Top 10 Taxpayer Bill of Rights: #7: The Right to Privacy

6:16 PM Jamaal Solomon 0 Comments Category :

“No one likes to see a government folder with his name on it.”
― Stephen King, Firestarter

The hard truth is that if you owe the government some money, they will come after you. They have many methods to get your attention or better yet your money. No matter how intimidating they may seem, always remember that you still have rights. However, it is up to know how to protect your rights. In this post, learn your rights to privacy straight from the mouth of the IRS. Don't be shy to seek professional help. You have options no matter what your budget can afford.

A list of your rights as a taxpayer and IRS obligations to protect them can be found in IRS Publication 1, Your Rights as a Taxpayer.

It includes 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.

What you can expect:
  • There are limits on the amount of wages that the IRS can levy (seize) in order to collect tax that you owe. A portion of wages equivalent to the standard deduction combined with any deductions for personal exemptions is protected from levy.
  • The IRS cannot seize certain personal items, such as necessary schoolbooks, clothing, undelivered mail and certain amounts of furniture and household items. Additionally, the IRS cannot seize your personal residence without first getting court approval, and it must show there is no reasonable alternative for collecting the tax debt from you.
  • If you submit an offer to settle your tax debt, and the offer relates only to how much you owe (known as a Doubt as to Liability Offer in Compromise), you do not need to submit any financial documentation.
  • The IRS should not seek intrusive and extraneous information about your lifestyle during an audit if there is no reasonable indication that you have unreported income.
  • During a Collection Due Process hearing, the Office of Appeals must consider whether the IRS’s proposed collection action balances the overall need for efficient collection of taxes with your legitimate concern that the IRS’s collection actions are no more intrusive than necessary.

Until next time…..Jay-Z once said “I move forward – the only direction. Can’t be scared to fail – search and perfection.”

Jamaal Solomon, EA. MST