Understanding your taxpayer rights as an immigrant in the United States is essential for successfully navigating the tax system. The Internal Revenue Service has enumerated ten fundamental taxpayer rights in its “Taxpayer Bill of Rights.” These liberties apply to all individuals, regardless of their immigration status. This article will explain these rights and their significance to you as an immigrant taxpayer.
How does your visa status affect your rights as a taxpayer?
Regarding taxation, your visa status is significant because it helps determine your tax residency status. If you are a Green Card holder or meet the substantial presence test, you are deemed a U.S. tax resident and must report your worldwide income. In contrast, a nonresident alien, such as a temporary labourer or student, is typically taxed only on income from the United States.
Understanding your visa status and how it affects your taxation is crucial because it enables you to comply with tax laws correctly and maximise your taxpayer rights. Whether you are a U.S. citizen or a noncitizen, you have the same taxpayer rights, and being aware of them can help you manage your taxes responsibly.
The Bill of Taxpayer Rights
Taxpayers have the opportunity to know what is necessary to comply with tax laws. In all tax forms, publications, notices, and correspondence, they have the right to understand the applicable laws and IRS procedures.
Taxpayers have the right to prompt, considerate, and professional assistance when dealing with the IRS.
The Right to Pay No More Than the Appropriate Amount of Tax:
- Taxpayers have the right to pay, at most, the correct amount of tax and to have the IRS rectify any mistakes it makes.
- Taxpayers can raise objections and submit additional documentation in response to formal and proposed IRS actions.
- Taxpayers have the right to know how long they have to contest an IRS position and how long the IRS has to audit a specific tax year.
- Taxpayers have the right to expect that any IRS investigation, examination, or enforcement action will be lawful and as unobtrusive as possible.
- Taxpayers have the right to anticipate that any information they provide to the IRS will not be disclosed without their permission or as required by law.
- The Right to Retain Representation Taxpayers have the right to have an authorised representative of their choosing represent them before the IRS.
- Taxpayers have the right to expect that the tax system will consider facts and circumstances which may impact their underlying liabilities, ability to pay, or ability to provide timely information.
Support and Advocacy Are Crucial
Knowing your rights as an immigrant taxpayer is only the beginning. It is equally essential to seek assistance when you require it. The IRS provides taxpayers with various resources, including those with limited English proficiency. To those who qualify, programmes such as Volunteer Income Tax Assistance (VITA) and Tax Counselling for the Elderly (TCE) offer free tax assistance.
In addition, the Taxpayer Advocate Service is an independent IRS organisation that assists taxpayers in understanding and exercising their rights. They can assist in resolving issues you cannot resolve with the IRS. Remember that proper knowledge and utilisation of available resources can make the complex task of tax management for expatriate taxpayers significantly more manageable.
As with all taxpayers in the U.S., the U.S. tax code grants immigrants certain privileges. These rights are intended to ensure that you are treated fairly and justly in all interactions with the IRS.
By comprehending these rights and responsibilities, you will be better equipped to manage your taxes, avoid potential problems, and confidently interact with the IRS.
If you need help comprehending your taxpayer rights, you can seek assistance from a tax expert or IRS taxpayer advocate. Remember that your visa status plays a significant role in determining your tax obligations, but your rights as a taxpayer remain the same regardless of your visa status.