The Taxpayer Bill of Rights is a document that outlines the rights of U.S. Taxpayers in working with the Internal Revenue Services. In 2015 congress enacted the Taxpayers Bill of Rights. The Taxpayers Bill of Rights codifies specific rights available to individuals and global corporations regarding tax dealings with the IRS.
The basics of the Taxpayer Bill of Rights:
The right to be informed: The IRS must inform in written form to the taxpayer to identify any issues found on their tax return. If the IRS assesses a penalty, you will receive a notice detailing the penalty, its calculation, and its cause. If you are being audited, your rights will be explained during the in-person portion of this process. The IRS has to justify its action and reasoning regarding your tax return documents.
The right to quality service: While working with the IRS, you have the right to prompt and courteous service. You also have the right to when and where the IRS can contact you. Recently the IRS has had trouble maintaining timely processing of tax returns and responding promptly to phone calls. The IRS is currently working to address these issues.
The right to pay no more than the correct amount of tax: Every taxpayer has the right only to pay what they legally owe in tax, understanding that payments will be appropriately applied to the tax liability. Paying no more than the correct amount is an important right to ensure taxes assessed and paid are legitimate and processed correctly.
The right to challenge the position of the IRS: Taxpayers have the right to object to a decision by the IRS and receive a timely response. The right to challenge includes objections that arise during an IRS civil or criminal audit. When the IRS files a tax lien, this right will apply.
The right to appeal an IRS decision in an independent forum: This allows taxpayers to appeal the decision made by the IRS to the Office of Appeals, the U.S. Court of Federal Claims, or the U.S. Tax Court.
The right to finality and privacy: Taxpayers are notified of the time they must challenge an IRS decision. Taxpayers also have the right to know when an audit has been completed. All IRS processes and examinations around investigation, search, and seizure are legally compliant.
Identifying and deterring tax fraud and other criminal tax matters are a big part of what the IRS does. The Taxpayer Bill of Rights provides protections against abuse of the IRS processes if you become involved in a tax controversy.
If you are in tax litigation or charged with a tax crime, speak with our experienced tax defense attorney about the rights under the Taxpayer Bill of Rights and your options for challenging decisions made by the IRS.