How Not To Upset An IRS Revenue Officer

VIDEO TRANSCRIPTION – How not to upset an IRS officer. I’m going to share a story from our client files. This past Friday had an interesting conversation when I returned a revenue officer’s phone call. I knew it was already going to be bad. 

How did I know that? Because I asked the client to do something and it took over a month to give him the information that he requested. 

Hi, I’m Steven D. Cooper, also known as Coach Coop with Cooper’s Accounting Service, because your financial freedom matters. If you’d like more great tax tips, download our popular financial guide on our website, yourfinancialfreedommatters.com, or click on the link below.

This phone call on Friday was quite interesting. called the revenue officer. He got the power of attorneys that he needed. Great. He said, what took so long? Said the client was sick. I tried to encourage the client that I needed the information and I’m not gonna call him anymore without any solid information.

We needed the power of attorneys. Everyone in the house was sick. So that IRS agent who’s known as a revenue officer, what is an IRS revenue officer? It’s an employee of the IRS that typically collects money or back taxes and the amount is typically over $100,000. 

Right now, this client owes over $100,000. We are able to resolve the problem, but we got to give the agent the information that he’s requesting for right now. So he expressed to me that when I talk to the client, whatever I ask for in a timeframe that I asked for, that client from now on better give me the information. 

Why is that impactful? Because the client did not respond in a timely fashion, he went in and prepared certain payroll documentation. Now I want you to think about this. Do you think he prepared the payroll documentation that is in favor of my client or in favor of the IRS?

Go figure on the answer to that question. We now have to amend those payroll forms to put in the correct information. So there’s more work for me and more billable hours for the client. Just by simply signing the documentation and emailing, we could have negotiated and given that information to the revenue officer. I want to recap something. Most of y’all heard of an IRS audit. 

I get that. There are basically three types of IRS audits. Number one, that’s a paper audit when they send you something in the mail and you respond back to them in the mail. Number two, that’s usually one that you hear when they trying to scare you on the radio or TV that you don’t want to go through this IRS audit. That’s the one where someone physically comes to your house or your office.

But there’s one worse than that. That’s the revenue officer. That’s the one where my client is dealing with. They typically get you on you not filing or paying your payroll taxes. There’s a term called a civil penalty. That’s where the IRS thinks that you did something of malice intent, but they don’t want to prove it.

So if you owe them $100,000 that you did not pay in payroll taxes, that civil penalty comes in there. That means that you owe the $100,000 in payroll taxes and another $100,000. That’s the civil penalty.

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