Your Rights as a Taxpayer

IRS Publication 1

(Rev. drf 011802)

The first part of this IRS publication explains some of your most important rights as a taxpayer. The second part explains the IRS examinations (audits), IRS appeals, IRS collections, and the IRS refund processes.

I. Protection of Your Rights as a Taxpayer

IRS employees (auditors, examiners, revenue agents, revenue officers) will explain and protect your rights as a taxpayer throughout your contact with the IRS.

II. Privacy and Confidentiality

The IRS will not disclose to anyone the information you give the IRS, except as authorized by law. You have the right to know why the IRS is asking you for information, how the IRS will use it, and what happens if you do not provide requested information.

III. Professional and Courteous Service by IRS employees

If you believe that an IRS employee (auditors, examiners, revenue agents, revenue officers) have not treated you in a professional, fair, and courteous manner, you should inform your treatment to the IRS employee’s (auditors, examiners, revenue agents, revenue officers) supervisor. If the IRS supervisor’s response is not satisfactory, you should write to the IRS director for your area or the center where you file your income tax return.

IV. Representation by a certified public accountant (CPA), attorney or enrolled agent

You may either represent yourself or, with proper written authorization (power of attorney), have someone else represent you in your place. Your representative must be a person allowed to practice before the IRS, such as a certified public accountant (CPA), attorney, or enrolled agent. If you are in an IRS interview (audit, examination) and ask to consult such a person (attorney, certified public accountant, or enrolled agent), then the IRS must stop and reschedule the interview (audit, examination) in most cases.

You can have someone accompany you at an IRS interview (audit, examination). The taxpayer may make sound recordings of any meetings with your IRS examination (audit, interview), IRS appeal, or IRS collection personnel (revenue officer), provided you inform the IRS in writing 10 days before the meeting.

V. Payment of Only the Correct Amount of Income Tax

You are responsible for paying only the correct amount of income tax due under the law—no more, no less. If you cannot pay all of your income tax when it is due, you may be able to make monthly installment payments.

VI. Help With Unresolved IRS Tax Problems

The IRS Taxpayer Advocate Service (TAO) can help you if you have tried unsuccessfully to resolve a problem with the IRS. Your local IRS Taxpayer Advocate can offer you special help if you have a significant hardship as a result of an IRS tax problem.

VII. IRS Appeals and Judicial Review

If you disagree with the IRS about the amount of your tax liability or certain IRS collection actions, you have the right to ask the IRS Appeals Office to review your case. You may also ask a court to review your case.

VIII. Relief From Certain IRS Penalties and Interest

The IRS will waive penalties when allowed by law if you can show you acted reasonably and in good faith or relied on the incorrect advice of an IRS employee. The IRS will waive interest that is the result of certain IRS errors or IRS delays caused by an IRS employee.

IRS Examinations, Appeals, Collections, and Refunds

IRS Examinations (Audits, Inquiry):

The IRS accepts most taxpayers’ income tax returns as filed. If the IRS inquires about your income tax return or selects it for an IRS examination (audit, inquiry), it does not suggest that you are dishonest. The IRS examination (audit, inquiry) may or may not result in more income tax. The IRS may close your case without change; or, you may receive an IRS refund.

The process of selecting a income tax return for examination (audit, inquiry) usually begins in one of two ways. First, the IRS uses computer programs to identify income tax returns that may have incorrect amounts. These IRS programs may be based on IRS information returns, such as IRS Forms 1099 and W-2, on studies of past examinations (audits), or on certain issues identified by IRS compliance projects. Second, the IRS uses information from outside sources that indicates that a income tax return may have incorrect amounts. These sources may include newspapers, public records, and individuals. If the IRS determines that the information is accurate and reliable, the IRS may use it to select an income tax return for examination (audit, inquiry).

Publication 556, IRS Examination of Returns, Appeal Rights, and Claims for Refund, explains the rules and procedures that the IRS follows in examinations. The following sections give an overview of how the IRS conducts examinations.

IRS Examinations (Audits, Inquiries) By U.S. Mail:

The IRS auditor (revenue agent, examiner) will handle many examinations (audits, inquiries) by U.S. mail. The IRS auditor (revenue agent, examiner) will send you a letter with either a request for more information or a reason why the IRS auditor (revenue agent, examiner) believes a change to your income tax return may be needed. You can respond by mail or you can request a personal interview (audit, inquiry) with an IRS auditor (revenue agent, examiner). If you mail the IRS auditor (revenue agent, examiner) the requested information or provide an explanation, the IRS auditor (revenue agent, examiner) may or may not agree with you, additionally, the IRS auditor (revenue agent, examiner) will explain the reasons for any changes.

IRS Examinations (Audits) By Interview:

If the IRS auditor (revenue agent, examiner) notifies you that the IRS will conduct your IRS audit (examination, inquiry, interview) through a personal audit (examination, inquiry, interview), or you request such an audit (examination, inquiry, interview), you have the right to ask that the IRS audit (examination, inquiry, interview) take place at a reasonable time and place that is convenient for both you and the IRS auditor (revenue agent, examiner). If the IRS auditor (revenue agent, examiner) proposes any changes to your income tax return, the IRS auditor (revenue agent, examiner) will explain the reasons for the changes. If you do not agree with these changes, you can meet with the IRS audit supervisor.

IRS Repeat Audits (Examinations, Inquiries, Interviews):

If the IRS audited (examined) your return for the same items in either of the 2 previous years and proposed no change to your income tax liability, contact the IRS auditor (revenue agent, examiner) as soon as possible so as to discontinue the audit (examination, inquiry, interview).

IRS Appeals:

If you do not agree with the IRS auditor (revenue agent, examiner) proposed changes, you can appeal them to the IRS Appeals Office. Most differences can be settled without expensive and time-consuming court trials. Your IRS appeal rights are explained in detail in both IRS Publication 5, Your IRS Appeal Rights and How To Prepare a Protest If You Don’t Agree, and IRS Publication 556, IRS Examination of Returns, Appeal Rights, and Claims for Refund.

If you do not wish to use the IRS Appeals Office or disagree with its findings, you may be able to take your case to the U.S. Tax Court, U.S. Court of Federal Claims, or the U.S. District Court where you live. If you take your case to court, the IRS auditor (revenue agent, examiner) will have the burden of proving certain facts if you kept adequate records to show your tax liability, cooperated with the IRS, and meet certain other conditions. If the court agrees with you on most issues in your case and finds that the IRS auditor's (revenue agents, examiners) position was largely unjustified, you may be able to recover some of your administrative and litigation (legal) costs. You will not be eligible to recover these costs unless you tried to resolve your case administratively, including going through the IRS appeals system, and you gave the auditor (revenue agent, examiner) the information necessary to resolve the case.

IRS Collections:

IRS Publication 594, The IRS Collection Process, explains your rights and responsibilities regarding payment of federal taxes. It describes:

What to do when you owe income taxes. It describes what to do if you get an income tax bill and what to do if you think your federal tax bill is wrong. It also covers making IRS installment payments, delaying collection action (wage levies, liens, bank levies, house seizures, sales), and submitting an offer in compromise.
IRS collection actions. It covers IRS liens, releasing a lien, levies, releasing a levy, seizures and sales, and release of property.

Your collection appeal rights are explained in detail in IRS Publication 1660, IRS Collection Appeal Rights.

IRS Innocent Spouse Relief:

Generally, both you and your spouse are responsible, jointly and individually, for paying the full amount of any income tax, interest, or penalties due on your joint return. However, if you qualify for innocent spouse relief, you may not have to pay the tax, interest, and penalties related to your spouse (or former spouse). For information on innocent spouse relief and two other ways to get relief, see IRS Publication 971, Innocent Spouse Relief, and IRS Form 8857, Request for Innocent Spouse Relief (And Separation of Liability and Equitable Relief).

Refunds:

You may file a claim for refund if you think you paid too much income tax. You must generally file the claim within 3 years from the date you filed your original income tax return or 2 years from the date you paid the income tax, whichever is later. The law generally provides for interest on your tax refund if it is not paid within 45 days of the date you filed your return or claim for refund. IRS Publication 556, IRS Examination (audit) of Income Tax Returns, IRS Appeal Rights, and Claims for Refund, has more information on refunds.

If you were due a tax refund but you did not file an income tax return, you must file within 3 years from the date the income tax return was originally due to get that refund.