Courtesy of Flickr.com
In June 2014, the IRS introduced the “Taxpayer Bill of Rights”. Taxpayers have always had rights but the tax code is large and confusing. This is an attempt on the part of the IRS to summarize the rights of taxpayers that are scattered throughout the tax code. There are 10 provisions contained in the new Bill of Rights. We will take the next two blog posts to review these provisions.
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.”
What does it mean?
You have the right to clearly understand what the IRS is talking about in regards to your taxes. If the IRS makes changes to your tax returns, whether by letter or audit, you get to understand why they made the changes and how they determined the changes. You also have the right to understand what they want you to do to be compliant with tax laws or to fix an error.
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.”
What does it mean?
This provision has been the most frustrating for taxpayers. In the past IRS employees have been known to be intimidating and less than helpful. Even with this Bill of Rights in place, there are still very long wait times when you call or even visit the IRS. Still, if you feel you have been dealt with inappropriately, you do have the right to complain to the next level up.
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.”
What does it mean?
This provision can be tricky. There are so many different kinds of penalties and so many laws, that it is often difficult for a taxpayer to know if they are paying the correct amount or not. This is where your tax preparer can play a vital role to insure that you are paying only what is necessary and to get certain penalties and interest waived.
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.”
What does it mean?
Challenging the IRS’s decisions has always been a right of taxpayers that most people don’t understand. IRS employees are just people doing a job. You have the right to challenge their judgment and stand up for yourself.
5. The Right to appeal an IRS’s 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.”
What does it mean?
There are many levels of appeals you can take advantage of if you feel the IRS’s decision is wrong. You should never be afraid to appeal your case. As a matter of fact, we have found that the appeals officers are much easier to deal with and we have had a lot of success working with them.
Next week we will review the final 5 provisions. Remember, You Have Rights as a taxpayer!
Don’t want to learn all the tax laws yourself? Let us do the work for you! Contact us at soulence.com
Master Your Taxes 