How to Calculate Your Eligibility for an IRS Tax Settlement

Dealing with the IRS can be overwhelming and stressful, but it’s important to know your rights. The set up tax payment planhas broad powers to collect taxes owed, and they can be very aggressive in their collection actions. But, as a taxpayer, you have rights too and it is important to understand them. In this post, we will discuss your rights when dealing with the IRS for a tax settlement.

1. The right to representation: As a taxpayer, you have the right to be represented by an attorney, certified public accountant, or enrolled agent. This representative can speak to the IRS on your behalf and handle communications. They can also represent you in audits, appeals, and collection due process hearings. It’s important to note that not all representatives have the same level of authority. For example, an enrolled agent has unlimited practice rights, whereas a CPA may only have limited representation rights.

2. The right to appeal: If you disagree with an IRS decision, you have the right to appeal the decision. There are several levels of appeals within the IRS and your representative can help you navigate this process. It’s important to note that the appeals division is separate from the collection division. This means that even if you are in the process of resolving your tax debt, you can still file an appeal.

3. The right to pay only what you owe: It’s important to recognize that the IRS can assess additional taxes, penalties, and interest. However, you have the right to only pay what you owe. This means that if you believe the IRS made a mistake in assessing your tax debt, you can challenge it. If you can provide evidence to support your claim, the IRS may adjust your tax debt.

4. The right to a fair and just tax system: As taxpayers, we expect the IRS to operate fairly and with integrity. If you believe the IRS has mistreated you, you have the right to file a complaint. The IRS has a longstanding commitment to treating taxpayers with dignity, respect, and fairness. But, it’s important to know that you have recourse if something does go wrong.

5. The right to confidentiality: Any communication you have with the IRS is confidential. This means that the IRS cannot disclose your information to third parties unless authorized by law. Additionally, the IRS cannot threaten you or disclose your information to third parties for the purpose of harassment.

Dealing with the IRS can be stressful, but knowing your rights can help ease the burden. As a taxpayer, you have the right to representation, the right to appeal decisions, the right to pay only what you owe, the right to a fair and just tax system, and the right to confidentiality. If you need assistance dealing with the IRS, consider hiring an experienced tax professional who can help you navigate the complex tax system and protect your rights. Knowing what your rights are can help ensure that you are treated fairly and justly.