Tax issues are a major headache for many people, especially when dealing with the Internal Revenue Service (IRS). The IRS has the power to take substantial measures to collect unpaid taxes and back taxes, including liens, levies, and garnishments. Therefore, it’s essential to understand your rights when dealing with the IRS for a tax settlement. In this blog post, we’ll discuss your rights and options when negotiating with the set up payment plan with irs.
1. Right to Representation
At any stage of a tax dispute, a taxpayer has the right to representation. This representation can come from a Certified Public Accountant (CPA) or an Attorney. If you decide to hire a tax professional, ensure that they are licensed, experienced, and knowledgeable in tax law. The representative will provide guidance, insights, and valuable information regarding your rights and options when negotiating a tax settlement.
2. Right to Appeal
At any stage of tax settlement or enforcement proceedings, you have the right to appeal an IRS decision. However, you must appeal timely. In most cases, you’ll have 30 days after receiving a notice of deficiency or an audit report. The IRS Office of Appeals is an independent office, and they offer an informal and impartial forum for resolving disputes.
3. Right to Confidentiality
The IRS is required by law to keep your tax information confidential. They cannot disclose your tax information to any third party without your consent. However, your tax information may be shared within the IRS, like with the Office of Appeals, if needed. But, in general, it’s imperative to keep your tax information private and confidential.
4. Right to Fairness
As a taxpayer, you have the right to expect fairness from IRS agents when negotiating a tax settlement. The IRS cannot discriminate against you based on race, gender, age, religion, or any other factor that is not relevant to tax collection. IRS agents must adhere to certain standards when communicating with taxpayers, and they cannot use threats, insults, or coercion when negotiating a tax settlement.
5. Right to Payment Plan
If you cannot pay your taxes in full, the IRS has several payment options available for taxpayers. The most common option is an Installment Agreement, where you pay your taxes in monthly payments over a period of time. Another option is an Offer in Compromise, where you settle your tax debt for less than you owe. If you’re facing economic hardship, you may qualify for a Currently Not Collectible status, where the IRS suspends collection efforts temporarily.
Dealing with the IRS for a tax settlement can be daunting, but understanding your rights is crucial. As a taxpayer, you have the right to representation, appeal, confidentiality, fairness, and payment options. It’s important to know these rights and to have a knowledgeable tax professional on your side. Remember, the IRS is not your enemy; they are there to collect taxes, but they must do so fairly and within the limits of the law. By understanding your rights, you can negotiate a tax settlement that works for you and the IRS.
