The Privacy Act of 1974 and Paperwork Reduction Act of 1995 require that the IRS tell you when you are asked a question whether your response is voluntary, required to obtain a benefit, or mandatory. As a strictly legal matter, you can always refuse to answer IRS questions or refuse to turn over documents unless court ordered. Under these laws, the IRS must also tell you: why it wants the information, its legal authority in asking for it, or what could happen if the IRS does not receive it. Of course, without full disclosure of information and an attitude of complete cooperation, you have virtually no chance of having your Offer accepted. However, if you believe the IRS is asking improper questions, then decline to answer until you seek professional advice.