The bulk of the IRS’ collection efforts for delinquent taxes are mostly handled by the Automated Collection System or ACS. However, if these efforts aren’t successful, or the IRS believes you owe them a large amount of money, they may assign a revenue officer to handle your case. The following is an overview of what you need to know if an IRS revenue officer contacts you about your unpaid taxes.

Key Takeaways

  • A revenue officer works with taxpayers to collect unpaid taxes.
  • Revenue officers rarely conduct surprise in-person visits. Instead, they usually mail a notice to the taxpayer asking for financial information and to schedule a phone or in-person meeting.
  • 2025 will see a new White House Administration, which will likely bring about structural and funding changes to the IRS. It’s expected these changes will further limit the IRS’ ability to collect back taxes.
  • If a taxpayer receives a letter from a revenue officer, they should communicate with the revenue officer to discuss the tax debt.
  • Ignoring the revenue officer could lead to more serious tax collection activities, including tax liens and levies.
  • Because revenue officers are usually only assigned to tax cases with large balances, complex tax issues, and/or old tax debts, it’s a good idea to consult with a tax professional for help.

What Is an IRS Revenue Officer?

An IRS revenue officer is an IRS employee primarily tasked with collecting delinquent taxes. This is in contrast to revenue agents, who primarily handle tax audits.

Revenue officers work with both individual and business taxpayers and spend much of their time in the field, visiting taxpayers to try and settle tax debts. In case you’re wondering, revenue officers are not armed, unlike Special Agents from the Criminal Investigation division of the IRS (IRS-CI).

What Does a Revenue Officer Do?

Revenue officers focus on collecting past-due debts, and they spend much of their time communicating with taxpayers, either through in-person meetings or telephone calls. The goal of these discussions is to explain to the taxpayer their options for paying their back taxes and gather additional information about the taxpayer to determine how much the taxpayer can afford to pay. For example, the IRS doesn’t want to spend the time and money chasing a taxpayer who has no money while ignoring a wealthy taxpayer.

Revenue officers have broad powers to collect taxes and negotiate settlements on behalf of the IRS. This means they usually have the authority to:

  • Seize assets
  • Request search warrants
  • Subpoena documents
  • Initiate legal proceedings
  • Run a credit check to assess finances

What Changes Are Coming in 2025?

It’s hard to say, given the fact that there’s a new White House Administration coming in. The only thing anyone knows for sure is that changes are coming to the IRS. It’s anticipated that there will be restructuring and funding changes that may make it more difficult for the IRS to collect taxes.

Specifically, the IRS may not receive as much money for IT upgrades and new hires as they originally expected as part of the Inflation Reduction Act of 2022. This could potentially translate to fewer IRS revenue officers available to meet with taxpayers.

Why You’re Hearing From a Revenue Officer

The primary reason is that you have back taxes. But there are probably thousands of taxpayers with back taxes who never deal with a revenue officer, so what makes your case different? There are several potential reasons.

First, the IRS has already tried collecting your delinquent taxes using alternative methods, such as the ACS, but has been unsuccessful. Second, the IRS thinks you owe them a lot of money, such as an amount that exceeds $100,000. Third, you’re a business taxpayer with bigger tax bills and more complex tax issues, such as trust fund recovery penalties. Fourth, you might be a high-profile taxpayer. Perhaps you’re famous, or you have a very unique tax case that could end up in court or get media attention.

In these situations, the IRS wants to make sure they have the best people handling your matter personally.

What to Expect When Dealing With an IRS Revenue Officer

The exact interactions and communications you have will vary depending on your specific tax case. However, one thing you can expect is no unannounced, in-person visits. In 2023, the IRS officially stated that it would stop these unannounced visits due to safety concerns, as well as confusion, given the high prevalence of tax scams.

The IRS stated it would still reserve the right to make unannounced visits, but only in “rare instances” involving legal service of process and sensitive tax enforcement actions. Currently, the revenue officer will first send a letter to the taxpayer to set up a meeting.
Setting Up the Meeting

Your most likely first encounter with an IRS revenue officer will be when you receive two documents from the IRS. First, there’s IRS Letter 725-B, Meeting Scheduled with Taxpayer, which is the revenue officer informing you about a scheduled meeting. These meetings can occur in person, such as at the revenue officer’s office, your home, or your place of business. They can also occur over the telephone.

If you receive this letter, you should contact the revenue officer to either confirm the appointment or ask to change when or where it will occur. If you ignore this letter, the revenue officer may proceed with alternative collection efforts, including tax liens and levies (including wage garnishment and bank levies).

Second, there’s IRS Form 9297, Summary of Taxpayer Contact. The purpose of Form 9297 is to list what information and documents the tax revenue officer would like you to have available during the meeting.

The Meeting with the Revenue Officer

If you’re having an in-person meeting, you can ask to verify the revenue officer’s credentials when first meeting them. They’re required to have two official credentials with them at all times (a pocket commission and an HSPD-12 card), both of which should contain their photo and serial number.

After you confirm their identity, the meeting can begin. It will likely consist of the revenue officer discussing documents they identified in Form 9297 and asking you questions about your tax case. Revenue officers also have the authority to talk to other people with knowledge about the tax matter, such as when the taxpayer is a business.

Keep in mind that what you say to the revenue officer can potentially be used against you. At the same time, do not lie to them or refuse to provide the information they can rightfully request. This is why if you’re attending a meeting with an IRS revenue officer, it’s strongly recommended that you first talk to a tax lawyer. They can give you advice on how to prepare for the meeting or even represent you so that you don’t have to communicate directly with the revenue officer.

After gathering your financial information, the revenue officer will likely discuss your options for resolving your tax matter. Assuming you don’t have the resources to pay off your tax balance in full, the revenue officer may suggest other options, such as setting up a payment plan or submitting an offer in compromise. If you’re in dire financial straits, they might suggest Currently Not Collectible (CNC) status. If this is your first time having delinquent taxes, the revenue officer may agree to provide you with penalty abatement.

Keep in mind that the revenue officer’s job is to collect unpaid taxes as efficiently as possible. They’re not meeting with you as a form of punishme,nt and their requests for information aren’t intended to antagonize you. If they truly believe you can’t afford to pay your entire tax debt, they’re willing to negotiate an arrangement that you can afford.

In other words, they’re not going to waste their time trying to collect money from you if you have no money or assets. But at the same time, they’re not going to agree to settle your tax debt for less than what you owe or pause the IRS’ collection efforts simply because you tell them, ‘I’m sorry, I don’t have any money;” they’re going to want documents to back up your assertions.

So, when working with your revenue officer, be polite and cognizant of the fact that they’re people, too, and just trying to do their job. Promptly respond to their attempts to reach out to you and provide the information and documents requested (but don’t provide more than asked unless a tax professional tells you otherwise).

What to Do If No Agreement Is Reached

At this point, you basically have two options. Your first option is to prepare for additional collection actions like the IRS Filing a Notice of Federal Tax Lien or Notice of Intent to Levy. Your second option is to challenge the underlying tax debt. Perhaps you believe the statute of limitations has run and the IRS is legally barred from collecting the unpaid tax. Or you agree you owe back tax but disagree on the amount owed. In either of these hypothetical situations, you might wish to file a tax appeal with the IRS.

Getting Help Dealing an IRS Revenue Officer

The IRS assigning a revenue officer to your case should serve as a wake-up call. This doesn’t mean you need to panic, but you do need to take action to respond to the IRS and either pay off your tax debt, explain to the IRS why you shouldn’t have to or set up some other arrangement with the IRS. You don’t have to get help from a tax professional when dealing with a revenue officer, but it’s a good idea to do so.

You’re likely either dealing with a tax debt of six figures or more, a tax debt that’s several years old, or a tax matter involving complicated tax questions and financial information. These are perfect scenarios for talking to a tax pro, such as a tax attorney from Seattle Legal Services, PLLC.

Not only can we help you better understand your tax problem and provide suggestions, but we can also advocate on your behalf so you don’t have to deal directly with the revenue officer and risk making a mistake. To learn more, you can request a free consultation through our online contact form or by calling us at 425-428-5262.