Post Filing Issues
Understanding Your Rights
Taxpayer Bill of Rights III
The IRS Restructuring and Reform Act of 1998,
which was signed into Law on July 22, 1998, contains the Taxpayer
Bill of Rights 3. The Taxpayer Bill of Rights 3 preserves the
balance between safeguarding the rights of the taxpayers and enabling
the Internal Revenue Service to administer the tax laws efficiently,
fairly, and with the least amount of burden to the taxpayer.
Under this bill, taxpayer rights have been expanded in several
areas:
- The burden of proof will shift to the IRS in certain court
proceedings.
- In certain cases, taxpayers may be awarded damages and fees, and get
liens released.
- Penalties will be eased when the IRS exceeds specified time limits
between when a return is filed and when the taxpayer is notified of a tax liability.
- Interested will be eliminated in certain cases involving federally-
declared disaster areas.
- There are new rules for collection action by levy.
- Innocent spouse relief provisions have been strengthened.
- In certain situations, taxpayer-requested installment agreements must
be accepted. Taxpayers will get annual status reports of their installment agreements.
Also, the IRS has revised Publication
1, Your Rights as a Taxpayer,
and Publication
1SP, Derechos del Contribuyente,
to incorporate Taxpayer Bill of Rights 3 in their explanation
of some of the most important rights.
Important References
Publication
1
Your Rights as a Taxpayer
Publication
1SP
Derechos del Contribuyente
Publication
594
The IRS Collection Process
Publication
556
Examination of Returns, Appeal Right, and Claims
Taxpayer Advocate