The IRS is committed to protecting the privacy rights of America’s taxpayers. In fact, 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, audit, 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. Finally, they will provide a collection due process hearing when appropriate.
Here are some more details about what taxpayers can expect related to the right to privacy:
- The IRS cannot seize certain personal items, such as schoolbooks, clothing and undelivered mail.
- 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.
- Sometimes, a taxpayer submits an offer to settle their tax debt with an offer that relates only to how much they owe. This is formally known as a Doubt as to Liability Offer in Compromise. When a taxpayer makes this offer, they do not need to submit any financial documentation.
- 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 IRS’s proposed collection action and the overall need for efficient tax collection.