Your Rights During an IRS Audit in New York

Key Takeaways

• The Taxpayer Bill of Rights guarantees 10 fundamental protections during any IRS interaction, including audits.
• You have the right to professional representation, the right to appeal any findings, and the right to pay only the correct amount of tax.
• You cannot refuse an audit entirely, but you can control how it is conducted, who represents you, and whether to appeal the outcome.

Many taxpayers do not realize they have significant legal protections during an IRS audit. The Taxpayer Bill of Rights, codified in the Internal Revenue Code, guarantees ten rights that apply from the moment you receive an audit notice through final resolution. Knowing these rights changes how you approach the examination: you are not a passive participant hoping for a favorable outcome, you are a taxpayer with defined protections that the IRS must honor. Jennifer O'Neill, EA, MBA, at New York IRS audit representation specialist in West Seneca, NY, ensures every client understands their rights before the audit process begins.

The 10 Taxpayer Rights

The IRS adopted the Taxpayer Bill of Rights in 2014, grouping existing protections into ten clear categories. These rights apply to every taxpayer during every interaction with the IRS, including audits, collections, and appeals.

1. The Right to Be Informed

You have the right to know what you need to do to comply with tax laws. During an audit, this means the IRS must clearly explain what it is examining, why your return was selected, what documents it needs, and what process it will follow. The audit notice must identify the tax year, the items under review, and your response deadline. If you do not understand something, you have the right to ask for a clear explanation.

2. The Right to Quality Service

You have the right to prompt, courteous, and professional assistance. If an examiner is rude, unresponsive, or unreasonable, you can request to speak with a supervisor. If you are not getting adequate service through normal channels, you can contact the Taxpayer Advocate Service (TAS), an independent organization within the IRS that resolves problems.

3. The Right to Pay No More Than the Correct Amount of Tax

This is one of the most important audit rights. The IRS cannot assess more tax than you legally owe. If the examiner proposes an adjustment you believe is wrong, you have the right to challenge it with documentation and argument. You also have the right to have the IRS apply all credits and payments you are entitled to. If the audit reveals that you overpaid, the IRS should adjust your account accordingly.

4. The Right to Challenge the IRS's Position and Be Heard

You have the right to object to formal IRS actions and to provide additional documentation and arguments. During an audit, this means you can disagree with the examiner's findings, present alternative calculations, and provide supplementary records that support your position. The IRS must consider your arguments before issuing a final determination.

5. The Right to Appeal an IRS Decision in an Independent Forum

If you disagree with the audit findings, you have the right to an independent review through the IRS Office of Appeals. Appeals officers have settlement authority that examiners do not. Beyond Appeals, you can petition the U.S. Tax Court, which is independent of the IRS. For detailed information on how this process works, see our guide to IRS audit appeals in New York.

6. The Right to Finality

You have the right to know the maximum time for challenging the IRS's position. You also have the right to know when the IRS has finished the audit. The statute of limitations (generally three years from filing) limits how far back the IRS can examine. Once the audit concludes and you sign a closing agreement, the IRS cannot reopen the examination for the same year absent fraud or significant understatement.

7. The Right to Privacy

IRS audits must be no more intrusive than necessary. The IRS cannot rummage through all your records when it is only examining one item. During a field audit, you can limit the examiner's access to areas of your home or business that are relevant to the examination. Your representative can set ground rules for the visit and object to requests that exceed the scope of the audit.

8. The Right to Confidentiality

The IRS cannot disclose your tax information to anyone without your authorization, except as permitted by law (such as sharing information with state tax agencies for enforcement purposes). Your tax return information is protected under Internal Revenue Code Section 6103. If the IRS improperly discloses your information, you may be entitled to damages.

9. The Right to Retain Representation

You have the right to hire an authorized representative (enrolled agent, CPA, or tax attorney) to act on your behalf. Once your representative files Form 2848 (Power of Attorney), the IRS must communicate with your representative rather than contacting you directly. If you appear at an audit without a representative and the examiner asks a question you are unsure about, you have the right to pause the examination and consult with an advisor before answering. For more on choosing a representative, see our IRS audit representation guide for New York.

10. The Right to a Fair and Just Tax System

You have the right to expect the tax system to consider all relevant facts and circumstances. If you cannot afford representation, the IRS must inform you of available Low Income Taxpayer Clinics (LITCs). If IRS delays caused unreasonable interest charges, you can request abatement of the interest.

Can I Refuse an IRS Audit?

You cannot refuse an audit outright. The IRS has the legal authority to examine any return. However, you have significant control over how the audit is conducted.

You can choose who represents you. You can request rescheduling of appointments. You can limit the scope of a field audit to relevant areas. You can provide only the documents specifically requested. You can decline to answer questions and instead respond in writing through your representative.

If you simply refuse to cooperate, the IRS will issue a summons compelling you to produce records and testimony. Ignoring a summons can result in court enforcement and contempt charges. The practical approach is not to refuse the audit but to control it: hire a representative, respond strategically, and exercise your rights at every step.

If you believe the audit was initiated improperly or that the IRS is exceeding its authority, your representative can challenge the scope of the examination and file a complaint with the Taxpayer Advocate Service.

Publication 1: Your Rights as a Taxpayer

IRS Publication 1 is a concise document that summarizes the Taxpayer Bill of Rights. The IRS is required to provide this publication at the beginning of every audit. If you do not receive it, request a copy. It explains your rights in plain language and provides contact information for the Taxpayer Advocate Service.

Publication 1 also explains the examination process, your appeal rights, and the collections process. Reviewing it before your audit (or having your representative review it with you) ensures you know what to expect at each stage. Your representative should use these rights proactively throughout the audit defense process.

New York State Taxpayer Rights

New York State provides its own set of taxpayer protections during DTF audits. While not identical to federal rights, they cover similar ground.

Right to representation: You can have a representative handle your NY State audit, just as with the IRS. The representative files Form POA-1 with the DTF.

Right to explanation: The DTF must explain why your return was selected, what items are being examined, and what your response options are.

Right to appeal: New York offers a two-tier appeals process: the Bureau of Conciliation and Mediation Services (BCMS) for informal resolution, and the Division of Tax Appeals for formal hearings. Beyond these, you can seek judicial review through Article 78 proceedings.

Right to abatement of penalties: If you can show reasonable cause for a filing or payment error, New York State may abate penalties. Interest is harder to abate, but penalty relief can significantly reduce your total liability.

Right to privacy: The DTF is subject to New York's tax secrecy provisions, which prohibit unauthorized disclosure of your tax information.

For taxpayers dealing with both federal and state audits, understanding both sets of rights is essential. Jennifer O'Neill at IRS Help Inc. handles both jurisdictions and ensures her clients' rights are protected at every level.

How to Exercise Your Rights During an Audit

Knowing your rights and exercising them are different things. Here is how to put each protection into practice.

Get representation early. File Form 2848 as soon as you receive the audit notice. Once the POA is on file, all IRS communication goes through your representative. This prevents you from accidentally waiving a right or providing harmful information in direct conversation with the examiner.

Respond only to what is asked. The right to privacy means the IRS cannot conduct a fishing expedition. If the notice asks for charitable contribution receipts, provide those receipts, not your entire filing cabinet. Your representative should review every Information Document Request before you produce documents.

Request explanations in writing. If the examiner proposes an adjustment, ask for the basis in writing. Verbal explanations can be misremembered or mischaracterized. Written explanations create a record that supports your appeal if you disagree.

Do not sign anything without review. The examiner may present a closing agreement or consent form. Have your representative review any document before you sign it. Signing a consent to extend the statute of limitations, for example, gives the IRS more time to audit your return, and should only be agreed to when your representative advises it is in your interest.

Use the appeals process. If you disagree with the audit findings, do not simply accept them. The appeals process exists specifically for this purpose, and appeals officers settle cases at lower amounts than the original examination proposes in a significant percentage of cases.

The Taxpayer Advocate Service

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS. Its mission is to help taxpayers resolve problems that have not been fixed through normal IRS channels.

You can contact TAS if: the IRS is causing you economic harm, you are facing an immediate threat of adverse action, you have not received a response from the IRS within the promised timeframe, or the IRS system is not operating as intended.

TAS assigns a case advocate who works directly with you and has authority to cut through IRS bureaucracy. TAS cannot change the law or overrule an audit finding, but it can ensure the IRS follows proper procedures and respects your rights.

New York has TAS offices in Manhattan, Brooklyn, and Buffalo. Contact information is available at irs.gov/advocate or by calling 1-877-777-4778.

Frequently Asked Questions

What rights do I have during an IRS audit?

You have 10 rights under the Taxpayer Bill of Rights: to be informed, to quality service, to pay no more than the correct tax, to challenge the IRS's position, to appeal, to finality, to privacy, to confidentiality, to representation, and to a fair tax system. These rights apply throughout the audit process.

Can I refuse an IRS audit?

You cannot refuse to be audited, as the IRS has legal authority to examine any return. However, you can control the process: hire a representative, provide only requested documents, reschedule appointments, and limit field audit access to relevant areas. Outright refusal leads to a summons and potential court enforcement.

Can I appeal an IRS audit decision?

Yes. You can appeal to the IRS Office of Appeals, which is independent from the examination division. For small cases (under $25,000), use Form 12203. For larger cases, file a formal written protest. If appeals does not resolve the dispute, you can petition U.S. Tax Court within 90 days of receiving a Notice of Deficiency.

What is the Taxpayer Advocate Service?

TAS is an independent organization within the IRS that helps taxpayers resolve problems not fixed through normal channels. TAS has offices in New York (Manhattan, Brooklyn, Buffalo) and assigns case advocates who have authority to intervene on your behalf. Contact: 1-877-777-4778.

Do my rights differ in a NY State audit?

New York State provides similar but separate protections: the right to representation (via Form POA-1), explanation of audit selection, a two-tier appeals process (BCMS and Division of Tax Appeals), and tax secrecy provisions. If you are facing both federal and state audits, your representative should protect your rights before both agencies.

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Know your rights during an audit. IRS audit defense expert in Buffalo, NY, at IRS Help Inc. in West Seneca has protected New York taxpayers' rights in IRS and state audits for over 40 years. Call 1-800-477-4357 to discuss your case.