Posted by Abundant Wealth Planning LLC

Understanding Your Rights as a Taxpayer

Understanding Your Rights as a Taxpayer

Taxes are an integral part of any economy. As a responsible taxpayer, you are supposed to pay your taxes and file your returns on time. While these are important exercises, most people consider this to be a formality or a burden; simply because they don’t understand the intricacies of the process and things related to it.

Did you know that as a taxpayer, you have certain rights?

Paying taxes is not only a duty, it also comes with some benefits and rights that you, as a responsible citizen, can and should exercise. Below are the various rights that you have as a taxpayer:

Right to Information: As a taxpayer, there are many things you should know. From things such as tax laws, slabs, notices, and tax forms to clarification on processes and calculations for filing your returns. You have the right to all such information, so that you can pay your taxes correctly and on time.

Right to Confidentiality: Your tax forms reveal a lot of information about your financial status. While you are being honest with the government, the IRS is also endowed with the responsibility of keeping all your information secure. You have the right to confidentiality, which means that all information provided by you cannot be given out without authorization and needs to be stored in a secure manner.

Right to Privacy: There can be times when the IRS would have questions for you or about the way you have calculated your taxes or the amount that you have paid or the assets that you have declared. In all cases, you have the right to ensure that the boundaries are not crossed. All queries from the IRS have to comply with the law and cannot be overly intrusive. This ensures that there cannot be extreme interrogations or search/seizure orders without the right process being followed.

Right to Fair and Just Tax System: While most people feel that the taxes are a rip-off and the entire system is just designed to suck more money out of the taxpayer’s pocket, you actually have the right to a fair and just tax system. This implies that the tax system will have to consider your case from various perspectives and under various circumstances before taking a decision on whether you need financial assistance or whether your filing is correct or incorrect. This definitely has a lot of complications, but consult your tax filing service provider to know more on how you can exercise this when in need.

Right to Retain Representation: Dealing with the IRS can be taxing, with no pun intended, or is it, for a lot of people. While you might be under a lot of stress, you have the right to retain an authorized representative to help you deal with the IRS. In case you are facing financial troubles, there are provisions made for such instances as well.

Right to Finality: As a taxpayer, you should always know about when the IRS audit happens and when it ends. Your right to finality allows you to know the maximum amount of time that you have in order to respond to an IRS query or challenge the IRS position. At the same time you also have the right to know the maximum amount of time that the IRS would have in order to complete the audit for a particular year or debt collection.

Right to Challenge IRS in an Independent Forum: Nobody wants to challenge the IRS’ decision or its position thinking; after all it is a part of the government which also runs the judicial system, but as a taxpayer, you have the right to challenge the IRS in an independent forum. This also entitles you to receive a response from the IRS when there is a change in their position or in case they decide to continue with the process.

Right to Quality Service: The IRS is not a body formed to only collect taxes, it is one of the channels for the government to help taxpayers learn more about the system and taxes in general. You have the right to receive information about taxes and answers to your questions. All communication has to be professional and courteous, at the same time it has to be easily understandable.

As a taxpayer, all the above mentioned information and rights can help you deal with the IRS and the taxation in a better way. In case you feel that some of these rights are not accessible to you, you can also talk to your tax preparers at ABUNDANT WEALTH PLANNING, LLC. Our knowledgeable and dedicated tax professionals are here to help you.



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