Taxpayer Privacy Is Not Just a Right: It's the Law
Protecting taxpayer privacy is a priority for the IRS. The right to privacy is one of the 10 rights that the IRS has. Taxpayer Bill of Rights grants to all taxpayers.
Taxpayers have the right to expect that any IRS investigation, examination, or enforcement action will comply with the law and be no more intrusive than necessary. Taxpayers can also expect the IRS to respect all due process rights, including search and seizure protections, and to provide, when appropriate, a due process hearing.
Below are more details on what the taxpayer's right to privacy means:
- During an audit, if the IRS finds no reasonable indication that a taxpayer has unreported income, the agency will not seek intrusive and extraneous information about the taxpayer's lifestyle.
- A taxpayer can expect that IRS collection actions will not be more intrusive than necessary. During a collection hearing, the Appeals Office must balance that expectation with the IRS's proposed collection action and the overall need for efficient tax collection.
- Sometimes taxpayers make offers to settle their tax debt that relate only to the amount they owe. This is formally known as an offer in compromise for doubt of liability. Taxpayers who make this offer do not need to submit any financial documentation.
- The IRS cannot seize certain personal items, such as school books, clothing, and undelivered mail.
- The IRS cannot seize a personal residence without first obtaining court approval, and the agency must show that there is no reasonable alternative to collect the tax debt.