Navigating the complex tax system can be challenging for many taxpayers, who often face issues such as incorrect tax assessments, delayed refunds, or IRS misjudgments. Did you know that as a taxpayer, you have the right to pay only the amount of tax legally owed, plus any interest and penalties? This article examines the importance of the third provision in the Taxpayer Bill of Rights and how it can benefit you.

According to the Taxpayer Bill of Rights (TABOR) Provision 3 , taxpayers have the right to pay only the amount of tax legally due. The IRS is responsible for administering the tax system and must ensure proper application of all tax payments. Below are key rights and expectations for taxpayers when interacting with the IRS:

1. Right to Claim a Refund

If you believe you've overpaid your taxes, you may file for a refund within the legally prescribed time limits. Detailed procedures can be found in IRS Publication Reviewing Your Tax Return, Appeal Rights, and Claims for Refund .

2. Right to Challenge IRS Notices or Bills

If you receive an IRS notice or bill that you believe contains errors, you must submit your dispute to the appropriate department within the specified timeframe. Providing copies of relevant records will help correct the error. You may also call the phone number listed on the notice for assistance. If your position is valid, the IRS will adjust your account accordingly and issue a corrected notice.

3. Right to File an Amended Return

If you discover errors after filing your tax return, you may need to submit an amended return. This is particularly important if there are changes to your filing status, income, deductions, or credits. Note that the IRS automatically corrects mathematical errors on returns and processes filings that may be missing certain forms or schedules. If you disagree with the IRS's adjustments, you have 60 days to file an appeal to formally dispute the changes.

4. Right to Request Removal of Improper Debt

In certain circumstances—such as when the debt exceeds the legally required amount or the assessment doesn't comply with legal requirements—you may request that the IRS remove the debt. This provision offers taxpayers protection against unfair financial burdens.

5. Right to Request Interest Abatement

If the IRS causes unreasonable delays or errors that result in additional interest charges on your account, you have the right to request that the interest be waived. For example, if IRS staff delays sending a notice due to training gaps, you may petition for interest relief.

6. Right to Submit an Offer in Compromise

If you believe your tax debt is not fully or partially owed, you may propose an Offer in Compromise , asking the IRS to accept a reduced payment. To initiate this process, you must complete Form 656-L, Offer in Compromise .

Additionally, if you enter into an installment agreement with the IRS, the agency is required to send you an annual statement clearly outlining your remaining balance and payment history.

For more information on the Taxpayer Bill of Rights and its implementation, visit the Taxpayer Advocate Service website. The IRS is committed to ensuring that all taxpayers understand their rights and can engage with the agency fairly. By knowing these rights, you can confidently navigate tax disputes and protect your financial interests.

In summary, TABOR Provision 3 serves as a critical legal framework governing taxpayer-IRS interactions while safeguarding taxpayer rights. Understanding and exercising these rights is essential for ensuring fair treatment in tax administration.