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.
Declaration of
Taxpayer Rights
Protection
of your rights. IRS
employees will explain and
protect your rights as a
taxpayer throughout your
contact with us.
Privacy and
confidentiality. The
IRS will not disclose to
anyone the information you
give us, except as
authorized by law. You have
the right to know why we are
asking you for information,
how we will use it, and what
happens if you do not
provide requested
information.
Professional and courteous
service. If you
believe that an IRS employee
has not treated you in a
professional, fair, and
courteous manner, you should
tell that employee's
supervisor. If the
supervisor's response is not
satisfactory, you should
write to the IRS director
for your area or the center
where you filed your return.
Representation. You
can either represent
yourself or, with proper
written authorization, have
someone else represent you
in your place. Your
representative must be a
person allowed to practice
before the IRS, such as an
attorney, certified public
accountant, or enrolled
agent. If you are in an
interview and ask to consult
such a person, then we must
stop and reschedule the
interview in most cases.
You can have someone
accompany you at an
interview. You can make
sound recordings of any
meetings with our
examination or collection
personnel, provided you tell
us in writing 10 days before
the meeting.
Payment of
only the correct amount of
tax. You are
responsible for paying only
the correct amount of tax
due under the law—no more,
no less. If you cannot pay
all of your tax when it is
due, you may be able to make
monthly installment
payments.
Help with
unresolved tax problems.
The Taxpayer Advocate
Service can help you if you
have tried unsuccessfully to
resolve a problem with the
IRS. Your local Taxpayer
Advocate can offer you
special help if you have a
significant hardship as a
result of a tax problem. For
more information, call toll
free 1-877-777-4778
(1-800-829-4059 for TTY/TDD)
or write to the Taxpayer
Advocate at the IRS office
that last contacted you.
Appeals and
judicial review. If
you disagree with us about
the amount of your tax
liability or certain
collection actions, you have
the right to ask the Appeals
Office to review your case.
You can also ask a court to
review your case.
Relief from
certain penalties and
interest. The IRS will
waive penalties when allowed
by law if you can show you
acted reasonably and in good
faith or relied on the
incorrect advice of an IRS
employee. We will waive
interest that is the result
of certain errors or delays
caused by an IRS employee.
Examinations,
Appeals,
Collections, and
Refunds
Examinations (audits).
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 for
examination.
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.
By
mail. 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.
By
interview. 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.
Repeat
examinations. 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.
Appeals.
If you do not agree with
the examiner's proposed
changes, you can appeal them
to the Appeals Office of
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.
Collections.
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. However, if you
qualify for innocent spouse
relief, you may not have to
pay the tax, interest, and
penalties related to your
spouse (or former spouse).
For information on innocent
spouse relief and two other
ways to get relief, see
Publication 971, Innocent
Spouse Relief, and Form
8857, Request for Innocent
Spouse Relief (And
Separation of Liability and
Equitable Relief).
Refunds.
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 originally due to
get that refund.
