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Certain High-Income Taxpayers at Risk of IRS Visit by Joseph L. Saka, CPA/PFS

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Posted on March 12, 2020 by Joseph Saka

The IRS is taking steps to aggressively pursue high-income taxpayers who failed to timely file tax returns in 2018 or prior years.

As part of a new initiative, the agency’s revenue officers will personally visit non-compliant taxpayers across the country whose annual income exceeds $100,000. These face-to-face encounters will focus on informing taxpayers of their tax filing and payment obligations and aim to bring them into compliance by offering a range of payment options, including paying by check payable to the U.S. Treasury. A refusal to pay may result in a series of civil enforcement actions and potential criminal cases against taxpayers.

According to the IRS, these visits should not come as a surprise, since the agency has attempted to contact non-compliant taxpayers multiple times prior to their cases being assigned to revenue officers. Yet, it is important that taxpayers proceed with caution and takes steps to protect themselves from falling victim to a potential scam.

If you receive a knock on your door from someone claiming to be an IRS revenue officer, always ask that individual to provide you with credentials showing both a serial number and photo ID before opening your door. Revenue officers always carry two forms of identification with this information: a pocket commission and a government-issued HSPD-12 card. In addition, at no time will legitimate revenue officers make threats or demand payment without giving you an opportunity to appeal the amount they say you owe.

“Taxpayers having delinquent filing or payment obligations should consult a competent tax advisor before waiting to be contacted by an IRS revenue officer,” said Paul Mamo, director of IRS Collection Operations, Small Business/Self Employed Division. “It is always worthwhile to take advantage of various methods of getting back into filing or payment compliance before being personally contacted by the IRS.”

U.S. taxpayers currently face an April 15 deadline to file their tax returns for 2019 and pay any related tax liabilities. Despite the availability of a six-month filing extension, taxpayers must pay any taxes owed by the April deadline. For those individuals who are unable to pay their tax bill in full, speak with qualified tax advisors who can help you work with the IRS to establish a monthly installment plan or determine eligibility for an offer in compromise, in which the taxpayer can settle their debt for less than the full amount.

About the author: Joseph L. Saka, CPA/PFS, is CEO of Berkowitz Pollack Brant Advisors + CPAas, where he provides a full range of income and estate planning, tax and business consulting and compliance services, and financial planning expertise to entrepreneurs, high-net-worth families and family companies and business executives in the U.S. and abroad. He can be reached at the CPA firm’s Miami office at (305) 379-7000 or via e-mail at info@bpbcpa.com.

 

Information contained in this article is subject to change based on further interpretation of tax laws and subsequent guidance issued by the Internal Revenue Service.