Every taxpayer deserves to know where they stand when dealing with the IRS. With the Taxpayer Bill of Rights as your shield, you have powerful protections and clear expectations. This article unpacks your rights as a taxpayer, explains what the IRS can and can’t do, and shows you how to stand up for yourself, whether you’re facing an audit, a tax debt, or just want peace of mind.
What Is the Taxpayer Bill of Rights, and Why Does It Matter?
Every taxpayer in America is protected by a set of fundamental rights, known as the Taxpayer Bill of Rights. These rights are more than just words on a government website; they’re your legal armor when dealing with the IRS. The Taxpayer Bill of Rights ensures that taxpayers have these rights:
- To be informed
- To quality IRS service
- To pay only the correct amount of tax
- To challenge the IRS’s position
- To appeal an IRS decision in an independent forum
- To finality
- To privacy
- To confidentiality
- To retain representation
- To a fair and just tax system.
Why does this matter? Because when the IRS comes knocking, it’s easy to feel powerless. But the law is on your side. Whether you’re facing an audit, contesting a penalty, or simply trying to understand your tax return, these rights give you the ability to demand fair treatment and clear information.
How Does the IRS Interact With Taxpayers?
If you’ve ever received a letter from the IRS, you know the anxiety it can cause. But not every IRS communication is bad news. The IRS is required to give you clear explanations of the laws, IRS procedures, and the reasons behind any actions or even proposed actions on your account. This includes everything from notices about your tax return to explanations about penalties and interest.
For example, if you receive a notice saying you owe more tax than you thought, you have the right to know why, and the IRS must explain its position in writing. If you disagree, you can challenge the IRS’s position and even appeal an IRS decision or ruling in an independent forum.
The Right to Be Informed
All taxpayer rights are based on the right to information. Taxpayers have the right to know what they need to do to comply with the tax law, not just during tax season, but all year long. The IRS must also educate taxpayers of the applicable tax laws, procedures, and case decisions.
For example, if the IRS audits your tax return, you’re entitled to a written communication explaining the audit, the reasons for any changes, and your options for appeal. The revenue service must also inform you about the maximum amount of time they have to audit a particular tax year or collect a tax debt.
The Right to Quality Service
Every taxpayer has the right to expect prompt, courteous, and professional assistance from IRS employees. You should receive clear explanations in all communications from the IRS, and you have the right to speak to a supervisor if you feel you’ve received inadequate service.
Let’s say you call the IRS with a question about your tax return and get a confusing or dismissive answer. If you’re not satisfied, you can request to speak with a supervisor.
The Right To Pay No More Than the Correct Amount
Taxpayers are entitled to pay only the amount of tax that is lawfully owed, including interest and penalties. This means you shouldn’t pay a penny more than you owe, and you should always know the correct amount of tax for your situation.
If the IRS says you owe more, they must explain why. You have the right to challenge the IRS’s position and provide documentation to support your claim. The IRS must consider your timely argument and respond promptly and fairly.
The Right To Challenge the IRS’s Position and Be Heard
Yes, you can — and should — challenge the IRS if you believe they’re wrong. In response to official IRS actions or intended actions, taxpayers are entitled to object and submit further supporting material. You also have the right to a written response if the IRS does not agree with your position.
For example, if you’re facing an audit and disagree with the IRS’s findings, you can submit additional evidence and expect a fair and impartial review. The IRS must consider your objections and provide a written explanation of their decision.
The Right to Appeal an IRS Outcome in an Independent Forum
If you disagree with an IRS decision, you have the right to appeal most IRS decisions in an independent forum. This means you can request a fair and unbiased administrative appeal, and if necessary, take your case to court.
The IRS Appeals Office is separate from the IRS employees who made the original decision. They will review your case and provide a written response explaining their decision. Taxpayers generally have the right to take their case to court if they’re still not satisfied.
The Right to Finality and Privacy
The IRS does not have unlimited power. The IRS’s maximum time to audit a specific tax year or recover a tax obligation is something that taxpayers are entitled to know. Additionally, you are entitled to be informed when an audit by the IRS is complete.
The right to privacy means that IRS actions must be no more intrusive than necessary. The IRS must respect all due process rights and follow the law when collecting taxes, conducting audits, or pursuing tax debt.
The Right to Confidentiality
Unless permitted by law or by you, the IRS must not share your information with third parties. This means your tax return, communications from the IRS, and any other sensitive information are protected.
If you’re worried about your privacy, know that IRS employees are required by law to keep your information confidential. Unauthorized disclosures can result in penalties for the IRS employee involved.
The Right to Retain Representation and Low-Income Taxpayer Clinics
You don’t have to face the IRS alone. When interacting with the IRS, taxpayers are entitled to retain an authorized representative, such as an enrolled agent, certified public accountant, or lawyer to act on their behalf. If you can’t afford representation, you can seek assistance from a Low Income Taxpayer Clinic (LITC), which can help you with audits, appeals, and tax collection disputes, often for free or a small fee.
For example, if you’re called to an IRS interview, you can have your representative attend on your behalf. In most cases, the IRS must suspend the interview if you request to consult with your representative.
The Right to a Fair and Just Tax System
Life happens. Sometimes you simply can’t pay your tax debt. Taxpayers have the right to expect the tax system to consider their ability to pay and to receive assistance from the Taxpayer Advocate Service if they’re facing financial hardship. The IRS must clearly inform them of payment options, including payment plans and offers in compromise.
If you’re struggling, you can request assistance from a Low Income Taxpayer Clinic or the Taxpayer Advocate Service. These independent IRS offices can help you challenge the IRS’s position, appeal an IRS decision, and protect your rights as a taxpayer.
How Can the Taxpayer Advocate Service Help?
An independent IRS agency called the Taxpayer Advocate Service (TAS) assists people with issues they haven’t been able to settle through the regular IRS channels. The TAS provides free, confidential, and personalized service to taxpayers experiencing economic harm or significant delays in resolving their tax issues.
If the IRS has not resolved your case after 30 days, or if you’re facing financial hardship, the TAS can assist you. The TAS also works to identify systemic problems in IRS procedures and recommends changes to protect taxpayer rights.
What Are Your Next Steps? Contact John D’Amato Today for IRS Solutions.
If you’re facing IRS problems — whether it’s an audit, tax debt, or confusing IRS actions — you don’t have to go it alone. As a taxpayer, you have certain rights, but sometimes you need an experienced advocate to ensure those rights are respected. At John D’Amato Law Offices, we bring nearly 30 years of experience helping individuals and families in Buffalo and Western New York resolve IRS issues and reclaim their peace of mind.
Let’s talk about your situation and your options. You’ll get clear answers, personal attention, and a legal strategy tailored to your needs. Call our office at (716) 703-9099 for a free, confidential consultation, so you can move forward with confidence.
Remember: When it comes to your rights as a taxpayer, knowledge is power. Don’t let IRS actions or notices catch you off guard. Reach out today and get the support you deserve.