Introduction - Taxpayer Bill of Rights
Whether a taxpayer is an individual or a business, they are afforded the same rights to confidentiality and representation from the Taxpayer Bill of Rights.
Right to Confidentiality
Taxpayers have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary, and will respect all due process rights, including search and seizure protections, along with a collection due process hearing where applicable. In general, the IRS may not disclose your tax information to third parties unless you give it permission, e.g., you request to disclose information in connection with a mortgage or student loan application.
If a tax return preparer discloses or uses your tax information for any purpose other than for tax preparation, the preparer may be subject to civil penalties, except upon the request of IRS investigations. If the disclosure or improper use is done knowingly or recklessly, the preparer may also be subject to criminal fines and imprisonment.
Communications between you and an attorney with respect to legal advice the attorney gives you are generally privileged. A similar privilege applies to tax advice you receive from an individual who is authorized to practice before the IRS (e.g., certified public accountant, enrolled agent, and enrolled actuary), but only to the extent the communication between you and the individual would be privileged if it had been between you and an attorney. Communication between you and an individual authorized to practice before the IRS regarding the preparation of a tax return is not privileged because of no similar privilege between a taxpayer and an attorney. The privilege relating to taxpayer communications with an individual authorized to practice before the IRS only applies to noncriminal tax matters before the IRS, and noncriminal tax proceedings in Federal court where the United States is a party.
In general, the IRS cannot contact third parties, e.g., your employer, neighbors, or bank, to obtain information about adjusting or collecting your tax liability unless it provides you with reasonable notice in advance. Subject to some exceptions, the IRS is required to periodically provide you a list of the third-party contacts and upon request. The National Taxpayer Advocate and Local Taxpayer Advocates may decide whether to share with the IRS any information you (or your representative) provide them regarding your tax matter, including the fact that you’ve contacted the Taxpayer Advocate Service.
Right to Representation
Taxpayers have the right to retain an authorized representative of their choice to represent them in their dealings with the IRS. Taxpayers have the right to be told that if they cannot afford to hire a representative, they may be eligible for assistance from a Low-Income Taxpayer Clinic and may represent you for free or a minimal fee if your income is below 250 percent of the federal poverty level.
If you have won your case in court, under certain conditions, you may be entitled to recover certain reasonable administrative and litigation costs related to your dispute with the IRS. In most situations the IRS must suspend an interview if you request to consult with a representative, such as an attorney, CPA, or enrolled agent. You may select a person, such as an attorney, CPA, or enrolled agent to represent you in an interview with the IRS. The IRS cannot require you attend with your representative, unless it formally summons you to appear.
For more information or assistance in finding help in to get your tax situation back on track, contact a tax resolution associate at Bookkeeping-Results, LLC.
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