Your Right to Finality with the IRS

All taxpayers are protected by the Taxpayer Bill of Rights, which includes the right to finality. This means you are entitled to know how long the IRS has to act on certain matters and when a process is officially closed.

Here’s what that right covers:

• You have the right to know the maximum time you can challenge an IRS decision.
• The IRS generally has three years from the date a return is filed to assess additional tax. There are exceptions, such as when a return is fraudulent or not filed at all.
• Once a tax is assessed, the IRS typically has 10 years to collect unpaid amounts. This timeframe can only be extended by agreement, court judgment, or certain circumstances like bankruptcy.
• If you receive a statutory notice of deficiency, it must clearly state your deadline to file a petition in tax court.
• You are usually subject to only one audit per tax year, unless fraud or other special conditions apply.

Understanding your rights helps you stay informed and confident when dealing with the IRS. If you have questions about your situation, it’s always wise to consult a tax professional.