Fair treatment of taxpayers is the goal of the Taxpayer Bill of Rights. In 2014, the IRS adopted this set of 10 taxpayer rights proposed by the Taxpayer Advocate. However, the Internal Revenue Service did not establish any new rights with this document. Rather, the Taxpayer Bill of Rights has combined existing rights related to tax law, regulation, and policy into one letter, making them easier to find.
IRS employees are responsible for understanding and respecting these rights, ensuring that taxpayers' business is treated fairly in all interactions. You can find the Taxpayer's Bill of Rights on the IRS website and at IRS offices. Below is a summary of each right.
Understanding the Taxpayers Bill of Rights (TABOR)
The Taxpayers Bill of Rights - TABOR, originally promoted by conservative and libertarian groups in the 1980s, sought to limit the powers of government to set and collect taxes. It wasn't really a bill of rights, but it tried to tie tax increases caused by factors like inflation and population to a referendum. Voters in Colorado passed a version of the measure in 1992. TABOR referendums in Maine, Nebraska, and Oregon failed, and TABOR laws do not exist in other states, although they appear in some counties and cities.
Taxpayer Rights: What You Can Expect from the IRS
Whether you are dealing with the IRS in response to an audit or simply filing your annual return, you should know that the IRS provides you with these basic taxpayer rights.
1. The right to know: You have the right to know what you need to do to comply with tax laws. This includes clear explanations of laws, procedures, IRS rulings, and results related to the tax bill. For example, if the IRS has denied your refund claim, even in part, it must explain the specific reasons.
2. The right to quality service: When dealing with the IRS, you have the right to prompt, courteous, and professional assistance, including easy-to-understand communications. Usually, if you feel your service was inadequate, you have the right to speak to a supervisor.
3. The right not to pay more than the correct amount of taxes: You have the right to pay only the taxes legally due, including interest and penalties. Also, you should expect the IRS to correctly apply any payments you have made.
4. The right to challenge the IRS position and to be heard: You have the right to object and provide additional documentation in response to formal IRS actions or proposed actions. If you dispute a particular action, you should expect the IRS to quickly review your dispute and provide you with a response if you disagree.
5. Right to appeal an IRS decision in an independent forum: You have the right to a fair and impartial administrative appeal of most IRS decisions, including penalties. You should expect the IRS to provide a written response to the Appeals Office's decision. IRS Publication 5 describes how to prepare a protest if you disagree with the IRS' findings.
6. Right to finality: You have the right to know how long the IRS has to audit a particular tax year, collect a tax debt, or know when an audit is complete. Additionally, you have the right to know the maximum time allowed to challenge the IRS' position.
7. Right to Privacy: You have the right to expect the IRS to be no more intrusive than necessary in conducting an investigation, review, or enforcement action. Additionally, you should expect the IRS to respect all due process rights and provide you with a due process hearing when appropriate.
8. Your Right to Confidentiality: You have the right to expect that the IRS will not disclose any information you provide unless authorized by you or the law. If an IRS employee, return preparer, or others use or disclose your return information, you should expect appropriate action to be taken.
9. Right to retain representation: You have the right to retain an authorized representative of your choice, such as a Certified Public Accountant (CPA) or Enrolled Agent (EA), to represent you before the IRS. If you cannot afford to be represented, you have the right to seek help from a low-income taxpayer clinic.
10. The right to a fair and equitable tax system: You have the right to expect the tax system to take into account circumstances and events that could affect your ability to pay, your liability, or even your ability to provide information at the right time. If you are in financial trouble or if the IRS has not adequately or promptly resolved your issues, you should expect to be able to get help from the Taxpayer Advocate Service.
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