Yes. The IRS must adhere to a set of rules when interacting with taxpayers, which are outlined in the Taxpayer Bill of Rights. Among a taxpayer’s fundamental rights are some of the following.
When interacting with the IRS, you have the right to legal, accounting, or other tax advice. The IRS cannot communicate with you if you have requested representation because such representation must be present.
You may record a meeting with the IRS if you have given at least ten days’ notice. Be aware that the IRS may also tape the meeting if they give you ten days’ notice.
A currently ongoing audit may be suspended so that you can speak with your professional advisor.
What Must Be Included by the IRS in a Notice of Tax Deficiency?
The IRS is required to include the following information in these notices to taxpayers:
- Clearly state the subject of the notice
- If required, provide more details
- Statement of your tax rights in plain language
- Explanation of IRS collection and tax appeals procedures
Do I Have Any Rights in Terms of a Payment Plan If the IRS Punishes Me?
You can ask the IRS for an installment plan if your debt is $10,000 or less (without interest and penalties). If certain requirements are met, the IRS is compelled to agree to an installment plan that lasts up to three years.
What Remedies Are Available to Me If the IRS Threatens to Seize My Property?
By submitting IRS Tax Form 911 to an IRS Problem Resolution Office in your local district, you can request a Taxpayer Assistance Order if the IRS is threatening to confiscate your property and you believe doing so would put you through considerable hardship. Measures to enforce taxes will be put on hold until this is investigated.
Additionally, the IRS is prohibited from seizing some types of property, including:
- Fuel, furniture, and home belongings totaling $6,250 must be left over to you by the IRS.
- Tools, books, and other equipment used for your job are exempt from up to $3,125.
- Your home is exempt from seizure if the tax debt is only $5,000 or less. Even if it exceeds $5,000, the IRS must first obtain authorization from a US District Court before taking possession of your home.
For you to challenge the seizure, the IRS must provide you with at least 30 days’ notice before taking any of your property. The notice must outline the seizure procedures, any alternatives you may have, and how to recover your property once the IRS has confiscated it.
The National Taxpayer Advocate thinks that formalizing this tacit agreement into a Taxpayer Bill of Rights is in the best interests of taxpayers and the tax administration. No single document outlines these rights in plain, straightforward language, despite the fact that Congress has explicitly identified a number of rights designed to ensure a fair and just tax system and safeguard all taxpayers from potential IRS abuse in three significant pieces of legislation.
Congress codified the TBOR in 2015. The Taxpayer Bill of Rights acknowledges the following rights.
The Right to Knowledge
Taxpayers have a right to information about what they must do to abide by the tax rules. In all tax forms, instructions, publications, notices, and correspondence, they have a right to clear explanations of the laws and IRS policies.
They have a right to obtain clear explanations of the IRS’s decisions about their tax accounts as well as notification of those determinations. If your refund claim—including a refund you claimed on your income tax return—is wholly or partially denied, for instance, the notice must specify why. IRC § 6402(l) (l).
Right to a High-Quality Service
Taxpayers have a right to fast, courteous, and competent assistance in their interactions with the IRS. They also have a right to easy-to-understand communication from the IRS and the ability to speak with a supervisor about poor service.
The Obligation to Pay Only the Appropriate Amount of Tax
The IRS must appropriately apply for all tax payments, and taxpayers have the right to pay only the amount of tax that is lawfully due, including interest and penalties. For instance, you will normally receive a statutory notice of deficiency, which informs you of the proposed change if the IRS proposes to change the amount of tax you owe.
You have the option to contest the proposed adjustment in Tax Court without having to pay it first, thanks to this notice. If the taxpayer’s address on the notice is outside the nation or the taxpayer is out of the country when the notice is mailed, you have 150 days from the date of the notice’s mailing to file a petition with the Tax Court in order to exercise this privilege. The required notice of deficit thus confirms your entry into Tax Court. IRC §§ 6212; 6213(b) (b).
Additionally, you can submit a compromise offer known as an Offer in Compromise – Question as to Liability offer on Form 656-L if you have a justified doubt that you owe all or a portion of the tax liability. IRC § 7122
The Right to Question and Confront the IRS’s Position
In response to official IRS actions or proposed actions, taxpayers have the right to object and provide supporting documentation. They also have the right to expect that the IRS will fairly and quickly review their timely objections and supporting materials, and they have the right to a response if the IRS disagrees with their position.
For instance, if you present evidence or voice objections during an inspection and the IRS disagrees, it will issue a statutory notice of deficiency outlining the reasons why it is raising your tax, giving you the option to file a petition with the US Tax Court before paying the tax. IRC § 6212
The Right to Challenge an IRS Ruling in a Neutral Forum
Most IRS decisions, including many penalties, are subject to a fair and impartial administrative appeal process, and taxpayers are also entitled to a written explanation of the Office of Appeals’ decision.
In general, taxpayers have the right to litigate their claims in court. The IRS must, for instance, make sure that the IRS Office of Appeals is independent of the IRS Office that initially reviewed your case. In general, Appeals cannot speak with the IRS about a case unless you or a representative of yours has been offered the chance to attend. RRA 98 § 1001(a)(4) (4).
Additionally, you have the option to file an administrative appeal if you disagree with the suggested adjustment as a consequence of an inspection (audit). 26 CFR 601.103, Statement of Procedural Rules (b)
Should I Hire a Tax Attorney?
Tax law is frequently very intricate. An expert tax lawyer can advise you of your rights and potential defenses and can help you navigate the complex tax system if you are going to be audited or are even past that stage and about to have property confiscated.
Do not go to battle with the IRS by yourself. You have rights that an experienced attorney can help protect. Use LegalMatch to find the right lawyer for your needs today.