retain the right to ensure the agency takes “appropriate action” against any employee, preparer, or other person(s) for unauthorized disclosure of proprietary taxpayer return information.
The Right to Retain Representation. Taxpayers have the right to obtain their own authorized representative when interacting with the IRS and its personnel. U.S. taxpayers who cannot afford such representation have the right to turn to a Low Income Taxpayer Clinic for assistance.
The Right to a Fair and Just Tax System. Finally, the Taxpayer Bill of Rights establishes an expectation that the agency, its representatives, and the “tax system” are to consider all circumstances or facts that could impact either the ability to provide timely information, the ability to pay tax-related debt(s), as well as underlying liabilities. The taxpayer has the right to seek and receive guidance and assistance from the Taxpayer Advocacy Service when facing financial challenges and difficulties or when the IRS fails to timely and properly resolve the taxpayer’s issues through normal IRS channels.
If the IRS has contacted you regarding an audit, or you are in the process of an IRS audit, you need to know the Taxpayer Bill of Rights and how Allen Barron and Janathan L. Allen, APC can help. We invite you to contact us or call today to speak with an experienced San Diego tax attorney for a free consultation at 866-617-3522.
