Understanding Your Rights: The Taxpayer Bill of Rights

Navigating the complexities of tax law can be daunting, but the IRS provides a foundational document, Publication 1, to ensure every taxpayer understands their fundamental protections. Known as the Taxpayer Bill of Rights, these ten principles govern your interactions with the IRS, from routine filings to examinations and appeals.

The Ten Fundamental Taxpayer Rights

The IRS is committed to providing top-quality service by helping taxpayers understand their responsibilities while enforcing the law with integrity. To support this mission, you are entitled to the following rights:

Right	Description
1. To Be Informed	You are entitled to clear explanations of laws, procedures, and IRS decisions regarding your tax account.
2. Quality Service	You have the right to receive prompt, professional, and easily understandable assistance, including the right to speak with a supervisor regarding inadequate service.
3. Pay Correct Tax	You are only required to pay the amount of tax legally due, including interest and penalties.
4. Challenge & Be Heard	You can raise objections and provide documentation in response to IRS actions, expecting a prompt and fair review.
5. Independent Appeal	You are entitled to a fair and impartial administrative appeal for most IRS decisions and generally have the right to take cases to court.
6. Finality	You have the right to know the maximum time allowed to challenge an IRS position or for the IRS to audit a tax year.
7. Privacy	IRS inquiries and enforcement must comply with the law, be no more intrusive than necessary, and respect due process.
8. Confidentiality	Your tax information will not be disclosed to third parties unless authorized by you or by law.
9. Retain Representation	You may select an authorized representative to deal with the IRS on your behalf.
10. Fair & Just System	The tax system must consider facts and circumstances that affect your ability to pay or provide information.

Navigating Examinations (Audits)

If your return is selected for an inquiry or examination, it does not suggest dishonesty. The IRS typically selects returns using computer programs that identify potential errors based on information returns (such as W-2s and 1099s) or information from outside sources.

• Audit Methods: Many examinations are handled by mail, where the IRS requests more information or explains proposed changes. You may also request a personal interview at a time and place convenient for both you and the IRS.

• Objections: If you disagree with an examiner's findings, you have the right to meet with their supervisor or appeal to the Appeals Office^.

• Repeat Examinations: If the IRS audited you for the same items in either of the two previous years and proposed no change, you can contact them to potentially discontinue the current audit.

Appeals, Collections, and Refunds

Your rights extend through the final stages of the tax process, including debt collection and the recovery of overpayments.

The Appeals Process

Most tax disputes can be settled through the IRS Appeals Office without a court trial. However, if you disagree with their findings, you may take your case to the U.S. Tax

Court, U.S. Court of Federal Claims, or your local U.S. District Court²¹. If you have kept adequate records and cooperated with the IRS, the burden of proving certain facts may shift to the IRS in court.

Collections and Relief

The IRS provides specific publications (such as Publication 594) to explain your responsibilities when you owe taxes.

• Options: You may be eligible for installment payments, an offer in compromise, or a delay in collection action.

• Innocent Spouse Relief: If you filed a joint return but believe only your spouse should be held liable for the tax, you can request relief using Form 8857.

Claims for Refunds

If you believe you overpaid, you can file a claim for a refund. Generally, this must be done within three years from the date you filed your original return or two years from the date you paid the tax, whichever is later.

Specialized Support Services

If you encounter difficulties navigating the IRS's normal channels, several independent resources are available:

• Taxpayer Advocate Service (TAS): An independent organization within the IRS that provides free help if your tax problem is causing hardship or has not been resolved timely.

• Low Income Taxpayer Clinics: Assistance for those who cannot afford professional representation.

• Small Business Ombudsman: Provides small businesses a platform to comment on IRS regulatory and enforcement actions.

Important Note: You have the right to request a list of any third parties the IRS contacts while verifying information for your case.

Disclaimer

Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor. Stratos Wealth Advisors and Synergy Wealth Management are separate entities. 

Neither Stratos nor Synergy Wealth Management provides legal or tax advice. Please consult legal or tax professionals for specific information regarding your individual situation.