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Taxpayer Rights in Income Tax Disputes

This document provides information for taxpayers dealing with an income tax dispute or who are unable to pay taxes owed. It outlines 10 taxpayer rights, such as the right to appeal an IRS decision or retain representation. It then details steps to take if you disagree with an IRS audit finding or can't pay, including requesting audit reconsideration, filing an offer in compromise, or declaring currently not collectible status. Finally, it lists resources for tax preparation assistance and help communicating with the IRS.

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22 views5 pages

Taxpayer Rights in Income Tax Disputes

This document provides information for taxpayers dealing with an income tax dispute or who are unable to pay taxes owed. It outlines 10 taxpayer rights, such as the right to appeal an IRS decision or retain representation. It then details steps to take if you disagree with an IRS audit finding or can't pay, including requesting audit reconsideration, filing an offer in compromise, or declaring currently not collectible status. Finally, it lists resources for tax preparation assistance and help communicating with the IRS.

Uploaded by

godardsfan
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

DEALING WITH AN

INCOME TAX DISPUTE?

Your Rights
as a
Taxpayer

TAXPAYER BILL OF RIGHTS


1. The Right to
2. The Right to
3. The Right to
Tax
4. The Right to
5. The Right to
Forum
6. The Right to
7. The Right to
8. The Right to
9. The Right to
[Link] Right to

Be Informed
Quality Service
Pay No More than the Correct Amount of
Challenge the IRSs Position and Be Heard
Appeal an IRS Decision in an Independent
Finality (Statutes of Limitations)
Privacy
Confidentiality
Retain Representation
a Fair and Just Tax System

WHAT TO DO IF
YOU DONT THINK YOU OWE
During an Audit
Need supporting documentsin most cases, the burden is on you to show
that the IRS is wrong.
If the IRS says you owe, can appeal the decision to the IRS Appeals
Office.
Or petition the U.S. Tax Court.

After an Audit, Can Request Audit Reconsideration


Must have new information to submit.
Can submit this at any time.
Or, Claim for Refund, 1040x

Suit for Refund in Federal Court


Must pay the taxes owed in full before filing.
Statute of Limitations is three years from the date the return was filed, or
two years from the date the tax was paid.

Identity Theft, Form 14039 or Form 14157/A (Tax Preparer Fraud)

WHAT TO DO IF
YOU CANT PAY WHAT YOU OWE
Installment Agreement
Costs money to enter into an installment agreement.
IRS will try to collect the full amount within 72 months.

Partial Pay Installment Agreement


Must show that paying the full amount would constitute a hardship.

Of fer in Compromise
IRS will expect the taxpayer to liquidate or borrow against all assets
(e.g. house or car) to satisfy the debt, except in special cases.

Currently Not Collectible status


If expenses equal or exceed income according to IRS National or
Local allowable expense standards.

Bankruptcy
Certain kinds of taxes are ineligiblee.g. payroll taxes for an
employee.
Discharge of liability is subject to 2 year rule and 3 year rule.

WHERE TO GO FOR HELP


For tax preparation, use the Volunteer Income Tax
Assistance (VITA) program. Call 800-906-9887 to find the
nearest site.
For general questions about your taxes, call the IRS at
800-826-1040.
If you get a letter from the IRS or the Franchise Tax
Board, contact a Low-Income Tax Clinic, or Bet Tzedek
Legal Services. Call 323-939-0506.
Contact the Taxpayer Advocate Service for help
communicating with the IRS after youve tried to resolve
your problem with the IRS. Call 213-576-3140.
Be careful who files your taxes. If your tax preparer
makes a mistake, you may still be held responsible.

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