Final answer:
The false statement regarding an IRS interview is that notes cannot be taken by either party; in fact, both the IRS agent and the taxpayer are allowed to take notes. Taxpayers may record the interview and request transcripts at their expense, and they must be informed of their rights, consistent with Fifth Amendment protections.
Step-by-step explanation:
When a client has received an IRS summons to appear for an interview, it is important to know their rights and what to expect. The statement that is false concerning this interview is: 'Notes may not be taken by either the IRS agent or the taxpayer during the interview.' This is not accurate since both the IRS agent and the taxpayer are allowed to take notes during the interview. In contrast, the other statements are true: (a) the taxpayer can tape-record the interview with prior notice to the IRS, (b) the IRS may tape record the interview and must provide a transcript if requested by the taxpayer and copying charges are paid, and (d) the IRS investigator is required to explain various taxpayer rights before starting the interview.
In addition to interview rights, the Fifth Amendment provides the right to remain silent to avoid self-incrimination. It's essential for clients to be aware of their rights to refuse answering questions that might incriminate them, known as 'taking the fifth'. This protection is highlighted in cases like Miranda v. Arizona, which established the necessity for suspects to be informed of their rights prior to an interrogation.