Did you know that according to US tax law, payment of income tax is actually voluntary?

While this may be the case, if you voluntarily choose not to pay your taxes, it won’t be long before the IRS contacts you with a bit of persuasion. And if you ignore their love letters long enough, they will take action in the form of seizing assets, filing liens against your property, and garnishing your wages. 

Maybe you’re facing IRS collection threats right now. Or, maybe you’ve been dealing with a back tax issue for months or even years. Perhaps you’re just arming yourself with financial knowledge to make better decisions. 

Whatever the case may be, it always helps to know what your rights are as a US taxpayer. 

The tax experts at Traxion Tax have you covered with this brief summary of your taxpayer rights. Exercising these rights can make the difference between successfully weathering a dicey interaction with the IRS and losing control of your financial situation. 

This is the exact verbatim from the IRS’ current listing of these rights, located here. 

We’ve added some of our own interpretations. 

[ IMPORTANT: If you need help understanding your rights or deciding which direction to take in your individual situation, our tax experts are here to help you. Contact Traxion Tax today by calling (303) 376-9797. ]

Taxpayer Right #1: The Right to Be Informed

What the IRS says: Taxpayers have the right to know what they need to do to comply with the tax laws. They are entitled to clear explanations of the laws and IRS procedures in all tax forms, instructions, publications, notices, and correspondence. They have the right to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes.

What it means: This is essentially your right to know what’s going on and how to respond. In general, the IRS does a good job abiding by this right, even if it means keeping their communication with you to postal mail only. 

Taxpayer Right #2: The Right to Quality Service

What the IRS says: Taxpayers have the right to receive prompt, courteous, and professional assistance in their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS, and to speak to a supervisor about inadequate service.

What it means: You have a right to be treated fairly. While this ‘right’ seems nice, it’s difficult to exercise because of the subjectivity of the word ‘quality’. What’s ‘prompt’ and ‘courteous’ to the IRS may ‘take forever’ and be ‘harsh’ to a taxpayer. 

Taxpayer Right #3: The Right to Pay No More than the Correct Amount of Tax

What the IRS says: Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.

What it means: The IRS has an obligation to only charge you what you actually owe, without adding baseless fees or punitive penalties beyond what are written into the US tax code.

Taxpayer Right #4: The Right to Challenge the IRS’s Position and Be Heard

What the IRS says: 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 it means: This is like your right to appeal, but on a less formal basis. This is actually a critically important right that, when exercised correctly, can be immensely powerful in resolving tax debt problems. 

Taxpayer Right #5: The Right to Appeal an IRS Decision in an Independent Forum

What the IRS says: Taxpayers are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties, and have the right to receive a written response regarding the Office of Appeals’ decision. Taxpayers generally have the right to take their cases to court.

What it means: You have a right to say ‘no’ to virtually anything the IRS decides about your case and to have your reasoning considered by an impartial third party (Office of Appeals).

Taxpayer Right #6: The Right to Finality

What the IRS says: Taxpayers have the right to know the maximum amount of time they have to challenge the IRS’s position as well as the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt. Taxpayers have the right to know when the IRS has finished an audit.

What it means: This is your right to not have to wonder ‘When will this end?’. The IRS is already known for taking a long time to act; this is your right to know just how long they can legally take before your case closes by default.

Taxpayer Right #7: The Right to Privacy

What the IRS says: Taxpayers have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary, and will respect all due process rights, including search and seizure protections and will provide, where applicable, a collection due process hearing.

What it means: You can generally expect a reasonable measure of privacy when dealing with the IRS. This is important, as it restricts the lengths to which the IRS can go to get the information they deem necessary to make a determination about your tax debt.

Taxpayer Right #8: The Right to Confidentiality

What the IRS says: Taxpayers have the right to expect that any information they provide to the IRS will not be disclosed unless authorized by the taxpayer or by law. Taxpayers have the right to expect appropriate action will be taken against employees, return preparers, and others who wrongfully use or disclose taxpayer return information.

What it means: This is your right to expect your personal information to be kept strictly between you and the IRS (unless third-party disclosure is lawful and necessary). 

Taxpayer Right #9: The Right to Retain Representation

What the IRS says: Taxpayers have the right to retain an authorized representative of their choice to represent them in their dealings with the IRS. Taxpayers have the right to seek assistance from a Low Income Taxpayer Clinic if they cannot afford representation.

What it means: You have a right to let someone else act on your behalf with the IRS. This is similar to having the right to an attorney in a civil or criminal court proceeding. 

Taxpayer Right #10: The Right to a Fair and Just Tax System

What the IRS says: Taxpayers have the right to expect the tax system to consider facts and circumstances that might affect their underlying liabilities, ability to pay, or ability to provide information timely. 

Taxpayers have the right to receive assistance from the Taxpayer Advocate Service if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through its normal channels.

What it means: This is your right to have any factor impacting your tax situation to be considered by the IRS. This can include health conditions, family obligations, employment status, and other aspects of life that could contribute to your financial situation in virtually any way. 

Where to Go Next

Now that you know your rights as a taxpayer, the next logical step is to formulate a strategy for exercising these rights when and where it makes sense to do so. 

And when it comes to strategy, having one is critical to success when dealing with the IRS. The tax professionals at Traxion Tax excel at analyzing complex tax situations, developing a winning strategy, and implementing that strategy with the right submissions, filings, requests, and other actions focused on achieving one goal: resolving your tax debt quickly and effectively. 

Schedule a consultation with a member of our team now, and take the next step in getting peace of mind by getting the IRS off your back.