CARL WATTS & ASSOCIATES

September 28, 2015

www.carlwatts.com
office@carlwatts.com
Washington DC
 tel/fax 202 350-9002
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We are all aware of our responsibility and duty as good citizens and taxpayers to pay all taxes imposed by law. But do you know your rights as a taxpayer?


A survey by the Taxpayer Advocate Service in 2012 found that only 46% of U.S. taxpayers believed they had rights before the IRS, and only 11% knew what those rights were.

The Taxpayer Bill of Rights has been enacted by the federal government since 1988. In 2014, the IRS incorporated the rights into a new version of Publication 1, “Your Rights as a Taxpayer,” which accompanies IRS correspondence with taxpayers. As you will see, the bill was modeled after the U.S. Constitution’s Bill of Rights and a document of the Organization for Economic Co-operation and Development, and comprises ten broad provisions.

Continue reading this newsletter to find out about all ten basic rights that every taxpayer has when interacting with the IRS.


1. The right to be informed.

Taxpayers have the right to know what they need to do to comply with the tax laws. They are entitled to clear explanations of the laws and IRS procedures in all tax forms, instructions, publications, notices, and correspondence. They have the right to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes.

Of course, taxpayers who file without the help of a professional rely on their own ability to understand tax laws, which can be very difficult, time consuming, and risky.


2. The right to quality service.

Taxpayers have the right to receive prompt, courteous, and professional assistance in their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS, and to speak to a supervisor about inadequate service.

The IRS has 17 different hotlines and toll-free numbers for various complaints, including specific lines for individuals, businesses and refunds. The hours vary, but most hotlines are open from 7am to 7pm. Their service model also allows people to find their local office and meet face-to-face with a representative.



3. The right to pay no more than the correct
amount of tax.

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.


4. The right to challenge the IRS's position and be heard.

Taxpayers have the right to raise objections and provide additional documentation in response to formal IRS actions or proposed actions, to expect that the IRS will consider their timely objections and documentation promptly and fairly, and to receive a response if the IRS does not agree with their position.


5. The right to appeal an IRS decision in an
independent forum.

Taxpayers are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties, and have the right to receive a written response regarding the Office of Appeals’ decision. Taxpayers generally have the right to take their cases to court.

There are generally two options for appealing an IRS decision. For a Collection Due Process, after receiving a notice of intent to levy or notice of federal tax lien, you have 30 days to request a hearing to preserve your right to go to court. The second option is the Collection Appeals Program, which follows after a notice of federal tax lien, notice of levy, notice of seizure, or denial or termination of installment agreement. You may not go to court on this type of appeal decision.

Taxpayer's Rights
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If you receive a notice of deficiency, you must file a complaint by the date listed on the notice. The U.S. Tax Court is established by Congress and is the only forum that does not require a taxpayer to pay the disputed tax before going to trial.


6. The right to finality.

Taxpayers have the right to know the maximum amount of time they have to challenge the IRS’s position as well as 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 has finished an audit.

In most cases, the IRS has three years to audit after the taxpayer files. However, they get six years if the taxpayer omits more than 25 percent of their income and an indefinite amount of time if no return is filed.


7. 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, and will respect all due process rights, including search and seizure protections and will provide, where applicable, a collection due process hearing.


8. The right to confidentiality.


Taxpayers have the right to expect that any information they provide to the IRS will not be disclosed unless authorized by the taxpayer or by law. Taxpayers have the right to expect appropriate action will be taken against employees, return preparers, and others who wrongfully use or disclose taxpayer return information.


It is perhaps appropriate to remind you here about numerous scams that have, in recent years, deceived more and more innocent taxpayers. These scams first tried to sting older Americans, newly arrived immigrants and those who speak English as a second language. The IRS advises you to stay alert to protect yourself against new ways criminals pose as the IRS to trick you out of your money or personal information.


9. The right to retain representation.

Taxpayers have the right to retain an authorized representative of their choice to represent them in their dealings with the IRS. Taxpayers have the right to seek assistance from a Low Income Taxpayer Clinic if they cannot afford representation.


10. The right to a fair and just tax system.


Taxpayers have the right to expect the tax system to consider facts and circumstances that might affect their underlying liabilities, ability to pay, or ability to provide information timely. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through its normal channels.


The Taxpayer Advocate Service (TAS) is considered to be your voice at the IRS as an independent organization within the IRS.



TAS protects taxpayers' rights by ensuring that the IRS treats all taxpayers fairly and that you know and understand your rights. TAS helps individuals, businesses and exempt organizations who are not able to resolve their tax problems with the IRS. This service is always free. TAS can help if:


  • Your problem is causing financial difficulty for you, your family, or your business.
  • You, your business or your organization is facing an immediate threat of adverse action.

  • You have tried repeatedly to contact the IRS but no one has responded. We will also help if the IRS has not responded by the date promised.


We believe that knowing your rights with the IRS will help you feel more confident and protected each year you file your tax return. Nevertheless, it is always advisable to consider help from a tax professional in all your dealings with the IRS.