IRS Revenue Officers are highly skilled and experienced individuals. Tax debt, known as back-tax liability is what they are after. If you have tax debt, the IRS may assign your case to an IRS Revenue Officer (RO). They work on cases for the collection of tax liability that has already been assessed, unlike tax revenue agents who usually examine tax returns to check that the correct tax liability was reported. They are one step ahead of the game.
Revenue officers are given much power granted by the IRS, in order to collect taxes. They have the power to issue levies and wage garnishments, seize and repossess assets owned by you, and can freeze and collect financial assets, such as stocks and bonds to gratify your tax debt. Here’s some advice from our Michigan Tax lawyer, Venar R. Ayar on what to expect from the IRS.
What to Expect
If your case is assigned to an RO, you should first expect an unannounced visit to your residence or place of business. Keep in mind, that it is very common for an officer to make a visit to your home, so they can examine your lifestyle. An IRS Revenue Officer may also attempt to contact you by phone or mail. If you don’t comply, the Revenue Officer may summon you to an IRS office.
The IRS will definitely contact you again in attempt to collect the tax debt owed by you. It is likely advised that if you pay your debt in full, the debt collection process will be much easier. But, it is usually unlikely if the case has been assigned to an RO to begin with. They may opt to request financial information from you to analyze your financial situation and the extent of the collectibility to determine if and how they will collect the taxes that are owed.
Form 9297 will be sent by the IRS, containing Form 433-A (individuals) or Form 433-B, (businesses) to identify your income, assets, and to summarize your financial standing. This will include a list of documents and information requested by the IRS, as well as deadlines for receiving the information.
How to Handle it
It is necessary that these forms are completed correctly by a tax attorney or tax professional. If they are not, the form becomes a powerful tool for the IRS to use against you. Contacting a tax attorney who specializes in resolving IRS back-tax liability will work to your advantage in this case.
A skilled attorney will review your financial situation to determine a resolution, and if hired, will take care of the rest of the process. If you are unable to comply with the IRS’ requests by the deadlines set, your tax attorney should contact the Revenue Officer and attempt to discuss the merits of the request, or attempt to get an extension.
According to your financial situation, there are many alternatives to be offered, depending on the case. Payroll taxes owed back can get more complicated. The Revenue Officer has the power to assess a trust fund recovery penalty against certain taxpayers. A trust fund interview will take place to determine whether the taxpayer was responsible for paying payroll taxes on behalf of the company, and whether the taxpayer willfully failed to pay over payroll taxes to the IRS. This interview process is highly significant, and you should consult with a tax attorney to assist you in this sensitive matter.
The collection process with an IRS revenue officer is generally a lengthy process, as you or your tax attorney will have much contact with the officer when negotiating and planning how to pay taxes owed.
For more information on dealing with a Revenue Officer, feel free to give us a call, or send us e-mail here.
[author] [author_image timthumb=’off’]https://www.ayarlaw.com/wp-content/uploads/2013/02/venar-about-sm.jpg[/author_image] [author_info]Michigan tax lawyer, Venar R. Ayar, founder of Ayar Law Group, holds ten years of experience as an accounting specialist and tax lawyer. He earned his Juris Doctor at the University of San Diego School of Law, receiving a Master of Laws in Taxation—the highest degree available in tax. His main focus has become Michigan tax resolution as well as IRS tax resolution, including individual and business tax matters; tax planning, tax compliance and white-collar criminal defense. His business background has helped him to become personable and understanding in his work. Representing clients before the IRS, Ayar’s practice and experience has proved him as an honest and dedicated leader in the realm of Michigan tax lawyers. Click here to contact your Michigan tax lawyer, Venar Ayar. [/author_info] [/author]