The Taxpayer Bill of Rights Part 1

tysllpBusiness Advice, Tax Accounting, Tax Season

Problems with taxes

Your rights as a taxpayer, what you need to know.

If you have ever received a letter from the IRS, it’s natural for you to feel a little apprehension as you open it. You might even feel a little nausea if that letter states that you owe money. When you believe that you don’t owe the government money and the government believes you do, there is a recourse you can take - file an appeal.

Taxpayers have a legal right to appeal a decision from the IRS in an independent forum.

Filing an appeal is one of the ten Taxpayer Bill of Rights (TBOR), it’s a cornerstone document that all taxpayers have at their disposal when dealing with the IRS. These are fundamental rights that you should be aware of if you have to deal with the IRS.

If you have ever received a letter from the IRS, it’s natural for you to feel a little apprehension as you open it. You might even feel a little nausea if that letter states that you owe money. When you believe that you don’t owe the government money and the government believes you do, there is a recourse you can take - file an appeal.

Problems with taxes, tax accounting near me

Filing an appeal:

The IRS Independent Office of Appeals handles a taxpayer's appeal case and must be separate from the IRS office that initially reviewed that case. Taxpayers are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties, and have the right to receive a written response regarding the Office of Appeals’ decision. Taxpayers for the most part, have the right to take their cases to court.

Generally, this office 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 administrative 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:
    • They have fully paid the tax and the IRS has denied their tax refund claim.
    • No action is taken on the refund claim within six months.
    • It's been less than two years since the IRS mailed them a notice denying the refund

If you are working with an accountant, they are there to help you with creating the appeal. 

For more on the taxpayer bill of rights, watch for our next blog.

If you’re ready to learn more about what strategies you can use to reduce your tax bill next year, please contact us.