President Signs Taxpayer Bill Of Rights

President Clinton, signing a politically popular bill Tuesday, promised taxpayers greater muscle in disputes with the IRS. “You have rights,” he declared. “And we will shield them.”

The measure, known as the Taxpayer Bill of Rights, allows taxpayers to sue the Internal Revenue Service for up to $1 million for reckless collections - 10 times the current $100,000 cap on such lawsuits.

Taxpayers also will have the right to sue anyone filing false information about matters such as wages and interest income. In some cases, contractors have filed incorrect forms for workers, resulting in the employees being assessed unjustified back taxes. In disputed cases, the IRS would have to prove the information it received was correct.