As part of the IRS Tax Tip 2021-112, the IRS reminded the taxpayers their Bill of Rights. We highly recommend reaching out to a tax professional once you get a notice from any tax authority to ensure it is address on a professional and timely matter. We noted that some of the notices received by clients were not applicable or not the taxpayers’ fault or easily addressed if the right supplemental information is provided.
Example 1 – IRS Assessing Penalties Despite Timely-filed Returns – Received notices assessing late-filing penalties for tax returns that were timely filed (note that 2019 and 2020 tax returns had extensions). Also, residents in several states that were declared Federal disaster areas due to severe weather early this year were granted a two-month extension (until June 15, 2021) to file and pay their 2020 taxes.
Example 2 – S corporation conversion filed appropriately and not processed by the IRS. The IRS released notices as the entity filed a S Corporation return but their system showed a different tax form to be filed (i.e. 1065). In some cases, we had to resubmit the forms, the certified mail receipt and/or fax confirmation and discuss with the IRS agent mentioned in the notice.
These are the 10 IRS rights of the taxpayer:
- The Right to Be Informed
- The Right to Quality Service
- The Right to Pay No More than the Correct Amount of Tax
- The Right to Challenge the IRS’s Position and Be Heard
- The Right to Appeal an IRS Decision in an Independent Forum
- The Right to Finality
- The Right to Privacy
- The Right to Confidentiality
- The Right to Retain Representation
- The Right to a Fair and Just Tax System
Link Rights as taxpayer – https://www.irs.gov/forms-pubs/about-publication-1
The Taxpayer Advocate Service (TAS) is an independent organization within the IRS. We’re here to ensure that every taxpayer is treated fairly and that you know and understand your rights. Our advocates can help if you have tax problems that you can’t resolve on your own.
Link Taxpayer Advocate Service – https://www.taxpayeradvocate.irs.gov/