Understand Your Taxpayer Bill of Rights – Part 2

This month we continue with the final 5 Taxpayer Bill of Rights as well as some useful information that can assist you with year-end planning.

  1. The Right to Finality.  You have the right to know the maximum amount of time you 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.  You have the right to know when the IRS concludes an audit.
  2. The Right to Privacy.  You 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.  You should expect such proceedings to respect all due process rights, including search and seizure protections.  The IRS will provide, where allocable, a collection due process hearing.
  3. The Right to Confidentiality.  You have the right to expect that your tax information will remain confidential.  The IRS will not disclose information unless authorized by you or by law.  You should expect the IRS to take appropriate action against employees, return preparers and others who wrongfully use or disclose your return information.
  4. The Right to Retain Representation.  You have the right to retain an authorized representative of your choice to represent you in your dealings with the IRS.  You have the right to seek assistance from a Low Income Taxpayer Clinic if you cannot afford representation.
  5. The Right to a Fair and Just Tax System.  You have the right to expect fairness from the tax system.  This includes considering all facts and circumstances that might affect your underlying liabilities, ability to pay or ability to provide information timely.  You have the right to receive assistance from the Taxpayer Advocate Service if you are experiencing financial difficulty or if the IRS has not resolved your tax issues properly and timely through its normal channels.


We include another reminder about taking your Required Minimum Distribution.  Avoid the 50% penalty by scheduling the distribution before the end of the year.

As another year passes, you may want to remove old files from storage.  We encourage you to keep tax returns forever and supporting documents for the returns for 6 years.  Keep all important documents such as house purchase and sale documents, major improvements or purchases and refinance documents forever.

As we approach the end of another calendar year, we want to wish you and your family a Happy Holiday season and a happy and prosperous New Year.

Our January newsletter will contain updates on tax news for 2017 and the future.