Tax Preparers Can Help Fulfill the Promise of the Taxpayer Bill of Rights

This year marks the tenth anniversary of the Taxpayer Bill of Rights (TBOR), formally adopted by the IRS July 23, 2014. The TBOR is meant to increase transparency and trust between taxpayers and the IRS, ensuring that taxpayers are treated fairly and understand their rights and responsibilities.

As a professional tax preparer, you can take an active role in seeing that the 10 core rights in the TBOR are upheld for your clients:

1. The Right to Be Informed: A tax preparer ensures that clients are fully aware of their tax obligations. They provide clients with clear explanations of tax laws, filing procedures, deadlines, and the outcomes of any IRS decisions.
   
   
2. The Right to Quality Service: Professional tax preparers offer competent, professional, timely advice to taxpayers. They adhere to professional standards and behave ethically, always complying with IRS and other tax authority regulations, particularly Circular 230, Regulations Governing Practice before the Internal Revenue Service. By maintaining their certifications and continuing education, a tax preparer can provide the highest level of service to their clients.
   
   
3. The Right to Pay No More than the Correct Amount of Tax: By interviewing the client in detail, capturing accurate information, correctly identifying the client’s tax position, and preparing a complete and accurate return, tax preparers can assure the client has paid the correct amount of tax. The preparer must be current with all of the latest rules regarding filing status, dependent eligibility, and income. They help in identifying all eligible deductions and credits, ensuring accurate tax calculations and proper application of payments.
   
   
4. The Right to Challenge the IRS’s Position and Be Heard: Tax preparers assist clients in raising objections and providing additional documentation in response to IRS actions when they are disputed by the taxpayer. They ensure that the IRS considers these objections fairly and promptly, advocating on behalf of their clients to ensure their voices are heard. Tax preparers can assist in challenging the IRS by reviewing notices, gathering documentation, filing appeals, communicating with the IRS, providing expert advice, representing taxpayers in audits, and ensuring compliance. They help clients understand complex tax laws and forms, organize supporting documents, guide through appeals processes, handle communications, offer strategic advice, protect taxpayer rights, and reduce future dispute risks.
   
   
5. The Right to Appeal an IRS Decision in an Independent Forum: A tax preparer guides clients through the process of appealing IRS decisions. They help prepare the necessary documentation and, in some cases, represent clients in administrative appeals, ensuring a fair and impartial review of the case. After an appeal is filed, taxpayers receive a written response from the Office of Appeals. If the IRS proposes additional tax, individuals who are admitted to practice before the U.S. Tax Court can represent clients there. This typically includes attorneys, certified public accountants (CPAs), and enrolled agents (EAs) who can assist the taxpayer in disputing the tax by filing a petition with the Tax Court.
   
   
6. The Right to Finality: Taxpayers are entitled to certainty and peace of mind in their interactions with the IRS, which are assured by knowing that there are defined periods within which the IRS can take action and that taxpayers won’t face indefinite uncertainty regarding their tax obligations. The tax preparer can inform clients of the time limits for the IRS to audit their tax returns, to collect any unpaid taxes, and to claim refunds for overpaid taxes, and can let the client know when an audit or IRS decision is completed, so the client gets closure.
   
   
7. The Right to Privacy: The tax preparer must ensure that client data is collected, stored, and processed in compliance with privacy laws. This includes implementing data protection measures like encryption and secure storage such as those required by the IRS and FTC:

• Internal Revenue Service (IRS): The IRS, along with the Security Summit partners, provides guidelines and best practices for tax professionals to protect taxpayer information.
• The Federal Trade Commission (FTC) enforces the Gramm-Leach-Bliley Act (GLBA), which requires tax preparers to implement safeguards to protect client information.

8. The Right to Confidentiality: Tax preparers must ensure that client tax return information is only accessed by authorized personnel and not disclosed to third parties without the client’s consent. This includes adhering to regulations like IRC section 7216, which governs the use and disclosure of tax return information
   
   
9. The Right to Retain Representation: Tax preparers are often called on to act as representatives for their clients, ensuring that taxpayers have professional support in their dealings with the IRS. They also guide clients to Low Income Taxpayer Clinics if they cannot afford representation. When the client’s situation calls for it, the tax preparer may refer the client to a specialized attorney suited to their situation.
   
   
10. The Right to a Fair and Just Tax System: Tax preparers consider the individual circumstances of their clients, ensuring that the tax system treats them fairly. They provide assistance through the Taxpayer Advocate Service when clients face financial difficulties or unresolved tax issues. By providing informed, quality service and advocating for their clients, paid repapers help maintain a fair and just tax system.

Putting the Taxpayer Bill of Rights Into Practice

The Taxpayer Bill of Rights serves as a cornerstone for ensuring trust and transparency between taxpayers and the IRS.

At Latino Tax Pro, we think the Taxpayer Bill of Rights is pretty important, so we created a one-page TBOR quick reference for our people to post in their offices. If you’d like a copy, please download it in English or en español, and feel free to pass it on to your colleagues.

As tax preparers, we have a unique opportunity to uphold these rights, ensuring that every taxpayer is treated fairly and with respect. By practicing these principles, we not only fulfill our professional responsibilities but also contribute to a more just and equitable tax system.

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