Small Business Taxpayer Rights: Enhanced Protections and Streamlined Processes
This act introduces several changes aimed at strengthening the rights of small businesses and individual taxpayers in their interactions with the tax authority. It enhances protection against misconduct, facilitates tax dispute resolution, and introduces new benefits, leading to greater financial security and less stress for entrepreneurs.
Key points
Small businesses (up to $50 million in gross receipts) are exempt from net worth requirements for recovering costs in tax disputes.
Penalties for IRS employee misconduct, including unauthorized disclosure of information, have been increased.
Taxpayers gain the right to an independent conference with the IRS and broader access to mediation and arbitration in disputes.
The IRS cannot raise new issues on appeal if they were not part of the initial determination.
Limitations are placed on the IRS's ability to enforce liens against a taxpayer's primary residence, unless other assets are insufficient and it won't cause economic hardship.
A deduction of up to $5,000 is allowed for audit-related expenses that do not result in an increased tax liability.
It's easier to get an IRS levy released due to economic hardship for businesses, considering their viability and potential harm to individuals.
The requirement for partial payment when submitting offers-in-compromise has been repealed.
Introduced
Citizen Poll