Taxpayer Bill of Rights | Nesteggg Accounting

Taxpayers Do Have Rights

Taxpayers rights add clarity to dealing with the IRS

You may never experience an audit or need to speak to the IRS about a tax return, but if you do, you do have rights. The Taxpayer Bill of Rights protects all taxpayers working with the IRS. In fact, they lay out the framework to make sure the IRS fairly and impartially carries out tax administration.

These rights are explained on IRS.gov and in Publication 1, Your Rights As A Taxpayer. They describe what taxpayers can expect if they need to work with the IRS on a personal tax matter, such as:
•Filing a return
•Paying taxes
•Responding to a letter
•Going through an audit
•Appealing an IRS decision

To help taxpayers understand their rights, here they are, along with links where people can go for more information.

1.The right to be informed
2.The right to quality service
3.The right to pay no more than the correct amount of tax
4.The right to challenge the IRS’s position and be heard
5.The right to appeal an IRS decision in an independent forum
6.The right to finality
7.The right to privacy
8.The right to confidentiality
9.The right to retain representation
10.The right to a fair and just tax system

Taxpayers have the right to pay no more than what they owe

The IRS is committed to ensuring taxpayers pay no more than the correct amount of tax owed. 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. This is one of 10 basic rights known collectively as the Taxpayer Bill of Rights.

Here are some important things taxpayers should know about their right to pay no more than the correct tax owed. They can:

File for a refund if they believe they overpaid their taxes.
Contact the IRS if they believe there is an error on a notice or bill.
File an amended tax return if an error is discovered after the original return was filed.
Request that any amount owed be removed if it exceeds the correct amount due.
Request that the IRS remove interest from the account if the agency caused unreasonable errors or delays.
Submit an offer in compromise using Form 656-L. Taxpayers use this form to ask the IRS to accept less than the full amount of tax debt. Taxpayers do this if they believe all or part of the debt is not owed.

More information:
What the Taxpayer Bill of Rights Means for You
Topic 653, IRS Notices and Bills, Penalties and Interest Charges
Topic 308, Amended Returns
Taxpayer Advocate Service
Forms and Publications About Your Appeal Rights
Payment Plans, Installment Agreements

Taxpayers have the right to appeal an IRS decision

A taxpayer might at some point see the IRS make a decision about their taxes. If the taxpayer disagrees with this decision, they have the right to appeal it. The right to appeal an IRS decision in an independent forum is one of 10 basic rights known collectively as the Taxpayer Bill of Rights.

Here are some facts taxpayers should know about the right to appeal an IRS decision:

Taxpayers have the right to a fair administrative appeal of most IRS decisions.
There is an independent office called the IRS Office of Appeals. This office is separate from the IRS office that first reviewed the case.
Generally, the Office of Appeals will not discuss a case with the IRS.
Taxpayers also have the right to receive the Office of Appeals’ decision in writing.
Taxpayers generally have the right to take their cases to court.
Your Appeal Rights and How to Prepare a Protest if You Don’t Agree is a publication that explains how a taxpayer can appeal a tax case when they disagree with the IRS’s findings.
If the IRS sends a notice proposing that the taxpayer owes more money, the taxpayer may want to dispute it. If so, the taxpayer may file a petition with the United States Tax Court.
Some taxpayers may have a claim for a refund. These taxpayers may take their case to their United States District Court or to the United States Court of Federal Claims. Generally, the taxpayer must file this claim two years from the date of the IRS notice denying the taxpayer’s refund.

Taxpayers interacting with the IRS should know their rights

Taxpayers interacting with the IRS should know their rights

This is the final tip in a two-part summary of the rights granted to all taxpayers.

The Taxpayer Bill of Rights outlines the rights of taxpayers. The IRS groups theses rights into 10 categories. Taxpayers interacting with the IRS should review Publication 1, Your Rights as a Taxpayer, which explores these rights in depth.

Here are the final five rights along with more information about each one:

The Right to Finality. Taxpayers have the right to know the maximum amount of time allowed to challenge an IRS position. They also have the right to know the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt. Taxpayers have the right to know when the IRS concludes an audit.

The Right to Privacy. Taxpayers have the right to expect that any IRS inquiry, examination or enforcement action will comply with the law and be no more intrusive than necessary. During these proceedings, the IRS will respect all due process rights, including search and seizure protections. When applicable, the IRS will provide a collection due process hearing.

The Right to Confidentiality. Taxpayers have the right to expect that their tax information will remain confidential. The IRS will not disclose information unless authorized by the taxpayers or by law. Taxpayers should expect the IRS to take appropriate action against IRS employees, return preparers and others who wrongfully disclose return information.

The Right to Retain Representation. Taxpayers have the right to retain an authorized representative of their choice for representation during dealings with the IRS. When a taxpayer cannot afford representation, they may seek assistance from a Low Income Taxpayer Clinic.

The Right to a Fair and Just Tax System. Taxpayers have the right to expect fairness from the tax system. The IRS must consider all facts and circumstances that might affect any liabilities, the ability to pay or the ability to provide information timely. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service. TAS can help taxpayers who are experiencing financial difficulty. They can also help when the IRS has not resolved tax issues properly and timely through normal channels.

The IRS will include Publication 1 when sending a notice on a range of issues, such as an audit or collection matter. Publication 1 is available in English and Spanish. All IRS facilities will publicly display the rights for taxpayers.

What taxpayers can do when a letter arrives this summer

What taxpayers can do when a letter arrives this summer

Some taxpayers will receive a letter from the IRS this summer. Taxpayers should not panic and remember that they have fundamental rights when interacting with the agency.

These rights are in the Taxpayer Bill of Rights. Among other things, these rights dictate that letters from the IRS must include:

Details about what the taxpayer owes, such as tax, interest and penalties.
An explanation about why the taxpayer owes the taxes.
Specific reasons about why the IRS may have denied a refund claim.

Taxpayers who receive a letter from the IRS can do some simple things when it arrives. Taxpayers should remember to:

Read the entire letter carefully. Most letters deal with a specific issue and provide specific instructions on what to do.
Compare it with the tax return. If a letter indicates a changed or corrected tax return, taxpayer should review the information and compare it with their original return.
Respond. Taxpayers should:
- Respond to a letter with which they do not agree.
- Mail a letter explaining why they disagree.
- Mail their response to the address listed at the bottom of the letter.
- Include information and documents for the IRS to consider.
- Allow at least 30 days for a response.
Reply timely if necessary. If a taxpayer agrees with the information, there’s no need to contact the IRS. However, when a specific response date is in the letter, there are two main reasons a taxpayer should respond by that date:
- To minimize additional interest and penalty charges.
- To preserve appeal rights if the taxpayer doesn’t agree.
Pay. Taxpayers should pay as much as they can, even if they can’t pay the full amount they owe. They can pay online or apply for an Online Payment Agreement or Offer in Compromise.
Contact the IRS if necessary. For most letters, there’s no need to call the IRS or make an appointment at a taxpayer assistance center. If a call seems necessary, the taxpayer can call the phone number in the upper right-hand corner of the letter. They should have a copy of the tax return and letter on hand when calling.
Keep the letter. A taxpayer should keep copies of any IRS letters or notices received with their tax records.

Taxpayers Do Have Rights

Taxpayers have the right to pay no more than what they owe

Taxpayers have the right to appeal an IRS decision

Taxpayers interacting with the IRS should know their rights

What taxpayers can do when a letter arrives this summer

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