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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The IRS and Their “Do Right” Department

These are tough economic times for everybody.  But when you owe the Internal Revenue Service money, this is especially so.  I thought I would share some advice with you.

I have a client who has been on a pay-out with the IRS for a number of years.  The effect of the pay-out is that he has paid his tax for the year involved, but now owes the penalty and interest for that year.

Nine months ago, he lost his job and he has court ordered payments which leaves him nothing to pay the IRS with.  I wrote to the IRS explaining the situation and asking for the penalties and interest to be expunged.

They ignored my letter and instead, sent a notice of lien, which implied that he violated their agreement.  They ignored subsequent letters that I wrote as well.  I had to take this further and did.

If you find yourself in this situation, as my client did, where the IRS is not listening to you,  be advised there is a Taxpayers Advocates Office within the IRS.   I got resolution through this process.

They have a Form 911 which allows the Advocates Office to step in and try and remedy the situation.

It’s been several weeks since I contacted this Office.  Today, I was informed that not only did I get the current penalties and interest forgiven, but I also received a refund for my client for prior penalties and interest that were previously paid as well.

Do Right or Due Rights?  Doesn’t matter, the problem was handled.

Our government and its affiliated agencies can be big, bureaucratic, and scary to any individual or small business.  But, when you look hard and have the right advice, these too can be navigated so that you can be heard and your problems handled.