Salt Lake City -- The Trump Administration’s proposal to cut the IRS workforce by 50% by the end of the year has set the stage for massive changes in how the agency operates. Bloomberg reports that over 2,000 Employees—those who answer the phone for the IRS—have already been let go, retired early, or accepted severance packages. While many agree that a reduction in the IRS workforce is necessary, there are significant implications for taxpayers.
The immediate consequence of these cuts will be longer wait times for IRS services. As a result, taxpayers will experience more frustration and delays when dealing with the agency. On top of that, the reduced workforce is expected to shift more tax enforcement responsibilities to automation, which means more reliance on impersonal systems and less human oversight in tax resolution cases. This will make it even harder for taxpayers who want to resolve their issues independently.
It's worth noting that one in five taxpayers has a tax problem with the IRS. With these changes, those individuals will likely face even more challenges navigating the system. If you are one of them, now is the time to address your tax problem before frustration increases any further.
However, not all changes are negative. A recent IRS adjustment has made streamlined installment agreements more favorable. In the past, taxpayers had to pay off their tax debt within 72 months or the remaining time on the statute of limitations period, whichever was shorter. Now, the IRS has eliminated the 72-month cap, allowing taxpayers to pay their debt over the entire remaining length of the statute of limitations, which potentially could provide additional relief for some taxpayers.
With all of these changes, if you have a tax problem, I recommend that you get on it now. As these changes are implemented, taxpayer frustration will only rise, and getting ahead of the curve could save you time, money, and stress. While many of these tax changes are necessary and long overdue, there will certainly be immediate growing pains as the system adjusts.
It’s fascinating how quickly the IRS is evolving, and while tax issues may seem boring, they’re anything but. If you or someone you know is struggling with IRS or state tax problems, it’s important to get expert help to avoid getting lost in the system. At Strong & Hanni, we help resolve tax issues and we help taxpayers navigate the complexities of tax law. Reach out to Kent Brown today at (801) 532-7080, email kbrown@strongandhanni.com or visit my Strong & Hanni profile for more information.
Tax problems are legal problems, and we solve both!
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