Taxpayer Bill of Rights: Basic Things to Know For Taxpayer:

by Hector Das Tax Preparation Service

Taxpayer who deals with IRS, IRS has right to finality. This rule is applicable to taxpayer who are going through an audit. Those taxpayer are issued audit has right to know when IRS has finish the audit. Taxpayer can get the help by Tax Preparation Services for audit.

Ten basic things to know the taxpayer who are going through audit.

The Taxpayer who is processing the audit has to challenge the IRS position.

The IRS will audit for specific tax year or collect the tax debt.

Generally, IRS will save last three years tax return from the date the taxpayer file their returns to estimate the additional tax for that tax year.

In three years rule, there are limited exceptions which includes taxpayer, who are fail to file the taxes for particular tax years or false tax returns or fraud returns. In this case, the IRS has an unlimited amount of time to assess tax for that tax year.

Generally the IRS will collect the unpaid tax for 10 years from estimates date of issues. The IRS cannot extend the 10 years periods for taxpayers who agreed the installment agreements or the organization obtains court judgments.

There are situation when the IRS will suspends the 10 year collection period. It will occurs only when the IRS unable to collect money due to taxpayers bankruptcy or there’s an ongoing collection due process proceeding involving the taxpayer.

IRS will issue only one audit per tax year. But IRS may reopen an audit for a previous year, If IRS find it necessary. It happens only when taxpayer files a fraudulent return.