Know Your Taxpayer Rights con't...

The IRS must provide a clear explanations in any tax notice or mail inquiries and provide any additional information if it is requested.

Basically, any notice of a tax deficiency or tax collection action must include a simple non-technical statement of your taxpayer rights during an IRS tax audit. Additionally, it should contain an explanation of the IRS collection and tax appeals procedures within the IRS itself and the tax courts.

The IRS must collect taxes fairly.

Because of past stories and practices, everyone fears that his or her home will be impounded and sold to collect a tax debt. But in reality, this rarely happens. If an IRS agent threatens to seize your property or take some other tax collection measure that could cause you a significant hardship, you should apply for a Taxpayer Assistance Order.

You would file an IRS Tax Form 911 at an IRS Problem Resolution Office in the IRS District Office where you live. The good news is that all collection efforts are suspended while your request is being reviewed.

The IRS MUST agree to a three (3) year installment payment schedule if you owe $10,000 or less, not including interest and tax penalties.

If you fall within the amount guidelines, this maybe a good deal, but could be expensive. It’s like a 3-year car loan and it isn’t going to be cheap if you’re at the high end of the range. Also the IRS will not be forgiving if you default.

Before a tax lien or tax levy can be issued an IRS supervisors approval must be obtained.

Additionally, before the IRS may enforce a tax lien by levy, a tax notice must be given to the taxpayer within five (5) business days after the filing of a tax lien. This is the NOTICE of LIEN. That tax notice must indicate the amount of tax owed as well as an explanation of any action the IRS will take, and the rights of the taxpayers to have a hearing within thirty (30) days before an IRS appeals officer. The tax notice sent MUST explain the IRS tax levy procedures; your right to have an IRS administrative appeal; and the IRS appeal procedures. It must also state the alternatives to the proposed tax levy such as an installment agreement as well as the tax rules allowing you to obtain a release of the tax lien.

continued...

<< Previous    1  [2]  3  4    Next >>