Taxpayers are contributors to the tax system and economy. They act as the main pillar of the economic system that we champion. For this contribution to the economy, the constitution and law provide taxpayers some rights, known as the Taxpayer Bill of Rights in Virginia Beach, VA. In this article, we would like to educate you about these rights in general and Right No. 6 in particular.
The Taxpayer Bill of Rights provides taxpayers a guarantee of good relation quality experience while engaging with the IRS. From the right to be informed to the right to quality service, and from the right to confidentiality to the right to privacy, this bill of rights makes sure of taxpayers’ freedom and ease.
Rights like “Right to Pay No More than the Correct Amount of Tax” ensure that taxpayers aren’t squeezed hard to become the victim of the tax system.
Tax refunds are also a byproduct of this right.
Understand Right to Finality
One interesting and extremely helpful right under the taxpayer bill of rights is “The Right of Finality.” The IRS’s Tax system is a complex set of rules and procedures to be followed by everyone that comes under its jurisdiction. Following these procedures is a hectic job, so all these procedures have deadlines to set a specific period for each and everything. Under the Right to Finality, taxpayers have a right to know these deadlines and periods of certain procedures.
According to Publication 1, which explains taxpayers’ rights, the Right to Finality is;
“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 or collect a tax debt. Taxpayers have the right to know when the IRS has finished an audit.”
Time Period and Deadlines
The time period for each of the above-mentioned right is explained in fact sheet, according to which;
To assess any additional tax for the year that you filed your return, IRS has three from the date of filing of returns. This time limitation is lifted if you submit a false or fraudulent tax return. The IRS has an indefinite time to assess such returns.
To collect unpaid taxes or tax debt, the IRS has ten years in normal circumstances. However, if taxpayers enter into an installment agreement with the IRS to pay tax, this period can be extended. In contrast to this, the collection period may be suspended in case of taxpayers’ bankruptcy.
Taxpayers can claim a refund on tax paid if they think that they overpaid the tax. The time to submit these claims is three years from the date of the first filing of returns.
The fact sheet concludes with one very important point. Taxpayers are subject to the only audit per tax year. However, this rule is exempt in case the IRS has evidence of fraud for some previously audited returns. In that case, the examination of such tax returns can be reopened.
The Taxpayer Bill of Rights is proof that the tax system that we have is sustainable, and there are systems and rules in place to protect the rights of all parties involved. The Right of Finality ensures that examination of tax returns isn’t unnecessarily dragged, and the IRS must work under a predefined time period for each task.
Get professional help from USA Tax Settlement!
Zee Maq is a content writer who specializes in writing business and finance content. She has nine years of experience and loves to provide problem-solving content to help people tackle challenges in their everyday lives.