Know Your Rights as a Taxpayer

Tax season is almost upon us. Nothing can make April 15 exactly a happy date, but it may lift your spirits a bit to know about your rights if your taxes are in dispute.

Taxpayer's Bill of Rights

Several major federal laws now protect the rights of taxpayers. The Internal Revenue Service Restructuring and Reform Act and the Taxpayer Bill of Rights Acts have a number of provisions favorable to taxpayers. Your lawyer can advise how these laws - as well as similar laws in a number of states - apply to your particular situation. Here is a quick run-down of some of their major provisions.

• Burden of Proof. Federal law now provides that the IRS has the burden of proof in any court proceeding with respect to a factual issue, as long as the taxpayer introduces credible evidence on the issue. Of course, you'll have to keep the required records and cooperate with reasonable requests for sharing information with the IRS.
• Attorneys Fees and Costs. Changes to federal law now make it easier to recover attorneys fees and administrative costs.
• Civil Damages. Taxpayers can recover up to $100,000 in damages caused by IRS officers or employees who negligently disregard tax law or regulations in connection with tax collection.
• Small Case Treatment. Now disputes under $50,000 qualify for small case treatment in tax court.

These are but a few of the many rights now accorded taxpayers. Of course, you have the right to be represented by your lawyer and to have your lawyer present at all interviews with the IRS.