In a fairly significant change from past practices, the IRS recently announced that its tax collection agents (Revenue Officers) will no longer make “unannounced” visits to taxpayer homes and businesses.
An IRS Revenue Officer is tasked with the responsibility to attempt to collect tax debt that is listed as due and owing in the IRS’ computer system or to address unfiled tax returns. As part of this responsibility, Revenue Officers used to routinely show up at taxpayers’ houses or offices in order to conduct their investigations, sometimes unannounced. Unfortunately, there has been a rise in recent years of scam artists and other unscrupulous individuals purporting to be with the IRS, which has led to a degree of confusion and even a cause of concern for the safety of both taxpayers and IRS agents. Consequently, other than in rare instances, the IRS will no longer permit “unannounced” taxpayer visits by its Revenue Officers.
This, by no means, is the end of Revenue Officer field work. Rather, going forward, in most instances IRS agents will now schedule their appointments by first sending out letters in the mail. Revenue Officers conduct vital work in collecting over due taxes. However, dealing with a Revenue Officer can also be a stressful and overwhelming experience for both individuals and business owners. Revenue Officers have the authority to impose liens or issue bank levies or wage garnishments, as well as seize assets, among other enforcement measures. However, working with a Revenue Officer to address a past due tax liability or unfiled returns does not have to be “crisis.” In fact, under the right circumstances, they can often be preferable to dealing with the otherwise faceless bureaucracy of the IRS.
With last year’s increase in federal funding under the Inflation Reduction Act (which the IRS desperately needed), we expect both audit and collection activity to significantly increase in the near term. With this policy change, at least taxpayers should no longer fear an “unannounced” visit from the IRS. Announced visits, however, will continue and will likely increase in number.
Here’s a link to the IRS publication announcing this change: IR-2023-133 (July 24, 2023).
For those interested, here’s a link to the IRS Inflation Reduction Act Strategic Operating Plan, issued on April 5, 2023, discussing the IRS’ intentions for the use of the new Congressional funding.
Stay tuned for additional updates.
