Last Updated on 05/11/2024 by Christian Collins

Do You Know Your Rights in IRS Negotiations? 

Facing IRS negotiations can be intimidating, but knowing your rights is crucial to navigate the process with confidence. Here, we’ll explore the key rights you possess when dealing with the IRS, ensuring you have the information and leverage to make informed decisions during negotiations. 

Section 1: The Right to Representation 

One of your fundamental rights in IRS negotiations is the right to representation. You have the option to seek professional assistance, and this can greatly benefit your case: 

1. Tax Professionals:

You can hire tax professionals, such as certified public accountants (CPAs), enrolled agents, or tax attorneys, to represent you in negotiations. They can provide expert guidance, handle communication with the IRS, and advocate for your interests. 

2. Collection Due Process (CDP) Hearing:

If you disagree with IRS actions, you may request a CDP hearing. During this process, you have the right to be represented by a tax professional. 

Section 2: The Right to Privacy and Confidentiality 

Your privacy and the confidentiality of your tax information are protected by law. It’s essential to be aware of this right during IRS negotiations: 

1. Privacy Act:

The IRS is bound by the Privacy Act, which restricts the disclosure of your tax information to unauthorized individuals or agencies. 

2. Safeguarding Information:

You have the right to expect that the IRS will safeguard your tax information and only disclose it to authorized parties. 

Section 3: The Right to a Fair and Impartial Process 

When negotiating with the IRS, you are entitled to a fair and impartial process: 

1. Appeals Process:

If you disagree with an IRS decision, you have the right to appeal. The IRS Appeals Office provides an impartial review of your case. 

2. Collection Due Process (CDP) Hearing:

During a CDP hearing, you can present your case before an impartial IRS appeals officer who will consider your arguments. 

Section 4: The Right to Understand IRS Procedures 

Understanding IRS procedures and your rights within those procedures is essential: 

1. Right to Information:

You have the right to request information about IRS procedures, your tax liabilities, and the relief options available to you. 

2. Right to Clear Communication:

You are entitled to clear and concise communication from the IRS, including written explanations of decisions and actions. 

Section 5: The Right to Challenge IRS Determinations 

In IRS negotiations, you have the right to challenge IRS determinations if you disagree with their assessments: 

1. Appeals:

You can appeal IRS decisions, such as denials of relief or assessments of additional tax liabilities. 

2. Collection Due Process (CDP) Hearing:

If you believe that IRS collections actions are unjust, you can request a CDP hearing to challenge those actions. 

Section 6: The Right to Settle Tax Debt 

When negotiating tax debt with the IRS, you have the right to explore settlement options: 

1. Offers in Compromise:

You can propose an Offer in Compromise (OIC) to settle your tax debt for less than the full amount owed. The IRS will consider your ability to pay and other factors when evaluating your OIC. 

2. Installment Agreements:

You have the right to request an Installment Agreement, which allows you to pay your tax debt in manageable monthly installments. 

Section 7: The Right to Temporary Relief 

If you are facing severe financial hardship, you have the right to request temporary relief: 

1. Currently Not Collectible (CNC) Status:

You can request CNC status if paying your tax debt would cause extreme financial hardship. The IRS will temporarily suspend collections efforts in such cases. 

2. Extension Requests:

You can request extensions for filing tax returns or paying taxes in cases of temporary financial hardship. 

Section 8: The Right to Timely Responses 

You have the right to receive timely responses from the IRS during negotiations: 

1. Response Times:

The IRS is expected to respond to your inquiries, requests, and appeals in a reasonable timeframe. Delays can be challenged. 

2. Extensions:

If you need more time to respond to IRS notices or requests, you can request an extension to ensure your rights are protected. 

Section 9: The Right to Challenge Penalties 

When disputing penalties, you have the right to a fair process: 

1. Penalty Abatement:

You can request penalty abatement if you have a valid reason for non-compliance. The IRS will consider your request and may reduce or eliminate penalties. 

2. Appeals:

You have the right to appeal penalty assessments if you disagree with them. 

Section 10: The Right to Understand Your Tax Debt 

You have the right to a clear understanding of your tax debt and the associated calculations: 

1. Itemized Statements:

The IRS is required to provide itemized statements explaining how your tax debt was calculated, including any interest and penalties. 

2. Notices:

You have the right to receive written notices from the IRS detailing your tax debt and obligations. 

Conclusion 

Knowing your rights is paramount when negotiating with the IRS. These rights empower you to seek professional representation, protect your privacy, challenge IRS determinations, explore relief options, request temporary relief, and ensure fair and timely processes. By understanding and asserting your rights, you can navigate IRS negotiations with confidence and work toward a fair resolution of your tax debt issues.