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