The IRS is Laying Off 6,000 Employees - Here’s What Matters for Your Clients
Stephen A Weisberg
Tax Attorney Resolving IRS & State Tax Debt Issues & Disputes for Individuals & Business Owners | I Fix Problems for Tax Professionals, Bankruptcy & Family Law Attorneys, Realtors Who Have Clients With Tax Debt ???
The IRS is laying off 6,000 employees in the middle of tax season.
Yep.
They’re sending thousands of workers home, just as people are inundating the IRS with filing their 2024 returns.
For your clients with tax debt, this might sound like good news.
“Fewer IRS employees?
Maybe they’ll forget about me!”
Nope.
The Reality Behind the Layoffs
The employees being laid off are probationary workers who have been hired recently and haven’t reached full civil service protections and are easier to fire.
However, IRS used the influx of cash from the "Inflation Reduction Act" to hire new personnel in the audit division.
NOT in collections.
That means many of the layoffs will likely affect audits rather than collections—at least in the short term.
DOGE
DOGE is shedding IRS employees, but they’re also investing heavily in artificial intelligence.
And AI may uncover some GLARING enforcement issues...
Namely thousands of people who owe taxes but aren't being looked at, in addition to people with unfield past taxes but who have been under the radar for years.
Why This Matters to Your Clients with Tax Debt
1. Audit activity may slow down—but collections will heat up.
The IRS is still laser-focused on high-dollar noncompliance cases. They might be cutting back on auditors, but they’re not cutting back on getting their money.
2. DOGE is exposing the non-filers.
With DOGE’s findings, the IRS may find.
? Millions of non-filers who should have reported income—but didn’t.
? Hundreds of billions in unpaid taxes the IRS hasn’t collected—yet.
Your clients who haven’t filed in years might soon find themselves in big trouble.
3. Your clients may get caught off guard.
Expect more automation and system-driven enforcement in collections.
The IRS doesn’t need extra employees to levy bank accounts or garnish wages.
They just need a well-timed notice, which AI can handle easily.
TL;DR (Too Long; Didn’t Read)
Let’s Talk…
Do you think this shift will make IRS enforcement more effective?
Or is DOGE totally out of control?
"The Bob Ross of LinkedIn Writers" | Demystifying LinkedIn for Attorneys since 2022 | Former Litigator | Founder of CONTENDER ??? | Author of In the Creative Arena | Co-Founder of UNrationed, a Wilder Mastermind
6 天前Oof. This sounds....less than ideal.
A humble Bookkeeper, Researcher, Writer
1 周Stephen A Weisberg Became excited on the beginning. But, came to reality after reading your article. ??
I work with individuals and small business owners that want to solve their money problems and Sleep Better at Night? | IRS Enrolled Agent | Author | Professional Speaker | Radio Host of "Dollars & $ense"? With Kristine
1 周Great points Stephen. This is a double edge sword for sure. Just had an RO inform me a field visit is being suspended (due to current #DOGE issues) and a CNC case is skipping ahead for GM approval. On the flip side, another RO was fired and now the case is in unofficial suspense…. Until a new RO can be assigned?
Social Darwinist
1 周However, if you’ve taken aggressive positions in your tax returns and are waiting for the statute of limitations to lapse, fewer IRS employees might sound pretty good.
Partner at Honigman LLP
1 周Wasn’t the IRS one of the heaviest users of AI even before the current administration/DOGE? Or has there been a change in AI adoption/implementation at the IRS under the current administration (i.e. the last month or so)