To the average individual owing $100,000, or more, to the IRS seems like a pretty big deal and it is. When individuals or businesses get this far in debt to the IRS they are often in danger of being assigned a Revenue Officer, or being referred to one of two High Liability Units within the IRS. The time to act, when faced with this situation, is NOW! One thing you must understand about being assigned a Revenue Officer, or “RO”, and being assigned to a High Liability Unit is that their only purpose within the IRS is to collect what you owe, and to do it quickly.
Most “RO’s” that I deal with are quick to levy bank accounts and wages first, and then ask questions later. Typically, the Revenue Officer you are assigned to will come to your home or business and leave a list of demands, as well as financial documents they need to see. They do this because they are looking for ANY possible way to collect the debt from you.
There are 2 High Liability Units, one located in Holtsville, New York, the other in Buffalo. Although this group won’t come to you home or business to collect the debt, they work via phone and will levy every possible asset at their disposal in order to do so. You can also count on having a lien filed against you, which will be done using your social security number at the local court house in the amount of the owed debt. These Revenue Officers also have the option of turning the lien into a judgment against you, which makes the tax debt permanent until the debt is paid in full.
So, now that you know what an RO can do, what can YOU do if you find yourself in this situation? The best advice I can give you is to hire a professional who knows the law, your rights, and the best ways to manage your relationship with a Revenue Officer.