Taxpayer Bill of Rights #7: The Right to Privacy

             The Taxpayer Bill of Rights is a detailed document that outlines the rights that all taxpayers have before the Internal Revenue Service (IRS). We all need to be aware of them because taxes are a very personal matter. This post will discuss The Right to Privacy. This involves the expectation that all IRS inquiries, examinations, and enforcements will comply with all laws (including due process rights), be no more intrusive than necessary.

          If collection measures get to the point where the IRS is seizing wages, there is a portion that will be protected from a levy. The IRS cannot seize necessary personal items. A home can only be taken by court order and they must show there is no other reasonable way to collect the tax debt. The IRS should not seek any information about your lifestyle during an audit if there is no sign you have unreported income. The taxpayer has the right to have a Collection Due Process hearing before the Office of Appeals. This independent office will hear all the facts and consider if the IRS proposed course of action balances the need for efficient tax collection with making sure that these actions are no more intrusive than necessary. If you are in this position, make sure to read the documentation closely and file appeals before the stated deadlines. This might be a situation to consider finding a Qualified Tax Professional for assistance.

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