The Digestible IRS Series
Written by Sam Sweitzer May 10th, 2021
I have rights with the IRS?
The IRS has a bill of rights and is described on their website as “10 fundamental rights taxpayers have when dealing with the Internal Revenue Service.” The right I believe everyone should be aware of is the 3rd right. In my opinion, this may be the most important right of the IRS’s Bill of Rights. This is 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, including interest and penalties, and to have the IRS apply all tax payments properly.” Tax Payer Bill of Rights 31
Why does this matter?
This means that you have the right to pay only the amount of taxes due based on all current definitions and deductions at the time of filing. It is possible to pay more taxes than are legally required if you do not include deductions that you have the right to take. There is the ability to file for a refund, within specific time frames, if you believe you overpaid your taxes.
Paying only the legally required amount of taxes on the previous year’s income is just the start. It is possible to plan your finances in such a way to potentially reduce the amount of lifetime taxes you pay. That’s why we believe it’s important to stop calculating your taxes for the previous your and start planning your taxes for the years to come. Feel free to reach out with any questions. (203) 605 – 9354 or to sam@sweitzerip.com
Resources:
1The Internal Revenue Service. Taxpayer Bill of Rights 3: The Right to Pay No More Than the Correct Amount of Tax. (2021). Retrieved from https://www.irs.gov/newsroom/taxpayer-bill-of-rights-3
Disclosure: Kenneth Sweitzer is a licensed insurance professional. Sam Sweitzer is a financial professional who offers insurance services.
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