Treasury Report Shows IRS Not Telling Full Story
It is my experience that the IRS does not tell taxpayers the full story when it comes to their rights when dealing with the agency. You must know how to stay out of trouble with the IRS and exactly what you need to do if you are being audited.
A study by the Treasury Inspector General for Tax Administration, the investigative arm of the Treasury Department that focuses on the IRS, reports that the IRS is likely not explaining taxpayers’ rights to citizens as required by law. In particular, the IRS is required by code section 6501(c)(4)(B) to explain your rights if the agency seeks a waiver by you of the statute of limitations on the power to audit you. This is a most important taxpayer protection which, I believe, the IRS routinely violates.
The Treasury Inspector General’s investigation found that in at least 26 percent of the cases, the IRS failed to document whether it advised taxpayers about their rights in connection with a requested waiver of the statute of limitations. In the case of joint tax returns, as many as 63 percent of spouses were not advised of their rights in connection with such a request. Moreover, in 52 percent of cases where the citizen had professional representation, the IRS apparently failed to provide the taxpayer and his representative with advice of their rights in this area.
The conclusion is plain and simple. You can’t count on the IRS to explain your rights to you. That’s just one reason why you need an experienced tax professional to help you deal with the IRS.
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