The IRS is one of the most aggressive and successful collection agencies in the world. A large part of this success is due to the substantial number of tax collection professionals the IRS employs. These tax collectors have various titles, the most common of which is a “Revenue Officer.”
Generally, Revenue Officers have broad authority to conduct investigations and take all legal action necessary to collect back taxes. These collection professionals have the right to investigate your personal and business affairs, contact your friends, family, business associates and anyone else who may have relevant information. Most will not hesitate for a second to show up at a taxpayer’s home or place of business.
Because of the broad collection authority available to Revenue Officers, it is important to respond to any contact timely, completely and honestly. Although the Revenue Officer is ultimately reasonable for collecting overdue taxes, penalties and interest, they are required to work with taxpayers to find a resolution that preserves the rights of both the government and the individual. Therefore, the law does not allow them to abuse their authority or harass taxpayers. Complaints about abusive Revenue Officers should be directed to the Revenue Officer’s collection manager, the Office of the Taxpayer Advocate or your local congressional representative.
Federal law gives you the right to professional representation before the IRS and its Revenue Officers. If you are concerned about the preservation of your legal rights, you should contact a tax attorney immediately for help.
The Statute of Limitations on Collections is the amount of time that the IRS has to collect a tax liability from a taxpayer. The date that taxes expire is referred to as the “Collection Statute Expiration Date” (CSED). According to the Internal Revenue Code, Section 6502, the IRS generally must collect the tax owed “within 10 years after the assessment of the tax.” Depending on the taxpayer, the assessment of tax may be the date a taxpayer files a tax return with a balance owing or the date that the IRS files a tax return on behalf of a non-filer taxpayer. Thus, the statute of limitations will begin once the tax has been “assessed” by the IRS.
Although the IRS generally has just 10 years to collect on an outstanding tax liability, there are certain events or transactions that may extend or suspend the statute from expiring. A variety of laws effect the CSED. For example, if a taxpayer files bankruptcy or files an Offer in Compromise, the statute of limitations is generally suspended during the time the bankruptcy or Offer in Compromise is under review. Also, additional assessments of tax owing may extend the amount of time that the IRS is allowed to collect. Therefore, if the IRS is going to collect taxes owed, they must do so within the time frame permitted by law.