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Guide to Tax Law
- Introduction to Tax Law
- What is the IRS?
- Filing Your Tax Return
- Tax Free Income
- What is a Tax Credit?
- Tax Implications of Differed Income
- How Tax Deductions Work
- Recucing Your Taxes with Investments
- Tax Benefits for Homeowners
- Shifting Income withing a Household
- Your Status as a Tax Payer
- Small Business Owners and the IRS
- Minimize Taxes on Your Estate
- Tax Fraud and other Crimes
- Red Flag: IRS Audits
- Taking Your Case to Tax Court
- What if Your Owe the IRS?
- When to Hire a Tax Attorney
The Taxpayer Bill of Rights Act of 2008 ("Taxpayer Bill of Rights") was codified in 2008 with the purpose of providing taxpayers with a single source of easily accessible information regarding tax liabilities and taxpayer rights.
The Taxpayer Bill of Rights has specific provisions for taxpayers with low or moderate incomes that generally do not have accountants or tax professionals advising them on their taxpayer rights.
Among other things, it seeks to clarify taxpayer obligations, establish a system of free tax preparation and representation through federally funded grant programs, and provide banking services to low-income taxpayers who do not have an established bank account.
Taxpayer rights under the Taxpayer Bill of Rights includes:
- the right to be informed on tax liability and legal and procedural tax-related matters; the right to assistance;
- the right to be heard; the right to pay no more than the correct amount of tax; the right of appeal;
- the right to certainty regarding the statutes of limitation, appeal of examination findings, etc.;
- the right to a representative in tax matters brought before the IRS; and
- the right to a fair and just tax system.
Taxpayer Bill of Rights I
The 1988 Taxpayer Bill of Rights, also known as the Taxpayer Bill of Rights I, was the first piece of legislation passed by Congress aimed at protecting the rights of taxpayers. Arguably, the Taxpayer Bill of Rights I was the most important piece of legislation seeking to protect the rights of taxpayers from possible IRS abuses since the creation of the IRS institution in the United States. Since the Taxpayer Bill of Rights I, there have been changed reflected in the Taxpayer Bill of Rights II (1996), the Taxpayer Bill of Rights III (1998) and the Taxpayer Bill of Rights Act of 2008.
Taxpayer Bill of Rights II
The 1996 Taxpayer Bill of Rights, also known as the Taxpayer Bill of Rights II, was signed into law by President Clinton in 1996. The goal of the Taxpayer Bill of Rights II was intended to provide protections to taxpayers and ensure their rights when dealing with the IRS. The Taxpayer Bill of Rights Act of 2008 builds on the protections and policies contained in the Taxpayer Bill of Rights II. The Taxpayer Bill of Rights II has been amended by the Taxpayer Bill of Rights III (1998) and the Taxpayer Bill of Rights Act of 2008.
Taxpayer Bill of Rights III
Title III of The Internal Revenue Service Restructuring and Reform Act of 1998, also known as the Taxpayer Bill of Rights III, was enacted in 1998 and set out additional protections and rights for American Taxpayers. The Taxpayer Bill of Rights III amended the Taxpayer Bill of Rights I and II, and was further amended in the Taxpayer Bill of Rights Act of 2008.