Taxpayers have the right to:
** Know what they need to do to comply with the tax laws.
** Have clear explanations of the laws and IRS procedures in all forms, instructions, publications, notices and correspondence.
** Be informed of IRS decisions about their tax accounts, and to receive clear explanations of the outcomes.

The IRS will take these actions to make sure taxpayers are informed:
** Certain notices must include any amount of the tax, interest and certain penalties the taxpayer owes.
** The IRS must explain why the taxpayers owes any taxes.
** When the IRS disallows a claim for a refund, the agency must explain the specific reasons why.
** The IRS posts information on IRS.gov to help taxpayers understand their IRS notice or letter.

If the IRS proposes to assess tax, the agency sends an initial letter. That letter must include:
** Information on how the taxpayer can appeal the decision
** An explanation of the entire process from audit through collection.
** Details on how the Taxpayer Advocate Service can help.

The IRS must send an annual statement to taxpayers who enter into a payment plan, which is also known as an installment agreement. The statement will include how much the taxpayer:
** Owes at the beginning of the year.
** Paid during the year.
** Still owes at the end of the year.

IRS makes forms and publications available on IRS.gov. Taxpayers can also have hard copies mailed to them by calling 800-829-3676.

IRS uses social media to provide helpful tax information to a wide audience of taxpayers.

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The right to quality service is the second provision highlighted in the Taxpayer Bill of Rights. Taxpayers have the right to:
** Prompt, courteous and professional assistance when dealing with the IRS.
** Be spoken to in a way they can easily understand.
** Receive communications that are clear and easy to understand.
** Speak to a supervisor about inadequate service.

To make sure taxpayers receive quality service, the IRS:
** Posts answers to tax questions on IRS.gov, the best place to find answers to questions.
** Employs representatives who care about the quality of the service they provide and listen objectively to taxpayers, considering all relevant information and answering questions promptly, accurately and thoroughly.
**Is courteous to taxpayers when collecting taxes, and should:
**** Only contact taxpayers between 8 a.m. and 9 p.m.
**** Not contact taxpayers at their workplace if the IRS has reason to know that the employer doesn’t allow such contacts.
** Provides information in all notices of deficiency letting taxpayers know how to get assistance from the Taxpayer Advocate Service.
** May provide information to eligible taxpayers about how they can get legal help from a Low-income taxpayer clinic.

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Taxpayers have the right to pay only the amount of tax legally due. This includes interest and penalties. Additionally, taxpayers can expect to have the IRS apply all tax payments properly.

Here are some things taxpayers should know about the right to pay no more than the correct amount:
• Taxpayers who overpaid their taxes can file for a refund. Taxpayers must file a claim for a credit or refund by the later of these two dates:
** Three years from the date they filed their original return.
** Two years from the date they paid the tax.
• Taxpayers who receive a letter from the IRS should review the information in it. The taxpayers who believe the information is incorrect should contact the office listed in the letter. The letter also provides a date by which the taxpayer should respond.
• The IRS may automatically correct math errors on a return. Taxpayers who disagree with the adjustment must request that the IRS reverse the change. The taxpayer has 60 days to make this request from the time the IRS made the change, or otherwise the taxpayer will lose the right to dispute the adjustment in United States Tax Court before paying the tax.
• Taxpayers may request that the IRS remove any interest from their account caused by unreasonable IRS errors or delays. For example, this could happen if the IRS delays issuing a late notice because an IRS employee was out of the office, and interest accrues during that time.
• If a taxpayer believes they do not owe all or part of their bill, they can submit an offer in compromise. This offer asks the IRS to accept less than the full amount owed. To do this, taxpayers use Form 656-L, Offer in Compromise.
• Some taxpayers enter a payment plan to pay their taxes. This plan is an installment agreement. The IRS must send these taxpayers an annual statement that provides how much the taxpayer:
** Owes at the beginning of the year.
** Paid during the year.
** Still owes at the end of the year.

More Information:
Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund
Publication 1, Your Rights as a Taxpayer
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Taxpayers have the right to:
* Raise objections.
* Provide additional documentation in response to formal or proposed IRS actions.
* Expect the IRS to consider their objections timely.
* Have the IRS consider any supporting documentation promptly.
* Receive a response if the IRS does not agree with their position.

Here are some specific things taxpayers can expect about the right to challenge the IRS’s position and be heard.

In some cases, the IRS will notify a taxpayer that their tax return has a mathematical or clerical error. If this happens, the taxpayer:
* Has 60 days to tell the IRS that they disagree.
* Should provide copies of any records that may help correct the error.
* May call the number listed on the letter or bill for assistance.
* Can expect the agency to make the necessary adjustment to their account and send a correction if the IRS upholds the taxpayer’s position.

Here’s what will happen if the IRS does not agree with the taxpayer’s position:
* The agency will issue a notice proposing a tax adjustment. This is a letter that comes in the mail.
* This notice provides the taxpayer with a right to challenge the proposed adjustment.
* The taxpayer makes this challenge by filing a petition in U.S. Tax Court. The taxpayer must generally file the petition within 90 days of the date of the notice, or 150 days if it is addressed outside the United States.
* Taxpayers can submit documentation and raise objections during an audit. If the IRS does not agree with the taxpayer’s position, the agency issues a notice explaining why it is increasing the tax. Prior to paying the tax, the taxpayer has the right to petition the U.S. Tax Court, and challenge the agency’s decision.

In some circumstances, the IRS must provide a taxpayer with an opportunity for a hearing before an independent Office of Appeals. The agency must do this before taking enforcement action to collect a tax debt. These actions include levying the taxpayer’s bank account. Immediately after filing a notice of federal tax lien in the appropriate state filing location. If the taxpayer disagrees with the decision of the Appeals Office, they can petition the U.S. Tax Court.

More Information:
Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund
Publication 1, Your Rights as a Taxpayer

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Taxpayers have the right to appeal an IRS decision in an independent forum. The IRS Office of Appeals that handles a taxpayer’s case must be separate from the IRS office that initially reviewed that case. Generally, Appeals will not discuss a case with the IRS to the extent that those communications appear to compromise the independence of Appeals.

Here are some points to remember about the right to appeal a decision in an independent forum:
• A statutory notice of deficiency is an IRS letter proposing additional tax. Taxpayers who receive this notice and who then timely file a petition with the United States Tax Court may dispute the proposed adjustment before they must pay the tax.
• Taxpayers are entitled to a fair and impartial appeal of most IRS decisions, including many penalties.
• Taxpayers have the right to receive a written response regarding a decision from the IRS Office of Appeals.
• When taxpayers don’t agree with the IRS’s decisions, they can refer to Publication 5, Your Appeal Rights and How To Prepare a Protest If You Don’t Agree, for details on how to appeal.
• Generally, taxpayers may file a refund suit in a United States district court or the United States Court of Federal Claims if:
o They have fully paid the tax and the IRS has denied their tax refund claim.
o No action is taken on the refund claim within six months.
o It’s been less than two years since the IRS mailed them a notice denying the refund.

More Information:
Publication 1, Your Rights as a Taxpayer
Taxpayer Advocate
United States Tax Court
Online Videos and Podcasts of the Appeals Process

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Taxpayers who are interacting with the IRS have the right to finality. This right comes into play for taxpayers who are going through an audit. These taxpayers have the right to know when the IRS has finished the audit.

For taxpayers who are in the process of an audit, here’s what they should know about the right to finality:
• Taxpayers have the right to know:
• The maximum amount of time they have to challenge the IRS’s position.
• The maximum amount of time the IRS has to audit a particular tax year or collect a tax debt.
• When the IRS has finished an audit.
• The IRS generally has three years from the date taxpayers file their returns to assess any additional tax for that tax year.
• There are some limited exceptions to the three-year rule, including when taxpayers fail to file returns for specific years or file false or fraudulent returns. In these cases, the IRS has an unlimited amount of time to assess tax for that tax year.
• The IRS generally has 10 years from the assessment date to collect unpaid taxes. This 10-year period cannot be extended, except for taxpayers who enter into installment agreements or the IRS obtains court judgments.
• There are circumstances when the 10-year collection period may be suspended. This can happen when the IRS cannot collect money due to the taxpayer’s bankruptcy or there’s an ongoing collection due process proceeding involving the taxpayer.
• A statutory notice of deficiency is a letter proposing additional tax the taxpayer owes. This notice must include the deadline for filing a petition with the tax court to challenge the amount proposed.
• Generally, a taxpayer will only be subject to one audit per tax year. However, the IRS may reopen an audit for a previous tax year, if the IRS finds it necessary. This could happen, for example, if a taxpayer files a fraudulent return.

More Information:
Publication 1, Your Rights as a Taxpayer
Taxpayer Advocate Service

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The Right to PrivacyTaxpayers have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary, and will respect all due process rights, including search and seizure protections and a collection due process hearing where applicable.

What This Means for You

During a Collection Due Process hearing, an independent IRS Appeals/Settlement Officer must consider whether the IRS’s lien filing balances the government’s need for the efficient collection of taxes with your legitimate concern that the IRS’s collection actions are no more intrusive than necessary. IRC § 6320

During a Collection Due Process hearing, an independent IRS Appeals/Settlement Officer must consider whether the IRS’s proposed levy action balances the government’s need for the efficient collection of taxes with your legitimate concern that the IRS’s collection actions are no more intrusive than necessary. IRC § 6330

The IRS cannot levy any of your personal property in the following situations: before it sends you a notice of demand, while you have a request for a payment plan pending, and if the IRS will not recover any money from seizing and selling your property. IRC § 6331

The IRS cannot seize certain personal items, such as necessary schoolbooks, clothing, undelivered mail, certain amounts of furniture and household items, and tools of a trade. IRC § 6334(a)

There are limits on the amount of wages that the IRS can levy (seize) in order to collect tax that you owe. A portion of wages equivalent to the standard deduction combined with any deductions for personal exemptions is protected from levy. IRC § 6334(d)

The IRS cannot seize your personal residence, including a residence used as a principal residence by your spouse, former spouse, or minor child, without first getting court approval, and it must show there is no reasonable alternative for collecting the tax debt from you. IRC § 6334(e) Treas. Reg. § 301.6334-1(d)(1)

The revenue officer must attempt to personally contact you and if you indicate the seizure would cause a hardship, he or she must assist you in contacting the Taxpayer Advocate Service if not providing the requested relief. IRM 5.10.1.7.2

The IRS issued interim guidance that extends these protections to suits to foreclose a lien on a principal residence. According to this guidance, the IRS should not pursue a suit to foreclose a lien on your principal residence unless it has considered hardship issues and there are no reasonable administrative remedies. See IRS Interim Guidance Memo SBSE-05-0414-0032.

As soon as practicable after seizure, the IRS must provide written notice to the owner of the property that the property will be put up for sale. Before the sale of the property, the IRS shall determine a minimum bid price. Before the property is sold, if the owner of the property pays the amount of the tax liability plus the expenses associated with the seizure, the IRS will return the property to the owner. Within 180 days after the sale, any person having an interest in the property may redeem the property sold by paying the amount the purchaser paid plus interest. IRC §§ 6335, 6337

If the IRS sells your property, you will receive a breakdown of how the money received from the sale of your property was applied to your tax debt. IRC § 6340

Under § 3421 of the Restructuring and Reform Act of1998 IRS employees are required “where appropriate,” to seek approval by a supervisor prior to filing a Notice of Federal Tax Lien. Section 3421 further requires that disciplinary actions be taken when such approval is not obtained. RRA § 98 3421

The IRS should not seek intrusive and extraneous information about your lifestyle during an audit if there is no reasonable indication that you have unreported income. IRC § 7602(e)

If you submit an offer to settle your tax debt, and the offer relates only to how much you owe (known as a Doubt as to Liability Offer in Compromise), you do not need to submit any financial documentation. IRC § 7122(d)(3)(B)

For information, see Form 656-L, Offer in Compromise (Doubt as to Liability).

Taxpayers have the right to expect that any information they provide to the IRS will not be disclosed unless authorized by the taxpayer or by law. Taxpayers have the right to expect the IRS to investigate and take appropriate action against its employees, return preparers, and others who wrongfully use or disclose taxpayer return information.

What This Means for You

In general, the IRS may not disclose your tax information to third parties unless you give it permission, e.g., you request that we disclose information in connection with a mortgage or student loan application. IRC § 6103

If a tax return preparer discloses or uses your tax information for any purpose other than for tax preparation, the preparer may be subject to civil penalties. If the disclosure or improper use is done knowingly or recklessly, the preparer may also be subject to criminal fines and imprisonment. IRC §§ 6713, 7216

Communications between you and an attorney with respect to legal advice the attorney gives you are generally privileged. A similar privilege applies to tax advice you receive from an individual who is authorized to practice before the IRS (e.g., certified public accountant, enrolled agent, and enrolled actuary), but only to the extent that the communication between you and that individual would be privileged if it had been between you and an attorney. For example, communication between you and an individual authorized to practice before the IRS regarding the preparation of a tax return is not privileged because there would be no similar privilege between a taxpayer and an attorney. The privilege relating to taxpayer communications with an individual authorized to practice before the IRS only applies in the context of noncriminal tax matters before the IRS, and noncriminal tax proceedings in Federal court where the United States is a party. IRC § 7525

In general, the IRS cannot contact third parties, e.g., your employer, neighbors, or bank, to obtain information about adjusting or collecting your tax liability unless it provides you with reasonable notice in advance. Subject to some exceptions, the IRS is required to periodically provide you a list of the third party contacts and upon request. IRC § 7602(c)

The National Taxpayer Advocate and Local Taxpayer Advocates may decide whether to share with the IRS any information you (or your representative) provide them regarding your tax matter, including the fact that you’ve contacted the Taxpayer Advocate Service. IRC § 7803(c)(4)(A)(iv)

Taxpayers have the right to retain an authorized representative of their choice to represent them in their dealings with the IRS. Taxpayers have the right to be told that if they cannot afford to hire a representative they may be eligible for assistance from a Low Income Taxpayer Clinic.

What This Means for You

If you have won your case in court, under certain conditions, you may be entitled to recover certain reasonable administrative and litigation costs related to your dispute with the IRS. IRC § 7430

In most situations the IRS must suspend an interview if you request to consult with a representative, such as an attorney, CPA, or enrolled agent. IRC § 7521(b)(2)

You may select a person, such as an attorney, CPA, or enrolled agent to represent you in an interview with the IRS. The IRS cannot require that you attend with your representative, unless it formally summons you to appear. IRC § 7521(c)

If you are an individual taxpayer eligible for Low Income Taxpayer Clinic (LITC) assistance (generally your income must be at or below 250 percent of the federal poverty level), you may ask an LITC to represent you (for free or a minimal fee) in your tax dispute before the IRS or federal court. IRC § 7526

For more information, see Publication 4134, Low Income Taxpayer Clinic List.

Taxpayers have the right to expect the tax system to consider facts and circumstances that might affect their underlying liabilities, ability to pay, or ability to provide information timely. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through its normal channels.

What This Means for You

If you cannot pay your tax debt in full and you meet certain conditions, you can enter into a payment plan with the IRS where you pay a set amount over time, generally on a monthly basis. IRC § 6159

See TAS Toolkit, Installment Agreements.

You may request that any amount owed be eliminated if it exceeds the correct amount due under the law, if the IRS has assessed it after the period allowed by law, or if the assessment was done in error or violation of the law. IRC § 6404(a)

See also IRC § 6502: Limitations on collection after assessment (statute of limitations) under the Right to Finality

You may request that the IRS remove any interest from your account that was caused by the IRS’s unreasonable errors or delays. For example, if the IRS delays issuing a statutory notice of deficiency because the assigned employee was away for several months attending training, and interest accrues during this time, the IRS may abate the interest as a result of the delay. IRC § 6404(e)

The time limit for asking for the taxes you paid to be refunded may be suspended during the time you are unable to manage your financial affairs due to a mental or physical health problem. IRC § 6511(h)

If you have acted with reasonable care you may be entitled to relief from certain penalties. Additionally, if you have a reasonable basis for taking a particular tax position, such as a position on your return or a claim for refund, you may be entitled to relief from certain penalties. Reliance on the advice of a tax professional can in certain circumstances represent reasonable cause for the abatement of certain penalties. IRC §§ 6651, 6656, 6694, 6662, 6676

If you use a return preparer who takes an unreasonable or reckless position that results in underreporting your tax, that preparer may be subject to penalties. IRC § 6694

You can submit an offer in compromise asking the IRS to settle your tax debt for less than the full amount if you believe (1) you do not owe all or part of the tax debt, (2) if you are unable to pay all of the tax debt within the time permitted by law to collect, or (3) there are factors such as equity, hardship, or public policy that you think the IRS should consider in determining whether to compromise your liability. IRC § 7122

See page 289 of the RRA 98 Conference Report, H.R. Rep. No. 105-599 (Conf. Rep.).

If you have are experiencing a significant hardship because of IRS action or inaction, tax you may be eligible for assistance from the Taxpayer Advocate Service (TAS). A significant hardship occurs when a tax problem causes you financial difficulties or you have been unable to resolve your problem through normal IRS channels. You may also be eligible if you believe an IRS system or procedure isn’t working as it should. IRC § 7803(c)

You have the right to request that the Taxpayer Advocate Service issue a Taxpayer Assistance Order (TAO) on your behalf if you are experiencing a significant hardship. TAS can issue a TAO ordering the IRS to take certain actions, cease certain actions or refrain from taking certain actions, and it can also order the IRS to reconsider, raise to a higher level, or speed up an action. IRC § 7811

If you are trying to settle your tax debt with an offer in compromise based on your inability to pay, the IRS considers your income, assets, and expenses in deciding whether to accept your offer. Generally, the IRS uses guidelines for standard allowances for cost of living expenses, unless you will not able to pay your basic living expenses. Then, the IRS must consider your actual expenses. If you are offering to settle because you believe you don’t owe the tax liability, you will not need to submit financial information. IRC § 7122(d)(2)

If you are a low income taxpayer trying to settle your tax debt with an offer in compromise, the IRS cannot reject your offer solely on the basis of the amount offer. For example, it cannot reject an offer solely because the amount offered is so low it does not cover the IRS costs for processing the offer. IRC § 7122(d)(3)(A)

If you submit an offer to settle your tax debt, and the offer relates only to how much you owe (known as a Doubt as to Liability Offer in Compromise), the IRS cannot reject your offer solely because it cannot locate your tax return to verify how much you owe. IRC § 7122(d)(3)(B)

The IRS cannot levy (seize) all of your wages to collect your unpaid tax. A portion will be exempt from levy to allow you to pay basic living expenses. IRC § 6334

The IRS must release all or part of a levy and notify the person upon whom the levy was made if one of the following situations exist: 1) the underlying liability is satisfied or becomes unenforceable due to the lapse of time, 2) the taxpayer enters into an installment agreement, unless the agreement specifies otherwise, 3) the release of the levy will facilitate collection of liability, 4) the IRS determines the levy is creating an economic hardship for the taxpayer, or 5) the fair market value of the property levied is greater than the liability and releasing the levy on part of the property would not impair collection of the underlying liability. IRC § 6343(a)(1)

If you are an individual taxpayer eligible for Low Income Taxpayer Clinic (LITC) assistance (generally your income must be at or below 250 percent of the federal poverty level guidelines), you have the right to seek assistance from an LITC to ensure that your particular facts and circumstances are being considered by the IRS. IRC § 7526

For more information, see Publication 4134, Low Income Taxpayer Clinic List.

If the IRS is proposing to adjust the amount of tax you owe, you will typically be sent a statutory notice of deficiency, which informs you of the proposed change. This notice provides you with a right to challenge the proposed adjustment in Tax Court without first paying the proposed adjustment. To exercise this right, you must file a petition with the Tax Court within 90 days of the date of the notice being sent (or 150 days if the taxpayer’s address on the notice is outside the United States or if the taxpayer is out of the country at the time the notice is mailed). Thus, the statutory notice of deficiency is your ticket to Tax Court. IRC §§ 6212; 6213(b)

For more information about the United States Tax Court, see the Court’s taxpayer information page.