Taxpayer Bill of Rights (Part XII):  The IRS has adopted a Taxpayer Bill of Rights as proposed by the prior National Taxpayer Advocate Nina Olson

Bill of Right #7:  The Right to Privacy (cont.)

What This Means for You

  • If the IRS sells your property, you will receive a breakdown of how the money received from the sale of your property was applied to your tax debt. IRC § 6340
  • Under § 3421 of the Restructuring and Reform Act of1998 IRS employees are required “where appropriate,” to seek approval by a supervisor prior to filing a Notice of Federal Tax Lien. Section 3421 further requires that disciplinary actions be taken when such approval is not obtained. RRA § 98 3421
  • The IRS should not seek intrusive and extraneous information about your lifestyle during an audit if there is no reasonable indication that you have unreported income. IRC § 7602(e)
  • If you submit an offer to settle your tax debt, and the offer relates only to how much you owe (known as a Doubt as to Liability Offer in Compromise), you do not need to submit any financial documentation. IRC § 7122(d)(3)(B)

For information, see Form 656-L, Offer in Compromise (Doubt as to Liability).

(IRS NTA web site) (TTT 11/24/2020)