Background

The modern framework of protections stems from the Taxpayer Bill of Rights (TBOR), formally adopted by the IRS in 2014 to summarize long-standing legal protections in a taxpayer‑friendly format (IRS, Taxpayer Bill of Rights). TBOR organizes rights such as being informed, represented, and appealed into clear statements taxpayers can use during audits and other IRS interactions.

What the IRS Must Provide

  • Written notice of the audit and the tax years under review, usually by mail; the agency will not call and demand immediate payment without written correspondence.
  • A clear explanation of the items being examined and the legal basis for the proposed adjustments (see IRS Publication 556 on examinations and appeals).
  • Reasonable time to assemble and submit records, plus deadlines and instructions for how to provide documents.
  • Identification of the examiner and contact information; verification of identity for any in‑person visits.
  • The right to representation: you may hire a CPA, enrolled agent, or attorney, or authorize someone using IRS Form 2848 (Power of Attorney).
  • Written report of audit findings and an explanation of appeal rights (Office of Appeals or Tax Court) if you disagree.
  • Protection of privacy and professional conduct by IRS personnel.

(Authoritative sources: IRS Taxpayer Bill of Rights; IRS Publication 556)

How to Use These Rights — Practical Steps

  1. Read the notice carefully. Note the tax years and specific items questioned; the notice will state what documents are needed and the deadline.
  2. Organize records in an audit packet: copies of returns, receipts, ledgers, bank statements, and a one‑page summary linking each document to the line items under review. (See our guide on preparing for a correspondence audit for documentation tips.)
  3. Consider representation early. If the audit raises legal or complex accounting issues, authorize a qualified representative with Form 2848.
  4. Ask for clarification in writing if the IRS request is vague. Document every phone call: date, name, badge number, and summary of what was said.
  5. If you receive proposed adjustments you disagree with, file a timely appeal or request an appeals conference. Preserve deadlines; appeals procedures are defined in Publication 556.

Real‑World Examples (brief)

  • Notification: A taxpayer received a generic letter stating income didn’t match W‑2s. By invoking their right to be informed, they requested a detailed explanation, which revealed a data‑entry error that was resolved without adjustments.
  • Representation: In my practice, a small business owner retained an enrolled agent early; we converted a field examination into a focused document review, reducing disruption and the chance of mistaken assessments.

Who Is Affected

Every person or entity with a U.S. federal tax obligation is covered by these rights: individuals, estates, partnerships, corporations and tax‑exempt organizations. Complexity heightens the stakes for self‑employed taxpayers and small businesses, but the same protections apply.

Common Mistakes and Misconceptions

  • Thinking you must turn over every file immediately. You have the right to reasonable time and to object to overly broad or irrelevant requests.
  • Believing the IRS can lawfully seize assets without due process. The agency must follow procedures and provide notices before enforced collection actions.
  • Assuming silence equals guilt. If you disagree with findings, use the appeal channels rather than acquiescing.

Professional Tips

  • Build an audit packet before you’re audited. A ready binder saves time and shows good faith (see our audit binder checklist).
  • Create a concise lead letter: one page that states the scope of records included and key dates linked to disputed items.
  • Keep copies of everything you send and use certified mail or secure electronic transmission when possible.

Frequently Asked Questions

Q: Can the IRS come to my home unannounced for an audit?
A: No. IRS agents should identify themselves and normally arrange visits in advance. If an in‑person visit occurs, verify the agent’s identity and request written documentation.

Q: What if I disagree with the audit findings?
A: You have formal appeal rights. First request a conference with the examiner’s manager or file a protest to the IRS Office of Appeals. If unresolved, you can pursue litigation in U.S. Tax Court or pay the tax and sue for a refund in district court. Publication 556 explains these steps.

Internal resources

Authoritative sources

Professional disclaimer

This article is educational and general in nature. It is not tax, legal, or financial advice for your specific situation. For tailored guidance during an audit, consult a qualified tax professional or attorney.

In my practice I’ve seen that taxpayers who understand these basic rights and prepare a focused audit packet almost always achieve faster, fairer outcomes. Use the rights above to control the process, document everything, and escalate when necessary.