Understanding the IRS Taxpayer Bill of Rights: What Every Taxpayer Should Know
When dealing with the Internal Revenue Service (IRS), every taxpayer in the United States is protected by a set of fundamental rights. These rights, collectively known as the Taxpayer Bill of Rights (TBOR), are designed to ensure that all taxpayers are treated fairly, with dignity and respect, and that they have clear avenues for recourse if they disagree with the IRS. Whether you are an individual, a business owner, or a tax professional, understanding these rights is essential for navigating the tax system confidently.
What Is the Taxpayer Bill of Rights?
The Taxpayer Bill of Rights is a cornerstone document that outlines ten fundamental rights all taxpayers have when interacting with the IRS. These rights are enshrined in IRS Publication 1, Your Rights as a Taxpayer and are reinforced by law, including Internal Revenue Code section 7803(a)(3), which requires the IRS Commissioner to ensure that IRS employees act in accordance with taxpayer rights.
The Ten Fundamental Taxpayer Rights
1. The Right to Be Informed
You have the right to know what you need to do to comply with tax laws. This includes receiving clear explanations of the laws, IRS procedures, and decisions about your tax accounts, as well as the outcomes of IRS actions.
2. The Right to Quality Service
You are entitled to prompt, courteous, and professional assistance from the IRS. Communications should be clear and understandable, and you have the right to speak to a supervisor if you receive inadequate service.
3. The Right to Pay No More than the Correct Amount of Tax
You have the right to pay only the amount of tax legally due, including interest and penalties, and to have all tax payments applied properly.
4. The Right to Challenge the IRS’s Position and Be Heard
You can raise objections and provide additional documentation in response to IRS actions or proposed actions. The IRS must consider your timely objections promptly and fairly, and respond if it does not agree with your position. If you disagree with a math or clerical error notice, you have 60 days to respond. If the IRS does not adopt your position, you will receive a statutory notice of deficiency, which you can challenge in Tax Court before paying the tax.
5. The Right to Appeal an IRS Decision in an Independent Forum
You are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties. You have the right to receive a written response regarding the Office of Appeals’ decision and, generally, to take your case to court.
6. The Right to Finality
You have the right to know the maximum amount of time you have to challenge the IRS’s position, as well as the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt. For most cases, the IRS has three years from the date you file your return to assess additional tax, and ten years from the assessment date to collect unpaid taxes. You also have the right to know when the IRS has finished an audit.
7. The Right to Privacy
You can expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary. The IRS must respect all due process rights, including search and seizure protections, and provide a collection due process hearing where applicable.
8. The Right to Confidentiality
Any information you provide to the IRS will not be disclosed unless authorized by you or by law. The IRS must take appropriate action against employees, return preparers, or others who wrongfully use or disclose your tax information.
9. The Right to Retain Representation
You have the right to retain an authorized representative of your choice to represent you in your dealings with the IRS. If you cannot afford representation, you may seek assistance from a Low Income Taxpayer Clinic.
10. The Right to a Fair and Just Tax System
You have the right to expect the tax system to consider facts and circumstances that might affect your underlying liabilities, ability to pay, or ability to provide information timely. If you are experiencing financial difficulty or the IRS has not resolved your tax issues properly and timely, you have the right to receive assistance from the Taxpayer Advocate Service.
The Role of the Taxpayer Advocate Service
The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps taxpayers resolve problems and protects taxpayer rights. TAS can assist if you are experiencing financial hardship, if you believe an IRS system or procedure isn’t working as it should, or if you need help resolving an IRS problem. TAS services are free, and local advocates are available in every state.
Why the Taxpayer Bill of Rights Matters
The IRS is required by law to ensure that all employees are familiar with and act in accordance with these rights. The TBOR is not just a set of principles—it is a legal framework that protects you in every interaction with the IRS, from filing your return to audits, collections, and appeals.
Conclusion
Understanding your rights as a taxpayer is essential for ensuring fair treatment and for protecting yourself in any dealings with the IRS. If you ever feel your rights are not being respected, you can contact the Taxpayer Advocate Service for help. For more information, visit the IRS Taxpayer Bill of Rights page or consult IRS Publication 1.