Dealing With An IRS Visit

A Guide for Businesses and Individuals

If the IRS shows up unannounced, what should you do?

At Tandy Consulting, we understand that encountering an Internal Revenue Service (IRS) agent at your home or business can be a cause for alarm and confusion regarding your rights.

That's why our team of experienced tax professionals is here to provide you with the necessary guidance and support if you find yourself in such a situation.

If an IRS agent has recently shown up at your doorstep, we recommend reaching out to Tandy Consulting for expert advice. You can easily contact our office by calling (949) 619-6383.  

You are NOT required to talk to an IRS agent without representation.  They cannot force you to speak to them and NEVER allow anyone who just walked in to see, look, touch or record anything. Most importantly do not share any personal information. 

Steps to Take if an IRS Agent Visits Your Home or Business

If an IRS agent shows up at your home or business, it's important to take the following steps to protect your rights:

Verify the agent's identity:

• Ask for identification: Request the agent's name, contact information, job title, and reason for the visit. An IRS revenue officer should carry two forms of official identification—a pocket commission and a HSPD-12 card, which is a standard government ID for federal employees. Both IDs should feature the employee's photo and a serial number. If it's an IRS special agent, they will have law enforcement credentials, including a badge.

• Review notices: The IRS typically sends collection notices via regular mail and may contact you by phone before sending an agent in person. Be cautious of scammers who may try to deceive you by claiming issues with your tax return and demanding immediate payment.
• Taxpayers can call the IRS Field Employee Verification Center at 1-844-809-4566 to verify the employee if you were provided their employee ID number.

Assess the intent:

• Understand the role of revenue officers: While revenue officers are authorized to collect taxes, they are not allowed to threaten or demand unusual payment methods from taxpayers. They are there to help you understand and meet your tax obligations.

• Payment options: Revenue officers will provide legitimate payment options, such as checks payable to the United States Treasury or automated clearing house payments. Beware of scams if someone asks for payment via gift cards, prepaid debit cards, wire transfers, or to an entity other than the United States Treasury.

Identify signs of imposter agents:

• Demand for specific payment methods: Official IRS agents will allow you to choose from various payment options, while imposters may insist on a particular method.

• Payment via unconventional means: Beware if the agent requests payment through gift cards, prepaid debit cards, or wire transfers.

• Payment to entities other than the United States Treasury: Authentic IRS agents will direct payments to the United States Treasury, not to any other entity.

• Threats of arrest or license revocation: Imposter agents may use intimidation tactics, such as threatening arrest or revoking your driver's or business license.

• Denial of questioning or appeals: If the agent refuses to let you question the amount due or appeal the decision, it may indicate a scam.

Gather information:

• Request relevant information: If you meet the IRS agent, ask for their name, contact details, job title, and reason for the visit. Also, request any paperwork the agent may have brought with them. If you were not present during the visit, this information should be included in a letter the agent leaves at your door.

Refrain from granting access:

• Understand your rights: IRS agents do not have the legal authority to enter your home, place of business, or any non-public area of your property unless they possess a search warrant, court order, or your explicit permission.
• Decline entry without proper documentation: Do not allow an agent into your home or business without a warrant or court order. Keep in mind that even limited interaction with an agent could potentially be used as evidence against you.

Exercise your right to remain silent:

• While taxpayers are required to cooperate in IRS investigations, they have the right to remain silent and not engage in conversations with IRS agents without legal representation. Given that tax issues can sometimes involve criminal offenses, it is advisable to exercise this right.

Avoid signing paperwork:

• Seek legal advice first: Revenue officers may try to get you to sign documents related to repayment plans or tax amounts owed. However, it is crucial not to sign any paperwork without consulting a legal professional who can provide appropriate guidance based on your specific circumstances.

Can the IRS Visit Your Home or Business?

According to the IRS, revenue officers are civil enforcement workers responsible for handling cases involving unpaid taxes or delinquent tax returns. In certain circumstances, IRS revenue officers may visit a home or business to collect taxes when a taxpayer hasn't established a payment agreement with the IRS and owes more than $100,000 in taxes or has unfiled tax returns. These visits are often unannounced because scheduling appointments would be inconsistent with the urgent nature of the situation. Therefore, it is legally possible for these IRS agents to visit a home or business.

Other types of IRS agents may also visit homes or businesses. For instance, revenue agents may conduct audits, but they typically send a notice in advance and try to schedule a specific time and place for the visit. In the case of IRS special agents conducting criminal investigations, they may show up unannounced.

Reasons for IRS Agent Visits

There are several reasons why an IRS agent may show up at your doorstep:

• Collecting on severely delinquent taxes: A revenue officer may visit your home or business to collect taxes that are significantly overdue.
• Business tax debts: If your business owes taxes, an IRS agent may come to address the issue.
• Payroll tax arrears: If your business is behind on payroll taxes, a revenue officer might visit to emphasize the urgency of resolving the matter.
• Conducting an audit: If an IRS agent is conducting an audit, they may show up for a pre-arranged appointment.
• Suspected tax evasion: If you're suspected of tax evasion, an agent may visit your home or business to conduct a criminal investigation.
• Gathering evidence for another taxpayer's tax crime: In some cases, an IRS special agent may visit you to gather evidence related to another taxpayer's potential tax crime.

Most legitimate IRS collection cases start with a letter rather than an email or phone call.

Here are the steps you can take to confirm the authenticity of a letter or phone call from the IRS:

• Verify the letter on the IRS's website: The IRS provides resources on its website to help taxpayers verify the validity of letters they receive. Visit the IRS website (www.irs.gov) and look for the section related to verifying letters or scams. If you can't find any information or the letter appears suspicious, it's advisable to contact the IRS directly.
• Check your tax records: If you're uncertain about whether you owe the IRS money, you can review your tax records or contact the IRS to inquire about your tax status. The IRS can provide information regarding any outstanding tax liabilities you may have.
• Request identification and contact information: If you receive a phone call from someone claiming to be from the IRS, ask for their full name, IRS badge number, and a callback number. Inform them that you will verify their identity before calling them back. Do not provide any personal or financial information during the initial call.
• Independently verify the phone call: Use official IRS contact information to reach out and confirm the legitimacy of the phone call. Do not use the contact details provided by the caller. You can find official IRS contact information on their website or in trusted sources.
• Be cautious with personal information: The IRS will never ask for personal information, such as Social Security numbers, bank account details, or credit card information, over the phone or through email. If someone claiming to be from the IRS requests such information, it's likely a scam.

Remember, it's important to be vigilant and cautious when dealing with any communication related to tax matters. Scammers often employ tactics to deceive and defraud unsuspecting individuals. If you have any doubts about the authenticity of a letter or phone call from the IRS, it's best to reach out to the IRS directly using their official contact information to ensure your compliance and protect yourself from scams.

What do I do if I suspect the agent is a fraud?

If you encounter a fraudulent individual posing as an IRS agent, it's essential to report the incident to the appropriate authorities. Here are the steps you can take to report a fraudulent IRS agent:

• Contact the Treasury Inspector General for Tax Administration (TIGTA): TIGTA is responsible for investigating scams and fraudulent activities involving the IRS. You can report the fraudulent IRS agent to TIGTA through their toll-free hotline at 1-800-366-4484 or by visiting their website at www.treasury.gov/tigta and filling out their complaint form.
• File a complaint with the Federal Trade Commission (FTC): The FTC handles various types of consumer fraud, including scams impersonating government agencies. You can file a complaint online through the FTC's Complaint Assistant website at www.ftccomplaintassistant.gov.
• Submit a complaint to the IRS: While the IRS primarily focuses on tax-related issues, they still want to be informed about fraudulent individuals impersonating their agents. You can report the incident to the IRS by visiting their website at www.irs.gov and searching for the "Report Phishing and Online Scams" page. There, you will find instructions on how to submit a report.
• Notify your local law enforcement: If you have been directly affected by the fraudulent IRS agent, it's advisable to contact your local law enforcement agency and provide them with all the relevant details of the incident. They can assist in investigating the matter and potentially prevent others from falling victim to similar scams.

It's crucial to provide as much information as possible when reporting a fraudulent IRS agent, including any documentation, emails, phone numbers, or other evidence related to the incident. By reporting these fraudulent activities, you help protect yourself and others from becoming victims and assist law enforcement in their efforts to combat scams and fraud.

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