Farm Mgmt NEWS

YOUR RIGHTS AS A TAXPAYER
Dr. Don Smith
Farm Management Specialist

Recent federal legislation and IRS rules have strengthened the rights of U.S. taxpayers. One notable action was the formulation of a Declaration of Taxpayer Rights. Following are some of the rights this declaration describes.

Protection of your rights - It is the duty of all IRS employees to explain and protect your rights as a taxpayer throughout your contact with them. When in doubt, ask what your options are and for an explanation of what they mean.

Privacy and confidentiality - The IRS may not disclose to anyone the information you give them, except as authorized by law. You have the right to know why they are asking you for information, how they will use it, and what happens if you do not provide requested information.

Professional and courteous service - If you believe an IRS employee has not treated you in a professional manner, you should tell the employee's supervisor. If the supervisor's response is not satisfactory, you should write to your IRS District Director or Service Center Director.

Representation - You may either represent yourself, or with proper written authorization, have someone else represent you in your place. You can have someone accompany you at an interview. You may make sound recordings of any meetings with their examination or collection personnel, provided you tell them in writing 10 days before the meeting.

Payment of only the correct amount of tax - You are responsible for paying only the correct amount of tax due under the law, no more or no less.

Help from the Problem Resolution Program - The Taxpayer Advocate's Problem Resolution Program can help you with unresolved tax problems and can offer you special help if you have a significant hardship as a result of a tax problem. For more information on this program, call 1-877-777-4778 (hearing impaired users with TTY or TDD call 1-800-829-4059) or write to the Taxpayer advocate at the IRS office that last contacted you.

Relief from certain penalties - The IRS may waive penalties when allowed by law if you can show you acted reasonably and in good faith or relied on the incorrect advice of an IRS employee.

Innocent spouse relief - Generally, both you and your spouse are responsible, jointly and individually, for paying any tax, interest or penalties due on your joint return. However, you may not have to pay the tax, interest, and penalties you believe should be paid only by your spouse (or former spouse). It is important to confer with your tax preparer and the IRS before you take this action.

Appeals and judicial review - If you disagree with the IRS about the amount of your tax liability or certain collection actions, you have the right to ask the IRS Appeals Office to review your case. Most differences can be settled without expensive and time-consuming court trials.

If you do not wish to use the Appeals Office or disagree with its findings, you can take your case to the U.S. Tax Court, U.S. Court of Federal Claims, or the U.S. District Court where you live. If the court agrees with you on most issues in your case, and finds the IRS position was largely unjustified, you may be able to recover some of your administrative and litigation costs. However, you will not be eligible to recover these costs unless you tried to resolve your case administratively, including going through their appeals system, and if you gave them all the information necessary to resolve the case.

Individuals should consult with their tax preparer for advice on specific matters but may now also get forms and other information faster and easier by computer from the IRS Internet Web Site located at www.irs.ustreas.gov . Farmers may get more information pertaining to their specific business tax situation from IRS Publication 225, the Farmer's Tax Guide for 1998. This reference is available for free at most University of Missouri Extension Offices.

For more information on this or other subjects visit the University Extension Center in your county, call me, Dr. Don Smith, at (660) 727-3339, or visit the Clark County University of Missouri Extension Internet Web Site at http://outreach.missouri.edu/clark/ for publications online. University of Missouri Extension programs and services are open to all and most are free or at a nominal charge.

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