Despite the efforts of the IRS, it is often not enough or possible to contact the taxpayer to address the issue of their past due taxes. When no successful communications have been made, the IRS will assign a revenue officer to the case to clear the open balance as soon as possible.
Revenue officers are specially trained IRS workers who are tasked with the challenge of speaking with delinquent filers. They will use any tactics possible to connect with their person of interest, whether through phone or face-to-face.
If you have a past-due balance with the IRS, they will make multiple attempts to contact you to clear your debt.
With that being said, an IRS revenue officer is not your friend and does not have your best interest in mind. Their goal is to do whatever is necessary to get you to pay the money that you owe.
If you are receiving calls from the IRS and are worried that a revenue officer will make a visit, our team at Instant Tax Solutions might be able to help. Let us review your case and give you some piece of mind when you call (888) 485-8109.
Boise IRS Tax Revenue Officer Negotiation
We reasonably become apprehensive when we hear we are under the IRS’ radar, and it becomes much worse when we start to receive calls from an IRS revenue officer.
But what exactly is a revenue officer? What do they do?
There are thousands of revenue officers nationwide, and their primary responsibility is to collect and educate taxpayers on their tax obligations. They handle multiple tax issues like:
- Delinquent tax returns
- Financial audits
- Tax investigations
- Overdue tax debt
While IRS revenue officers are meant to provide tax guidance, their responsibility lies ultimately to collect. That means that they will apply significant pressure to collect from you as much and as soon as possible.
They will not thoroughly review your finances and expenses or correct any errors if there are any. In addition, they will not create an agreement that makes paying off your debt as easy as possible.
Delinquent Tax Returns
All working Americans in Boise must pay taxes at the end of the year. Those who fail to do so by the deadline face a penalty of 5% per month, but not to exceed 25% of the amount owed, for failing to file on time.
To make matters worse, they will levy an additional .05% monthly penalty and interest if they determine a shortfall on your paid taxes.
While these amounts do not seem like much, they can quickly add up over time. In addition, those who are due a refund from the IRS risk losing their refund if they do not file a claim within three years.
Being selected for an audit does not mean you are in trouble, but it does mean you may need to get all of your documents together that show you have paid taxes correctly. All audit notices are received by mail and are handled via mail or in person.
In some cases, the IRS will request that you provide documentation or submit additional proof of income, expenses, and other key aspects of your finances.
Some audits are randomly triggered after being selected by a computer, while others are opened after there is suspicion of underrepresentation of income, inappropriate use of expensing, or some form of fraud or crime associated with a tax filing.
Usually, the IRS will tell you what documents they are looking for, and they accept some electronic records if you use electronic tax software when filing your taxes. The IRS can request documents that are from past years but cannot, in most non-criminal cases, request records that are more than three years old.
Tax investigations are intended to find criminal activity. Crimes like tax fraud are serious offenses that lead to fines and possibly time behind bars.
After an auditor (revenue officer) completes their investigation, they must report their findings to the IRS. If they find evidence that there is likely tax evasion, fraud, or other crimes, they will submit their evidence to the crime unit.
Before any criminal investigations begin, the IRS will proceed with a preliminary analysis to review and confirm that there is suspicion of criminal activity. By the time a criminal investigation starts, multiple investigations would have concluded in the IRS.
If a criminal investigation is recommended, an IRS special agent will take over the case and determine if there is sufficient evidence for a crime.
Overdue Tax Debt
If you fail to pay your tax debt, the IRS will send you a bill demanding you to pay in full. The bill will detail the amounts owed, penalties, and any interest accrued from the open balance.
Although it is best to pay in full, the tax filer cannot do so in some circumstances. In these cases, the tax filer should proceed to apply to a payment program that fits their circumstances.
Some options can be paid in installments, changing their status to Currently Not Collectible or an Offer in Compromise. Speaking to your local tax expert at Instant Tax Solutions can help you figure out which program works best for your case.
Talk to Us About Your Finances Before a Revenue Officer
Instant Tax Solutions has seen cases where taxpayers enter these conversations with a revenue officer unprepared. They don’t know about their finances, options, or how to move forward with the situation.
In the worst case scenarios, taxpayers end up paying more than they otherwise would if they had elected to apply for an IRS program or some other kind of payment plan. A revenue officer cannot provide financial advice in their communications with you.
However, when you meet with us, we will explain what IRS programs apply to your financial situation and what can be done to remedy your situation and alleviate your tax burden. In addition, we will gladly represent you and handle communications with the IRS revenue officer.
How Revenue Officers Work
The point of assigning a case to a revenue officer is to reach a solution that collects any owed amounts to the IRS. That being said, if you are contacted by one, it is in your best interest to cooperate and work with them to resolve your owed dues.
In these cases, it is recommended that you speak to a tax professional so that they can review your case and financial standings. They may be able to find a program or solution you can apply for to break down your payments or reduce them overall.
The best thing to do is to be proactive in paying your outstanding balance. If possible, look for help and use resources before a resource officer is assigned to your case.
When Can You Expect a Boise IRS Revenue Officer Visit?
The majority of taxpayers are notified when a revenue officer will visit. The Inflation Reduction Act of 2023 ended the IRS practice of routinely making unannounced appearances to delinquent taxpayers.
Now, they send out multiple letters requesting a scheduled meeting time.
Although the IRS still has the right to make unannounced appearances, they have limited this tactic to cases that fall under unique circumstances. Scheduling visits with the IRS gives the taxpayer time to speak to someone about their debt, have their assets evaluated, and see if there are any other options for them to pursue.
IRS revenue officers will meet with taxpayers in locations outside of their primary residence. It makes more sense to many that they meet with their tax accountants at the location where their filing records are.
This way, it is easier to present any records or complete forms as needed and negotiate any agreements that are more inclined to be in your favor.
How to Confirm that it Is A Real IRS Revenue Officer
It’s true; there is a lot of fraud out there, and the last thing you want to be involved in is a scheme to steal your money or worse.
The IRS states that taxpayers expecting a visit from a revenue officer know they have outstanding balances. So, a visit by an IRS revenue officer—even if it is by surprise—should be a shock to the delinquent tax filer.
All revenue officers are unarmed and have two official forms of ID with photos that prove they are legitimate revenue officers. Taxpayers can request to see this information and request additional credentials if needed.
Collection Actions Associated With Owing Taxes
Debts to the IRS should be paid as soon as possible because the consequences can be a real headache. They may begin the collection process if no resolution is made to acquire the money owed to the IRS.
That can include:
Be Prepared for Boise IRS Revenue Home Visits
Revenue officers will schedule a visit with you after they have sent multiple letters to your primary residence. Meeting with revenue officers does not have to happen at home.
In fact, many request a meeting at a business location or with their tax accountant present because their financial records are at that location.
Paying taxes is a normal part of life, and your goal should always be to prevent owing the IRS after the past due date. If you find yourself in a position where you owe money and are starting to receive calls from a revenue officer, reach out to Instant Tax Solutions right away.
Our tax professionals are here to help you understand how much you owe and why and what can be done to remedy the situation. Contact us today to speak to one of our tax representatives.
You may contact us online or by calling (888) 485-8109.