The IRS or Internal Revenue Service has power and control over collecting taxes and enforcing taxation laws. But it must afford every taxpayer full due process in accordance with the tax laws. Every taxpayer has rights that guarantee lawful dealing with the IRS and its inquiries. These rights ensure that taxpayers can reach out to the government for assistance while filing taxes and handling appeals and challenges.
Every taxpayer in the U.S. has the following ten rights as per Publication 1:
Right to be Informed
Taxpayers have the right to clear explanations of the laws and IRS procedures in all tax forms, instructions, publications, notices, and correspondence. They also have the right to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes.
Right to Quality Service
Taxpayers must receive prompt and professional assistance in their dealings with the IRS. They have the right to receive clear communications from the IRS that they can easily understand. They can also speak to a supervisor about receiving unsatisfactory service.
Right to Pay No More than the Correct Amount of Tax
Taxpayers should only pay the legally due tax along with interest and penalties. They can file for a refund if they believe that they might have overpaid your taxes. They can also write to the IRS office about an incorrect notice or bill to have the necessary adjustment made to your account.
Right to Challenge the IRS’s Position and be Heard
Taxpayers can raise objections to formal IRS actions. They can also provide additional documentation and expect that the IRS will consider all documentation promptly and fairly. It also ensures that the IRS will send a timely response if it doesn’t agree with your claims.
Right to Appeal an IRS Decision in an Independent Forum
Taxpayers are entitled to an impartial administrative appeal for penalties. They must also receive a written response regarding the Office of Appeals’ decision. Taxpayers can also take your taxation cases to court, where they may dispute the proposed adjustment and other inconsistencies.
Right to Finality
Taxpayers should know the maximum time they have to challenge the IRS’s position before it comes knocking to collect a tax debt. They must always be made aware of the maximum amount of time the IRS has to audit a particular tax year and be informed when it has finished an audit.
Right to Privacy
Taxpayers have the right to expect that any IRS action will respect all due process rights. It also extends to search and seizure protections. All IRS inquiries, examinations, or enforcement actions must be in strict compliance with the law without being overly intrusive to the taxpayer’s privacy.
Right to Confidentiality
Any information given to the IRS by the taxpayer will not be disclosed unless authorized by law or the individual. Taxpayers also have the right to expect that appropriate action will be taken against IRS employees and others who wrongfully use or disclose taxpayer return information.
Right to Retain Representation
Taxpayers can retain a representative of their choice to act for them in their dealings with the IRS. They can also seek assistance from a Low Income Taxpayer Clinic if they cannot afford representation. They have a right to consult with a representative, attorney, CPA, or enrolled agent in the middle of an IRS interview should they choose to do so.
Right to a Fair and Just Tax System
Taxpayers have the right to expect the tax system will consider facts and circumstances that might affect their underlying liabilities, ability to pay, or ability to provide information timely. They must receive assistance from the Taxpayer Advocate Service if they are experiencing financial difficulty. Learn more.
About Hoshi CPA, LLC
Udai Hoshi assists individuals, Japanese-speaking communities, and U.S. business owners with tax planning, tax compliance, tax resolution, and CFO services. You can talk to him for a tax consultation by booking one of the four sessions: a complimentary 45-minute strategy session, a quick call, a cares act economy stimulus package consulting, or a complimentary 45-minute CFO strategy session. You can call us at (503) 388-6580 or drop an email at staff@hoshicpa.com to know more tax-related services by HOSHI CPA in Portland, Oregon.
