Letter 725-B: IRS In-Person Meeting Requests

Couple does in person IRS meeting

Here’s some good news for taxpayers — the IRS has stopped making unannounced house calls. Instead of randomly ringing your doorbell or showing up at your business, the IRS now requests meetings with taxpayers in advance. If an IRS agent wants to meet with you, they’ll send Letter 725-B (Meeting With Taxpayer — Confirmation).

Have you already received this letter? Wondering how to respond? Want help preparing for your IRS meeting? Then, contact us at Wiggam Law today. We can help you deal with IRS meetings, letters, and other requests from the agency.

Why Does the IRS Want to Meet in Person?

In the age of Zoom, an in-person meeting seems fairly unnecessary, but the IRS is a bit old school. If you have unpaid taxes or unfiled returns, an IRS employee may want to meet with you to talk about resolution options. During the meeting, they’ll ask questions about your finances to identify how you can afford to pay the bill. Then, they’ll suggest options.

However, you have to be careful. These meetings aren’t designed to help you pay your bill. They’re designed to get the IRS its money as quickly and easily as possible. Remember, the agent works for the IRS. The IRS is their main priority, not you.

For example, say that you want to make monthly payments, but while you’re talking, the IRS employee decides that you could easily sell an asset or use a credit card to pay the bill in full. Armed with that info, they may deny your request for a payment plan.

Often, the IRS wants to meet in person if your return is being audited. However, the agency usually sends a different notice if the meeting is about a tax audit.

What to Expect With Letter 725-B

In most cases, you will receive Form 9297 with your letter. Additionally, if the IRS has not sent you Notice CP504 yet, the agency will send the following with your appointment request letter:

  • Publication 594, which outlines the IRS collection process
  • Publication 1660, which explains your appeal rights for collection actions

If the IRS wants to talk with a third party (such as an employer or other payer) in addition to meeting with you, the IRS employee will let you know when they send 725-B. However, if you have a history of being uncooperative with third-party information requests, the agency may reach out to third parties at the same time as they send you the 725-B letter.

How to Fill Out Form 9297

When a revenue officer gets assigned to your case, they will send you Form 9297 to request information about your finances. This form may come on its own or with Letter 725-B. In some cases, this form may already be partially filled out, and the IRS employee will note which additional details they need.

Keep in mind that you should not lie to the IRS. Hiding information about your assets and income can be considered tax fraud. However, if you’re not comfortable with an information request, a tax attorney can tell you the best way to proceed.

What to Do if You Receive Letter 725-B

Review the letter carefully and make sure that you understand all of the information sent by the agency. If you have questions about third-party information requests, collections, appeals, or any other issues, contact a tax attorney. Note the deadline on the letter — if you don’t contact the IRS by that date, you risk facing collection actions such as wage garnishments or tax levies.

Then, either call the IRS to schedule the meeting or reach out to see if you can reschedule. When you call the IRS, be aware that the agent will try to get levy sources from you. In other words, they will ask you about your assets so that if you don’t pay the tax bill, they know which assets they should target. If you’re worried about uncomfortable questions or if you don’t want to reveal unnecessary information, hire a tax attorney to deal with the IRS on your behalf.

Where Does the Meeting Take Place?

For individuals, the meeting usually takes place at a local IRS office, your home, or your tax professional’s office. For businesses, the IRS generally requests to go to the place of business.

When you hire a tax attorney, they can help you select the most advantageous location for the meeting. Then, they can help you convince the IRS agent to agree to your suggestion. Ideally, you want to meet on neutral turf, and a tax attorney’s office can be the best spot.

What if You Ignore This Letter?

Don’t ignore this letter. The IRS only requests in-person meetings in relatively rare situations, and Letter 725-B means that a Revenue Officer is handling your case. Your account is no longer floating around in the Automated Collection System (ACS). Instead, an IRS employee is actively monitoring the situation. If you don’t respond, they will initiate collection actions against you.

What if You Don’t Want to Meet With the IRS?

It’s pretty hard to avoid a meeting after you receive a 725-B letter. To get out of the meeting, you can pay your tax in full — as long as you’ve filed all outstanding returns, that should fix the issue. Alternatively, you can call and request to do the meeting over the phone. It can’t hurt to ask, but the IRS only infrequently says yes to these requests.

If you hire a tax attorney, it is possible that they can negotiate and prevent the meeting from taking place and deal with the agent directly on your behalf.

Keep in mind that you don’t have to go to the meeting alone. Dealing with an IRS agent on your own can be extremely intimidating, but a tax attorney can represent you through the process.

Why Did the IRS Stop Making Unannounced House Calls?

The IRS only started sending Letter 725-B because it stopped making unannounced house calls. This practice was deemed too dangerous for both IRS employees and taxpayers.

It was risky for IRS employees due to negative perceptions about the IRS and the government in general. This hostility makes it dangerous for IRS employees to approach people’s doors without warning.

Unannounced house calls were risky for taxpayers because they made it easier for scammers to pretend to be IRS agents. Now that the IRS has stopped surprise visits, you know that anyone who comes to your door and says they are from the IRS is a fraud. In the past, scammers could convince victims that they were IRS employees since the agency really did make house calls.

Does the IRS Ever Come to People’s Houses?

In general, the IRS has stopped making surprise visits to taxpayer’s homes and businesses. However, about a hundred or so of the nation’s 168 million tax filers will receive a surprise visit. The IRS only comes to your home/office unannounced in cases where the agency needs to serve you a subpoena or summonses and/or when an IRS employee fears that you’re going to flee without paying taxes.

Why You Should Hire a Tax Attorney for In-Person IRS Meetings

Should you go to the 725-B meeting on your own? Or should you hire a tax attorney to come with you? Here are some signs that you should bring representation to help you:

  • You don’t understand why the IRS wants to meet with you in person
  • You don’t agree with the tax bill that the IRS wants to talk about
  • You don’t have the paperwork that the IRS has requested
  • You’re worried that the IRS will make you sell assets you need for work, health, or other essential purposes
  • The IRS has threatened to garnish your wages or seize your assets
  • You want to ensure that the Revenue Officer respects your rights
  • You want extra guidance during the meeting
  • You’re nervous about dealing with the IRS on your own

Dealing with the IRS through the mail or over the phone can be scary, but it’s even more intimidating when you have to deal with an agent in person. Don’t let this stress overwhelm you. Instead, contact our team at Wiggam Law today. Our experienced tax attorneys can help you respond to the 725-B letter, meet with the IRS agent, and help put your tax trouble behind you.

Call us at (404) 233-9800 or schedule a consultation today.