Dealing with the Internal Revenue Service or the IRS is never an easy task. Whether you are an individual taxpayer or a business owner, receiving a notice from the IRS can be daunting. Facing an IRS investigation or audit can be stressful, but the good news is that you have rights that protect you during an IRS audit or investigation for a tax settlement. This blog post will help you understand your rights when you are dealing with the irs debt settlement.
1. Right to Representation
As a taxpayer, you have the right to have a legal representative or a tax professional represent you during an audit. This includes the right to have an attorney, certified public accountant, or enrolled agent to act as your representative. A representative can help you understand your rights, answer the IRS’s questions, and provide you with support throughout an audit or investigation.
2. Right to Appeal
If you disagree with the IRS’s findings or the proposed tax settlement, you have the right to appeal the decision. You can request an appeal with the Office of Appeals within the IRS. This office is independent of the IRS and can help you resolve your case through mediation or settlement.
3. Right to Privacy
The IRS is required to follow strict rules when it comes to your personal information and privacy. If the IRS needs to contact third parties such as banks or employers, they must follow certain legal procedures. You have the right to know about any disclosures regarding your personal information and the right to refuse to disclose any sensitive information.
4. Right to Finality
You have the right to know when an audit or an investigation is complete. This is known as the right to finality. The IRS cannot continue to question you or issue additional tax assessments after they have completed an audit or investigation. If the IRS does continue to question you or initiate additional actions, you have the right to appeal or file a complaint with the Taxpayer Advocate Service.
5. Right to Payment Plans
If you owe back taxes, you have the right to request a payment plan with the IRS. The IRS can help you set up affordable payment plans that will allow you to pay off your debt over time. This can help you avoid the stress of having to pay a large sum of money all at once, and may help you avoid further collection actions from the IRS.
Dealing with the IRS can be intimidating, but it’s important to remember that as a taxpayer, you do have rights. Knowing your rights can help you stay calm and confident during an audit or investigation. If you are facing a tax settlement with the IRS, it’s best to consult with a tax professional to help you understand your rights and navigate the tax settlement process. So, don’t be afraid to ask for help when you need it and always remember that the IRS is required to respect your privacy and follow established legal procedures.