The Taxpayer Bill of Rights (TABOR) is a US law that provides taxpayers with legal protections when dealing with the IRS, including assistance from a taxpayer advocate, the right to temporarily stop an audit, and notice of any attempt to modify an installment agreement. TABOR also establishes the position of a taxpayer advocate who can issue Taxpayer Assistance Orders (TAOs) to prevent the IRS from taking certain actions against a taxpayer. IRS Publication 1 explains additional rights and protections under TABOR.
The Taxpayer Bill of Rights (TABOR) is a United States law that provides taxpayers with specific legalities when dealing with the Internal Revenue Service (IRS). These rights include assistance from a taxpayer advocate, a requirement that the IRS notify taxpayers of any attempt to modify an installment agreement, the right to temporarily stop an IRS audit, and several others. Some US states have also enacted taxpayers bill of rights statutes that provide similar protections to people who work with state tax collection agencies.
The federal Taxpayer Bill of Rights establishes a position called a taxpayer advocate. A person can request taxpayer advocate assistance through the Taxpayer Advocate Service (TAS). TAS is an independent office and provides assistance to individual taxpayers and business entities dealing with the IRS. The Taxpayer Bill of Rights empowers a taxpayer advocate to issue Taxpayer Assistance Orders (TAOs). A taxpayer advocate can issue a TAO to prevent the IRS from taking certain types of actions against a taxpayer, such as forfeiture of property and, in some cases, an order to return property already seized.
A taxpayer who cannot pay taxes in a lump sum can set up a payment plan through an installment agreement. The IRS must consider any proposed reasonable payment arrangement. However, the IRS is not required to accept the proposal. If an installment agreement is established, the Taxpayer Bill of Rights requires the IRS to provide the taxpayer 30 days’ notice of any attempt to modify or terminate the agreement. The IRS must provide an explanation to the taxpayer as to why it intends to take such an action, and a taxpayer has the right to request an independent review of the action.
TABOR allows a taxpayer to temporarily stop an IRS audit or any other meeting with an IRS official to obtain professional advice. The taxpayer may seek assistance from an attorney, certified public accountant, or enrolled agent. An enrolled agent is a person licensed to represent people before the IRS. The Taxpayer Bill of Rights also prohibits the IRS from requiring meetings at a person’s place of business. However, the IRS may visit a taxpayer’s business to determine if certain items of equipment or inventory are available.
IRS Publication 1, Your Rights as a Taxpayer, contains an explanation of additional rights and protections under the Taxpayer Bill of Rights. The IRS is required to provide this publication to taxpayers when it first notifies a taxpayer of delinquent taxes. However, the IRS is not required to provide the publication to taxpayers when it initiates an audit process. Taxpayers can obtain a copy of IRS Publication 1 from the IRS website.
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