This afternoon I was reading the following:
As part of a larger transformation effort, the
Internal Revenue Service today announced a major policy change that will end
most unannounced visits to taxpayers by agency revenue officers to reduce
public confusion and enhance overall safety measures for taxpayers and
employees.”
One can spend a lifetime and never interact with a
Revenue Officer. We are more familiar with Revenue Agents, who examine or audit
tax returns and filings. Revenue Officers, on the other hand, are more
specialized: they collect money.
I deal with ROs often enough, but – then again –
consider what I do. I rarely meet with one in person, though. The last time I
met an RO was one late afternoon at northern Galactic Command. I was the only person
in the office, until I realized that I was not. I encountered someone who
claimed to be an RO, which I immediately and expressly disbelieved. He presented
identification, which gave me pause. He then asked about a specific client,
giving me grounds to believe him. The IRS could not contact a taxpayer, so the
next step was to contact the last preparer associated with that taxpayer.
I was – BTW – not amused.
I wonder if the above IRS policy change has something
to do with an event that occurred recently in Marion, Ohio. The following is cited from
a recent House Judiciary Committee letter to IRS Commissioner Danny Werfel:
On April 25, 2023, an IRS agent—who identified
himself as 'Bill Haus' with the IRS’s Criminal Division—visited the home
of a taxpayer in Marion, Ohio. Agent 'Haus' informed the taxpayer he was
at her home to discuss issues concerning an estate for which the taxpayer was
the fiduciary. After Agent 'Haus' shared details about the estate only the IRS
would know, the taxpayer let him in. Agent 'Haus' told the taxpayer that
she did not properly complete the filings for the estate and that she owed the
IRS 'a substantial amount.' Prior to the visit, however, the taxpayer had
not received any notice from the IRS of an outstanding balance on the estate.
"During the visit, the taxpayer told Agent 'Haus' that the estate was
resolved in January 2023, and provided him with proof that she had paid all
taxes for the decedent's estate. At this point, Agent 'Haus' revealed that
the true purpose of his visit was not due to any issue with the decedent’s
estate, but rather because the decedent allegedly had several delinquent tax
return filings. Agent 'Haus' provided several documents to the taxpayer for her
to fill out, which included sensitive information about the decedent.
"The taxpayer called her attorney who immediately and repeatedly asked
Agent 'Haus' to leave the taxpayer's home. Agent 'Haus' responded
aggressively, insisting: 'I am an IRS agent, I can be at and go into anyone's
house at any time I want to be.' Before finally leaving the taxpayer’s
property, Agent 'Haus' said he would mail paperwork to the taxpayer, and
threatened that she had one week to satisfy the remaining balance or he would
freeze all her assets and put a lean [sic] on her house.
"On May 4, 2023, the taxpayer spoke with the supervisor of Agent
'Haus,' who clarified nothing was owed on the estate. The supervisor even
admitted to the taxpayer that 'things never should have gotten this
far.' On May 5, 2023, however, the taxpayer received a letter from the
IRS— the first and only written notice the taxpayer received of the decedent’s
delinquent tax filings—addressed to the decedent, which stated the decedent was
delinquent on several 1040 filings. On May 15, 2023, the taxpayer spoke again
with supervisor of Agent 'Haus,' who told the taxpayer to disregard
the May 5 letter because nothing was due. On May 30, 2023, the taxpayer
received a letter from the IRS that the case had been closed.”
Yeah, someone needs to be fired.
The IRS did point out the following in today’s release:
For IRS revenue
officers, these unannounced visits to homes and businesses presented risks.
No doubt, especially for those who think they can go into “anyone’s house at any time.”
What will the IRS do instead?
In place of the
unannounced visits, revenue officers will instead make contact with taxpayers
through an appointment letter, known as a 725-B, and schedule a follow-up
meeting. This will help taxpayers feel more prepared when it is time to meet.
Taxpayers whose cases
are assigned to a revenue officer will now be able to schedule face-to-face
meetings at a set place and time, with the necessary information and documents
in hand to reach resolution of their cases more quickly and eliminate the
burden of multiple future meetings.
There will be situations where the IRS simply must
appear in person, of course:
The
IRS noted there will still be extremely limited situations where unannounced
visits will occur. These rare instances include service of summonses and
subpoenas; and also sensitive enforcement activities involving seizure of
assets, especially those at risk of being placed beyond the reach of the
government.
These situations should be a fraction of the number
under the previous policy, however.
