TABOR is a US law that provides taxpayers with specific legal aspects when dealing with the IRS, including the assistance of a taxpayer advocate, the right to temporarily halt an audit, and the ability to set up a payment plan. The Federal Taxpayer Bill of Rights establishes a taxpayer advocate position and allows for Tax Assistance Orders. IRS publication 1 explains the protections and additional rights under TABOR, and taxpayers can obtain a copy from the IRS website.
The Taxpayer Bill of Rights (TABOR) is a US law that provides taxpayers with specific legal aspects when it comes to the Internal Revenue Service (IRS). These rights include the assistance of a taxpayer advocate, a requirement for the IRS to notify taxpayers of its intention to change an installment agreement, the right to temporarily halt an IRS audit, and various others. Some US states have also enacted taxpayer rights laws that provide similar protections to people dealing with state tax collection agencies.
The Federal Taxpayer Bill of Rights establishes a position called a taxpayer advocate. A person can request assistance from a taxpayer’s advocate through the Taxpayer Advocate Service (TAS). CAS is an independent office and provides assistance to individual taxpayers and corporate entities dealing with the IRS. The Taxpayer’s Bill of Rights authorized a taxpayer’s attorney to issue Tax Assistance Orders (TAOs). A taxpayer attorney can issue a TAO to prevent the IRS from taking certain types of action against a taxpayer such as forfeiture of property and in some cases a restitution order of already seized property.
A taxpayer who cannot afford to pay taxes all at once can set up a payment plan through an installment agreement. The IRS must consider any reasonable installment arrangements proposed. The IRS, however, is not required to accept the proposal. If an installment payment arrangement is established, the taxpayer’s Bill of Rights requires the IRS to give the taxpayer 30 days notice of any intention to change or terminate the agreement. The IRS must provide an explanation to the taxpayer of why it intends to take such 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 the assistance of an attorney, certified public accountant, or registered agent. A registered agent is a person authorized to represent people before the IRS. The Taxpayer’s Bill of Rights also prohibits the IRS from requesting meetings at a person’s place of business. The IRS, however, may visit a taxpayer’s business to determine whether certain items of equipment or inventory exist.
IRS publication 1, Your Rights as a Taxpayer, contains an explanation of the protections and additional rights under the Taxpayer Bill of Rights. The IRS is required to provide this publication to taxpayers when it first notifies a taxpayer of outstanding taxes. The IRS, however, is not required to provide the disclosure 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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