Your Rights as a Taxpayer: #3- The Right to Pay No More than the Correct Amount of Tax

The Right to Pay No More than the Correct Amount of Tax

Every year, the IRS updates its tax publications and one of the most important (Publication 1) concerns your/our rights as a taxpayer. Known as the "Taxpayer Bill of Rights"- these rights are only worthwhile if you know what they are and how to exercise them.

Taxpayers specifically have the right to pay only the amount of tax legally due, including interest and penalties. In addition, we as taxpayers have the right to have the IRS apply all tax payments properly.

Of course, there are problems in determining the "correct amount of tax due." What we know for sure is that there is no requirement, legal or otherwise, for overpaying your taxes. Tax planning, of course, is the key for most taxpayers to be able to determine what the correct amount of tax actually is.

The IRS must specify any amounts due for delinquent account (or for the results of an audit for which additional funds are due and owning). We as taxpayers are permitted to challenge any penalties (and the interest associated with the penalties) if we do not agree. As always with the IRS, do not take "no" for an answer!

I will be covering the full extent of the Taxpayer Bill of Rights over the course of several additional short articles.