What Is an IRS Revenue Officer?

An IRS Revenue Officer is the “front line” employee who meets directly with taxpayers, often at their home or business, for collection purposes. They work on cases involving both individuals and businesses, usually concerning unfiled tax returns or unpaid balances. Revenue Offers have many tools available to manage taxpayers who are cooperative or uncooperative, and ignoring these officers will not make them go away. In fact, it will likely make them more aggressive!

They are not to be confused with a Revenue Agent, who handles audits of previously filed tax returns and can prepare substitutes for returns for taxpayers who do not file their own tax returns.

At a higher level, a Revenue Officer’s job is to “protect the government’s interest.” They look for ways to collect unpaid taxes and returns that may not have been available to the Automated Collection Service collections efforts. Reach out to our tax team if you have been contacted by a Revenue Officer concerning unpaid or unfiled taxes.

Basic Tasks of Revenue Officers

To make it public knowledge that taxes are owed, IRS Revenue Officers file Notices of Federal Tax Lien, usually at the state or county level, much the same way a mortgage is recorded to put the public on notice that funds are owed to a lender. They can also issue levies (garnishments) on income and accounts if a taxpayer becomes uncooperative or unresponsive.

Revenue Officers can also seize nearly any asset with equity, including business assets/inventory, vehicles, collectables, and even houses, although additional levels of approval are needed if a house is the taxpayer’s principal residence. However, second homes, vacation homes, and rental properties are fair game.

Revenue Officers are also the only IRS personnel who can assess the Trust Fund Recovery Penalty, which arises when a business owes employment (Form 941) taxes and cannot pay them in full immediately. The officer will determine which individuals (owners, officers, or employees with direct access and authority over financial matters) should have been responsible for the payment of those employment taxes. They will then make a recommendation to assess the unpaid employment taxes against the responsible individual(s) and attempt to collect from those the individual’s personal assets.

How Experienced Are Revenue Officers?

Revenue Officers do not need any “outside” tax or accounting experience. Typically, a college degree is required, but not necessarily  related to tax. Once hired by the IRS, Revenue Officers go through several months of classroom training, followed by on-the-job training in their local offices; and they continue to receive regular training on IRS processes and procedures throughout their career. 

Revenue Officers are located throughout the country in local offices and IRS campuses (service centers). In 2023, there were approximately 2,300 Revenue Officers nationwide; however, with government reductions in the workforce, this number is likely lower.

Are Revenue Officers Involved in Criminal Investigations or Prosecutions?

During the time a Revenue Officer works a case, if they discover badges of fraud or indications of criminal activity, they can refer the case to a Fraud Technical Advisor, and eventually to IRS Counsel and Department of Justice for further investigation. Revenue Officers can help gather evidence against the taxpayer but often are not involved in an actual arrest. They can be called on to testify in court against a taxpayer who is being criminally charged.

Pontius Tax Law employs tax specialists who are also former IRS Revenue Officers. This inside knowledge gives us an advantage on how the IRS works and what you can expect if you are being investigated. Call us today and learn how we can help you navigate this sensitive tax situation.