Home > West's Encyclopedia of American Law > Taxpayer Bill of Rights

A federal or state law that gives taxpayers procedural and substantive protection when dealing with a revenue department concerning a tax collection dispute.

Perceived abuses by the federal INTERNAL REVENUE SERVICE (IRS) during tax audits led to the enactment of the "Omnibus Taxpayer Bill of Rights" in 1988 (Pub. L. No. 100-647). A second set of provisions was enacted in 1996 (Pub. L. No. 104-168) to give taxpayers increased leverage in dealings with the IRS. The 1988 act also spurred many states to enact similar taxpayer bill of rights laws.

Although the rights given to taxpayers under these federal acts do not reduce the chance of being audited or diminish IRS authority to penalize taxpayers for inaccuracies or cheating on their returns, the provisions correct many of the perceived abuses in IRS auditing and collection procedures. The bill...