Guide To Your Rights As A Taxpayer: 1

(Series 1 of 3 )

Most taxpayers are only concerned with getting through the process of filing as fast and as painless as possible. It is an understandable reaction and one that can be dangerous. Often this is the cause of many misrepresentations, miscalculations and incorrectly claimed items on a return, increasing the risk of an audit. Now, the IRS is often viewed as a juggernaut with no concern for the citizens from whom it collects. Whether this is true or not, as a taxpayer you are endowed with certain rights. The hope of the IRS is that in doing so, you will in turn believe in the integrity, efficiency, and fairness of the American tax system and its thousands of pages. Even if this goal isn’t being furthered, the employees of the IRS must still treat you in a fair, prompt, courteous, and professional manner.

This is a simplified guide to all the rights you as a taxpayer in your interaction with the IRS:

Free Return Preparation Help

The IRS has always given taxpayers the right to information and assistance in the act of complying with tax law. This goes beyond just telling you instructions on tax forms. The IRS has published over 100 free taxpayer info publications; like Pub. 910, which is a catalogue of all the free tax services the IRS offers. You do have to pay a small fee for copies of your returns. However, if you only need certain information like the amount of your reported income, the number of your exemptions, or the tax shown on the return, the IRS is required to release it per telephone or written request.

Privacy

The taxpayer celebrates the right to have his/her financial and personal information provided to the IRS kept confidential. When the IRS does ask you to provide information, you also have the right to ask why, who will see it, how it will be utilized and what will happen if it isn’t given. To save a bit of the process for the moderately curious, under law your tax information can be shared with State tax agencies with which the IRS has information exchange agreements, the Department of Justice and other federal agencies under strict legal guidelines, and certain foreign governments under tax treaty provisions.

Fairness In Return Examination

If off, the IRS states that they use computer programs that distinguish discrepancies, inconsistencies, and flat out incorrect amounts. Furthermore, they also use outside sources like newspapers, public records, and individuals to determine accuracy.

Representation

You can represent yourself or, supplying proper written authorization, have someone else represent you in your place. The representative needs to be a person who is allowed to practice before the IRS (i.e. attorney, certified public accountant, or enrolled agent). When you are in an interview, you can ask to consult this person, however in most cases; the interview must stop and often it must be rescheduled. You can have someone accompany you at an interview though. You are also allowed to make sound recordings of any meetings in regards to the examination, appeal, or collection personnel. The IRS must be given notice of the intention, in writing, 10 days before the meeting.

Explanation

When the IRS decides to make any changes to your return, they must explain said reasons for the changes in full. Do not hesitate to ask about anything that is unclear to you.

Interest in The Event of IRS Error

The IRS must waive tax penalties when you relied on the incorrect information of one of their employees, or if you can show you acted in a reasonable and manner and in good faith. The interest that is added to the total due to certain errors and delays because of an IRS employee will also be waived.

Payment of Required Tax Only

Refund of Overpaid Tax

You must file a claim on the return in question before, either 3 years from the date you filed the return or 2 years from the time you paid the tax. You must pay all of your tax and do so on time, but after this you have the right to file a claim for a refund of the tax you think was overpaid. When the IRS looks at the return again, you have the same rights as you did during the original examination. If you cannot pay in full, the IRS may be able to offer a monthly installment schedule.

Interest on Refund

When the refund is delayed more than 45 days after the date you filed or date the return was due (whichever is the latest), you have a right to a reduction of the interest accrued. “Only delays caused by procedural or mechanical acts that do not involve the exercise of judgment or discretion qualify.” The same is true if an examination find you owe additional tax. You will be required to pay the interest on the amount from when it was originally due.

Checking on Your Refund

Normally, you receive a refund about six weeks from when you filed your return. If by 8 weeks after mailing your return, you have not received your refund, you may check on it by calling the toll-free Tele-Tax number in the tax forms instructions.