Know Your Taxpayer Rights con't...

If the IRS owes you money, your rights include a command for the IRS to issue a tax refund of overpaid tax.

If you have entered into any agreement with the IRS, they must give you a 30-day notice before altering, modifying or terminating an installment payment agreement.

You may recover reasonable legal costs incurred during some administrative proceedings if you prevail in court against the IRS. Good luck on that one!

You have a right to Relief From Certain Penalties and Interest.

The IRS will waive penalties when allowed by law if you can show you acted reasonably and in good faith or relied on the incorrect advice of an IRS employee. They will waive interest that is the result of certain errors or delays caused by an IRS employee.

Potential Third Party Contacts. Generally, the IRS will deal directly with you or your duly authorized representative. However, they will sometimes talk with other persons if they need information that you have been unable to provide, or to verify information they have received. If they do contact other persons, such as a neighbor, bank, employer, or employees, they will generally need to tell them limited information, such as your name.

The law prohibits the IRS from disclosing any more information than is necessary to obtain or verify the information they are seeking. The IRS’s need to contact other persons may continue as long as there is activity in your case. If they do contact other persons, you have a right to request a list of those contacted.

You have rights when you interact with the IRS too:

Representation - You may either represent yourself, or with proper written authorization, have someone else represent you in your place. Your representative must be a person allowed to practice before the IRS, such as an attorney, certified public accountant, or enrolled agent. You do not have to attend the IRS tax examination unless the IRS issues you an administrative summons. If you are in an interview and ask to consult such a person, then the IRS must stop and reschedule the interview in most cases. You can have someone accompany you at an interview.

Recording conferences with the IRS - You may make sound recordings of any examination, appeal, or other meeting at your own expense, but you must give the IRS 10 days notice; likewise, the IRS may record a conference if you are informed 10 days in advance.

Interruption of an IRS tax audit - You can suspend an IRS tax audit in progress at any time to consult with your professional advisor.

Guide to Keeping Tax Records