What Rights You Have When Dealing with the IRS

Adjust text size

Article Tools

print this article

add bookmark

digg this

reddit

save to del.icio.us

Dealing with the IRS: You Have Rights

The mission of the IRS is to "Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all."

Who Is The IRS?

The IRS is an arm of the federal government, its employees are federal employees and the core business of the Internal Revenue Service is collecting revenue. The IRS is responsible for collecting more than 90 percent of all dollars collected by the United States government. IRS employees are paid by the federal government to accomplish its primary goal -- collecting revenues owed by taxpayers. The collection process of the IRS is designed to extract the maximum amount of money for the government while wasting as little time as possible.

What Do I Do When I Get A Letter From The IRS?

When you receive any letter from the IRS about your returns, it is best to act immediately because many IRS letters start the clock on statutory time limitations. If you do not act within the time stated in the letter, you may lose very important rights.

What Are My Rights?

As a taxpayer you have certain rights when you deal with the IRS.

• The IRS must explain and protect your rights as a taxpayer when you deal with them.

If you are not sure of your options, don't speak to the IRS directly because any information you provide may hurt you later.

• You have the right to be represented by an authorized person such an as attorney, a CPA, or an enrolled agent in your dealings with the IRS.

If you are in a discussion or audit and you ask to consult a professional, IRS representatives must stop and reschedule the discussion in most cases. You can have someone accompany you to a meeting. You may make sound recordings of any meetings with IRS examination, appeal, or collection personnel, if you inform them in writing 10 days before the meeting.

• The IRS must treat you in a professional and respectful manner.

The IRS must protect your privacy and confidentiality. If they ask for any information, you have the right to know why they are asking for the information and how it will be used. Keep copies of all correspondence with the IRS.

• You need not and should not provide original documents.

Copies will suffice. You have the right to know what steps the IRS will take if you do not provide them with the requested information. Use certified mail when corresponding with the IRS. This will give your correspondence a time stamp.

• You have options for paying your taxes.

What If I Can't Pay?

If you cannot pay all of your tax when it is due, you can request an installment payment plan. If you can demonstrate that you acted reasonably and in good faith, or relied upon the incorrect advice of an IRS employee, you may be able to compel the IRS to waive penalties. You can appeal any IRS decision on your tax liability and collection action.