Taxpayers have the right to expect the tax system to consider facts and circumstances that might affect their underlying liabilities, ability to pay, or ability to provide information timely. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through its normal channels. Whereas IRS Collection Officers understand complex collection procedures and have the power to wreak havoc on the lives of taxpayers in collections, taxpayers who represent themselves are at a distinct disadvantage. Having a knowledgeable and effective tax resolution professional helps to level the playing field.

This is done through a tax levy, either a one-time or continuous levy. The Right to Privacy — This right requires the IRS to be as unobtrusive as possible when conducting an inquiry, examination or enforcement. Further, the IRS must follow due process, including search and seizure protections. This means the IRS can’t seize certain personal items (like clothing or undelivered mail) or take your home without first getting court approval and showing it has no other way of collecting the tax you owe. You may fear that making a mistake on your tax return will have dire consequences. Its Taxpayer Bill of Rights outlines your rights as a taxpayer and how the IRS conducts audits, hears appeals, collects taxes and issues refunds.

The Right to Challenge the Department’s Position and Be Heard

This includes when a taxpayer is filing a return, paying taxes, responding to a letter, going through an audit or appealing an IRS decision. If you’re a freelancer or gig worker who receives payments via apps like Venmo, Zelle, Cash App or PayPal, your tax reporting requirements will change for the 2024 tax year. The law will not affect the amount of taxes owed, but it will change how you your rights as a taxpayer report income with 1099-K forms. The IRS must follow an established process to collect taxes you owe, and it will start by sending you a bill. Per Right No. 1, the bill will clearly state how much you owe. If you don’t respond to IRS notices informing you of your tax debt and requesting you to pay or make payment arrangements, or you refuse to pay the tax, then the IRS can issue a levy.

• The Taxpayer Bill of Rights groups the existing rights in the tax code into ten fundamental rights, and makes them clear, understandable, and accessible.
• Taxpayers have the right to know the maximum amount of time they have to challenge the IRS’s position as well as the maximum amount of time the IRS has to audit a particular tax year.
• Some in the space say the new law will benefit both freelancers and the IRS by improving information gathering, especially for people who are self-employed and merchants who sell online.
• Learn more about your right to pay no more than the correct amount of tax.
• Some less-than-reputable firms may make unrealistic promises or charge exorbitant fees, leaving you in an even worse financial situation.
• Some publications and tax form instructions are available in HTML format and can be translated.

This right says you shouldn’t have to pay more than what you actually owe. For example, if the IRS decides you owe additional tax, you can challenge their assessment in Tax Court without paying the added tax first. However, be aware that time limits apply, and you’ll need to file a petition to have your case heard in tax court within those limits. The change will ensure both that taxpayers receive proper refunds and that the IRS receives proper payment. Tax season is upon us, so you may be dealing with some extra stress due to the filing requirements, paperwork and potential tax payments.

How freelancers can prepare for changing tax requirements

This can include accountants/CPAs, Enrolled Agents, or bookkeepers. Some lawyers help prepare tax filings, but most do not choose to do so; tax lawyers generally focus on helping with audits and other tax controversies. If you owe a significant amount of taxes (over $10K), and the government believes that you are intentionally evading paying your taxes, they could prosecute you and send you to jail for up to 5 years. The Taxpayer Bill of Rights protects all taxpayers working with the IRS. In fact, they lay out the framework to make sure the IRS fairly and impartially carries out tax administration.

There’s a time limit though — requests for return of levy proceeds have to be made within nine months of the levy start date. Taxpayers have the right to know what they need to do to comply with tax laws. They are entitled to clear explanations of the law and IRS procedures in all tax forms, instructions, publications, notices, and correspondence. They have the right to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes. Taxpayers are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties, and have the right to receive a written response regarding the Office of Appeals’ decision. Taxpayers generally have the right to take their cases to court.