Taxpayer Bill of Rights (Part I):  The IRS has adopted a Taxpayer Bill of Rights as proposed by the prior National Taxpayer Advocate Nina Olson. It applies to all taxpayers in their dealings with the IRS. The Taxpayer Bill of Rights groups the existing rights in the tax code into ten fundamental rights, and makes them clear, understandable, and accessible.  The Tuesday Tax Tip will discuss a few of them during the next few weeks.

Bill of Rights #4:  The Right to Challenge the IRS’s Position and Be Heard

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 This Means for You

  • If you submit documentation or raise objections during an examination, and the IRS does not agree with your position, it will issue a statutory notice of deficiency explaining why it is increasing your tax, which gives you the right to petition the U.S. Tax Court prior to paying the tax. IRC § 6212

More information next week.  (IRS NTA web site)  (TTT 09/08/2020)