Taxpayer Rights

Taxpayer Rights

Taxpayer Rights are specifically addressed in publication 1 (see appendix).

The original Taxpayer Bill of Rights focused on providing taxpayers protection during the audit process-

Original Taxpayer Bill of Rights

  • Taxpayers have a right to an explanation of the audit process, their appeal rights, and the collection process at the start of an audit.
  • Taxpayers have a right to be represented by a representative authorized to practice before the IRS.
  • axpayers have a right to suspend any interview to consult with a representative, provided the interview was not arranged through the use of an administrative summons.
  • Taxpayers have a right, with advance notice to the IRS, to make an audio recording of any IRS interview.

Taxpayer Bill of Rights II

  • Taxpayer Bill if Rights II focused on collection matters
  • Besides the protections in the Original TBOR, Congress still did not have adequate protections, so they enacted the Taxpayer Bill of Rights II (TBOR 2) in 1996.
  • TBOR 2 addressed a number of different issues, including the creation of a Taxpayer Advocate whose powers were much broader than the old Taxpayer Ombudsman and granting the IRS new authority to abate interest and penalties in certain situations.

Taxpayer Bill of Rights III

Additional taxpayers’ rights were added , and were delineated in the Taxpayer Bill of Rights III (TBOR 3) which was enacted in 1998. The impetus behind TBOR 3 were the findings which emanated from hearings held by the National Commission on Restructuring the IRS and from Congressional hearings on IRS abuses. The legislation enacted a number of notable changes:

When is the Confidentiality Privilege Extended to Taxpayer Communications?

  • Communications between clients and authorized tax practitioners are privileged as along as the communications relate to tax advice
  • This privilege applies to non-criminal tax matters

IRS Employee Contacts

  • Manually generated correspondence received by a taxpayer from the IRS must clearly identify the name, telephone number, and unique identifying number of an IRS employee whom the taxpayer may contact about the correspondence.
  • Other correspondence or notice received by a taxpayer from the IRS must include in a prominent manner a telephone number that the taxpayer may contact.
  • An IRS employee must give a taxpayer, during a telephone or personal contact, the employee’s telephone number and unique identifying number.

Listing of Local IRS Telephone Numbers and Addresses

  • The IRS must publish addresses and telephone numbers of local IRS offices in appropriate telephone directories.

Although not specifically a new “Taxpayer Right,” one provision of the Restructuring Act has had a significant impact on IRS employees.

  • Sec. 1203 provided a list of 10 actions for which an IRS employee must be fired.
  • These are known as the ten deadly sins- these actions have initially had a chilling effect on examination and collection personnel.
  • While the claim by a taxpayer that an employee has committed one of these ’10 deadly sins’ is taken very seriously, the evidence appears to be mixed on Sec. 1203’s overall impact.

The Practitioner Priority Service

Practitioner Priority Service (PPS) provides practitioners access to a number of IRS resources.

  • PPS operates from 7:30 am to 5:30 pm.
  • PPS is located at five sites—Brookhaven, NY, Philadelphia, PA, Cincinnati, OH, Memphis, TN, and Ogden, UT.
  • Calls are routed based on area codes. Both business and individual questions are addressed by PPS.
  • If for some reason a call cannot be handled at PPS, it will be given priority routing to the appropriate IRS function.
  • The toll-free number for the PPS is (866) 860-4259.

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5 Responses to “Taxpayer Rights”

  1. Tax Resolution University » Blog Archive » Tax Problem FAQ: How Do I Resolve a Problem with the IRS? Says:

    [...] One of the most frequent and frustrating aspects of working with the IRS is being transferred from person to person while trying to resolve a tax related problem. Sometimes, this arises as a result of the practitioner either not understanding the central issue or failing to accurately assess which section of the IRS is responsible for addressing the issue. However, the fault can also rest with the IRS employee or both practitioner and IRS employee. So it is important to protect yourself during the audit process by knowing your rights as a taxpayer [...]

  2. Tax Resolution University » Blog Archive » TRS on KLOS Part 1: Knowledge is Power When Dealing with the IRS Says:

    [...] It can be scary when the government contacts you and they are going to look through your files and you’ve got prison looming over your head. That’s a little daunting and we take that fear away by knowing the Internal Revenue Service inside and out. We know what they can and can’t do. It is also our job to protect you during the audit process by knowing your taxpayer rights. [...]

  3. » The Seven Secrets the IRS Hopes You Never See » Tax Resolution University » Blog Archive Says:

    [...] speaking engagements:1. It can make a significant difference in the audit process just to know your rights as a taxpayer2. You can get a fresh start even if you haven’t filed your returns in 7 years3. The IRS has over [...]

  4. » Strictly Business - Tax Tips and Advice for Entrepreneurship and Business Development » Tax Relief Tips from the Experts at Tax Resolution University » Blog Archive Says:

    [...] some insider secrets of tax relief with Strictly Business host Anna Banks including important taxpayer rights, how to reduce or avoid IRS penalties and interest, and how to get a fresh start even if you have

  5. Reduce Back Taxes and IRS Penalties: 7 Little Secrets the IRS Hopes You Never Learn | Tax Attorney and Tax Resolution Services: IRS Help Blog Says:

    [...] most significant way to reduce back taxes and IRS penalties in the audit process is to know your rights as a taxpayer. Instead of feeling powerless in the face of potentially crushing back taxes and IRS penalties, a [...]

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