Taxpayer Rights

Introduction

Whenever someone is notified that they are being audited, it is never a good feeling. They usually feel alone and think that no matter what they say or do, the IRS is going to be right and they will have to pay a lot of money in penalties and fines. However, this is not the case. Taxpayer's do have rights when they are audited and also have rights to an appeal if they disagree with the audit findings.

Audit Rights

IRS Publication 1 states that IRS employees must treat taxpayers in a professional, fair and courteous manner (IRS Publication 1). The taxpayer has the right to bring in a third-party person, such as their accountant, to represent them during the examination. Before the IRS can contact a third-party person, such as a neighbor, employer, or your bank during your audit, they must give a reasonable notice in advance. In addition, they must also provide a specific list of the persons contacted. The taxpayer has the right to privacy and confidentiality of their tax issues.

Appeal Rights

Most taxpayers agree with the examination findings. However, if the taxpayer does not agree, he can appeal his case. There are several ways to appeal ones case. One can appeal to the local Appeals Office. A conference is held between the taxpayer and the Appeals Office personnel by correspondence, telephone, or personal conference. The taxpayer or his representative should be prepared to discuss all disputed issues at the conference. If an agreement is not reached with the Appeals Office, the taxpayer can take his case to the United States Tax Court, the United States Court of Federal Claims, or the United States District Court (IRS Publication 556).

Conclusion

In conclusion, some taxpayers think that the IRS is only after their money, but the reality is that they are only doing their job and making sure that taxpayers are paying taxes on money that taxes are owed on. All IRS audits do not end in the IRS receiving more money from the taxpayer; some end in a refund due to the taxpayer. The taxpayer being aware of their rights in an audit and their rights to appeal the result should add some relief if they are undergoing an audit.

References

IRS