Every taxpayer holds specific rights when interacting with the IRS, collectively known as the Taxpayer Bill of Rights. One critical right among these is the ability to challenge the IRS’s position and make your voice heard. This guide explains what this right entails and how you can effectively use it.
Understanding Your Right to Challenge
As a taxpayer, you have the right to:
- Object to IRS actions: You can raise objections against the IRS’s decisions.
- Submit supporting documents: You can provide additional documentation against IRS’s formal notices or proposed actions.
- Expect prompt and fair consideration: The IRS is expected to consider your timely objections and any supporting documentation you provide promptly and fairly.
- Receive a detailed response: If the IRS disagrees with your stance, they must provide a detailed explanation of their decision.
Advantages of This Right
This right offers taxpayers several protections:
- Addressing errors: If the IRS informs you of a mathematical or clerical mistake on your return, you have 60 days to dispute their findings and provide supporting documents.
- Direct assistance: You can contact the IRS directly using the information on their notice for assistance. If your arguments are accepted, the IRS will adjust your account accordingly and issue any necessary corrections.
Procedures if the IRS Disagrees with You
- Proposed tax adjustment notice: If there is a disagreement, the IRS will send a notice proposing a tax adjustment, which includes your right to challenge the adjustment.
- Filing a challenge: You must file a petition with the U.S. Tax Court within set deadlines (90 days generally, or 150 days if outside the United States) to challenge the proposed adjustment.
Your Rights During Audits and Appeals
- Submitting documents and objections: During an audit, you can present documentation and objections. If the IRS does not accept your position, they will issue a notice explaining the tax increase.
- Challenge before payment: You have the right to petition the U.S. Tax Court before paying the increased tax amount.
- Hearing opportunities: In certain cases, such as before undertaking collection actions, the IRS must provide you a chance for a hearing before the independent Office of Appeals.
- Appealing decisions: If you disagree with the decision from the Appeals Office, you can further petition the U.S. Tax Court.
Leveraging your right to challenge the IRS is essential for effectively managing your interactions with the agency. Understanding your rights empowers you to ensure that your tax issues are handled fairly.
Should you need to challenge an IRS decision, it’s advisable to seek the assistance of a tax professional who can help navigate the process efficiently. Remember, knowing and using your rights is crucial for a fair tax resolution.
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