The IRS makes the rules, but it also grants taxpayers ten basic rights. Do you know what they are?
Income taxes tend to make people nervous. You probably feel some apprehension when you complete your annual obligation to the IRS and get ready to file it. What if you took a deduction or credit that you shouldn’t have? Did you forget to include any income? Do you have all of the documentation you will need to produce if you’re audited? Was there something you misunderstood on the forms and schedules, or did you make any math errors?
There’s a lot to worry about, but it helps if you don’t think of the IRS as an adversary. As long as you don’t intentionally misrepresent your income and/or expenses, the agency will work with you to right the ship if mistakes were made. It has a longstanding Taxpayer Bill of Rights that spells out exactly the treatment yo0u can expect and what your options are if there’s a dispute.
The IRS grants you the right to:
Be Informed
What do you need to know so you can follow tax laws correctly? You are entitled to understandable explanations of IRS laws and procedures in all tax forms, instructions, publications, notices, and correspondence. You also have the right to be notified about IRS decisions regarding your tax liability and to get clear explanations of those decisions.
Quality Service
If you have to contact the IRS, you have the right to prompt, courteous, and professional assistance. Representatives should talk to you in a way that’s easy to understand. You have the right to receive clear communications, and to speak to a supervisor if you don’t receive acceptable service.
Pay No More Than the Correct Amount of Tax
You are only expected to pay what you legally owe. This includes any interest and penalties that you are charged. The IRS must also apply your payments correctly.
One of the rights the IRS grants you is the right to only pay what you legally owe, including interest and penalties.
Challenge the IRS’s Position and Be Heard
Do you object to any of the actions the IRS has taken with regard to your tax obligation? You have the right to make that known to the agency and provide additional documentation in response. The IRS must consider your objections and documents fairly and promptly. If the agency disagrees with your position, you are entitled to a response.
Appeal An IRS Decision In An Independent Forum
If you disagree with an IRS decision (including penalties), you have the right to a fair and impartial administrative appeal – in most cases. You also have the right to a written explanation outlining the Office of Appeals’ decision. If necessary, you can generally turn your dispute into a court case.
Finality
When you’re dealing with an IRS action, you have the right to know what the deadline is to challenge the agency’s decisions. You must also be informed about the amount of time the IRS has to audit a specific tax year or to collect money you owe. And you have the right to know when an audit is finished.
Privacy
How does the IRS protect your tax data? Any IRS inquiry or enforcement action is required to:
- Follow the law,
- Be no more intrusive than necessary, and,
- Respect your due process rights (including search and seizure protections).
When it applies, you also have the right to a collection due process hearing.
You have rights as a taxpayer when it comes to privacy and confidentiality.
Confidentiality
Can others see your tax information? You can expect that the data you provide to the IRS will not be disclosed to anyone else unless you or applicable law allow it. It’s also your right to expect that the agency will take appropriate action against anyone who improperly discloses your information or misuses it.
Retain Representation
Will you have access to assistance? You have the right to choose an authorized individual to represent you in your interaction with the IRS. If you can’t afford representation, you can get help from a Low-Income Taxpayer Clinic.
A Fair and Just Tax System
How else does the IRS accommodate you? The agency will consider facts and circumstances that could affect your liabilities, ability to pay, or time needed to provide information. If you encounter financial difficulty or if the IRS has not resolved your tax issues on time (or properly), you can request assistance from the Taxpayer Advocate Service.
The IRS has strong tax law enforcement capabilities, but you clearly have your own rights as a taxpayer. Remember these rights if you get into a dispute with the agency. We’re available, too, to consult with you on tax-related issues after the fact. But it’s easier if mistakes aren’t made in the first place. So consider working with us on tax planning year round to minimize the chances you’ll have to interact with the IRS.
