Patrick H. Wright - IRS Tax StrategistThe Taxpayer Bill of Rights provides affirmative rights and protections to all taxpayers.  This includes those who have made mistakes, errors, or who have taken reasonable but incorrect positions trying to resolve their tax problems.  The TBOR was granted by Congress to help both the IRS employee and the taxpayer. The problems inherent in implementing these rights are cumbersome and complex. Your tax practitioner must understand how these rights are implemented in rules within the policy and procedures the IRS has put in place, such as “service level agreements (SLAs)” between the IRS Taxpayer Advocate and the various functions within the IRS.

IRS Coded Transcripts

IRS coded transcript: the keys to your case

The IRS employee’s intention toward you and how they perceive you is dependent upon the IRS Coded Transcripts.  These special machine coded transcripts represent the IRS system’s judgment of your level of non compliance.  The transcript will reveal whether the taxpayer’s history depicts a willing, cooperative and non recalcitrant behavior.

There are numerous codes on your transcript and must be analyzed to develop a tax strategy that will disprove what the codes automatically represent.  If these special transcripts codes designate you as an unwilling, uncooperative, recalcitrant taxpayer, then the IRS employee will be predisposed to make decisions in favor of assessing penalties that range from failure to pay, failure to file, negligence, civil fraud and fraud penalties.  This is applicable to the Examination, Collection and Appeals functions of the IRS.