You may have gone through a tax audit where the examiner assessed additional taxes. Or you may have accrued failure-to-file penalties or fallen behind on your taxes. With interest compounded daily on your tax debt, the amount you owe the IRS may be more than you can pay right now. When the debt is sizeable, and there does not appear to be progress toward resolving it after IRS notices have been issued, a Revenue Officer may be assigned to your case.
A Revenue Officer pursues civil tax collection for the IRS. According to the U.S. Office of Personal Management, a Revenue Officer may have a background in finance, accounting, business or tax collection, among other areas. A Revenue Officer becomes the face of the IRS if you are subject to an IRS collection matter.
When automated notices do not result in payment of debt, a Revenue Officer may contact you to discuss your tax debt. You may have an outstanding personal tax liability or be in arrears regarding your business payroll taxes. The Revenue Officer can pursue collection actions, including filing a Notice of Federal Tax Lien or levying assets, accounts, or wages.
Overall, a Revenue Officer may work with you to resolve your tax liability, but can also pursue collection actions involving assets, accounts and wages. Payment directly to the IRS is the quickest way to shed your debt and stop interest accrual on that debt, but a sizeable tax liability can be tough to pay outright. Revenue Officers can discuss payment options that also include:
Qualifying individual taxpayers may be eligible for a short-term payment plan of up to 180 days to pay the debt in full.
Installment agreements spread payments out through varying lengths of time depending on your circumstances.
An offer-in-compromise (OIC) may allow qualifying taxpayers to settle their tax debt for less than the full amount owed. For additional background on OICs, see our resource, Resolving Tax Debt with an Offer in Compromise.
A Revenue Officer can investigate a taxpayer's finances as part of efforts to collect delinquent tax. Working with a Revenue Officer is a better solution than hiding financial accounts and trying to stay one step ahead of property seizure.
A tax attorney or other qualified representative can help you develop a payment solution with the Revenue Officer. Remember, ignoring tax debt will not make it go away, and interest generally continues to accrue while the balance remains unpaid.
If you receive a worrisome notice of deficiency, an IRS audit letter, or your account is going into collections speak with our tax group. Robert J. Fedor, Esq., L.L.C. provides experienced legal counsel on options to help navigate tax liability with the IRS. Contact our legal team at 440-250-9709. We serve clients internationally and in Northeast Ohio, Chicago, and New York City from our offices in Cleveland and Chicago.