In a previous post I mentioned the publication by the Internal Revenue Service (IRS), the Taxpayer Bill of Rights (TBoR). This is a the first in a series of posts on these "Rights" that the IRS has outlined for each taxpayer. Maybe I can help taxpayers understand what they can do to make their yearly chore a little bit less onerous. The first right mentioned in this modern day Bill of Rights is the Right to be Informed.
The TBoR describes the "Right to be Informed" as being able to know what the taxpayer can do to comply with the tax laws in clear explanations of the tax laws and IRS procedures. This applies to all tax forms, instructions, publications, notices and any correspondence from the IRS. The difficult word hear is "clear". I am a tax preparer and I have difficulty in understanding some of the wording that the IRS uses. (I am getting better at it but sometimes I just say to myself,"Huh? What did they mean?". Reading it a second or third time usually helps.) I think that this TBoR is written in clear, understandable language. It's a great start. Let's hope that the IRS can keep it up with future publications. Another problem is that Congress isn't always so clear in the tax laws they pass, so the IRS has trouble writing the rules and regs in clear language. Let's hope Congress learns to make things clearer, too.
The "Right to be Informed" also includes the right to be informed of IRS decisions regarding the taxpayer's personal tax accounts and to receive clear explanations of the outcomes of those accounts. Most people encounter the IRS first through letters sent regarding the current year's or a previous year's tax return. (Aside #1: Don't ignore those letters. The issue WON'T go away by ignoring it. ) The best thing to do when you receive a letter is open it and look for the year they are talking about. It's called the "tax year". You can then see what they want and what you can do about it. The letters also mention what happens if you don't respond by a certain date. (Aside #2: Make sure you respond in plenty of time! DON'T wait until the last minute. Highlight that "respond by" date.) The IRS is trying to let you know what is happening with your tax returns and you can help them by responding to those letters. Yes, you can disagree with them and even challenge what they have decided, but just be clear and have documentation. If you don't understand what they are saying, you can always get help from a tax preparer, tax accountant or a tax lawyer.
Another great way to get help is to do some research on your own. the IRS has a fairly understandable website at IRS.gov. You can get IRS publications, read about tax laws, find out about different topics using the search box, and even get information on contacting the IRS itself. You can even download the TBoR from here. Just search for Pub 1 by clicking on "Forms and Pubs" and then "Current Forms and Pubs".
With this new Taxpayer Bill of Rights, the IRS is attempting to inform you of your rights as a taxpayer. They are not out to "get you" or "take all your money". They are there to administer the tax laws and to make sure the US Government gets money to operate. Make sure that you know what your rights are and become informed. Check out the Taxpayer Bill of Rights.