WASHINGTON—The Internal Revenue Service (IRS) is laying off 6,000 to 7,000 employees at the direction of the Department of Governmental Efficiency (DOGE), leaving thousands of Americans wondering what it means for their tax debts.
The layoffs come in the middle of tax-filing season, when the IRS typically hires thousands of temporary employees to help process returns. Tax professionals believe the IRS’s reduced workforce may lead to significant processing delays—and potentially, a backlog of returns and filings.
Thousands of Americans continue to apply for the Fresh Start Program, but the layoffs, along with the federal hiring freeze, could limit the IRS’s ability to continue approving applications.
When taxpayers fill out our Tax Relief Survey, they can see if they qualify for the IRS Fresh Start Program and begin their journey toward tax resolution in minutes.
“It’s really going to hamstring the agency, and that’s assuming it doesn’t screw up the filing season… people don’t understand how the process at the IRS works and how important it is,” said John Koskinen, IRS commissioner from 2013-2017, about the layoffs.
With layoffs beginning Thursday, a processing slowdown could be felt as early as next week, leaving thousands of Americans who owe back taxes waiting for much-needed financial relief.
DOGE’s interest in making big changes to the IRS have left thousands of Americans wondering what it means for their tax debts.
Will the IRS still have the resources to forcibly collect tax debts? Will DOGE and the executive branch prevent the IRS from enforcing collections on Americans who owe back taxes?
The answer is that nothing has changed regarding tax debt collection and resolution at the IRS.
Under federal law, the IRS is delegated to administer tax laws and enforce collections on all Americans. The Fresh Start Program, which helps qualifying taxpayers reduce their back taxes, remains unchanged.
Take this 60-second Quiz to See if You Qualify for the IRS Fresh Start Program.
While thousands of Americans are applying for the Fresh Start Program, many more do not realize they qualify for tax relief because they never took the time to check their eligibility.
Remember, it is 100% free to see if you qualify for the IRS Fresh Start Program, and a few minutes could potentially save you thousands.
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Each month, your tax debt grows larger due to penalties and fees. It is vital to act now and partner with a tax relief expert to receive the best resolution possible.