Page 39 - Escape Your IRS Nightmare Flip Book

The procedural process with the IRS is much different than it is in local and federal court. However,

one thing you should know is that the legal requirement for due process still exists within the IRS
system.

Due process is the legal requirement that the IRS must respect all legal rights that are owed to you. Due
process balances the power of the IRS and protects you – the taxpayer – from the overreaching power

of the IRS.

I will provide a few examples below to clarify:

Example #1

If the IRS sends you a letter telling you they have calculated a mistake on your tax return, you have the
right to find out how they did their calculations and you have the right to object and appeal. While
your appeal is pending, the IRS cannot move forward with action against you on the issue you

appealed.

Example #2

The IRS sends you a letter stating you haven’t taken any steps to resolve the money you owe, therefore
they are going to seize your assets. If you disagree, you have the opportunity to object and file an

appeal. While your appeal is pending, the IRS cannot move forward to seize your assets for the year in
question.

Example #3
If your tax return is selected for audit and the auditor calculates a sum of taxes due, you can appeal the

final determination, typically all the way to tax court.

Example #4

If your Offer in Compromise is rejected based on calculations of your equity in assets and monthly
disposable income, you can appeal this determination and explain why you disagree. If you appeal in a
timely manner, the IRS must provide you with a response.

Example #5

The IRS takes all of the money out of your bank account. You had no idea that you even owed any
money. Upon investigation it is discovered that the IRS never sent you any letters explaining they were

going to take action. You could appeal to have your money refunded to you because the IRS failed to
provide you with Due Process.

28