Since the beginning of President Trump’s second term in mid-January, he and his administration have been focused on reducing excess government spending. This has included significant reductions to various government workforces and funding, including the IRS.
In mid-February, it was announced that about 7,000 probationary employees of the IRS would be laid off. This included employees with about one year or less of service at the IRS and largely included employees from the compliance department. This department is responsible for making sure taxpayers are following the tax code, filing and paying their taxes, and other responsibilities.
The IRS employs approximately 90,000 employees and recently has been suggested by an inside source that the IRS is working on plans to cut even more of its workforce – by as much as half. At this time, no additional details about the specific request or plans are available.
How does this impact you, and taxpayers nationwide?
Though major changes in the IRS are anticipated, the IRS is not disappearing. Your rights as a taxpayer remain unchanged.
The IRS is required to prepare a Reduction in Force plan by March 13, 2025. The purpose of this plan is to identify positions that are unnecessary and eligible for elimination; restructure departments to consolidate functions; and shift employees to other roles or agencies. The ultimate decisions about implementation, the number of jobs to be cut, and the period of time for implementation of any changes rest with the White House.
Another phase plan will be due by April 14, 2025 – the day before the deadline to file the individual income tax return. This second phase will provide more information and details about the future structure, possible consolidations, technology upgrades, and the final workforce reduction plan.
For the 2024 filing season, and future filing seasons, these potential changes may impact processing times, including any refunds that may be due. The true impacts remain to be seen as many changes have not yet been formally announced.
In the midst of the proposed changes for the IRS on the immediate horizon, they are also adding options for taxpayers to take care of their tax problems. A new type of Installment Agreement for individual taxpayers was just announced. This is called the Simple Installment Agreement and has specific criteria for qualification.
If you are experiencing tax problems, remain informed about IRS policy changes and how they may impact you and your specific situation. Take action sooner than later to avoid possible delays with your case as major changes within the IRS are finalized and take effect.
Stay organized and proactive. Remain vigilant by keeping meticulous and organized records, setting aside money for taxes throughout the year, making any tax deposits required in a timely manner, and seeking professional help and advice whenever needed.
You do not have to do this alone.
Dealing with the IRS changes, uncertainty, and tax problems can be incredibly stressful. As we all enter this period of transition together, timelines and expectations will not be immediately clear. Despite these significant changes, the Taxpayer Bill of Rights remains intact and in place to help keep taxpayers protected. If you have questions about your situation, need help navigating the IRS process, and having an advocate who can help protect your rights as a taxpayer, contact an experienced tax professional.
For help navigating your tax problems, negotiating a resolution, or help understanding your rights as a taxpayer, contact the experienced tax team at the Business Law Group. Our team is ready to help you by taking the burden of dealing with the IRS and helping you navigate your tax problem to find a resolution tailored to your situation. Call us at (719) 355-8840 or email info@businesslawgroup.us to get started today.
