Taxpayers have the right to know what they need to do to comply with the tax laws. As a taxpayer you are entitled to clear explanations of the laws and IRS procedures in all tax forms, instructions, publications, notices and correspondence. You have the right to be informed of IRS decisions about your tax accounts and to receive clear explanations of the outcomes.
What you can expect:
- Certain notices must include the amount (if any) of the tax, interest, and certain penalties you owe. It must explain why you owe these amounts.
- When the IRS fully or partially disallows your claim for a refund, it must explain the specific reasons why.
- If the IRS proposes to assess tax against you, it must explain the process – from examination (audit) through collection – in its first letter.
- If you enter a payment plan, known as an installment agreement, the IRS must send you an annual statement. This gives you a record of balances and payments.
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.
What you can expect:
- If the IRS notifies you that your tax return has a math or clerical error, you have 60 days to tell the IRS that you disagree. You should provide photocopies of any records that may help correct the error. In addition, you may call the number listed on your notice or bill for help. If the IRS agrees with your position, we will make the necessary adjustment to your account and send you a corrected notice.
- If the IRS does not adopt your position, it will send a notice proposing a tax adjustment (known as a statutory notice of deficiency). The statutory notice of deficiency gives you the right to challenge the proposed adjustment in the United States Tax Court before paying it. To do this, you need to file a petition within 90 days of the date of the notice (150 days if the notice is addressed to you outside the United States).
- If you submit documentation or raise objections during a return examination (or audit), and the IRS does not agree with your position, it will issue you a statutory notice of deficiency. This notice will explain why the IRS is increasing your tax, which gives you the right to petition the U.S. Tax Court prior to paying the tax.
- When the IRS notifies you of plans to levy your bank account or other property, you’ll generally have an opportunity to request a hearing before the Office of Appeals. Also, you’ll generally have an opportunity to appeal the proposed or actual filing of a notice of federal tax lien.
