The IRS is undergoing a significant transformation, and many are closely watching its impact on tax enforcement. As new strategies emerge, it seems the enforcement landscape may shift dramatically, particularly in terms of automated systems and the growing number of non-filers being drawn into the IRS’s net.
For years, tax professionals have seen an uptick in non-filer cases—individuals who haven’t filed their taxes in years, often due to financial struggles or neglect. Sorting out their debt typically requires careful negotiation and oversight by skilled auditors, which can be time-consuming and complex.
However, with the administration’s plan to reduce the IRS’s in-person audit capacity, fewer traditional, hands-on audits may take place. This could unintentionally create hardships for taxpayers facing tax issues. Instead of direct oversight, the IRS may increasingly rely on automated systems to handle enforcement, particularly using levies and liens. This shift could result in an explosion of automated enforcement actions that lack the nuance of human intervention.
The risk is that many taxpayers may be unprepared for the overwhelming wave of automated collection measures. We are currently seeing numerous Letter 11s – Notice of Intent to Levy and Your Collection Due Process Right to a Hearing being sent out. Taxpayers who have avoided filing due to financial distress may suddenly face aggressive enforcement without a chance to explain their circumstances. With levies and liens becoming the default collection tools, many could experience wage garnishments, frozen bank accounts, or property seizures, worsening their financial difficulties.
The IRS is currently in chaos, with shifting priorities and restructuring underway. While the changes aim to streamline operations, they could inadvertently punish taxpayers by disregarding their unique challenges. The hardship imposed by these automated enforcement measures could be severe, making it crucial for individuals to stay informed and prepared for the potential consequences. Understanding how to navigate the system and the available options will be essential in mitigating the impact of these changes.
Tax problems are legal problems, and we solve both. If you or someone you know has an issue with paying their federal or state taxes and needs help to end their IRS nightmare, please contact Kent Brown at Strong & Hanni by either phone at (801) 532-7080 or email at: kbrown@strongandhanni.com or my personal Strong & Hanni webpage at: https://strongandhanni.com/attorneys/attorney-kent-brown/
Kent M. Brown – February 8, 2025
