Smart Solutions For Federal Tax Issues
David Coffin office building

Suing the IRS in Texas

On Behalf of | Mar 13, 2023 | Tax |

The IRS has a “Taxpayer Bill of Rights” that protects taxpayers in all states, including Texas. This document preserves the ability to dispute any IRS decisions and even initiate legal proceedings if necessary.

Taxpayer rights

Every US taxpayer has ten rights granted under the IRS’s Taxpayer Bill of Rights. Among them, there are two that are particularly pertinent to Texas filers: the right to quality service and the right to appeal an IRS decision in an independent forum.

The right to quality service mandates that the IRS should always provide taxpayers with courteous, prompt and professional service. This includes providing accurate information about tax laws, responding to inquiries promptly and treating taxpayers fairly. Additionally, taxpayers have a right to confidentiality regarding any information they provide to the IRS.

Right to appeal grants taxpayers the ability to challenge an IRS decision in independent forums such as a court of law or before the US Tax Court. The appeals process safeguards taxpayers against a tyrannical IRS agent’s infringement of their rights to get a fair hearing.

Filing suit against the IRS in Texas

Texas residents who feel mistreated or wronged by the actions of the IRS may choose to pursue tax litigation against the government in a court of law. However, in doing so, taxpayers need to understand their rights and abide by the IRS’s rules and regulations regarding filing suits against them.

For example, taxpayers should exhaust all administrative remedies available through appeals. This includes appealing an IRS decision before a US Tax Court or other independent forums. On the other hand, if taxpayers have followed all proper procedures without getting an appropriate resolution from the IRS, they may proceed with the lawsuit in Texas federal district court.

While using the IRS can be daunting and complex, Texas residents can exercise their rights under the Taxpayer Bill of Rights and appeal decisions taken by the agency or file lawsuits against them. Therefore, gathering sufficient evidence and documentation to back up any claims and ensure the best possible outcome is essential.