Some High-Income Taxpayers Subject To IRS Visits

IRS enforcement personnel are increasing face-to-face visits with high-income taxpayers who fail to file returns.

The Internal Revenue Service is stepping up efforts to visit high-income taxpayers who have failed to timely file one or more of their tax returns in prior years.

Following the recent and ongoing hiring of additional enforcement personnel, IRS revenue officers across the country will increase face-to-face visits with high-income taxpayers who have not filed tax returns in 2018 or previous years.

These visits are primarily aimed at informing these taxpayers of their tax filing and paying obligations and bringing these taxpayers into compliance. The purpose of these visits, according to an IRS spokesperson, is to make sure taxpayers are aware of their options in getting their tax situation up to date in order to avoid bigger issues down the road.

For the current tax season, the deadline for filing a 2019 tax return is April 15, 2020. Taxpayers must file a tax return by the deadline even if they cannot pay any taxes owed in full. Six-month filing extensions are available, although that does not extend the April deadline for paying any taxes owed.

These new visits will target high-income taxpayers who generally received income in excess of $100,000 during a tax year and did not file a tax return with the IRS. During the visits, IRS revenue officers will share information and work with the taxpayer in an effort to resolve the tax issue.

How To Pay

There are many payment options for people having trouble paying their tax bill. Payment plans can be set up quickly online.

Once returns are filed or an assessment occurs, there are various online payment options available at IRS.gov, including:

Direct pay through a bank account or using a debit or credit card
The Electronic Federal Tax Payment System
- This is the best option for businesses or large payments; enrollment is required
Electronic Funds Withdrawal (used during e-filing)
same-day wire (bank fees may apply)
Check or money order or cash (at a participating retail partner)

Those who can’t pay immediately may be able to meet their tax obligation in monthly installments by applying for a payment plan (including installment agreements and those who owe less than $50,000). Taxpayers can find out if they qualify for an offer in compromise (a way to settle their tax debt for less than the full amount), or request that the IRS temporarily delay collection until their financial situation improves.

Refusing To Pay Taxes

For those who refuse to pay, the IRS has a number of options available under the law, ranging from a series of civil enforcement actions and, when appropriate, pursuing criminal cases against taxpayers. IRS compliance personnel are also now working more closely with IRS criminal investigators on priority compliance issues, including high-income cases.

What Is A Revenue Officer’s Job?

Revenue officers are trained IRS civil enforcement employees who work to resolve compliance issues, such as missing returns or taxes owed. Revenue officers conduct interviews to gather financial information and provide taxpayers with the necessary steps to become and remain compliant with the law. When necessary, they will take the appropriate enforcement actions to collect the amount owed.

Don’t Be Confused: Visits Are Not A Scam

For this new initiative, these high-income taxpayers have typically received numerous letters from the IRS over an extended period of time, so they generally realize they have a tax issue.

Revenue officer visits should not be confused with scams. Here’s what to look for:

While most IRS revenue officer visits to a taxpayer are unannounced, they will always provide two forms of official credentials.
- Both include a serial number and a photo of the IRS employee. Taxpayers have the right to see each of these credentials.

A legitimate revenue officer helps taxpayers understand and meet their tax obligations. The officer will explain the liability to the taxpayer, along with the consequences of failing to comply with the law. The IRS employee will not make threats nor demand an unusual form of payment for a nonexistent liability.
Visits by revenue officers generally occur after numerous contacts by mail about an existing tax issue. Therefore, taxpayers should be aware they have a tax issue when these visits occur.
If someone has an outstanding federal tax debt, the visiting officer will request payment but will provide a range of options, including paying by check written to the U.S. Treasury.

More information on identifying legitimate IRS representatives and how to report scams can be found at IRS.gov.

If you have been contacted by mail about an existing tax issue, contact your local tax professional for guidance. Also, it is important to seek advice from a tax professional before you are contacted by the IRS if you feel you may not be in compliance with your tax filings and payments. Delaying a resolution can result in additional penalties and interest which can add up quickly.