The Fair Tax Act, Part XLI
Section 605 covers taxpayer rights. I’ll probably do this in two parts:
`SEC. 605. TAXPAYER RIGHTS.
`(a) Rights To Be Disclosed- The sales tax administering authority shall provide to any person against whom it has–
`(1) commenced an audit or investigation;
`(2) issued a final notice of amount due;
`(3) filed an administrative lien, levy, or garnishment;
`(4) commenced other collection action;
`(5) commenced an action for civil penalties; or
`(6) any other legal action,
a document setting forth in plain English the rights of the person. The document shall explain the administrative appeals process, the authority of the Problem Resolution Office (established pursuant to section 603) and how to contact that Office, the burden of production and persuasion that the person and the sales tax administering authority bear (pursuant to section 506), the right of the person to professional fees (pursuant to section 507), the right to record interviews and such other rights as the person may possess under this subtitle. Said document will also set forth the procedures for entering into an installment agreement.
`(b) Right to Professional Assistance- In all dealings with the sales tax administering authority, a person shall have the right to assistance, at their own expense, of 1 or more professional advisors.
`(c) Right To Record Interviews- Any person who is interviewed by an agent of the sales tax administering authority shall have the right to video or audio tape the interview at the person’s own expense.
`(d) Right to Final Notice of Amount Due- No collection or enforcement action will be commenced against a person until 30 days after they have been provided with a final notice of amount due under this subtitle by the sales tax administering authority. The final notice of amount due shall set forth the amount of tax due (along with any interest and penalties due) and the factual and legal basis for such amounts being due with sufficient specificity that such basis can be understood by a reasonable person who is not a tax professional reading the notice. The final notice shall be sent by certified mail, return receipt requested, to–
`(1) the address last provided by a registered seller; or
`(2) the best available address to a person who is not a registered seller.
So here we go: any time the tax authorities take action against a taxpayer, you now have rights specifically spelled out in this bill. You may always have professional assistance, you can record any interviews, and you must be provided a final notice of amount due to avoid misinterpretation of what you are presumed to have to pay. The last part of Section 605, part e, is pretty long but it really only covers confidentiality so I’ll post that later.
It seems to me that only retailers would have this problem since we the people would automatically pay any tax we incurred at the cash register when we paid for our purchase. Did I miss something?
No not at all. Indeed most of the time only retailers would have this problem. But the consumers are ultimately liable for tax if they don’t get a receipt, so it’s possible they might need these protections.
But businesspeople are people too! They need these protections as much as anyone else.