Navigating tax obligations can be complex and sometimes overwhelming. To ensure that all taxpayers in Puerto Rico are treated fairly and with respect, the Department of Hacienda (Puerto Rico’s Treasury Department) has established a Taxpayer Bill of Rights. This document outlines both the rights and protections for taxpayers and the obligations of Hacienda towards them. Here’s a breakdown of key points from the Taxpayer Bill of Rights.
Key Taxpayer Rights
Every taxpayer in Puerto Rico is entitled to specific protections and considerations when interacting with Hacienda. These rights are designed to foster transparency, fairness, and respectful treatment:
- Right to Dignified and Impartial Treatment: Taxpayers should always receive fair, respectful treatment in every interaction with Hacienda, including during audits or investigations.
- Confidentiality of Information: Any personal or financial information submitted to Hacienda is used solely for clarifying tax obligations and remains confidential. Only authorized individuals can access this information, and taxpayers have the right to know how their information will be used and the consequences of withholding it.
- Convenient Interview Arrangements: If a taxpayer needs to meet with Hacienda officials, they have the right to arrange a time and place that is convenient for both parties.
- Freedom from Harassment: Taxpayers should never feel harassed or intimidated by Hacienda officials during interviews or investigations.
- Clear Explanation of Procedures and Rights: Throughout an investigation or audit, Hacienda must inform taxpayers of the stages in the process and the rights available to them.
- Right to Legal Representation: Taxpayers can be represented by a lawyer, accountant, CPA, or any authorized person during any interview or procedure.
- Advance Notice of Interview Recordings: If an interview is to be recorded, taxpayers must receive a 10-day notice and have the right to obtain a copy of the recording for a fee.
- Notification of Tax Liabilities: Taxpayers must be informed of any additional taxes assessed, with an explanation of the exact amount, interest, and penalties.
- Right to Dispute Errors: If Hacienda finds mathematical errors in tax returns, the taxpayer can request a revision of the calculations.
- Protection Against Self-Incrimination: In cases where a taxpayer may face criminal charges, they are informed of their right to remain silent to avoid self-incrimination.
- Non-Discrimination: Hacienda is required to provide equal treatment to all taxpayers, regardless of race, gender, religion, social status, or political affiliation.
Hacienda’s Responsibilities Toward Taxpayers
Alongside taxpayer rights, Hacienda has specific obligations to ensure that taxpayer interactions are handled professionally and with respect. Hacienda’s responsibilities include:
- Upholding Taxpayer Rights: Hacienda officials are required to respect and protect taxpayers’ rights in every step of the process.
- Maintaining Confidentiality: All taxpayer information must be kept confidential, and Hacienda officials should only use this information for clarifying tax matters.
- Providing Flexible Interview Scheduling: Hacienda works with taxpayers to schedule interviews at mutually convenient times and locations.
- Avoiding Harassment and Intimidation: Officials should never engage in behavior that may be perceived as harassment or intimidation, and they should only request information relevant to the case.
- Notifying Tax Liabilities Promptly: Taxpayers must receive clear information about any liabilities, including specific amounts, interest, and penalties, and Hacienda is responsible for ensuring these details are accurate.
- Assisting with Mathematical Corrections: Hacienda must correct mathematical errors identified in tax returns and provide preliminary reports outlining any differences for review.
- Allowing Authorized Representation: Taxpayers can designate a representative, who must be treated with the same respect as the taxpayer. Hacienda also informs the taxpayer if delays or interferences by the representative occur.
- Ensuring Non-Discrimination: Hacienda officials must treat every taxpayer equally, without regard to race, gender, religion, or any other discriminatory factor.
Important Procedures for Tax Disputes and Adjustments
The Taxpayer Bill of Rights also defines key procedures for addressing tax disputes or adjustments, ensuring that taxpayers have a clear path for resolution:
- Notification of Tax Liabilities: When additional tax is assessed, taxpayers receive a formal notification. They have 30 days to dispute this determination, or they can request an administrative hearing or review.
- Mathematical Error Adjustments: If errors are found in a tax return, Hacienda sends a preliminary report detailing any necessary adjustments. Taxpayers can respond with the required documentation to correct or support their return.
- Assistance from the Office of the Taxpayer Advocate: If a taxpayer’s issue is not resolved through standard channels, they can reach out to the Office of the Taxpayer Advocate. This office intervenes on behalf of taxpayers to ensure fair treatment, even issuing orders for taxpayer relief if necessary.
The Taxpayer Bill of Rights is a valuable resource for any taxpayer in Puerto Rico, providing assurance that Hacienda will treat them fairly and respectfully. By understanding these rights and Hacienda’s obligations, taxpayers can navigate their tax responsibilities with greater confidence.
or further assistance or information, please contact us at [email protected] or 787-473-8985.
Disclaimer:
The information provided is for informational purposes only and should not be considered legal or tax advice. Consult with a qualified attorney or tax advisor to discuss your specific situation.
Resource:
https://hacienda.pr.gov/sites/default/files/publicaciones/carta_derechos_al_contribuyente.pdf