Your Taxpayer Bill of Rights

Every taxpayer has a set of fundamental rights. The “Taxpayer Bill of Rights” takes the many existing rights in the tax code and groups them into ten categories. You should be aware of these rights when you interact with the IRS.   

Publication 1, Your Rights as a Taxpayer, highlights a list of your rights and the agency’s obligations to protect them. Here is a summary of the first four of ten Taxpayer Bill of Rights:

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IRS Updates Phone Scam Warnings

The IRS is again warning the public about phone scams that continue to claim victims all across the country. In these scams, thieves make unsolicited phone calls to their intended victims. Callers fraudulently claim to be from the IRS and demand immediate payment of taxes by a prepaid debit card or wire transfer. The callers are often hostile and abusive.

The Treasury Inspector General for Tax Administration (TIGTA) has received 90,000 complaints about these scams. TIGTA estimates that thieves have stolen an estimated $5 million from about 1,100 victims. To avoid becoming a victim of these scams, you should know:

A Different IRS Scam

See the copy of the email below:

1. The IRS never makes first contact via email.
2. The return address would be .GOV, not .COM.

—–Original Message—–

From: IRS TAX OFFICE [mailto:noreply@irsexemption.com]

Sent: Sunday, July 27, 2014 4:38 PM

Subject: TAX EXEMPTION

IRS Impersonators

Hopefully, most of you are aware that I write a blog, and that one of my favorite topics is how scams operate.

Recently, I have written about scams that involve the Internal Revenue Service.

Well, recently they tried it on my office. When I got back after a breakfast meeting, there was a message that a Mr. DM had called from the IRS and left his phone number. He was a “Case Consulting Officer” and needed to discuss discrepancies in my own tax return. The individual who called demanded that I return the call immediately.

The Inherent Inefficiency of Government Bureaucracy

There are few who will disagree with the fact that, in recent years, the governmental bureaucracy has grown dramatically while its efficiency has deteriorated in an equally dramatic manner.

From 1952 to 1972, the cost of the public payroll multiplied more than fourfold, from $35 billion to $150 billion. The 330% increase over that period exceeds the 247% growth of employee compensation in private industries ($161 billion to $557 billion). In 1952, the average worker in private employment earned 5% more than his counterpart in government. By 1972, he had fallen 10% behind.

Do You Qualify for a Health Insurance Coverage Exemption?

The Affordable Care Act (ACA) calls for individuals to have qualifying health insurance coverage for each month of the year, have an exemption, or make a shared responsibility payment (this is the penalty tax) when filing his or her federal income tax return.

You may be exempt from the requirement to maintain qualifying health insurance coverage, called minimum essential coverage, and may not have to make a shared responsibility payment when you file your next federal income tax return.

IRS Warns of Tax-Time Scams

It’s true: tax scams proliferate during the income tax filing season. This year’s season opened on January 31. The IRS provides the following scam warnings so you can protect yourself and avoid becoming a victim of these crimes:

• Be vigilant of any unexpected communication purportedly from the IRS at the start of tax season.  

IRS Warns of Phone Scam

The IRS is warning the public about a phone scam that targets people across the nation, including recent immigrants. Callers claiming to be from the IRS tell intended victims they owe taxes and must pay using a prepaid debit card or wire transfer. The scammers threaten those who refuse to pay with arrest, deportation or loss of a business or driver’s license.

The callers who commit this fraud often:

• Know the last four digits of the victim’s Social Security number
• Use common names and fake IRS badge numbers
• Make caller ID appear as if the IRS is calling
• Send bogus IRS emails to support their scam
• Call a second time claiming to be the police or DMV, and caller ID again supports their claim

The Affordable Care Act

Remember in September when employers were supposed to tell employees if they were  providing  health insurance in 2014?

And remember how the government provided us with a form to give those employees?

And remember how they threatened to fine the employer if we did not give out those forms? (Those fines were waived at the last minute.)

Tax Tips if You’re Starting a Business

Seldom would I think of quoting the IRS but these tips for start-ups highlight what needs to be done. Unfortunately, there are decisions to be made and who would trust the IRS to help with those? I love to work with start-up businesses. It can be one of the most rewarding projects that I am involved with.

This is from an email I received from the IRS on July 3, 2013…

IRS Summertime Tax Tips – Tax Tips if You’re Starting a Business

If you plan to start a new business, or you’ve just opened your doors, it is important for you to know your federal tax responsibilities. Here are five basic tips from the IRS that can help you get started.