IRS and Your Rights

The IRS may not always advise taxpayers of their rights. Or they do not follow their own procedures, but so what.

Howard Lipset of discusses a recent finding that the IRS may not be compliant with informing people of their rights.The Internal Revenue Service (IRS) is required to notify taxpayers of their rights when requesting an extension of the statute of limitations for assessing additional taxes and penalties, but might not always notify them or their representatives, according to a new report.

The Treasury Inspector General for Tax Administration (TIGTA) issued a report stating that it believes the IRS is complying with the intent of the law, but there were some instances in which IRS employees did not document whether taxpayers or their representatives were advised of these rights.

TIGTA issued the report  because it is required by law to annually determine whether the IRS complied with Section 6501(c)(4)(B) of the Tax Code, which requires the IRS to notify taxpayers of their rights to decline to extend the assessment statute of limitations or to request that any extension be limited to specific issues or a specific period of time.

Although notification to the taxpayers’ representatives appears to meet the intent of the law, TIGTA noted that the IRS’s internal procedures require the IRS to notify both the taxpayer and the representative.

In addition, TIGTA’s review found instances in which there was no documentation to support that the IRS complied with IRS procedures related to notifying taxpayers’ representatives when an authorization for third-party representation existed.

While TIGTA made no recommendations in this report, IRS officials were provided an opportunity to review the draft report. However, IRS management did not provide any comments on the report.

Howard Lipset, CPA
Progressive Management, Inc.
(516) 883-2962

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