The Internal Revenue Service, USA  on 10th June 2014  unveiled a ‘Taxpayers’ Bill of Rights’ that groups together the existing rights of taxpayers of America into  10 broad categories, which are as follows :-

The Taxpayer Bill of Rights

This publication explains your rights as a taxpayer in America .

1. The Right to Be Informed: 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: 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: 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: 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: 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: 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: 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: 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.

After Reading the above thought which comes to our mind is that why Indian taxpayer do not have such rights in India? Why our system cannot provide such rights to taxpayers? Why we cannot define the rights of taxpayers?

Source-http://www.irs.gov/

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0 responses to “Your Rights as a Taxpayer in America”

  1. CA, VALLABHDAS RAICHURA says:

    To day IRS has announced the useful information about Taxpayer Information Service in addition to Taxpayer Bill of Rights which are eminently dealt with in the above article dated August 8, 2014.

    The following is germane to the said article and may prove to be of use for those who are concerned with the U.S. taxation.

    It reads as under:

    Ten Things to Know About the Taxpayer Advocate Service

    1. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS and is your voice at the IRS.

    2. We help taxpayers whose problems are causing financial difficulty. This includes businesses as well as individuals.

    3. You may be eligible for our help if you’ve tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn’t working as it should.

    4. The IRS has adopted a Taxpayer Bill of Rights that includes 10 fundamental rights that every taxpayer has when interacting with the IRS:

    Taxpayer Bill of Rights

    The Right to Be Informed.
    The Right to Quality Service.
    The Right to Pay No More than the Correct Amount of Tax.
    The Right to Challenge the IRS’s Position and Be Heard.
    The Right to Appeal an IRS Decision in an Independent Forum.
    The Right to Finality.
    The Right to Privacy.
    The Right to Confidentiality.
    The Right to Retain Representation.
    The Right to a Fair and Just Tax System.
    Our TAS Tax Toolkit at TaxpayerAdvocate.irs.gov can help you understand these rights and what they mean for you. The toolkit also has examples that show how the Taxpayer Bill of Rights can apply in specific situations.

    5. If you qualify for our help, you’ll be assigned to one advocate who will be with you at every turn. And our service is always free.

    6. We have at least one local taxpayer advocate office in every state, the District of Columbia, and Puerto Rico. You can call your advocate, whose number is in your local directory, in Pub. 1546, Taxpayer Advocate Service — Your Voice at the IRS, and on our website at irs.gov/advocate. You can also call us toll-free at
    877-777-4778.

    7. The TAS Tax Toolkit at TaxpayerAdvocate.irs.gov has basic tax information, details about tax credits (for individuals and businesses), and much more.

    8. TAS also handles large-scale or systemic problems that affect many taxpayers. If you know of one of these broad issues, please report it to us at irs.gov/sams.

    9. You can get updates at

    facebook.com/YourVoiceAtIRS
    Twitter.com/YourVoiceatIRS
    youtube.com/TASNTA
    10. TAS is here to help you, because when you’re dealing with a tax problem, the worst thing you can do is to do nothing at all.

    WIth best of wishes,

    CA.Vallabhdas Raichura

    North Potomac
    Maryland:
    (U.S.A.)
    August 8, 2014.
    – See more at: http://taxguru.in/income-tax/rights-taxpayer-america.html#comments

  2. CA, VALLABHDAS RAICHURA says:

    I have perused the missive by CA. Shree Deepak Soni.

    The tax regime in India is not as bleak as is portrayed by him. My practice as a CA in India for over half a century has convinced me that deep-studied and honest work has its own place to reward one a bounty. What was the position of corruption in the the first 100 years in the U.S.soon after its independence is beyond our comprehension.Terrific. While in that respect we may have some black holes, yet there are safeguards and remedies available in the statutes as well as disciplinary jurisdictions of various professional bodies that squarely deal with such malpractices and thwart them a good deal. If one peruses the Taxguru portal for past 2 months there are several cases reported by it where the officials in the revenue branches are caught red-handed involved in corrupt practices and severely punished by our law and the courts.

    After all one or a few swallows do not make a summer!!

    We should be proud that despite all the handicaps we have upheld the rule of law and shining examples are Hon.’ble Income-tax and other Tribunals, High Courts and the Supreme Court.

    With best wishes,

    CA.Vallabhdas Raichura
    North Potomac
    Maryland:
    (U.S.A.)
    August 8, 2014.
    – See more at: http://taxguru.in/income-tax/rights-taxpayer-america.html#comments

  3. CA Deepak Soni says:

    The document specifying the rights of the citizens is not apiece of paper but it is a law which is being respected,acted upon and implemented by the officers in USA.The position is totally contrary in India.Such documents are always decorative pieces to be hanged on the walls and merely condemned by the Govt officers as piece of a wastage paper.Should you dare to get it acted upon by an officer,you shall prove yourself a laughing stock not only by the powerful and corrupt officers but also by your colleagues who will advise you to be practical.And still should you desire the officer to act upon it you shall be noted and remembered by the powerful and united lobby of the officers and you shall be taught a lesson in the name of seeking the details and in the name performing a duty under the law by the officers.The officers without any fear and with full confidence of impunity ignore the decisions of the Supreme Court and the High Courts.THEIR IS NO FUTURE FOR THIS COUNTRY AND IT NOT FIT FOR HONEST AND HARD WORKING PEOPLE.IF YOU CAN PLAY TRICKS,IF YOU CAN CREATE TECHNICAL PROBLEMS FOR SETTLING ON RECEIPT OF GRATIFICATION AND IF YOU CAN DERAIL THE PROCESS OF GROWTH IN THE NAMES OF FORMS ,RULES ,CIRCULARS ETC YOU CAN LIVE HAPPILY IN INDIA .MAY GOD SAVE THIS COUNTRY.

  4. MANDEEP SINGH says:

    India need to follow foreign tax laws. In canada no statutory provisions regarding compulsory audit from any professional as like in india. compulsory audit provisions u/s 44ab since 1984 without evaluate its output.
    These provisions are strict hurdle from voluntarily compliance from assessees as well strict hurdle to widen genuine tax base. these provisions are unnecessary financial burden on tax payer.

  5. CA, VALLABHDAS RAICHURA says:

    Many thanks for this excellent article on the subject of “Your Rights as a Taxpayer in America”.

    One aspect, however, needs to be clarified as to why there are no

    a. Inconme-tax Act

    b. Income-tax Rules
    in America?

    Only thing you have to depend is:IRS Publication for each calendar year but nothing of what the Congress and Senate which enacted them or one of the two.

    My efforts with various CPAs,Tax Prepares and Institutes in this behalf were in vain.

    Even when IRS was contacted their stock reply is “Why do you need it? You can see the Publication for this purpose.”

    Any input in this regard will be highly appreciated.

    CA.Vallabhdas Raichura

    North Potomac
    Maryland:
    (U.S.A.)
    August 7, 2014.

  6. CA, VALLABHDAS RAICHURA says:

    Many thanks for this excellent article on the subject of “Your Rights as a Taxpayer in America”.

    One aspect, however, needs to be clarified as to why there are no

    a. Inconme-tax Act

    b. Income-tax Rules
    in America?

    Only thing you have to depend is:IRS Publication for each calendar year but nothing of what the Congress and Senate which enacted them or one of the two.

    My efforts with various CPAs,Tax Prepares and Institutes in this behalf were in vain.

    Even when IRS was contacted their stock reply is “Why do you need it? You can see the Publication for this purpose.”

    Any input in this regard will be highly appreciated.

    CA.Vallabhdas Raichura

    North Potomac
    Maryland:
    (U.S.A.)

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