What is the Difference Between an IRS Revenue Officer and an IRS Revenue Agent?

When an IRS representative contacts you directly to discuss your taxes—whether it’s a specific return, the results of an audit, or a past-due tax debt—it’s important to know the scope of their work and what they are legally allowed to do in regards to your tax debt.

While some people may use the terms “IRS revenue agent” and “IRS revenue officer” interchangeably, these are very different professions within the agency. Learn more about their roles, when one may be assigned to your case, and how to prepare for a meeting with one.

Note that if an IRS employee contacts you directly, that means the IRS is serious about what’s happening. To get help now, contact us at the Law Offices of Timothy S. Hart today.

Key takeaways:

• Revenue agents – handle audits and adjustments that increase tax liability.
• Revenue officers – focus on collecting tax payments.
• Tax attorneys – help you navigate all communications with IRS representatives.

The Definition of an IRS Revenue Officer

Tax revenue officers handle civil enforcement investigations. Their training involves tax law, investigative techniques, and collection options.

Types of Cases They Handle

IRS revenue officers handle cases involving delinquent tax returns and tax payments. If a taxpayer fails to file their returns or pay their taxes on time, and all automated contact efforts via the Automated Collection System fail, revenue officers may take over collection and filing efforts.

How They Interact With Taxpayers

Per the IRS, the majority of a revenue officer’s work is in the field. Officers interact directly with taxpayers, their attorneys, and third parties at their homes or places of work. With taxpayers and their representatives, officers may discuss taxpayers’ rights, tax obligations, and options for resolving delinquencies.

The Definition of an IRS Revenue Agent

Revenue agents take on a number of different tasks in their day-to-day work. Their background in accounting allows them to examine taxpayer documents, conduct audits, and generate reports.

Types of Cases They Handle

The IRS assigns revenue agents to work with a wide variety of cases, from individual taxpayers’ returns and documents to documentation and returns from large corporations. This is why a strong background in accounting is required.

How They Interact With Taxpayers

IRS revenue agents spend some time interacting with taxpayers. They may communicate with them out in the field, but they may also reach out via mail and phone calls from their centralized office location.

Important Similarities

While these are different positions with their own job descriptions, education requirements, and salary outlooks, there are certain areas where they overlap. They include:

• Work directly with the public. Both revenue officers and agents have some degree of interaction with taxpayers, requiring them to represent the IRS in a professional and ethical way.
• Do investigative work. Agents and officers alike must have strong investigative skills, although they use those skills in different ways.
• Focus on compliance. These positions both aim to enhance compliance with tax laws, either by analyzing returns and documents with discrepancies or by enforcing tax collection laws.
• Utilize IRS systems and tools. Revenue officers and agents have access to the long list of tools and resources provided by the IRS, so they can tap into a taxpayer’s history, communications with the IRS, and documentation.
• Are held to high ethical standards. The IRS has stringent ethical requirements for those who work for and represent the agency. Agents and officers alike must abide by these standards, particularly while interacting with the public.

Key Differences Between IRS Revenue Agents and Officers

Despite the similarities between IRS revenue agents and officers, there are significant differences in how they work, their primary job duties, and the type of training they must have.

Scope of Work

Each type of representative has a distinct list of duties and scope of work. Agents conduct audits, which involve digging deep into taxpayers’ documentation, documentation from outside parties, and interviews conducted by agents.

On the other hand, revenue officers’ primary job is to collect delinquent taxes. They do this by reaching out to taxpayers on their caseload, taking enforcement actions, and setting up payment plans.

Interactions With Taxpayers

Agents and officers have differing levels of communication with taxpayers. Agents reach out to taxpayers to gather information for audits, conduct interviews, and provide information on the outcome of an audit. However, a good portion of their work does not involve taxpayer interaction at all—they work at the office, processing forms and looking for discrepancies.

Revenue officers spend more time out in the community, interacting with taxpayers. They step in when other efforts to reach taxpayers have failed, which means that more aggressive efforts are required.

Types of Cases

Agents and officers encounter taxpayers at different points along the collection timeline, thanks to the cases they take. While conducting audits, agents often make adjustments to tax returns that trigger newly assessed taxes and penalties. If taxpayers make those payments and remain compliant, that’s where their direct interaction with the IRS ends.

Officers encounter taxpayers late in the collection timeline—by the time a revenue officer steps in, a taxpayer has generally already accumulated a significant amount of penalties and interest. At this point, they are at risk of losing their personal property, wages, and bank accounts.

Authority

Officers and agents have different types and levels of authority. Agents are tasked with changing taxpayers’ tax liabilities as the result of investigations and audits. However, they do not have a hand in collecting taxes. Officers do not conduct audits or make changes to tax returns, but they do have the authority to enforce liens, levies, and asset seizures.

Division Within the IRS

Revenue agents work within the Examination Division of the IRS; revenue officers are part of the Collections Division.

Preparing to Interact With IRS Revenue Officers or Agents

Whether you need to talk to an IRS representative in person or over the phone, it’s important to be prepared, know what to expect, and understand the potential outcomes. These tips can help you minimize your nervousness.

Understand the Purpose of the Call or Visit

This depends on whether you’re meeting with an agent or an officer. As agents handle audits, a meeting with an agent may be intended to clear up confusing information on your tax return, request information about suspicious deductions or unreported income, or ask for proof of certain deductions or credits.

If you have a meeting with an officer, their goal is to secure payment for your tax debt. In this situation, knowing different payment options and plans can help you.

Have Your Documents On Hand

Spend some time organizing your documents and forms ahead of time. You may find it helpful to have your tax returns for the years in question, any W-2s, 1099s, and other tax forms you may have from those years, and proof of any income and expenses for those years.

For example, if you have deductions for work expenses, bring receipts or bank statements proving the purchases. If you have made payments towards your taxes in the years being examined, bring proof of payment.

Consider Having a Representative With You

Dealing with the IRS can be stressful and overwhelming, no matter how prepared you are. Many people find it helpful to bring a tax attorney with them. When you have a tax attorney representing you, you can limit your own direct communication with the IRS and let your lawyer speak on your behalf. This cuts down on the risk of saying something that damages your case or complicates your tax issues.

Stay Calm and Courteous

It’s normal to get overwhelmed and defensive in these situations, particularly if you’re being audited or facing aggressive collection actions. However, you should remain calm and professional throughout your interactions. It helps no one if you lash out or start an argument.

When You Need Your Own Legal Representation

Depending on which type of IRS representative is handling your case, there are certain red flags that indicate the need for legal representation. But first, know that you can always seek legal representation even if you think you could probably handle your issues on your own.

If you feel uncertain about interacting with the IRS, are too confused by your payment options to take action, or feel like you have waited too long to address your tax issues, talking to a tax attorney could be worth the peace of mind it brings you.

Revenue Officers

If you owe a substantial amount of money and a revenue offer reaches out to you, it’s time to talk to an attorney. Collection actions tend to happen much more quickly when a revenue officer is assigned to a case. You should also reach out to a tax lawyer if you are receiving notices about liens, levies, and wage garnishment.

Once the IRS satisfies its legal requirement to provide you with sufficient notice, they can begin these aggressive collection actions—and undoing them is far more difficult than preventing them. If you feel that a payment plan or offer in compromise may be the best option for you, an attorney can help you negotiate.

Revenue Agents

Revenue agents often handle audits. Due to the potential for penalties and additional tax assessments, you should reach out to a lawyer as soon as you find out you’re being audited. An audit is an in-depth investigation of your taxes, and an attorney can help look for discrepancies, anticipate any potential issues, and navigate your next steps. It’s crucial to present an accurate picture of your finances during an audit, and a lawyer can do just that. If you have already been notified of adjustments to your tax liability, talk to an attorney about disputing those changes.

At Timothy S. Hart Law Group, we focus on helping individual taxpayers and businesses navigate issues with the IRS. Whether you’ve been contacted by an IRS revenue officer or revenue agent, there’s a lot on the line. With our experience in complex tax issues, collection actions, and audits, we have the knowledge necessary to handle your tax problems. Protect your rights and your financial well-being with our team of tax attorneys—call us at 518-213-3445 or contact us online.