How the IRS Taxpayer Bill of Rights Works

Taxpayers have fundamental rights under the law. The “Taxpayer Bill of Rights” presents these rights in 10 categories. This helps taxpayers when they interact with the IRS.

Publication 1, Your Rights as a Taxpayer, highlights a list of taxpayer rights and the agency’s obligations to protect them. Here is a wrap-up of the Taxpayer Bill of Rights:

1. The Right to Be Informed.

Taxpayers have the right to know what is required 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 know about IRS decisions affecting their accounts and 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 and the freedom to speak to a supervisor about inadequate service. Communications from the IRS should be clear and easy to understand.

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. They should also expect the IRS to apply all tax payments properly.

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

Taxpayers have the right to object to formal IRS actions or proposed actions and provide justification with additional documentation. They should expect that the IRS will consider their timely objections and documentation promptly and fairly. If the IRS does not agree with their position, they should expect a response.

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 certain penalties. Taxpayers have the right to receive a written response regarding a decision from the Office of Appeals. 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 an IRS position and 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 concludes 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. They should expect such proceedings to respect all due process rights, including search and seizure protections. The IRS will provide, where applicable, a collection due process hearing.

8. The Right to Confidentiality.

Taxpayers have the right to expect that their tax information will remain confidential. The IRS will not disclose information unless authorized by the taxpayer or by law. Taxpayers should expect the IRS to take appropriate action against employees, return preparers and others who wrongfully use or disclose their 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 fairness from the tax system. This includes considering all 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 IRS will include Publication 1 when sending a notice to taxpayers on a range of issues, such as an audit or collection matter. IRS offices display the rights for taxpayers and employees to see.

Publication 1 is available in  English, Chinese, Korean, Russian, Spanish and Vietnamese.

All taxpayers should keep a copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return.

(This information is directly from IRS Special Edition Tax Tip 2017-01)

Balanced Book Taxes Tax Tip #1 for 2017

Balanced Book Taxes
62 Tax Tips 2017 (#1)

Filing season for Tax Year 2016 begins on January 23, 2017

(Business tax returns January 6th)


Tax season ends on April 18, 2017 due to the weekend and Emancipation Day

(Partnership returns due March 15th)
(Estimated payment due on January 15th)
Employers are now required to file copies of form W-2 to the Social
Security Administration and employees by January 31st

(File form 1099 by January 31st )

Refunds in 2017

Choosing e-file and direct deposit for refunds remains the fastest and safest way to file an accurate income tax return and receive a refund.

The IRS still anticipates issuing more than nine out of 10 refunds in less than 21 days, but there are some important factors to keep in mind for taxpayers.

Beginning in 2017, a new law requires the IRS to hold refunds on tax returns claiming the Earned Income Tax Credit or the Additional Child Tax Credit until mid-February. Under the change required by Congress in the Protecting Americans from Tax Hikes (PATH) Act, the IRS must hold the entire refund — even the portion not associated with the EITC and ACTC — until at leastFeb. 15. This change helps ensure that taxpayers get the refund they are owed by giving the IRS more time to help detect and prevent fraud.

As in past years, the IRS will begin accepting and processing tax returns once the filing season begins. All taxpayers should file as usual, and tax return preparers should also submit returns as they normally do – including returns claiming EITC and ACTC.

The IRS will begin releasing EITC and ACTC refunds starting Feb. 15. However, the IRS cautions taxpayers that these refunds likely won’t arrive in bank account s or on debit cards until the week of Feb. 27 (assuming there are no processing issues with the tax return and the taxpayer chose direct deposit). This additional period is due to several factors, including banking and financial systems needing time to process deposits.

After refunds leave the IRS, it takes additional time for them to be processed and for financial institutions to accept and deposit the refunds to bank accounts and products. The IRS reminds taxpayers many financial institutions do not process payments on weekends or holidays, which can affect when refunds reach taxpayers. For EITC and ACTC filers, the three-day holiday weekend involving President’s Day may affect their refund timing.

Don’t Lose Your Refund by Not Filing

Information Directly from IRS

Up to a million people a year may lose out on a tax refund simply because they did not file a federal income tax return.

There is no penalty for failure to file, if you are due a refund. But, if you wait to file a return or otherwise claim a refund, you risk losing a refund altogether. An original return claiming a refund must be filed within three years of its due date for a refund to be allowed in most instances.

After the expiration of the three-year window, the refund statute prevents the issuance of a refund check and the application of any credits, including overpayments of estimated or withholding taxes, to other tax years that are underpaid.

Current and prior year tax forms and instructions are available on the IRS.gov Forms and Publications page. Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 should request copies from their employer, bank or other payer.

Taxpayers who are unable to get missing forms from their employer or other payer should go to IRS.gov and use the  “Get a Transcript” tool to order a Wage and Income transcript. Taxpayers can also file Form 4506-T to request a transcript of their tax return. Taxpayers can use the information on the transcript to file their return.

Page Last Reviewed or Updated: 21-Dec-2016

Important Information for Tax Year 2016

Information Directly from IRS

ITIN

What You Need to Know

  • Processing delays are likely for filers with expired Individual Tax Identification Numbers.
  • There are two reasons an ITIN would expire December 31, 2016:
    • If you have not used your ITIN on a U.S. tax return at least once for tax years 2013, 2014 or 2015 or
    • If your ITIN has the middle digits 78 or 79 (9NN-78-NNNN or 9NN-79-NNNN)

What You Need to Do

  • You can renew your ITIN now if it expired and you plan to use it on a U.S. tax return.
  • No action is needed by expired ITIN holders who don’t need to file a tax return next year.
  • There are new documentation requirements when applying for or renewing an ITIN for certain dependents.
  • To avoid delays, ensure accurate W-7 and valid ID documents are submitted.
  • Find more information at IRS.gov/ITIN.

 

 

Refunds

What You Need to Know

  • Expecting a refund? Some refunds must be held until February 15.
    1. According to a new tax law change, the IRS cannot issue refunds before February 15 for tax returns that claim the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC).
    2. This applies to the entire refund, even the portion not associated with these credits.
  • The IRS will begin to release EITC/ACTC refunds starting February 15. However, the IRS cautions taxpayers that these refunds likely won’t arrive in bank accounts until the week of February 27. Read more about refund timing for early EITC/ACTC filers.

What You Need to Do

  • Be careful not to count on getting a refund by a certain date, especially when making major purchases or paying other financial obligations.
  • You don’t need to wait until February 15 to file your tax return. While the IRS must hold the refund until February 15, it will begin taking the steps it normally does to process your tax return once the filing season starts.
  • File a complete and accurate return and include all known refundable credits with your original return.
  • Check Where’s My Refund on IRS.gov or the IRS mobile app, IRS2Go, after February 15 for your personalized refund status.

 

Adjusted Gross Income (AGI)

What You Need to Know

  • Some taxpayers may need to know their 2015 Adjusted Gross Income, or AGI, to e-file their 2016 tax return.
  • When filing electronically, you must sign and validate your electronic tax return by entering your prior-year AGI or your prior-year Self-Select PIN. Using an electronic filing PIN is no longer an option.

What You Need to Do

  • If you have a copy of your 2015 federal income tax return, your AGI is on line 37 of the Form 1040; line 21 on the Form 1040-A or line 4 on the Form 1040-EZ.x
  • Learn more about how to verify your identity and electronically sign your tax return at Validating Your Electronically Filed Tax Return.

 

Protecting Taxpayers

What You Need to Know

  • To better protect taxpayers, the IRS recently upgraded its identity verification process for certain online self-help tools. The purpose is to prevent taxpayer impersonations and account takeovers by identity thieves.

What You Need to Do

  • Because the Secure Access platform is more rigorous, it helps if you prepare to register in advance.
  • The new authentication is currently being applied to Get Transcript Online.

 

IRS Help

What You Need to Know

  • All IRS Taxpayer Assistance Centers (TAC) now operate by appointment only.
  • Many questions can be resolved on the IRS.gov website or by consulting with a tax professional without visiting a TAC.

What You Need to Do

  • Start with IRS.gov for help including tools, filing options and other services and resources.
  • If you believe your tax issue cannot be handled online or by phone, always check IRS.gov for days and hours of service as well as services offered at the IRS TAC location you plan to visit. For most services you must call to make an appointment.