That's right, contrary to widespread belief, you actually do have rights when the IRS comes calling. These rights have always existed. However, the Service has finally collected them into a single place. It's a revised edition of Publication 1, Your Rights as a Taxpayer. The list is very general in nature and is a broad outline that hopefully defines a culture at the Service and sets a tone for conversations, It is a process, often slow and cumbersome with long periods on hold with bad music. But, you do have a leg to stand on. Furthermore, you have additional paths of recourse through the Taxpayer Advocate's Office and the courts once all other avenues with the IRS have been exhausted.
Here are your rights as laid out in Publication 1:
1. The Right to Be Informed
2. The Right to Quality Service
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3. The Right to Pay No More than the Correct Amount of Tax
4. The Right to Challenge the IRS’s Position and Be Heard
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5. The Right to Appeal an IRS Decision in an Independent Forum
6. The Right to Finality
7. The Right to Privacy
8. The Right to Confidentiality
9. The Right to Retain Representation
10. The Right to a Fair and Just Tax System
For more detail, here is a link to Publication 1: http://www.irs.gov/uac/Publication-1,-Your-Rights-as-a-Taxpayer-1
Should all else fail, here is a link to the Taxpayer Advocate's Office, which was instrumental in it's efforts at finally detailing your rights: http://www.irs.gov/Advocate
As always, be sure to consult with your own tax or legal counsel concerning your specific situation. Nothing discussed here should be or is intended to be construed as legal or tax advice. Have a great day!