Key Takeaways
- Yes, you can dispute a tax bill—a notice from the IRS is often a proposal, not a final verdict.
- The IRS routinely issues bills based on incomplete or incorrect information, especially when returns are missing or rushed.
- You have the legal right to pay no more than the correct amount of tax—not whatever the computer says you owe.
- If you disagree, you also have the right to challenge the IRS’s position and be heard before they take money from you.
The IRS is officially opening its doors for tax filing season on January 26th.
And if you already have unresolved IRS issues, filing a new return can feel like walking into a trap.
But despite how intimidating those IRS notices look, the IRS is not the final word.
The law is.
The IRS Taxpayer Bill of Rights ensures that you are not a powerless bystander. So, let’s talk about the rights that exist specifically to prevent you from being overcharged or ignored.
What is the right to pay no more than the correct amount of tax?
You are legally obligated to pay only what the tax law allows. Not necessarily what appears on an IRS notice.
This is known as Right #3: The Right to Pay No More Than the Correct Amount of Tax.
The IRS systems that produce notices about amounts due or taxes that are delayed don’t automatically know that it was a death in the family or a natural disaster that disrupted your ability to file or pay on time.
When there’s a backlog of forms that have to be filed manually or there are cases where the IRS filed a “Substitute for Return”, there can be delays with processing documents or missing deductions and unclaimed credits that naturally lower what you owe.
These all relate to discrepancies that can occur with regard to your IRS account.
The good news is, the law does not require you to pay for a computer’s inability to keep up.
What if interest and penalties are already growing?
Interest and penalties can accrue on an incorrect balance, and going in and correcting the underlying amount often reduces or removes them.
If the base tax is wrong, everything built on top of it is questionable. Right #3 exists to stop unfair escalation and to correct the foundation.
So even when notices keep arriving, the balance keeps climbing, and it feels like the situation is slipping out of control, you still have right #3 on your side.
Can you dispute a tax bill if you disagree with the IRS?
Yes. You have the legal right to challenge the IRS’s position and present evidence before they take your money under Right #4: The Right to Challenge the IRS’s Position and Be Heard.
If you feel like you’re shouting into a void when you respond to automated letters and get handed off from agent to agent, this right is your megaphone.
It ensures the IRS cannot act as judge, jury, and executioner. If they propose changes to your return, question your income, or disallow a deduction, they must give you reasonable proof and a chance to respond.
You have the right to bring your own substantial evidence forward to disprove their assessment.
That includes access to written responses, documentation reviews, and the IRS Appeals process, where an independent reviewer evaluates the dispute.
And as millions of returns start getting processed over the next few months, automated notices surge. So, if you receive a notice saying you owe more than expected, remember: you do not have to accept their findings before they take a dollar from you.
A few instances where this might apply to your specific situation:
- Maybe you missed a previous audit or moved and never got the mail. If you have documentation that wasn’t considered the first time, we can invoke your right to an Audit Reconsideration. This is a second chance to present your facts and lower the debt.
- For the first time this tax season, brokers are issuing Form 1099-DA. But many of these forms will report “Gross Proceeds” with a $0 cost basis because the broker doesn’t know what you paid for the crypto. Under Right #4, we can challenge that $0 figure. We reconcile your actual data now to prevent a future automated CP2000 notice from draining your bank account later.
- The OBBBA increased the SALT deduction cap to $40,000 for most taxpayers. If you are currently in a resolution struggle, this new deduction could drastically lower your 2025 liability. Which can make an Offer in Compromise (OIC) much more attainable by proving to the IRS that your true tax debt is far less than they estimated.
What are the IRS dispute deadlines?
The IRS operates on a strict timeline, and missing a single date can mean the difference between a resolved case and a bank levy.
So, make sure to keep a close watch on your mailbox for these two warnings:
1. The 30-Day Collection Due Process (CDP) Window
If you receive a Letter 1058 or LT11 (Final Notice of Intent to Levy), you have exactly 30 days to file Form 12153. This is a power move – requesting a CDP hearing legally freezes the IRS’s ability to seize your wages or bank accounts while we work to fix the underlying issue.
2. The 90-Day “Ticket to Tax Court”
If the IRS sends a Statutory Notice of Deficiency (often called a 90-day letter), the law gives you 90 days to petition the U.S. Tax Court. This deadline is non-negotiable. If you miss it by even one day, you lose the right to challenge the debt without paying the full amount first.
I can help you pull and analyze your IRS Transcripts to see exactly what the IRS knows (including your CSEDs (Collection Statute Expiration Dates) and any unfiled years they’ve flagged). That way, we can build your defense with all the facts on the table.
Can you dispute a tax bill without making things worse?
Yes… if done strategically. Knowing how and when to invoke these rights is where cases are won or lost.
Which is why, when I show up for my clients, I am more than a document filer.
I’m your translator and your advocate who understands the ins and outs of IRS processes and pressure points.
Because when your taxpayer rights are exercised correctly, balances can shrink and bank accounts can stay protected.
But when they’re exercised incorrectly (or ignored), the system just keeps moving.
Which is why you need an experienced tax professional who understands the system, fighting on your behalf.
Final thoughts
My closing word of advice: Address your unresolved IRS issues before your new return enters the system.
You are not just a balance due.
You have rights.
And the law is actually on your side.
The sword exists. And I can help you wield it.
If you’re heading into this tax season with a lingering IRS issue, a balance that feels wrong, or unanswered notices, let’s address them together:
FAQs
“Can you dispute a tax bill if you think the amount is wrong?”
Absolutely. Under Right #3, the law says you only have to pay the “correct” amount. If the bill doesn’t match your records, you have every right to stand your ground and ask for a correction.
“When is it too late to challenge a tax bill from a previous year?”
While there are specific “statutes of limitations” for getting a refund, Right #4 gives you the power to object to IRS actions as long as the case is still open. If you’re being billed for an old debt that was calculated incorrectly, we can often reopen that “conversation” to get the balance adjusted to the legal minimum.
“What happens if I file a return while I still owe money from the last year?”
Filing a new return while you have “unresolved issues” can be tricky because the IRS will usually grab any refund you’re owed to pay off the old debt. However, using Right #3, we can ensure they aren’t applying your new refund to a balance that was overcharged or incorrect to begin with. It’s almost always better to have a resolution plan in place before going into tax filing season.
“Does disputing an IRS bill make me more likely to get audited?”
Exercising your taxpayer rights is a legal process, not a red flag for an audit. In fact, many disputes are handled through simple correspondence or the Office of Appeals, which is entirely separate from the audit department. Standing up for the correct amount is simply you ensuring the law is followed, which the IRS is required to respect.
“How long do I have to respond if I disagree with an IRS notice?”
Usually, you need to respond within 30 days from the date on the letter to keep your full appeal rights intact. If you miss that window, you might lose your chance to stay the collection process (like liens or levies) while you fight the bill. If you receive a notice this tax season, don’t put it in a drawer. The sooner you invoke Right #4, the more leverage we have to protect your bank account.
“Can the IRS really charge me interest on a tax bill that is incorrect?”
Technically they do, but if we prove the underlying tax amount was wrong under Right #3, we can get the associated interest and penalties removed as well. You shouldn’t have to pay “interest” on money you never actually owed. We can also request “interest abatement” if the IRS caused unreasonable delays in processing your dispute.