The Tax Department has announced that the IRS will start using the Taxpayer Advocate (TPA) Taxpayer Bill of Rights (TBTOR) instead of the TPA (Taxpayer Advocate).
It also wants to be clear about the taxonomy that it will use.
“TBTORS taxonomy is a broad term encompassing all types of income and deductions,” reads a Treasury Department statement, adding that “the IRS will continue to rely on the Tax Code for its taxonomy.”
“Taxpayers who want to be able to use the Tax code as a reference to tax code terminology will need to make a determination as to which tax code taxonomy they wish to use.”
The statement adds that it would be a good time to make this decision because “there will be a significant increase in the number of taxpayers who will be able use the tax code to file their taxes, and there will be additional benefits for taxpayers and taxpayers’ associations.”
What does this mean?
The TBTOR Taxpayer Declaration was the first tax code declaration that the Treasury Department used to create the TBTORS code.
The declaration states that it is “designed to help taxpayers understand how the tax codes of the United States, its states, territories, and possessions are organized, to facilitate tax compliance, and to identify tax issues.”
“There are several aspects to TBTors taxonomy,” the declaration explains.
It will not apply to: 1.
Persons with certain tax-exempt status who file their returns with the Internal Revenue Service.
Taxpayers who are married filing jointly, but have different tax-status, or have a different tax status from their spouse or common-law partner.
Tax filers who are exempt from state income taxes.
Tax-exempt individuals, estates, and trusts.
Individuals who are not subject to the IRS or any other taxing authority.
Individuals with no income or assets.
Individuals or businesses with business activities in foreign countries.
Individuals and groups with more than 50 members.
Tax credit recipients.
Individuals whose tax returns do not include information about their business activity.
Individuals filing under an individual exemption.
Individuals in an income-producing business.
Individuals receiving an individual tax credit.
Persons who are subject to tax-related penalties.
Persons subject to penalty requirements under the Internal Regulations.
Nonresidents of the Commonwealth of Puerto Rico.
Tax payers with accounts held at an IRA or other tax-free account.
Individuals living outside of the U.S.A. or foreign countries that do not have a U. S. domicile.
Persons filing a joint return with more of the same taxpayer.
Persons reporting income from a foreign bank.
Tax return filers filing for the first time on or after April 1, 2019.
Individuals reporting income in excess of $100,000.
Tax paid in advance on an individual return or an individual retirement account.
Tax payment made in a taxable year that does not include a withholding tax.
Tax payable on a U .
Treasury withholding return.
Tax on interest received from a domestic or foreign bank or other financial institution.
Tax liability on a credit for a refund.
Tax penalty on an itemized deduction.
Tax imposed for a failure to pay a federal tax due on a nonrefundable tax.
Tax required to be paid on a claim for refund.
Tax for a credit on a tax return or payment for refund to a foreign country.
Tax withheld on a federal refund for nonpayment of a tax due.
Tax assessed on an amount less than $50,000 of a refundable tax or amount of refundable taxes less than or equal to $50 or more of a non-refundability tax.
Tax due on an initial refund of a credit or refund on a refund or refundable payment.
Tax levied against a taxpayer who fails to file a return or pay a tax.
Tax to be withheld for a return, payment, or penalty if the taxpayer fails to pay tax or withholds a tax on an account held by the taxpayer, a partnership, or a foreign government.
Tax collected or withheld on an annual return or statement.
Tax from an individual taxpayer for tax withheld on their return or on a payment to a partnership or foreign government for tax owed.
Tax against a tax refund or payment, if the refund is not paid on time.
Tax, if assessed on a taxpayer’s return, upon an itemization or payment. 46. Tax