Understanding Your Rights as a Taxpayer

Aug 3, 2022 | Individuals, Newsletter, Tax

By law, all taxpayers have fundamental rights when interacting with the IRS, and all taxpayers should know and understand their rights. Ten categories of rights are presented in the Taxpayer Bill of Rights. Here’s an overview:

1. The right to be informed. Taxpayers have the right to know what they need to do to comply with the tax laws.

2. The right to quality service. Taxpayers have the right to receive prompt, courteous, and professional assistance when working with the IRS and the freedom to speak to a supervisor about inadequate service.

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 object to formal IRS actions or proposed actions and provide justification with additional documentation.

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 certain penalties.

6. The right to finality. Taxpayers have the right to know the maximum amount of time they have to challenge an IRS position and the maximum amount of time the IRS must audit a particular tax year or collect a tax debt.

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.

8. The right to confidentiality. Taxpayers have the right to expect that their tax information will remain confidential.

9. The right to retain representation. Taxpayers have the right to retain an authorized representative of their choice to represent them in their interactions with the IRS.

10. The right to a fair and just tax system. Taxpayers have the right to expect fairness from the tax system. This includes considering all facts and circumstances that might affect their liabilities and ability to pay or provide information timely.

Questions or concerns about your rights as a taxpayer? Help is just a phone call away.

There May Still Be Time to Lower Your 2023 Tax Bill

There May Still Be Time to Lower Your 2023 Tax Bill

If you're preparing to file your 2023 tax return, you may still be able to lower your tax bill - or increase your refund. If you qualify, you can make a deductible contribution to a traditional IRA right up until the original filing deadline, April 15, 2024, and see...

Tracking Down Donation Substantiation

Tracking Down Donation Substantiation

If you're like many Americans, your mailbox may have been filling up in recent weeks with letters from your favorite charities acknowledging your 2023 donations. But what happens if you haven't received such a letter for a contribution? Can you still claim a deduction...

How to Secure a Tax Benefit with the QBI Deduction

How to Secure a Tax Benefit with the QBI Deduction

QBI may sound like the name of a TV quiz show. But it's actually the acronym for "qualified business income," which can trigger a tax deduction for some small business owners or self-employed individuals. The QBI deduction was authorized by the Tax Cuts and Jobs Act...

Traveling for Business in 2024? What’s Deductible?

Traveling for Business in 2024? What’s Deductible?

If you and your employees will be traveling for business this year, there are many factors to keep in mind. Under the tax law, certain requirements for out-of-town business travel within the United States must be met before you can claim a deduction. The rules apply...