17.1 IRS organizational structure and taxpayer rights
3 min read•july 30, 2024
The IRS, a bureau within the Treasury Department, enforces tax laws through various divisions. From individual taxpayers to large corporations, each division handles specific segments. Support functions like Appeals and Criminal Investigation ensure smooth operations and compliance.
Taxpayer rights are fundamental to the IRS's mission. The outlines ten essential protections, including the right to be informed and to challenge IRS decisions. The Service offers independent assistance for complex issues or unresolved problems.
IRS Organization and Divisions
Organizational Structure and Leadership
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IRS operates as a bureau within the Department of the Treasury, enforcing U.S. tax laws
Commissioner of Internal Revenue heads the IRS
Appointed by the President and confirmed by the Senate
Serves a five-year term
Primary Operating Divisions
handles individual taxpayers
focuses on small businesses and self-employed individuals
oversees large corporations and international tax matters
manages tax-exempt organizations and government entities
Support Functions and Taxpayer Services
Functional units support IRS operations
handles tax disputes
investigates
provides legal guidance
system processes electronic tax returns efficiently
Service centers and provide direct support nationwide
Compliance programs ensure adherence to tax laws
Audits examine tax returns for accuracy
Collections pursue unpaid taxes
Criminal investigations target and fraud
Taxpayer Rights and Protections
Fundamental Rights Under the Taxpayer Bill of Rights
Adopted by IRS in 2014, outlines ten essential taxpayer rights
Right to be informed about tax laws and IRS procedures
Right to quality service ensures prompt and professional assistance
Right to pay only the correct amount of tax, including interest and penalties
Right to challenge IRS positions and provide additional documentation
IRS decisions in an independent forum (within IRS or courts)
Privacy and Finality Rights
limits IRS information gathering and enforcement actions
Right to finality provides information on time limits
Maximum time for taxpayers to challenge IRS positions
Maximum time for IRS to audit a tax year or collect tax debt
Taxpayer Advocate Service Role
TAS Function and Assistance
Independent organization within IRS providing free assistance to taxpayers
Resolves issues not settled through normal IRS channels
Offers personalized service for complex tax problems
National Taxpayer Advocate reports to Congress on systemic issues
Recommends administrative and legislative changes
Advocates for taxpayer rights and improves IRS services
Eligibility and Programs
Assists taxpayers facing immediate financial harm
Helps when IRS delays exceed 30 days or miss promised response dates
Provides education and outreach programs on taxpayer rights and responsibilities
Administers program
Offers free or low-cost representation for low-income taxpayers in IRS disputes
Filing for Refund or Credit
Claim Filing Process
Use Form 1040X for individual income taxes
Use Form 1120X for corporate income taxes
File within statute of limitations
Generally three years from original return filing date
Or two years from tax payment date, whichever is later
Provide detailed explanation for refund claim
Include changes to income, deductions, or credits
Submit supporting documentation (corrected information returns, receipts)
Claim Processing and Appeals
IRS typically processes claims within 16 weeks
Complex cases may require additional time
Taxpayers can appeal denied claims within IRS
Option to file lawsuit in federal court if claim denied
Interest may be paid on refunds not issued within 45 days
Counted from due date of return or accurate filing date, whichever is later