Taxpayers interacting with the IRS about their tax issues, especially those who are being audited by the IRS, have the right to finality. The government makes sure that taxpayers know about their rights so that they can negotiate about IRS problems accordingly and avoid any misunderstandings. Continuing further on the topic, let’s look at what taxpayers facing IRS problems must know about the Right to Finality. Read on!
The Taxpayer Bill of Rights
The Taxpayer Bill of Rights, or TBOR, is a document consisting of ten fundamental rights every taxpayer should know when dealing with IRS tax issues. The Internal Revenue Service continues to highlight these rights publicly to taxpayers so that they are aware of them while dealing with their personal IRS issues. The government also reminds its employees regularly about these rights so that they understand and apply them during all the encounters with taxpayers.
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What taxpayers Should Expect?
- The government has three years from the date taxpayers file their returns to assess any additional tax for that particular tax year, although there are some exceptions to this rule. For instance, if taxpayers fail to file a return or file a false return, the IRS can assess their tax for that tax year whenever it wants.
- The IRS has 10 years from the time it has assessed taxes to collect unpaid taxes from taxpayers. This period is non-extendable unless taxpayers agree to pay their tax debts in installments. The government can, however, suspend these ten years and reactivate them later if it cannot collect taxes due to situations such as bankruptcy.
- If taxpayers believe they have overpaid their taxes, they can file a refund claim within three years from the date of filing the original return or two years from the date they paid their taxes.
- If the IRS sends a statutory notice of deficiency, it must include the deadline for when taxpayers can file a petition with the court to challenge the proposed amount. Taxpayers must file their petition within 90 days after receiving the statutory notice.
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Right to Finality for Taxpayers in the Process of an Audit
Taxpayers have the right to know:
- The maximum amount of time they have to challenge the government’s position.
- The maximum amount of time the government has to collect a tax debt or audit a tax year
- When the IRS has completed an audit.
The IRS is committed to protecting taxpayers’ rights and does not tolerate discrimination based on color, age, disability, reprisal, race, national origin, sex, english proficiency, religion, or sexual orientation. If taxpayers feel that they are not able to solve their tax issues with the IRS, they can always connect with tax attorneys at the Law Offices of Nick Nemeth for experienced professional help. To discuss your case and learn how we can help, call (972) 627-4580 or fill our contact form for a free consultation. We have a team of highly knowledgeable and experienced IRS tax law professionals who can help you overcome any IRS tax problems.