The first part of this chapter explains some of your most important rights as a taxpayer. The second part explains the examination,
appeal, collection, and refund processes.
All taxpayers have fundamental rights they should be aware of when dealing with the IRS. The Taxpayer Bill of Rights, which
the IRS adopted in June of 2014, takes existing rights in the tax code and groups them into the following 10 broad categories,
making them easier to understand. Explore your rights and our obligations to protect them.
The right to be informed.
Taxpayers have the right to know what they need to do to comply with the tax laws. They are entitled to clear explanations
of the laws and IRS procedures in all tax forms, instructions, publications, notices, and correspondence. They have the right
to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes.
The right to quality service.
Taxpayers have the right to receive prompt, courteous, and professional assistance in their dealings with the IRS,
to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS,
and to speak to a supervisor about inadequate service.
The right to pay no more than the correct amount of tax.
Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have
the IRS apply all tax payments properly.
The right to challenge the IRS’s position and be heard.
Taxpayers have the right to raise objections and provide additional documentation in response to formal IRS actions
or proposed actions, to expect that the IRS will consider their timely objections and documentation promptly and fairly, and
to receive a response if the IRS does not agree with their position.
The right to appeal an IRS decision in an independent forum.
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 generally have the right
to take their cases to court.
The right to finality.
Taxpayers have the right to know the maximum amount of time they have to challenge the IRS’s position as well as
the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt. Taxpayers have the right to know
when the IRS has finished an audit.
The right to privacy.
Taxpayers 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 will provide, where applicable, a collection due process hearing.
The right to confidentiality.
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 appropriate action will be taken against employees, return preparers,
and others who wrongfully use or disclose taxpayer return information.
The right to retain representation.
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 seek assistance from a Low Income Taxpayer Clinic if they cannot afford representation.
The right to a fair and just tax system.
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.
Examinations, Appeals, Collections, and Refunds
We accept most taxpayers' returns as filed. If we inquire about your return or select it for examination, it does
not suggest that you are dishonest. The inquiry or examination may or may not result in more tax. We may close your case without
change; or, you may receive a refund.
The process of selecting a return for examination usually begins in one of two ways. First, we use computer programs
to identify returns that may have incorrect amounts. These programs may be based on information returns, such as Forms 1099
and W-2, on studies of past examinations, or on certain issues identified by compliance projects. Second, we use information
from outside sources that indicates that a return may have incorrect amounts. These sources may include newspapers, public
records, and individuals. If we determine that the information is accurate and reliable, we may use it to select a return
Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund, explains the rules and procedures that
we follow in examinations. The following sections give an overview of how we conduct examinations.
We handle many examinations and inquiries by mail. We will send you a letter with either a request for more information
or a reason why we believe a change to your return may be needed. You can respond by mail or you can request a personal interview
with an examiner. If you mail us the requested information or provide an explanation, we may or may not agree with you, and
we will explain the reasons for any changes. Please do not hesitate to write to us about anything you do not understand.
If we notify you that we will conduct your examination through a personal interview, or you request such an interview,
you have the right to ask that the examination take place at a reasonable time and place that is convenient for both you and
the IRS. If our examiner proposes any changes to your return, he or she will explain the reasons for the changes. If you do
not agree with these changes, you can meet with the examiner's supervisor.
If we examined your return for the same items in either of the 2 previous years and proposed no change to your tax
liability, please contact us as soon as possible so we can see if we should discontinue the examination.
If you do not agree with the examiner's proposed changes, you can appeal them to the Appeals Office of the IRS. Most
differences can be settled without expensive and time-consuming court trials. Your appeal rights are explained in detail in
both Publication 5, Your Appeal Rights and How To Prepare a Protest If You Don't Agree, and Publication 556, Examination of
Returns, Appeal Rights, and Claims for Refund.
If you do not wish to use the Appeals Office or disagree with its findings, you may be able to take your case to the
U.S. Tax Court, U.S. Court of Federal Claims, or the U.S. District Court where you live. If you take your case to court, the
IRS will have the burden of proving certain facts if you kept adequate records to show your tax liability, cooperated with
the IRS, and meet certain other conditions. If the court agrees with you on most issues in your case and finds that our position
was largely unjustified, you may be able to recover some of your administrative and litigation costs. You will not be eligible
to recover these costs unless you tried to resolve your case administratively, including going through the appeals system,
and you gave us the information necessary to resolve the case.
Publication 594, The IRS Collection Process, explains your rights and responsibilities regarding payment of federal
taxes. It describes:
What to do when you owe taxes. It describes what to do if you get a tax bill and what to do if you think your bill is wrong.
It also covers making installment payments, delaying collection action, and submitting an offer in compromise.
IRS collection actions. It covers liens, releasing a lien, levies, releasing a levy, seizures and sales, and release of property.
Your collection appeal rights are explained in detail in Publication 1660, Collection Appeal Rights.
Innocent spouse relief.
Generally, both you and your spouse are responsible, jointly and individually, for paying the full amount of any
tax, interest, or penalties due on your joint return. To seek relief from any liability related to your spouse (or former
spouse), you must file a claim on Form 8857, Request for Innocent Spouse Relief. In some cases, Form 8857 may need to be filed
within 2 years of the date on which the IRS first attempted to collect the tax from you. Do not file Form 8857 with your Form
1040. For more information, see Publication 971, Innocent Spouse Relief, and Form 8857 or you can call the Innocent Spouse
office toll-free at 1-855-851-2009.
You can file a claim for refund if you think you paid too much tax. You must generally file the claim within 3 years
from the date you filed your original return or 2 years from the date you paid the tax, whichever is later. The law generally
provides for interest on your refund if it is not paid within 45 days of the date you filed your return or claim for refund.
Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund, has more information on refunds.
If you were due a refund but you did not file a return, you must file within 3 years from the date the return was
due (including extensions) to get that refund.