Do I Have a Right to Privacy During an IRS Audit?
There is quite a bit of conversation these days about privacy rights and how much the government is allowed to know about individuals’ lives. I hear this question a lot when it comes to the limits to Internal Revenue Service (IRS) power and the privacy rights of individuals during an IRS audit. Rest assured that every taxpayer has rights when dealing with the IRS. In fact, the Taxpayer Bill of Rights outlines individual rights, which are taken directly from the tax code. Let’s take a look at your privacy and confidentiality rights as a San Francisco taxpayer and the limits of IRS power.
The Right to Confidentiality — Let’s start with the most questioned right. Taxpayers have the right to expect that their tax information will remain confidential. The IRS will not disclose information unless authorized by the taxpayers or by law. Taxpayers should expect the IRS to take appropriate action against IRS employees, return preparers and others who wrongfully disclose return information.
The Right to Privacy — Taxpayers have the right to expect that any IRS inquiry, including an IRS audit, will comply with the law and be no more intrusive than necessary. During these proceedings, the IRS will respect all due process rights, including search and seizure protections.
The Right to a Fair and Just Tax System — Taxpayers have the right to expect fairness and the IRS must consider all facts and circumstances that may affect liabilities, the ability to pay or the ability to provide information timely. Additionally, taxpayers have the right to receive assistance from the Taxpayer Advocate Service, which can help taxpayers who are experiencing financial difficulty. They can also help when the IRS has not resolved tax issues properly and timely through normal channels.
The Right to Finality — Taxpayers have the right to know the maximum amount of time allowed to challenge an IRS position and the right to know the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt. Taxpayers also have the right to know when the IRS concludes an audit.
The Right to Retain Representation — Taxpayers have the right to retain an authorized representative during dealings with the IRS. This may include a tax attorney or experienced tax professional. If a taxpayer cannot afford representation, they may seek assistance from a Low Income Taxpayer Clinic. If you work with a tax attorney, whatever is discussed between the two of you is bound and private through attorney-client privilege. Keep in mind that that expectation of privacy is not the same if you work with a CPA or other tax professional that is not a lawyer.
You can learn more about your rights as a taxpayer by reading the full Taxpayer Bill of Rights. That being said, taxpayers and business owners have a right to an expectation of privacy when dealing with the IRS and during an IRS audit. Always consult with an experienced tax professional or San Francisco tax attorney if you have questions or concerns about your right to privacy during an IRS audit.
Allison Soares is a partner and tax attorney at Vanst Law LLP. It doesn’t matter the issue: audits, collections, appeals, international disclosures, grumpy people— Allison enjoys fixing problems. In addition to her legal work, she has worked in accounting and utilizes that knowledge to her advantage while handling cases involving EDD audits from San Francisco to San Diego.
