The IRS employs a variety of professionals whose sole purpose is to collect on delinquent taxes, penalties, and other monies owed to the government. IRS revenue officers play a central role in the collection process. When you owe money to the IRS, it is important that you learn what a revenue officer is and what duties and limitations this individual has when collecting on your obligation.
IRS Revenue Officer Duties
The IRS allows its revenue officers ample latitude when collecting money from taxpayers. These officers have authority to collect debts through means like:- Sending out notices via the mail
- Making phone calls to delinquent taxpayers
- Visiting tax debtors at home or at work
- Issuing mandatory summons to appear at local IRS tax offices
- Issue levies against assets like your wages and bank accounts
- Seizing other applicable property at your home or business
IRS Revenue Officer Limitations
Despite having broad authority to collect on people's obligations to the IRS, these officers also are limited in several key ways. If a revenue officer becomes involved in your case, you should realize that this person cannot:- Arrest you for not paying your taxes
- Demand entry to your home or business by showing you a badge. The officer's official identification is a plastic card, not a badge.
- Initiate first-time contact with you through any means other than an in-person meeting
- Threaten you with arrest or violence for unpaid taxes
You also should realize that most revenue officers do not carry a gun and are typically respectful and courteous people, especially if you reciprocate that same kindness and courtesy. You can always contact the IRS or your local law enforcement agency if you believe that the revenue officer working your case is being hostile or threatening to you.
What to Do if a Revenue Officer Contacts You
You have the right to advocate for and defend yourself if you are contacted by an IRS revenue officer. Your first step should involve retaining a qualified and skilled tax attorney to act as your representative and intermediary with the IRS and its officer.
Your attorney should also contact the IRS to find out if you have any missing returns or documents needed to reduce or eliminate what you owe. If you have missing returns, your tax attorney should file them immediately.
Before you or your attorney makes contact with the IRS, however, you should gather some important paperwork to ensure that you can advocate in your case's favor. You should collect at least three months' worth of income verification like paycheck stubs and bank statements.
Your attorney also can help you fill out IRS Form 433-F. This form determines if your gross monthly income exceeds your monthly allowable expenses. It also determines if you have enough liquid assets to sell off to settle what you owe. If you do have enough assets to liquidate, the revenue officer may prefer that you try to borrow against them first by taking out a bank loan.
Finally, you and your tax attorney should contact the IRS to determine the best outcome for your owed taxes, penalties, and other obligations. Your attorney may be able to work out an Offer in Compromise or have the amount you owe set up on an installment agreement. If you cannot pay what you owe right now, you also could have your account put in Currently Not Collectible status.
The IRS utilizes revenue officers to collect what people owe to the government. You can remain proactive in your own tax case by knowing what these revenue officers can and cannot do when they contact you about your owed taxes.
