The Taxpayer Bill of Rights: Part II

In a previous post, we discussed the first five of the ten rights guaranteed to taxpayers by the IRS. Here, we discuss the second half of those important rights and how taxpayers can benefit from exercising them.

The Right to Finality 

One of the rights guaranteed by the IRS is the right to finality. This means that taxpayers must be notified about the maximum amount of time that:

• They have to challenge an IRS decision;
• The IRS has to audit a certain tax year; or
• The IRS has to collect a particular tax debt.

For instance, the agency has three years from the date that a return is filed to assess additional taxes and ten years to collect unpaid taxes. Taxpayers who think that they overpaid can file refund claims within three years from the date of filing or two years from the date of payment.

The Right to Privacy 

U.S. taxpayers also have the right to privacy, which means that they can expect any agency inquiry, examination, or enforcement action to:

• Be legal;
• Be no more intrusive than necessary; and
• Respect all of their due process rights (including the right to be free of unlawful searches and seizures).

As a part of this right, the IRS is also prohibited from taking certain actions. There are, for instance, limits on how much the IRS can seize a person’s wages when attempting to collect taxes. The agency is also barred from seizing a taxpayer’s primary home without court approval and can’t seek to obtain intrusive information about a taxpayer’s lifestyle during audits.

The Right to Confidentiality 

Besides the rights to finality and privacy, taxpayers also have the right to confidentiality and to expect that any information they give to the IRS won’t be disclosed unless authorization is granted. Practically, this means that the IRS can’t disclose a taxpayer’s tax information to third parties and cannot contact a third party to obtain information about a taxpayer. Those who violate these rights face criminal fines and jail time.

The Right to Representation 

All taxpayers have the right to hire a professional who has been authorized to represent them in their dealings with the IRS. This includes attorneys, CPAs, and enrolled agents, all of whom can represent the taxpayer in negotiations with the IRS. The agency must even suspend an interview if the taxpayer asks to consult with such a representative.

The Right to a Fair Tax System 

The final right guaranteed to taxpayers by the IRS is the right to a fair and just tax system that takes their individual circumstances into account when assessing liabilities or the ability to pay a fine or provide tax-related information. Taxpayers can also expect to receive assistance from the agency if they are experiencing financial difficulty and to have their tax issues resolved properly and in a timely manner.

Do You Have a Tax Problem? Call Our Office Today for Help 

To speak with a legal representative about your own dealings with the IRS, including what you can expect in terms of your rights, please call CPA, former FBI Special Agent, and experienced nationwide tax lawyer Ronald Cutler, P.A. for assistance. You can set up a one-on-one consultation by calling our legal team at 386-490-9949 today.

Sources: 

irs.gov/newsroom/taxpayer-bill-of-rights-7

irs.gov/newsroom/taxpayer-bill-of-rights-8