Jul 10, 2023
There is a huge misconception that taxpayers do not have rights when dealing with the IRS. A taxpayer has to do as they are told, they have no rights, and if they pay too much, they won’t get the overpayment back. This is simply NOT true.
Back in 2014, the IRS implemented the Taxpayer Bill of Rights. This Bill of Rights grouped the existing rights found in the tax code into ten fundamental rights to become clearer to understand and easily accessible. It is important that taxpayers are aware of this set of fundamental rights.
The Taxpayer Bill of Rights includes the following:
Let’s take a moment to expand on each:
A taxpayer has the right to be informed of their responsibilities when following tax laws. They have the right to have a clear understanding and explanation of the IRS procedures and applicable laws with regard to instructions, publications, notices, and tax forms. They also have the right to clarity on IRS decisions and Appeal Rights to an IRS decision.
A taxpayer has the right to receive courteous service when dealing with or speaking with an IRS employee. This also includes the right to have information disclosed in a manner that is easy to understand. Should an issue arise, a taxpayer also has the right to speak with a supervisor to discuss an unpleasant experience.
This one is fairly straightforward, for a taxpayer is only responsible to pay the tax that is LEGALLY due, plus interest and penalties where applicable. The IRS is required to apply all taxpayer payments correctly as well. Under this right, a taxpayer can dispute a proposed or assessed tax balance, request a refund for overpayment if the IRS does not automatically issue one, or submit a Doubt as to Liability Offer in Compromise.
As mentioned above in Number One, a taxpayer has the right to challenge or appeal an IRS decision. This right has responsibilities on the taxpayer’s part, as well as the IRS’s part. For example, should a taxpayer raise an objection to an IRS position, they must timely submit the objection and provide additional information or documentation to support their stance in the appeal. The IRS must adequately and clearly provide a response to an objection brought up by taxpayers.
This right falls in line with Number Four, as a taxpayer’s appeal will be handled within the Office of Appeals, which is an independent office separate from the IRS office initially handling the tax matter involved with the appeal. Additionally, in some cases, a taxpayer has the right to take their case to court. These instances are clearly stated in any notice a taxpayer receives that contains information on appeal rights.
A taxpayer has the right to be informed of the maximum amount of time to raise objections to an IRS decision, as well as the maximum amount of time the IRS has to audit a tax year or collect on a debt. The IRS must also notify a taxpayer when they have concluded an audit being conducted.
A taxpayer has the right to expect an inquiry, examination, or enforcement action issued by the IRS will be in compliance with the law and not be any more intrusive than necessary. The taxpayer can also expect that all due process rights will be observed.
Any information provided to the IRS by a taxpayer will not be disclosed unless the taxpayer gives authorization, or the disclosure of information falls under the applicable tax law. Should information be disclosed in violation of tax law or without consent by the taxpayer, the taxpayer can expect appropriate action will be taken against the individual responsible for the disclosure.
A taxpayer has the right to retain an authorized representative to represent their interests before the IRS on their specific tax matter. Taxpayers who are unable to afford a representative can seek assistance from a Low-Income Taxpayer Clinic.
Taxpayers have the right to a just tax system when disclosing facts and information regarding their circumstances that could affect their underlying liabilities, ability to pay, or ability to provide information timely. Taxpayers also have access to the Taxpayer Advocate Services in the event their situation is not being correctly handled by the IRS, or actions by the IRS have resulted in a financial hardship.
The team at Golden Lion Tax Solutions is well-versed in taxpayers’ rights and fights relentlessly to keep them protected for our clients. If you believe your or your client’s rights have been trampled by the IRS, give us a call!
Trust. Protection. Wisdom.
Your future and your family deserve the right protection. Golden Lion Tax Solutions will be your advisor and confidant throughout the entire journey. We guarantee to offer you or your business best-case solutions for your tax debt. We are by your side every step of the way. Start now and get your life back.
For help with your tax debts, email email@example.com or call 833-LION-TAX (833-546-6829)
Disclaimer: There are requirements that must be satisfied in order to qualify for some of the tax solutions we discuss on our website. Not all of our services will be suitable for every client. Golden Lion Tax Solutions is here to help you find the most appropriate solution to fit your situation.