Dealing with the IRS can be a stressful experience, especially when you owe back taxes. However, as a taxpayer, you have certain rights that can help ensure fair treatment throughout the settlement process. In this post, we will explore some of the common rights you have when negotiating a tax settlement with the settle with irs.
1. Right to Representation
One of the most critical rights you have when dealing with the IRS is the right to representation. You can hire a tax attorney or a certified public accountant to represent you before the IRS. They can communicate with the IRS on your behalf, attend meetings, and negotiate a settlement amount that fits your budget. You have the right to choose this representative, and they can give you valuable guidance for your particular case.
2. Right to Confidentiality
The IRS is bound by law to keep your information confidential. This means that they cannot share your tax information with anyone else without your written permission. This confidentiality includes the type of settlement you are negotiating and the amount of money you owe. Your rights to confidentiality also extend to any discussions you have with your representative regarding your case.
3. Right to Protest
If you disagree with the IRS’s proposed settlement, you have the right to file a formal protest. This protest must be done in writing and filed before the deadline. Your protest should outline why you disagree and include all supporting documentation. After filing your protest, you will have the opportunity to meet with an IRS Appeals Officer, who will review your case. This meeting aims to resolve the issue and reach a settlement that works for both parties.
4. Right to Appeal
If you are not satisfied with the outcome of the appeals process, you have the right to appeal to an independent court. The Taxpayer Advocate Service examines these appeals and acts as a liaison between taxpayers and the IRS. The Taxpayer Advocate Service can resolve disputes, reduce fines and penalties, and delay or stop collection activities temporarily. If your case hasn’t reached a resolution, this service may be the last resort to settle your case.
5. Right to Pay in Installments
If you owe the IRS money but cannot pay the full amount, you have the right to request a payment plan. You can negotiate the amount of your installment payments and the duration of the repayment. By requesting an installment plan, you can avoid a property lien or wage garnishment. However, keep in mind that the IRS charges interest on the amount you owe, so it is essential to pay off as soon as possible.
As a taxpayer, it’s crucial to know your rights when dealing with the IRS. These rights can help ensure that you are treated fairly and get the best settlement possible. Remember to exercise these rights when the occasion arises and always seek professional representation when you need it. By understanding these rights, you can go into the negotiation process with confidence, knowing that you have a set of protections to secure your interests.