You’ve owed the IRS $50,000 a few years ago; then it became $55,000… now it is up $82,346. You ignored letter after letter after letter. You saved the letters. They collected dust in your desk drawer. You’ve “saved” money – you haven’t had to pay the money to the IRS. Then one day a man in a trench coat knocks on your door. He hands you a business card that he is a Revenue Officer with the IRS. Congratulations. You will work with the top people in the Collections Division of the IRS.
First let’s look at the Collections Process.
- “If you don’t pay your tax in full when you file your tax return……:
- “If you’re not able to pay your balance in full immediately…”
- “If you can’t pay in full….”
- “If you can’t pay in full under an Installment Agreement…”
- “If you need more time to pay”
- “If you’re a member of the Armed Forces…”
IRS Topic Number 201 – The Collection Process walks you thru the steps you will go thru. IRS Publication 594 https://www.irs.gov/pub/irs-pdf/p594.pdf is a must read if you cannot pay your taxes.
After reading Publication 594 and Topic 201 The Collection Process, you can see the IRS has given you many ways you can pay them. They are willing to work with you. They try to understand why you cannot pay – if it is due to reasonable cause. If it is not, you have to follow their guidelines for Collection.
The Revenue Officer rings the doorbell. Working with a Revenue Officer is not something you should do if you are not experienced. Now is not the time to test your Collection expertise.
The job of the Revenue Officer is to reach resolution and collect unpaid taxes in full or work out a Payment Plan. They will garnish if necessary. They have the power to remove garnishes. Their job is Enforcement. If you read the threatening line on a Tax Notice that “we will take enforcement action”, your case may go to a Revenue Officer for Enforcement. As of 2018, the IRS was sending cases to Revenue Officers if you owed over $50,000.
A Revenue Officer will ask that you complete Forms 433A, 433B. Within the 433A and B are Cash Needs statements. In these exercises you need to be 100% accurate on what you spend your money on. If you are not, the Revenue Officer will conclude you have more money than you really do. You can afford to pay your taxes!!!!
Always hire an experienced professional to represent you. Hire TDRS.