Author credentials and context
I am a Certified Public Accountant (CPA) with more than 15 years advising clients through IRS audits, notices, and collections. In practice I’ve seen how early use of these rights—especially representation and formal appeal options—reduces stress, limits mistakes, and often improves outcomes. This article is educational and designed to help you recognize and exercise your rights; it is not personalized legal or tax advice. Consult your CPA, Enrolled Agent, or tax attorney for guidance specific to your situation.
Why taxpayer rights matter
When the IRS contacts you, knowing your rights protects your finances and your time. The IRS’s Taxpayer Bill of Rights (TBOR) clarifies ten core rights every taxpayer has; those rights guide how the IRS must interact with you and what remedies or procedures are available if you disagree with an action. See IRS Publication 1 for the official description of these rights (IRS Publication 1, 2025) and the Taxpayer Advocate Service (TAS) for independent help (IRS TAS).
How the IRS normally contacts taxpayers
- By mail: The majority of legitimate IRS notices arrive by postal mail. If you receive a notice, read it carefully—the notice explains the issue and your options.
- By phone: The IRS sometimes calls, but unsolicited demands for immediate payment or threats are red flags for scams. If in doubt, hang up and call the IRS back using a number from IRS.gov.
- In person: Field audits or business visits can happen, but agents will show ID and usually provide written notification first.
Core taxpayer rights you should know (practical, plain language)
The IRS’s Ten Taxpayer Bill of Rights are summarized here in actionable terms:
- Right to Be Informed — You should receive clear explanations about what the IRS is doing and why, and what you must do in response. (IRS Publication 1)
- Right to Quality Service — You can expect professional, courteous service and the ability to get help when needed.
- Right to Pay No More Than the Correct Amount of Tax — The IRS should apply tax laws correctly.
- Right to Challenge the IRS’s Position and Be Heard — You can appeal IRS decisions through internal appeals and, if needed, in court.
- Right to Finality — You have a time frame for assessments and collections; issues should not drag on indefinitely.
- Right to Privacy — Your tax information is protected and disclosed only as allowed by law.
- Right to Confidentiality — Similar to privacy; the IRS must safeguard your sensitive data.
- Right to Retain Representation — You can have a trusted representative (CPA, Enrolled Agent, or attorney) speak or negotiate for you. Circular 230 governs practice before the IRS and explains who is authorized to represent taxpayers.
- Right to a Fair and Just Tax System — You can expect fair treatment and consideration of facts in light of the tax law.
- Right to Pay No More Than the Correct Amount of Penalties and Interest — Penalties should reflect reasonable circumstances.
Specific procedural protections and practical steps
- Verification before you act: Always verify the identity of anyone claiming to be an IRS agent. Ask for their name, badge number, and office phone. Then call the IRS at the published number on IRS.gov to confirm. The IRS will not demand payment via gift cards, prepaid debit cards, or cryptocurrency—these are scam signals (IRS scam guidance).
- Don’t give unlimited phone permission: If you receive an unexpected call, tell the caller you’ll respond in writing or call back at the official IRS number.
- Preserve a record: Keep a single file (physical or digital) with all notices, copies of returns, receipts, and a call log (date, time, agent name, summary). Good documentation makes audits and appeals much easier.
- Request written confirmation: For any agreement reached by phone, ask the agent to send written confirmation. The IRS routinely follows up in writing for formal actions.
- Use representation: You may appoint a representative with Form 2848 (Power of Attorney). Representatives can negotiate, provide documentation, and protect you from saying something that could unintentionally expand the issue.
- Appeal rights: If you disagree with an IRS result, you can request an independent administrative appeal (IRS Office of Appeals) or pursue other remedies such as Tax Court or federal court in appropriate cases.
- Collections due process (CDP): Before the IRS seizes assets or issues a levy, it generally must provide notice and an opportunity for a Collection Due Process hearing. If you receive a Notice of Intent to Levy, act promptly and request CDP if eligible.
Common scenarios and what rights apply (brief examples)
- Audit/examination: You have the right to being informed of the issues, the right to privacy, and the right to representation. Preparing a clear documentation packet and having a representative present often improves the outcome. See our Preparing for a Field Audit: Documentation Checklist for practical tasks and document lists.
- Collections: You have rights to notices, proposals for payment options (installment agreement, offer in compromise), and the right to an appeal or CDP hearing. For step-by-step guidance on collection actions, see our article on dealing with IRS collections: Dealing with IRS Collections: Liens, Levies, and Seizures.
- Notice disputes: If you receive a CP or CP2000 series notice or similar, you can challenge the IRS’s proposed change by responding with documentation or using the formal dispute and appeal procedures. For decoding notices, see Decoding Your IRS Notice: A Step-by-Step Guide.
Real-world examples from practice
Example 1: Small-business audit resolved with representation. A client received a field-audit appointment letter. We collected the requested ledgers, prepared a concise explanation of the accounting treatment at issue, and I attended the meeting. The auditor accepted our substantiation for several items and proposed adjustments were reduced materially versus initial inquiries.
Example 2: Phone scam avoided. A taxpayer received a frantic call demanding immediate payment. They declined, verified through their CPA, and reported the call as a scam. No funds were lost.
Common mistakes taxpayers make
- Ignoring notices: Delaying response often limits options and can lead to enforced collection.
- Talking without representation: Unprepared answers can create admissions or widen the scope of an inquiry.
- Falling for payment scams: The IRS will not ask for unusual payment methods in legitimate communications.
Frequently asked questions
Q: How do I know if an IRS caller is legitimate? A: Ask for the agent’s name and badge, then call the IRS back at the main number found on IRS.gov. Legitimate IRS calls will not demand immediate payment in unconventional forms. (See IRS guidance on impersonation scams.)
Q: Can a CPA represent me before the IRS? A: Yes. CPAs, Enrolled Agents, and attorneys are authorized to represent taxpayers. Use Form 2848 to grant authority.
Q: What if the IRS issues a levy on my bank account? A: You should receive advance notice and have the right to request a Collection Due Process hearing to propose alternatives like an installment agreement.
When to involve the Taxpayer Advocate Service (TAS)
The TAS is an independent organization inside the IRS that helps taxpayers facing significant hardship or systemic delays. If you’ve exhausted normal channels and your problem causes financial difficulty or is not being resolved timely, contact TAS for case assistance (Taxpayer Advocate Service).
Internal resources on FinHelp.io (useful links)
- Preparing for a Field Audit: Documentation Checklist — https://finhelp.io/glossary/preparing-for-a-field-audit-documentation-checklist/
- Dealing with IRS Collections: Liens, Levies, and Seizures — https://finhelp.io/glossary/dealing-with-irs-collections-liens-levies-and-seizures/
- Decoding Your IRS Notice: A Step-by-Step Guide — https://finhelp.io/glossary/decoding-your-irs-notice-a-step-by-step-guide/
Authoritative external sources
- IRS Publication 1, “Your Rights as a Taxpayer”: https://www.irs.gov/pub/irs-pdf/p1.pdf (official summary of taxpayer rights)
- IRS Taxpayer Advocate Service: https://www.irs.gov/advocate
Professional disclaimer
This content is educational and does not constitute legal or tax advice. Specific situations may require tailored counsel from a qualified tax professional or attorney. Laws and IRS procedures change; this page was last updated August 2025.