Much like the often-invoked “Bill of Rights” in the United States Constitution conveying the rights of its citizens, the IRS conveys to taxpayers a “Taxpayer Bill of Rights” that sets across the unalienable rights taxpayers have when dealing with the IRS.
“The Right to Be Informed”
The IRS makes available volumes of publications that are intended to inform taxpayers about tax rules and what they need to do to be in compliance with the law. Filing Instructions are attached to all IRS forms. However, sometimes a person’s particular tax situation may require more research.
“The Right to Quality Service”
The IRS serves taxpayers with the utmost in professional, prompt, and courteous service. Separate from any opinions and anecdotal experiences, this is something all government agencies strive for.
“The Right to Pay No More than the Correct Amount of Tax”
Taxpayers have a right to pay only the correct amount of tax that is legally due, once all factors surrounding a taxpayer’s situation has been properly assessed.
“The Right to Challenge the IRS’s position and Be Heard”
Taxpayers have a right to object to IRS rulings on their tax circumstances. For example, the IRS determining after an audit that an independent contractor working closely with a business is actually an employee and should be taxed as such. The business owner has the right to challenge such a determination.
“The Right to Appeal to an IRS Decision in an Independent Forum”
Related to the previously mentioned right, taxpayers have a right to appeal any determination made by the IRS in an independent forum. Basically, the taxpayer has the option to go as far as taking their cases to court.
“The Right to Finality”
Taxpayers are entitled a certain amount of time to challenge the IRS on its determinations of taxpayer situations. For example, going back to the previous example of an independent contractor/employee, the business has up to 90 days to file a petition for Tax court.
“The Right to Privacy”
Taxpayers have a right to privacy that basically means that the IRS cannot be more intrusive than necessary for their investigations within their jurisdiction.
“The Right to Confidentiality”
Taxpayers have a right to confidentiality with their information. The IRS is expected to not disclose information unless authorized by the taxpayer or by law. This right also extends to any third parties that may wrongfully disclose confidential information.
“The Right to Retain Representation”
Taxpayers have a right to designate an authorized representative of their choice when dealing with the IRS. Taxpayers who cannot afford representation have the right to seek assistance from the Low Income Taxpayer Clinic.
“The Right to a Fair and Just Tax System”
Taxpayers have a right to expect a tax system that considers all facts and circumstances that affect taxpayer’s ability to pay and provide information in a timely manner. For example, the IRS makes filing extensions available to taxpayers who may have trouble paying, however there is an expectation that the taxpayer files the proper paperwork.
While the IRS spells outs the rights of taxpayers, sometimes a particular business tax issue may not be immediately clear. Having a team, like us here at MiklosCPA, clarify such ambiguities in light of changing IRS tax rules can save a business owner from much headache and save some money from any penalties. Contact us if you would like to learn more of our services. Also, if you enjoyed this article, follow us on our social media pages for future updates.