When you owe taxes to the IRS, you may find yourself being contacted by an IRS Revenue Officer. The Revenue Officer is a highly skilled employee of the IRS and is part of the collection division. Revenue Officers are trained to collect the tax debt that is owed to the IRS. How you respond to the Revenue Officer may go a long way toward your ability to resolve your tax problem successfully.
Nine Steps to Take After an IRS Revenue Officer Contacts You
If an IRS Revenue Officer contacts you, consider taking the following steps:
- Contact a tax attorney as soon as possible. It is important to choose a professional who is experienced working with the IRS and has a history of successfully resolving IRS liabilities on behalf of his or her clients.
- Contact the IRS to confirm that all of your necessary tax returns have been filed.
- Obtain an updated balance of the amount that you owe, including penalties and interest, through the current date.
- Prepare and file any unfiled tax returns.
- Pay the balance due on any unfiled returns, if possible.
- Gather the last three months’ worth of your paystubs and bank statements.
- Obtain assistance completing IRS Form 433-F, which will help you determine whether your gross monthly income exceeds your allowable monthly expenses. It will also tell you whether you have enough assets that can be liquefied to pay your liability. Examples of this type of asset include checking accounts and cash in hand.
- If possible, contact at least two banks in an attempt to borrow against the equity on any real estate that you may own. The IRS Revenue Officer will want to see that you at least tried to borrow against your property in an attempt to resolve your tax debt.
- Contact the IRS Revenue Officer assigned to your case in order to discuss your financial situation. The goal of this contact is to determine whether there is a form of resolution of the tax problem that would be appropriate for your case.
Few taxpayers have the experience necessary to successfully work with an IRS Revenue Officer. Fortunately, you do not have to navigate this process alone. We encourage you to take the first step towards finding a resolution to your problem by checking out our free guide, The Ultimate Survival Guide for IRS Problems.