Roughly 28,000 IRS employees have been removed from their positions since President Trump took office for his second term. Now, a rumored 4,000 additional cuts to the IRS workforce has taxpayers facing growing uncertainty about the impact of these cuts, especially for those already owing back taxes, or facing collection action. Internal reports have indicated that enforcement and collection personnel within the IRS are among the hardest hit by these reductions – leaving many taxpayers thinking about whether such cuts could somehow benefit their outlook with the IRS, i.e. fewer agents to do the hard work of reviewing their financial disclosures and documents means less enforcement, right?
Unfortunately, the practical reality of these cuts has already dashed taxpayer hopes of decreased enforcement action. IRS personnel still remaining with the agency face tremendous pressure to produce results, close cases faster, and increase collection activity on outstanding tax liabilities.
In periods of staffing shortages like we are experiencing now, many taxpayers are currently receiving more threatening automated notices, and faster escalation into aggressive collection actions. At the same time, reduced staffing has also increased delays in processing taxpayer responses, appeals, installment agreement requests, and requests for stays of enforcement action. This has proven to be a dangerous combination for taxpayers attempting to resolve IRS debt on their own – aggressive collection pressure paired with a reduction in access and IRS responsiveness to honest attempts to address outstanding liability.
However, taxpayers shouldn’t feel like they have to deal with the fallout of IRS staff reductions alone. The consequences of these cuts have created a landscape where representation of a taxpayer by an experienced Enrolled Agent is a practical necessity. With experienced representation by an Enrolled Agent, taxpayers can expect their cases to be negotiated strategically before collection action can escalate unnecessarily. This representation can often help secure collection holds, penalty abatements, installment agreements, Currently Not Collectible status, or Offers in Compromise, while preventing punitive levies and garnishments.
Taxpayers should also be aware that attempting to face the IRS alone can unintentionally damage their case. Statements made directly to the IRS, incomplete financial disclosures, missed deadlines, or improperly prepared resolution requests can severely limit available options later. Working with a qualified Enrolled Agent ensures that someone with expertise in this area is advocating on your behalf, monitoring deadlines, communicating directly with the IRS, and developing the strongest possible resolution strategy for your specific situation.
Brooke Hubbard, EA, Esq.
(720) 452-1230
Timberline Tax Group, LLC