We’re mere weeks into 2025, and nothing at the federal level has been left unhinged. That includes the IRS. What does that mean for the current tax season? Some experts are venturing guesses:
Parts of the IRS playbook are unavailable. Parts of the Internal Revenue Manual (IRM), which is helpful for taxpayers in dispute with the IRS, have been removed online. Forbes’ Kelly Phillips Erb reports that most of the missing pages were removed to comply with the mandate to eliminate diversity, equity, and inclusion (DEI), but that other pages, including those related to Offers in Compromise, disappeared, too, with no timeline for reposting. That means that for disputes with the IRS, it’s more critical than ever to rely on a CPA with reputable experience navigating negotiations, with or without a current playbook.
The demise of Direct File is exaggerated. Not many of us can file taxes free online (it requires a very straightforward tax profile). Regardless, you may have heard from Elon Musk himself that he “deleted” the group that oversees the IRS Direct File and related services helping certain Americans file tax returns for free. Incoming Treasury Secretary Scoot Bessent says that Direct File will continue through the current tax season. As threats, claims, and theories swirl, always verify the information you hear.
But the hiring freeze is on. One can only assume that the federal hiring freeze will increase wait times (once more) and perhaps even refund delays, but that’s speculation. Time will tell. If you recall, IRS staffing is currently robust due to a hiring frenzy over the past two years. Employees directly connected to tax season are omitted from the federal employee buyout until May. The Hill reports that seasonal employees have already been hired for the tax filing period as well.
The confusion is breeding more scams. Beware. Perhaps the biggest concern most of us should have is the uptick in scams targeting taxpayers. One in particular involves a text linking to a fake $1,400 Economic Impact Payment offer. The IRS also recently reminded taxpayers to choose their tax preparers carefully, as unscrupulous actors are on the prowl.
And don’t be fooled: The tax deadlines have not changed. It’s important to file and pay on time. Even if you file an extension, you must pay your taxes, or the interest and penalty clock starts ticking. Have questions? Feel free to contact us.