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An IRS Revenue Officer (RO) is not a standard IRS caseworker. Still, they are specifically tasked with collecting large or complex tax liabilities, frequently show up on-site, and possess real legal powers to investigate a taxpayer’s finances, request records, and even suggest forceful collections. Most taxpayers only see one when a case has progressed much further than a routine notice.

The first talk is very consequential. Revenue Officers are trained interviewers, and casual, well-intentioned answers can become the evidence to influence months of collection strategy. This guide explains who a Revenue Officer is and what they can and cannot do, what are some of the statements that hurt taxpayers the most.

A Revenue Officer is an IRS Collection employee who works on field-work cases that involve large amounts of unpaid taxes, unfiled tax returns, business payroll tax delinquent cases, or cases where the unpaid tax was not paid with an automated collection notice by the IRS.

An Automated Collection System (ACS) is booklet-based. It is completed through phone and letter only, while a Revenue Officer can visit a home or business in person, speak directly with the taxpayer, and issue a summons for records pursuant to IRC Section 7602.

Table 1.1 Limitations of Revenue Officer

Throughout the process, every taxpayer has rights protected under the statute Taxpayer Bill of Rights (TBOR), which is contained in IRS Publication 1: Your Rights as a Taxpayer. One of the most important of these for RO interactions is the Right to Retain Representation; a taxpayer is allowed to end an interview at any time and tell the officer that any further contact with them will only take place through a representative.

Table 1.2 Things you should be careful while talking to revenue officer

The art of disarming a Revenue Officer is not combative; it is accurate, calm, and taking time to be deliberate. There are a few good, rights-based answers to that:

• I would like to have my representative here before we proceed. Under TBOR, this is an absolute right that generally places a halt on the interview until a Form 2848 is filed.
• I need to establish that I know those numbers before I answer. Resists the entry of incorrect numbers.
• “May we have that in writing?” Establishes a written log and provides time for counseling.
• I know the date, so can we talk about whether it’s realistic with documentation deadlines? Negotiates, but does not refuse outright.

Not to make an extension of the collection statute today — I must look at it first. This is for requests on Form 900 – the means to extend the IRS’s legal collection rights.

Whether taxpayers know an RO is likely to be assigned to them, or they have just received first contact with an RO, they can benefit from putting their documentation together before a substantive conversation:

• Bank statements for all Personal and Business accounts (recent)
• Profit and loss statements / Pay stubs for last 3-6 months
• A list of the assets with estimates and any liens against an asset.
• Tax returns both filed and unfiled, pertaining to the case.
• Any IRS prior correspondence, such as notices received

This does not necessarily mean that it is done at once, but it does mean that you can answer questions correctly, or easily see what needs to be verified, rather than guess.

The Power of Attorney and Declaration of Representative (Form 2848) actually does all of the above, and most Revenue Officers will pass substantive questions on to the representative as soon as it is filed. Does not prevent the collection process, but does prevent informal, unprepared conversations from influencing the case.

Table 1.3 Types of Representation

When fraud or unreported income or diversion of payroll tax is suspected, the RO might involve or refer the case to IRS Criminal Investigation. Some examples of this include unusually detailed questions regarding specific transactions, requests to read Miranda warnings, repeated questions regarding one discrepancy, or the RO asking questions that are not normally collected, such as intent or knowledge at the time of a filing, etc.

At that time, the one thing that can be done to protect oneself is to end the conversation and obtain immediate legal advice.

After the Interview: What Happens Next

After the initial interview, the RO usually reviews the financial documents submitted, is able to verify assets through public records or third parties independently, and outlines a course of action – one of the following: installment agreement, request full payment, recommendation for Currently Not Collectible status, or enforced collection by levy or lien (if cooperation fails).

Time can pass by, months at a time, with periodic reminders made, and the first meeting being considered the last, only to create undue stress later in the documentation process, usually via a representative.

The power of the Revenue Officer is real, but limited; the rights of the taxpayer under the Taxpayer Bill of Rights are equally real. In any encounter, the desire is not to be evasive, but to be specific, not speculating and knowing when to end the talk and introduce representation. The 10 statements above have nothing to do with hiding information; they are just not creating problems with unverified information.

No. An RO is not allowed to be admitted without permission or court order. Taxpayers may refuse to enter and propose a meeting with the RO but send the communication via a representative. Don’t think of it as “obstruction”; it is a legitimate privacy right, and asking for a badge number and callback before answering financial questions is a prudent and reasonable measure.

Yes. The Right to Retain Representation is in effect throughout an interview. Most ROs, after they clearly invoke it, then cease substantive questioning so that there will be time to file a Form 2848. It’s not just for the beginning of a case, and it’s simply a step that is taken regularly by Revenue Officers.

It’s not too much to handle, but it’s definitely something to be dealt with. A tax attorney can look back through previous statements, cross-check them against recorded tax documents, and help identify any discrepancies and solve them before they get to be a larger problem. The voluntary correction is not regarded the same way as if discovered at a later time in a discrepancy, and timing is more important than the discrepancy.

No, in general, ROs do not work with represented taxpayers on a regular basis, and the representation is not to make the case more adversarial. This is because substantive communication occurs via the representative, which minimizes informal errors and can even expedite resolution instead of delaying it when Form 2848 is filed.

The Revenue Officer is responsible for Cases in Collection, cases that remain outstanding after automation of balances through notices. A Revenue Agent is one of the people who perform examinations to ensure that the return has been filed correctly. One gathers a debt; the other assesses whether or not there is a debt. Both can be experienced by a taxpayer at various times.

Yes, in some instances. Most interactions with RO remain civil, but statements may be filed and be important if there is suspected fraud or intentional non-payment and the case is passed on to Criminal Investigation. If the questions you are asked about your transactions are particularly specific or if you are told in a formal way that you have a right to counsel, it is a sign that it has changed — so stop talking and seek counsel right away.