Utilizing your rights as a tax payer
http://www.accountingfacts.net/articles/6672/1/Utilizing-your-rights-as-a-tax-payer/Page1.html
Jack Landry
Jack R. Landry has worked since 1988 as a tax attorney. He has written hundreds of articles about finding a Los Angeles tax attorney.
Contact Info:
Jack R. Landry
JackRLandry@gmail.com
http://www.taxcrisisinstitute.com/locations/losangelesDistributed by Content Crooner
By Jack Landry
Published on 02/22/2010
The burden that taxes bring for many people may feel impossible to conquer. If you have found yourself in trouble with the tax system it is important that you realize your rights as a taxpayer.
Utilizing your rights as a tax payer
The burden that taxes bring for many people may feel impossible to conquer. If you have found yourself in trouble with the tax system it is important that you realize your rights as a taxpayer.
The authority that the Internal Revenue Service holds is often times very intimidating to those that the Internal Revenue Service is pursuing. If you are not educated about what your rights are you can be easily taken advantage of.
If you know your rights and you do not let the authorities forget that you know your rights the relationship between you and the authorities will be much more professional and respectful. Taking the time to learn and understand your rights is very important.
The Taxpayer Bill of Rights is available online and if you are looking for a very thorough and in-depth explanation of your rights you may want to refer to the actual document. Knowing the basic premise of your rights and what you are entitled to is usually enough for the majority of tax payers.
This Bill first explains that you are entitled to employ a taxpayer advocate. A taxpayer advocate is there to help you find an answer to the issues you have been having with the IRS.
If you have come to an installment agreement with the government they must also notify you 30 days before changing the agreement in the least. The notification that legally must be delivered needs to explain why the IRS is deciding to make that decision.
If you feel that your installment agreement is not being handled correctly you can request an independent administrative review. You are given the right to have an independent review of your termination but you have to request this review.
If your account is accumulating more debt through interest but the IRS is delaying the process you do not have to pay the interest for the time of delay. This delay is usually a result of managerial acts and mistakes.
Some of these managerial acts and mistakes include the IRS losing any records, the IRS transferring personnel, the extended illnesses, personal training or leave of any IRS agent.
If you feel that your account is being delayed for any of these reasons it is important to keep record of the time that goes by so that your interest is not building up.
If your account is over $100,000 you have 10 days after the notice and demand for payment that are interest free. If you have an account that is under $100,000 you have 21 days of interest free time.
If you have incurred a failure to deposit penalty it may be waived the amount of money you deposit is applicable for awards of attorney's fees, if your penalty occurred during the first quarter that your deposit was due and if the return for the employment tax was filed on or before the due date.
If you feel that someone is fraudulently filing taxes under your name you have the right to bring civil actions for damages against the person filing the taxes. There is a time limit as to when you are able to bring one of these cases to court.
If at all possible you should be filing the tax within six years after the fraudulent act. If this is not possible you must then file the tax 1 year after it would have been discovered.
If you win your case the most that you will be able to win is $5,000 or the sum of the damages. You can also win the costs of the action and attorney's fees that are within reason.
The limit on attorney's fees has also been increased from previous years. You can receive anywhere from $75.00 per hour to $110.00 per hour.
The recovery limit has also been increased. If you can find and recover civil damages for reckless or intentional disregard of guidelines by IRS employees in connection with the collection of a taxpayer's Federal tax you can now collect $1 million instead of $100,000.
If you make a payment to the IRS and they are not able to associate it with any balances you owe the IRS must then make a reasonable effort to contact you. The IRS must make this contact within 60 days of receiving the payment.
If you are struggling with a large balance you owe to the IRS and you are feeling overwhelmed you may want to look into hiring a professional. Hiring someone more educated in tax laws and more knowledgeable about the system may be well worth your money.
The authority that the Internal Revenue Service holds is often times very intimidating to those that the Internal Revenue Service is pursuing. If you are not educated about what your rights are you can be easily taken advantage of.
If you know your rights and you do not let the authorities forget that you know your rights the relationship between you and the authorities will be much more professional and respectful. Taking the time to learn and understand your rights is very important.
The Taxpayer Bill of Rights is available online and if you are looking for a very thorough and in-depth explanation of your rights you may want to refer to the actual document. Knowing the basic premise of your rights and what you are entitled to is usually enough for the majority of tax payers.
This Bill first explains that you are entitled to employ a taxpayer advocate. A taxpayer advocate is there to help you find an answer to the issues you have been having with the IRS.
If you have come to an installment agreement with the government they must also notify you 30 days before changing the agreement in the least. The notification that legally must be delivered needs to explain why the IRS is deciding to make that decision.
If you feel that your installment agreement is not being handled correctly you can request an independent administrative review. You are given the right to have an independent review of your termination but you have to request this review.
If your account is accumulating more debt through interest but the IRS is delaying the process you do not have to pay the interest for the time of delay. This delay is usually a result of managerial acts and mistakes.
Some of these managerial acts and mistakes include the IRS losing any records, the IRS transferring personnel, the extended illnesses, personal training or leave of any IRS agent.
If you feel that your account is being delayed for any of these reasons it is important to keep record of the time that goes by so that your interest is not building up.
If your account is over $100,000 you have 10 days after the notice and demand for payment that are interest free. If you have an account that is under $100,000 you have 21 days of interest free time.
If you have incurred a failure to deposit penalty it may be waived the amount of money you deposit is applicable for awards of attorney's fees, if your penalty occurred during the first quarter that your deposit was due and if the return for the employment tax was filed on or before the due date.
If you feel that someone is fraudulently filing taxes under your name you have the right to bring civil actions for damages against the person filing the taxes. There is a time limit as to when you are able to bring one of these cases to court.
If at all possible you should be filing the tax within six years after the fraudulent act. If this is not possible you must then file the tax 1 year after it would have been discovered.
If you win your case the most that you will be able to win is $5,000 or the sum of the damages. You can also win the costs of the action and attorney's fees that are within reason.
The limit on attorney's fees has also been increased from previous years. You can receive anywhere from $75.00 per hour to $110.00 per hour.
The recovery limit has also been increased. If you can find and recover civil damages for reckless or intentional disregard of guidelines by IRS employees in connection with the collection of a taxpayer's Federal tax you can now collect $1 million instead of $100,000.
If you make a payment to the IRS and they are not able to associate it with any balances you owe the IRS must then make a reasonable effort to contact you. The IRS must make this contact within 60 days of receiving the payment.
If you are struggling with a large balance you owe to the IRS and you are feeling overwhelmed you may want to look into hiring a professional. Hiring someone more educated in tax laws and more knowledgeable about the system may be well worth your money.