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Income Tax

Congress Approves Taxpayer Bill of Rights

With considerably less fanfare than the Bill of Rights ratified as the first amendments to the U.S. Constitution, the 114th Congress quietly approved the “Taxpayer Bill of Rights” as part of the Protecting Americans from Tax Hikes (PATH) Act of 2015.

Mar. 25, 2016

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With considerably less fanfare than the Bill of Rights ratified as the first amendments to the U.S. Constitution, the 114th Congress quietly approved the “Taxpayer Bill of Rights” as part of the Protecting Americans from Tax Hikes (PATH) Act of 2015. Nevertheless, codification of this collection of protections, which has been kicking around for several years and eventually embraced by the IRS, could be significant.

The ten fundamental rights included in the Taxpayer Bill of Rights, modeled in the format of the original Bill of Rights, are as follows:

  1. The Right to Be Informed:

    2. Taxpayers have the right to know what they need to do to comply with the tax laws. They are entitled to clear explanations of the laws and IRS procedures in all tax forms, instructions, publications, notices, and correspondence. They have the right to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes.

  2. The Right to Quality Service:

    3. Taxpayers have the right to receive prompt, courteous, and professional assistance in their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS, and to speak to a supervisor about inadequate service.

  3. The Right to Pay No More than the Correct Amount of Tax:

    4. Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.

  4. The Right to Challenge the IRS’s Position and Be Heard:

    5. Taxpayers have the right to raise objections and provide additional documentation in response to formal IRS actions or proposed actions, to expect that the IRS will consider their timely objections and documentation promptly and fairly, and to receive a response if the IRS does not agree with their position.

  5. The Right to Appeal an IRS Decision in an Independent Forum:

    6. Taxpayers are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties, and have the right to receive a written response regarding the Office of Appeals’ decision. Taxpayers generally have the right to take their cases to court.

  6. The Right to Finality:

    7. Taxpayers have the right to know the maximum amount of time they have to challenge the IRS’s position as well as the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt. Taxpayers have the right to know when the IRS has finished an audit.

  7. The Right to Privacy:

    8. Taxpayers have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary, and will respect all due process rights, including search and seizure protections and will provide, where applicable, a collection due process hearing.

  8. The Right to Confidentiality:

    Taxpayers have the right to expect that any information they provide to the IRS will not be disclosed unless authorized by the taxpayer or by law. Taxpayers have the right to expect appropriate action will be taken against employees, return preparers, and others who wrongfully use or disclose taxpayer return information.

  9. The Right to Retain Representation:

    10. Taxpayers have the right to retain an authorized representative of their choice to represent them in their dealings with the IRS. Taxpayers have the right to seek assistance from a Low Income Taxpayer Clinic if they cannot afford representation.

  10. The Right to a Fair and Just Tax System:

Taxpayers have the right to expect the tax system to consider facts and circumstances that might affect their underlying liabilities, ability to pay, or ability to provide information timely. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through its normal channels.

The new Taxpayer Bill of Rights expands upon, incorporates and clarifies certain taxpayer protections already covered in the Internal Revenue Code. It is expected that this section of the PATH Act will provide taxpayers with a better understanding of these fundamental rights.

National Taxpayer Advocate (NTA) Nina E. Olson, a watchdog for the public, has been a long-time proponent of such a measure. “Taxpayer rights are central to voluntary compliance,” Olson has said in the past. “If taxpayers believe they are treated, or can be treated, in an arbitrary and capricious manner, they will mistrust the tax system and be less likely to comply with the laws voluntarily. If taxpayers have confidence in the fairness and integrity of the system, they will be more likely to comply.”

For more information, visit and https://www.irs.gov/Taxpayer-Bill-of-Rights and read the individual Fact Sheets for the Taxpayer Bill of Rights. Once you completely understand all the rights of taxpayers, you can define the role you will play in your clients’ dealings with the IRS and related matters, as well as imparting your knowledge to them.