11. Your Rights
as a Taxpayer
The first part of this chapter explains some of your most important rights as a
taxpayer. The second part explains the examination, appeal, collection, and refund
processes.
Declaration of
Taxpayer Rights
Protection of your rights. IRS employees will
explain and protect your rights as a taxpayer throughout your contact with us.
Privacy and confidentiality. The IRS will not disclose to anyone the
information you give us, except as authorized by law. You have the right to know why we
are asking you for information, how we will use it, and what happens if you do not provide
requested information.
Professional and courteous service. If you believe that an IRS
employee has not treated you in a professional, fair, and courteous manner, you should
tell that employee's supervisor. If the supervisor's response is not satisfactory, you
should write to the IRS director for your area or the center where you filed your return.
Representation. You may either represent yourself or, with proper
written authorization, have someone else represent you in your place. Your representative
must be a person allowed to practice before the IRS, such as an attorney, certified public
accountant, or enrolled agent. If you are in an interview and ask to consult such a
person, then we must stop and reschedule the interview in most cases.
You can have someone accompany you at an interview. You may make sound recordings of
any meetings with our examination or collection personnel, provided you tell us in writing
10 days before the meeting.
Payment of only the correct amount of tax. You are responsible for
paying only the correct amount of tax due under the law - no more, no less. If you cannot
pay all of your tax when it is due, you may be able to make monthly installment payments.
Help with unresolved tax problems. The Taxpayer Advocate Service can
help you if you have tried unsuccessfully to resolve a problem with the IRS. Your local
Taxpayer Advocate can offer you special help if you have a significant hardship as a
result of a tax problem. For more information, call toll free 1-877-777-4778 (1-800-829-4059
for TTY/TDD) or write to the Taxpayer Advocate at the IRS office that last contacted
you.
Appeals and judicial review. If you disagree with us about the
amount of your tax liability or certain collection actions, you have the right to ask the
Appeals Office to review your case. You may also ask a court to review your case.
Relief from certain penalties and interest. The IRS will waive
penalties when allowed by law if you can show you acted reasonably and in good faith or
relied on the incorrect advice of an IRS employee. We will waive interest that is the
result of certain errors or delays caused by an IRS employee.
Examinations, Appeals, Collections, and Refunds
Examinations (audits). We
accept most taxpayers' returns as filed. If we inquire about your return or select
it for examination, it does not suggest that you are dishonest. The inquiry or examination
may or may not result in more tax. We may close your case without change; or, you may
receive a refund.
The process of selecting a return for examination usually begins in one of two ways.
First, we use computer programs to identify returns that may have incorrect amounts. These
programs may be based on information returns, such as Forms 1099 and W-2, on studies of
past examinations, or on certain issues identified by compliance projects. Second, we use
information from outside sources that indicates that a return may have incorrect amounts.
These sources may include the media, public records, and individuals. If we determine that
the information is accurate and reliable, we may use it to select a return for
examination.
Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund, explains
the rules and procedures that we follow in examinations. The following sections give an
overview of how we conduct examinations.
By mail. We handle many examinations and inquiries by mail.
We will send you a letter with either a request for more information or a reason why we
believe a change to your return may be needed. You can respond by mail or you can request
a personal interview with an examiner. If you mail us the requested information or provide
an explanation, we may or may not agree with you, and we will explain the reasons for any
changes. Please do not hesitate to write to us about anything you do not understand.
By interview. If we notify you that we will conduct your
examination through a personal interview, or you request such an interview, you have the
right to ask that the examination take place at a reasonable time and place that is
convenient for both you and the IRS. If our examiner proposes any changes to your return,
he or she will explain the reasons for the changes. If you do not agree with these
changes, you can meet with the examiner's supervisor.
Repeat examinations. If we examined your return for the
same items in either of the 2 previous years and proposed no change to your tax liability,
please contact us as soon as possible so we can see if we should discontinue the
examination.
Appeals. If you do not agree
with the examiner's proposed changes, you can appeal them to the Appeals Office of IRS.
Most differences can be settled without expensive and time-consuming court trials. Your
appeal rights are explained in detail in both Publication 5, Your Appeal Rights and
How To Prepare a Protest If You Don't Agree, and Publication 556, Examination of
Returns, Appeal Rights, and Claims for Refund.
If you do not wish to use the Appeals Office or disagree with its findings, you may be
able to take your case to the U.S. Tax Court, U.S. Court of Federal Claims, or the U.S.
District Court where you live. If you take your case to court, the IRS will have the
burden of proving certain facts if you kept adequate records to show your tax liability,
cooperated with the IRS, and meet certain other conditions. If the court agrees with you
on most issues in your case and finds that the IRS' position was largely unjustified, you
may be able to recover some of your administrative and litigation costs. You will not be
eligible to recover these costs unless you tried to resolve your case administratively,
including going through the appeals system, and you gave us the information necessary to
resolve the case.
Collections. Publication 594, The
IRS Collection Process, explains your rights and responsibilities regarding payment
of federal taxes. It describes:
- What to do when you owe taxes. It describes what to do if you get a tax bill and what to
do if you think your bill is wrong. It also covers making installment payments, delaying
collection action, and submitting an offer in compromise.
- IRS collection actions. It covers liens, releasing a lien, levies, releasing a levy,
seizures and sales, and release of property.
Your collection appeal rights are explained in detail in Publication 1660, Collection
Appeal Rights.
Innocent spouse relief. Generally,
both you and your spouse are responsible, jointly and individually, for paying the full
amount of any tax, interest, or penalties due on your joint return. However, if you
qualify for innocent spouse relief, you may not have to pay the tax, interest, and
penalties related to your spouse (or former spouse). For information on innocent spouse
relief and two other ways to get relief, see Publication 971, Innocent Spouse Relief, and
Form 8857, Request for Innocent Spouse Relief (And Separation of
Liability and Equitable Relief).
Refunds. You may file a claim
for refund if you think you paid too much tax. You must generally file the claim
within 3 years from the date you filed your original return or 2 years from the date you
paid the tax, whichever is later. The law generally provides for interest on your refund
if it is not paid within 45 days of the date you filed your return or claim for refund.
Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund, has
more information on refunds.
If you were due a refund but you did not file a return, you must file within 3 years
from the date the return was originally due to get that refund.
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