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Revenue Officer: Everything You Need To Know

Many people refer to an IRS Revenue officer as an IRS Revenue Agent.

But here is the difference:

An IRS Revenue Officer is a field IRS collector.

An IRS Revenue Agent is an auditor who examines taxpayers’ returns and increases taxes by auditing taxpayers. 

The audit is often from a distance without taxpayers initially even knowing about it! After audits are completed, and additional taxes are assessed, the IRS sends the audit findings to taxpayers. 

What Kind of Audits are Performed?

The audit findings conclude with a proposed tax balance with instructions on how to pay the assessed tax. When the audit is completed, and tax is assessed, the Revenue Agent’s job is done. 

How to contact Revenue Agents after an Audit.

If taxpayers cannot pay, or have questions, are given a telephone number to call. That telephone number is to an IRS Automated Collection Services (ACS) office. The ACS office is usually located far away from taxpayers. For balances under $25,000.00, the IRS Revenue Agent will send instructions for setting up a monthly payment plan. If tax balances are under $25,000.00, then a taxpayer’s tax case may never leave ACS.

However, if ACS is unable to get taxpayers to pay, then IRS Collection efforts are stepped up. Taxpayers’ cases will be assigned to a local IRS Revenue Officer, especially if their balance is over $25,000.00. Once a case has been assigned to a Revenue Officer, no one else can work on that case. 

How Differently do IRS Members Communicate Based on their title?

An IRS Revenue Officer is much more intimidating than IRS Notices or an IRS Revenue Agent on the telephone. For starters, an IRS Revenue Officer lives close by and will show up at taxpayers’ residences or places of your business unannounced! Under the Internal Revenue Manual (IRM) a Revenue Officer MUST make first contact with a taxpayer personally! If taxpayers are not home or at work, the Revenue Officer will leave their business cards. The business card contains the name of the revenue officer and contact information. 

What happens if the Revenue Officer isn’t Contacted After their Visit?

It is not a good idea to ignore an IRS Revenue Officer. If a Revenue Officer believes taxpayers are being evasive or avoiding paying their taxes, they order for levies or garnish taxpayer wages! If a taxpayer is self-employed, the Revenue Officer can order their clients to pay funds to the Revenue Officer instead! 

A Revenue Officer also has the authority to subpoena financial records. This subpoena power is not only applicable to taxpayers but to third parties, like your bank!

How Much Power do Revenue Agents Really have?

Because a Revenue Agent is subject to many regulations, in some ways a Revenue Agent has more leeway in resolving taxpayers’ cases. For example, Revenue Agent will give taxpayers the option of a payment plan if balances are under $25,000.00 and will not require taxpayers to disclose financial information. However, a Revenue Officer expects taxpayers to fully disclose their financial information. Taxpayers’ monthly payments could be a lot higher than with a Revenue Agent! However, after your case is assigned to a Revenue Officer a Revenue Agent cannot work on your case.

An IRS Revenue Officer wants to collect the tax owed and close the case as fast as possible as do the taxpayers.  

Can Taxpayers be Arrested by a Revenue Officer?

A Revenue Officer does not carry a gun and cannot arrest Taxpayers.  If someone flashes a gold badge and says that he or she is from the IRS, call a tax attorney immediately!  This person is neither an IRS Revenue Agent nor an IRS Revenue Officer.  This person is an IRS Special Agent with the IRS Criminal Investigation Division (CID)!

Do you have Equity in Real Property or Other Assets? 

If taxpayers have equity, the Revenue Officer may ask them to take out a loan. Under the Revenue and Reform Act of 1998, the Revenue Officer cannot order the sale of a taxpayer’s home. However, the Revenue Officer could ask taxpayers to sell assets other than their personal residence or car. Even in the case of a monthly payment plan, haste often makes waste. Because, both taxpayers and the Revenue Officer want to close the case quickly, the monthly payment is set high, leading to default!

What if the Amount of Monthly Installment Agreements is Too High or Have Problems with a Resolution Officer?

Taxpayers may want to consult with a Resolution Specialist. Resolution Specialists are IRS Recognized Representatives who can represent taxpayers before the IRS. An IRS Recognized Representative is either an attorney, a Certified Public Accountant, an accountant, or an Enrolled Agent.

Coast One Tax Group is a group of resolution specialists, attorneys, accountants, and Enrolled Agents. The Coast One team works hard to extract from IRS Revenue Officers the best tax resolution (settlement) possible for clients.