Taxpayers Rights to Privacy & Other News
TODAY’S TAX NOTICES, NEWS, AND TIPS
By IRS Press Office – No Right Claimed for Any US Publications
UNDERSTANDING TAXPAYER RIGHTS: EVERY TAXPAYER HAS THE RIGHT TO PRIVACY
- The privacy of America's taxpayers is paramount at the IRS. The right to privacy is one of ten rights the Taxpayer Bill of Rights gives all taxpayers. Taxpayers have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary. Taxpayers can also expect that the IRS will respect all due process rights, including search and seizure protections and will provide, where applicable, a collection due process hearing.
- Here are a few more details about what a taxpayer's right to privacy means:
o The IRS cannot seize certain personal items, such as schoolbooks, clothing and undelivered mail.
o The IRS cannot seize a personal residence without first getting court approval, and the agency must show there is no reasonable alternative for collecting the tax debt.
o Sometimes, taxpayers submit offers to settle their tax debt that relate only to how much they owe. This is formally known as a Doubt as to Liability Offer in Compromise. Taxpayers who make this offer do not need to submit any financial documentation.
o During an audit, if the IRS finds no reasonable indication that a taxpayer has no unreported income, the agency will not seek intrusive and extraneous information about the taxpayer's lifestyle.
- A taxpayer can expect that the IRS's collection actions are no more intrusive than necessary. During a collection due process hearing, the Office of Appeals must balance that expectation with the IRS's proposed collection action and the overall need for efficient tax collection.
2021 TAX EXTENSION FILERS – FILE NOW; NEW WISP DATA SECURITY PLAN; ERRONEOUS BALANCE DUE NOTICES (CP-14)
- 2021 tax extension filers don’t need to wait until October 17. The IRS reminds the estimated 19 million taxpayers who requested an extension to file their 2021 tax return that they don’t have to wait until mid-October to do so. If a taxpayer has all the necessary information to file an accurate return, they can file electronically at any time before the October deadline and avoid a last-minute rush to file.
- Security Summit releases new WISP data security plan to help tax pros
To help tax pros still struggling to develop a written security plan, the Security Summit partners released a new sample security plan – the Written Information Security Plan or WISP. It’s designed to help tax professionals, especially those in smaller practices, protect their data and information.
- Erroneous or incorrect balance due notices (CP-14).
- The IRS is aware that some payments made for 2021 tax returns have not been correctly applied to joint taxpayer accounts, and these taxpayers are receiving erroneous balance due notices (CP-14 notices) or notices showing the incorrect amount. No immediate action or phone call is needed.
MODERNIZING TAX PROCESSING SYSTEMS
- Ten years ago, the IRS began the highly complex effort of modernizing the engine of the nation’s core tax processing system with current technology known as the Customer Account Data Engine 2 (CADE 2) program. The IRS has now converted over 90% of the core legacy code for processing individual income tax returns to Java, with the goal of finishing this portion of the work in FY 2023.
- Take A Closer Look at the program and why it’s key to unlocking better taxpayer service and reducing risk to the nation’s tax system. Also, for people looking to further their technology careers, now is a great time to join the IRS
IRS INCREASES MILEAGE RATE FOR REMAINDER OF 2022
- The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices. For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. These new rates become effective July 1, 2022. The IRS provides legal guidance on the new rates in Announcement 2022-13.