Last Monday, the IRS stated that it was ending the practice of Revenue Officers making the majority of unannounced visits to individuals and businesses that owe substantial sums of money. This move is part of a broader initiative and IRS overhaul.
Previously, Revenue Officers would knock on the doors of taxpayers who owed substantial sums without notice. These visits were traumatic to say the least, with the officer threatening everything they could legally to scare the taxpayer into becoming compliant.
The new policy is to mail IRS Notice 725-B to schedule a visit.
This is not to say that all unannounced IRS visits have come to an end. If you owe them a bunch of money and have been unresponsive to their collection requests, they still might knock on your door and go through a protocol.
The stated reason for the change is to improve Revenue Officer safety, which makes perfect sense. The world has changed in the past 20 years.
Revenue Officers work dangerous neighborhoods. There have been several instances that mostly went unpublicized for obvious reasons, where Revenue Officers knocked on a door and were greeted by a Saturday Night Special.
My friends at the Service have told me that the managers couldn’t find anyone to do the face-to-face collections anymore. We’ll see how long this holds true.
Let me leave you with this.
I would be surprised if this lasts because the most effective tactic they had was door knocking and scaring the bejesus out of taxpayers. They’ll probably alter the process by putting bullet proof vests on their collection agents, giving them weapons training, and arming them with a Glock.
This is a picture that’s truly frightening.
That being said, you should know that your most basic right as a taxpayer is the right to representation. You are not required to answer any Revenue Officer’s questions with having your mouthpiece present.
If an IRS Agent does knock on your door, they are required to promptly show their credentials, They’ll then begin by asking a series of questions.
If you’re one of my clients, your response to all of them should be, “My accountant’s name is Chris Amundson. Here is his telephone number. Please give him a call.” Don ‘t be rude. Don’t be threatening in any way.
They cannot enter your premises without first asking permission. If they ask, kindly, And I Do Mean Kindly say, “No. Please contact Chris. He will be happy to answer any of your questions.”
Then take a copy of their business card and call me immediately. We’ll get a Power of Attorney form signed, give them a call, and figure out whatever is happening.
This isn’t the sort of thing that will go away by itself.
We’re all going to get through this. Let’s get through it together.
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