Sally Lindberg & Associates August 2014 Newsletter

TAX INSIGHT

August 2014

Important Tax Date

Third-quarter individual estimated tax payments are due September 15.

 

The Taxpayer Bill of Rights

The IRS website lists over 700 publications covering a wide variety of topics to assist individuals and small businesses with filing their taxes. The first publication in the long list is, Publication 1, Your Rights as a Taxpayer.

Publication 1 explains the processes for examination, appeal, collection and refunds. New in 2014, on page one is The Taxpayer Bill of Rights. According to IRS Commissioner John A. Koskinen, “These are core concepts about which taxpayers should be aware. Respecting taxpayer rights continues to be a top priority for IRS employees, and the new Taxpayer Bill of Rights summarizes these important protections in a clearer, more understandable format than ever before.”

 

Similar to the U.S. Constitution’s Bill of Rights, the Taxpayer Bill of Rights contains 10 provisions. They are:

1. The Right to Be Informed
2. The Right to Quality Service
3. The Right to Pay No More than the Correct Amount of Tax
4. The Right to Challenge the IRS’s Position and Be Heard
5. The Right to Appeal an IRS Decision in an Independent Forum
6. The Right to Finality
7. The Right to Privacy
8. The Right to Confidentiality
9. The Right to Retain Representation
10. The Right to a Fair and Just Tax System

 

Most of these rights are very clear and concise. The only vague right is number six, The Right to Finality. This simply means that you have the right to know the maximum amount of time you 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. You also have the right to know when the IRS has finished an audit.

The IRS Commissioner hopes that this Bill of Rights will help IRS staff and taxpayers when there is an issue. He states, “It’s a simple way for employees to have those rights before them if taxpayers have a problem during a process… …it will make it easier for them in dealing with taxpayers as to what the taxpayers’ rights are.”

 

Did You Know?

The names of the key summer months have Roman origins. June is named after Juno, who was the wife of Jupiter. Marc Antony named July after Julius Caesar. August was named after Caesar’s nephew, known as Augustus.

 

Quote Corner

“It will not always be summer; build barns.” ~Hesiod

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