Taxpayer Rights
Every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. Here are the ten fundamental taxpayers’ rights in the Taxpayer Bill of Rights recognized by the IRS:
The Right to Be Informed
Many IRS rules can be complicated, but the agency must make every effort to provide taxpayers with clear explanations of all regulations and how to comply with them. If IRS officials make any changes to your return during processing, such as adjusting your refund amount, they must provide you with a detailed description of the change and why it was made.
To help taxpayers stay informed, the IRS offers many publications in English, Spanish, Chinese, Korean, Russian and Vietnamese.
The Right to Quality Service
The U.S. Treasury requires all IRS agents to treat every taxpayer with courtesy and respect, and to provide professional, accurate service as promptly as possible. If the IRS notifies you that you owe tax or have failed to file a required form, the notification must state that you are entitled to seek help from the Taxpayer Advocate Service. If you receive inadequate service or feel that an IRS agent treated you disrespectfully, you have the right to speak with a supervisor.
The Right to Pay No More than the Correct Amount of Tax
If you overpay your taxes during the year, either through withholding or estimated tax payments, you have the right to file a return and request a refund. The IRS must process your return without undue delay, and promptly issue any refund that you are owed.
Note that in order to preserve this right, you must generally file for your refund within a specified time frame. Often, the deadline is three years after you filed your original return or two years after you paid the tax, whichever comes later. If you believe that you are owed a refund from a past tax year, a tax advisor can help you submit an amended return before the deadline.
In addition, this right ensures that if an IRS delay contributes to a taxpayer making a late payment, the taxpayer may request a waiver of interest fees that accrued during the IRS delay.
The Right to Challenge the IRS's Position and Be Heard
Arguably the most important protection provided to American taxpayers, this principle safeguards your ability to defend all your other rights. If you believe that any IRS decision is incorrect or unfair, whether it concerns the amount of your refund, how much tax you owe, your filing requirements or any other tax matter, the IRS must provide you with the opportunity to voice your objections.
To support your case, you may provide additional documentation of your circumstances, and IRS agents must fully and fairly review such evidence before reaching a final decision. Throughout this process, you are entitled to clear and respectful communication from the IRS, and timely responses to any concerns or questions that you raise.
The Right to Appeal an IRS Decision in an Independent Forum
If you are unable to resolve a dispute with the IRS by working directly with IRS representatives, you can appeal most IRS actions, including assessments of penalties and interest charges. You have the right to present your appeal in writing to the Independent Office of Appeals, and to receive a written response from that office.
Furthermore, if you remain convinced that the IRS has made an incorrect judgment about your taxes even after receiving a response to your appeal, you may have the right to take your case to court. A tax professional can help you determine whether your situation warrants a court filing, and how to proceed if so.
The Right to Finality
Taxpayers bear the responsibility of honoring all IRS deadlines, including filing and payment due dates, the time frame to request a refund, and the deadlines for appealing various IRS actions and decisions. In turn, the IRS must also act within time windows specified in the Tax Code and U.S. Treasury Department regulations.
For example, if the IRS decides to audit a tax return, the taxpayer must be informed not only of the audit, but also of the maximum time the IRS may take to complete it. IRS agents must also notify the taxpayer when the audit is completed, and can only reopen the audit for sound reasons, such as the discovery of new evidence of fraud.
The Right to Privacy
The IRS must not intrude into your life without justification. For example, IRS agents cannot seek information about your lifestyle beyond what is required to enforce the Tax Code. Conducting an audit does not give the IRS unlimited access to information about how you live or spend your money.
When the IRS moves to place a lien or levy on a taxpayer’s assets, the taxpayer has the right to a Collection Due Process (CDP) hearing. In this hearing, officers from the Independent Office of Appeals consider whether the proposed IRS action meets the requirement of being no more intrusive than necessary.
The Right to Confidentiality
The IRS must take all reasonable steps to safeguard the sensitive information on your tax filings. Most importantly, you have the right to be confident that IRS employees will not disclose your private information to third parties without your permission.
The Right to Retain Representation
The U.S. Treasury recognizes that the complexity of the Tax Code makes it difficult for many taxpayers to advocate for their own rights. Therefore, all taxpayers have the right to designate an authorized representative to negotiate with the IRS on their behalf. Those who cannot afford to hire a representative may qualify for assistance from a Low Income Taxpayer Clinic.
Enrolled Agents (EA) and Certified Public Accountants (CPA) have Unlimited Representation Rights with the IRS, ensuring that they can advocate on your behalf in any federal tax matter.
The Right to a Fair and Just Tax System
Above all, your tax situation must be evaluated impartially, with fair consideration of any extenuating circumstances, and without any discrimination based on age, color, disability, national origin, English proficiency, religion, sex, sexual orientation or status as a parent. If you believe the IRS has violated this right, you are entitled to receive help from the Taxpayer Advocate Service.
Gaining an understanding of this Bill of Rights represents a critical step toward safeguarding your financial future, ensuring that you do not overpay your taxes or let fear of IRS penalties drive you to accept unfair tax judgments against you. If you are ever concerned about an IRS notice or are uncertain of your rights, a tax professional can help you find the best way forward.