From the Desk of Lauran Corcoran
Taxpayer Bill of Rights: The Right to Pay No More than the Correct Amount of Tax
The Right to Pay No More than the Correct Amount of Tax: Taxpayers have the right to pay only the amount of tax legally due and to have the IRS apply all tax payments properly.
This right takes a little bit from each of the other rights but nevertheless is an important concept to keep in mind when dealing with the IRS. A taxpayer is never liable for more than they legitimately owe the IRS. Period. If the IRS makes a computational mistake or misapplies a payment, the taxpayer is not liable for that mistake.
What does The Right to Pay No More than the Correct Amount of Tax mean?
• If you enter into a payment plan, known as an installment agreement, the IRS must send you an annual statement that provides how much you owe at the beginning of the year, how much you paid during the year, and how much you still owe at the end of the year.
• You may request that any amount owed be removed if it exceeds the correct amount due under the law, if the IRS has assessed it after the period allowed by law, or if the assessment was done in error or violation of the law.
• If you have a legitimate doubt that you owe part or all of the tax debt, you can submit a settlement offer, called an Offer in Compromise – Doubt as to Liability offer on Form 656.
• You may request that the IRS remove any interest from your account that was caused by the IRS’s unreasonable errors or delays. For example, if the IRS delays issuing a statutory notice of deficiency because the assigned employee was away for several months attending training, and interest accrues during this time, the IRS may abate the interest as a result of the delay.
If you missed last week’s post, check out: Taxpayer Bill of Rights: The Right to Quality Service