New IRS Policy: No Unannounced Visits to Taxpayers

 Posted on August 08, 2023 in Tax Audits

For most taxpayers, a visit, call, or letter from the IRS can be very concerning. If a taxpayer has failed to pay taxes as required, has not reported information correctly when filing tax returns and other forms, or has otherwise failed to comply with tax laws, they can face significant penalties. When a person is contacted by the IRS, this could be a sign that they will face a tax audit, and they may need to address a variety of complex financial issues as they determine how to address issues related to tax compliance. However, the IRS recently announced a policy change that may limit certain forms of contact between IRS agents and taxpayers. Namely, the IRS will no longer make unannounced visits to taxpayers in most situations.

IRS Policy Addresses Safety Concerns and Other Issues

In the past, IRS agents would occasionally visit homes or businesses without contacting taxpayers in advance. During these visits, they would address concerns about unpaid taxes or failure to file tax returns. However, in recent years, IRS agents have faced safety concerns when making these unannounced visits. Law enforcement officials have also noted the increased prevalence of tax scams in which people pose as IRS agents. Because of these concerns, the IRS has put an end to nearly all unannounced visits, effective immediately.

Instead of making unannounced visits, the IRS will contact taxpayers ahead of time and schedule meetings. An appointment letter (Letter 725-B) will be sent, and a taxpayer can then schedule a one-on-one meeting with an IRS official at a designated time and place. This can ensure that taxpayers will be prepared to address specific issues, and they can compile the necessary documentation and take steps to resolve any concerns about unpaid taxes, unfiled tax forms, or compliance with tax laws.

The IRS may still conduct unannounced visits in certain circumstances, but these visits will generally be limited to situations where taxpayers are suspected of attempting to move their assets out of the country or avoid complying with tax laws. The IRS may serve taxpayers with subpoenas or summons to appear in legal proceedings, or it may take action to seize assets in certain situations. However, these cases are relatively rare, and under the new policy, unannounced visits will usually only take place in situations involving potential criminal prosecution for violations of tax laws.

What to Expect When Meeting With the IRS

In scheduled meetings with the IRS, taxpayers may be informed of their options for coming into compliance with tax laws. IRS agents may seek to collect taxes that are due or help set up payment plans. They may also provide guidance on the tax returns and other forms that need to be filed.

If the IRS chooses to perform a tax audit, a comprehensive review of the taxpayer’s financial records will be performed. Based on the findings of an audit, a taxpayer may be assessed taxes and/or penalties plus interest, or there may be other requirements to achieve full compliance with existing tax obligations.

Contact Our San Jose IRS Tax Audit Lawyer

If you have received a notice from the IRS stating that you owe taxes or need to file a tax return or other tax forms, it is important to respond correctly and take the right steps to comply with the applicable tax laws. If you are facing a potential tax audit, our experienced San Jose, CA tax law attorney can provide guidance on how to proceed in the interest of avoiding potential penalties and minimizing your tax liability. At John D. Teter Law Offices, we can help you determine the best approach to take in these situations, and we will advocate for your interests when dealing with the IRS. Contact our firm today at 408-866-1810 to set up a consultation and get the help you need with tax-related concerns.

Source:

https://www.irs.gov/newsroom/irs-ends-unannounced-revenue-officer-visits-to-taxpayers-major-change-to-end-confusion-enhance-safety-as-part-of-larger-agency-transformation-efforts