Do Taxpayers Who Owe Trust the IRS? Why Many Are Unsure About Enforcement

Key Takeaways 

• 51% of surveyed Optima clients said they did not believe the IRS enforces against most people who owe, or were unsure whether it does. 

• Only 18% of surveyed Optima clients agreed that they would trust the IRS to help them resolve their tax situation if they reached out. 

• The IRS workforce fell by roughly 30% between January 2025 and January 2026, contributing to a less visible enforcement presence. 

• Despite the perception that IRS enforcement has become quieter, the agency continued issuing millions of automated collection and non-filer notices. 

• Individual non-filer notices increased to 3.16 million in FY2025, compared with 1.68 million in FY2024. 

• The Annual Report shows a gap between how taxpayers perceive IRS enforcement and the enforcement activity reflected in government and client-account data. 

If you owe the IRS money, how likely do you think it is that the agency will find you, enforce the balance, or take action? 

In Optima Tax Relief’s 2025 Annual Report, which surveyed every client who enrolled in resolution services during 2025, many taxpayers were uncertain. These taxpayers sought professional tax help and do not represent all U.S. taxpayers. 

When surveyed about whether the IRS finds and enforces against most people who owe, 49% said yes. But 11% said no, while 39% said they were not sure. In other words, 51% either did not believe the IRS enforces against most people who owe or were uncertain whether it does. 

That perception is notable because IRS enforcement did not disappear during the same period. However, the Annual Report does not suggest that taxpayers are simply mistaken. It describes taxpayer skepticism as “a fair reading of the evidence” and distrust as “real, and defensible.” The agency continued issuing notices and pursuing collection activity, but staffing reductions, changes in traditional enforcement measures, and differences between notices and actual collection outcomes can make enforcement difficult to understand from a taxpayer’s perspective. 

So why do fewer taxpayers believe anyone is watching? 

The IRS Became Less Visible 

The perception that enforcement has declined is not coming from nowhere. The IRS itself underwent significant staffing and resource changes. 

The IRS Lost Roughly 30% of Its Workforce 

According to data cited in Optima’s Annual Report, the IRS workforce fell from approximately 103,000 employees in January 2025 to approximately 72,000 in January 2026. 

Collection staffing was down 41% between FY2024 and January 2026. Those changes can affect how taxpayers experience the IRS. Fewer employees can mean fewer direct interactions, longer periods between certain types of case activity, and greater reliance on automated systems. 

From the perspective of an individual taxpayer, that can make the IRS feel quieter. 

Traditional Enforcement Became Less Visible 

The Annual Report also cites declines in several traditional enforcement measures. 

Appeals revenue declined 71% over three years, while Examination revenue fell 35% year over year in FY2025. 

At the same time, Collection accounted for 87% of IRS enforcement revenue in FY2025, up from 81% in FY2023. That combination matters because it changes what enforcement looks like. 

When collection activity becomes a larger share of enforcement activity while other functions decline, taxpayers may encounter the IRS primarily through notices and automated collection processes rather than audits or direct interactions with employees. 

The Perception Gap Is Bigger Than It Looks 

The Annual Report’s survey results reveal a significant difference between what surveyed clients believe about enforcement and what government data and client-account records show. But the gap should not be interpreted as evidence that taxpayers are wrong to question the agency. The report presents both enforcement activity and the reasons taxpayers may have difficulty interpreting it. 

More Than Half Were Unsure or Unconvinced 

Again, 49% of respondents said the IRS finds and enforces against most people who owe. But 39% were not sure. That “not sure” response is important. 

It suggests that a substantial portion of taxpayers do not have a clear understanding of how IRS enforcement works. It also points to a group that may be reachable through clearer communication and more transparent explanations of what enforcement actions mean. The report identifies the 31% who were neutral about trusting the IRS to help them resolve their situation as the most reachable group. 

Tax enforcement can be difficult for taxpayers to see because much of it happens behind the scenes. 

A taxpayer may never experience an audit or speak with a revenue officer. Instead, the taxpayer may receive an automated notice, have a payment arrangement monitored, or be identified as a potential non-filer through automated systems. 

A Lack of Contact Can Look Like a Lack of Enforcement 

Consider a taxpayer who has an unpaid IRS balance but has not received a new notice in several months. That taxpayer might conclude that the IRS is no longer pursuing the account. 

But a lack of recent contact does not necessarily mean that the liability has been canceled or that future collection activity cannot occur. The IRS’s collection process can continue through automated systems and notices. 

The report also highlights a gap between receiving IRS correspondence and experiencing formal collection action. Approximately 58% of surveyed clients had received letters, while only about 8% had a tax lien. This difference may help explain why some respondents were unsure how consistently the IRS follows through after contacting a taxpayer. Receiving a notice can signal that the IRS is addressing an account, but it does not necessarily mean a lien or levy will follow immediately. 

At the same time, receiving a notice does not necessarily mean the IRS will immediately follow through with a lien, levy, or other collection action. That distinction is central to understanding why taxpayers may be uncertain about enforcement. 

Taxpayers also reported less enforcement than their records show. Just 2% said the IRS had filed a Substitute for Return, but account records showed about 12%. For levy or garnishment activity, 10% reported it, compared with about 26% on record. Survey and record definitions may differ slightly. 

The Notices Tell a Different Story 

While taxpayer belief in enforcement may have become weaker, the volume of IRS notices remained substantial. 

Millions of Collection Notices Were Issued 

The Annual Report cites the following approximate FY2025 annualized notice volumes: 

• 13.3 million CP14 initial balance-due notices. 

• 8.5 million CP504 notices of intent to levy. 

• 5.8 million CP503 second reminders. 

• 4.2 million CP501 first reminders. 

• 2.7 million CP523 installment agreement default notices. 

The IRS also issued approximately 339,000 notices of levy and filed more than 214,000 federal tax liens in FY2025. 

The scale of these numbers provides an important counterpoint to the perception that nobody is watching. 

Non-filer Notices Resumed at Scale 

Individual non-filer notices increased from approximately 1.68 million in FY2024 to 3.16 million in FY2025. However, the program resumed in 2024 after no individual non-filer notices were recorded in FY2023, so this increase reflects resumed activity rather than growth from a continuous baseline. The Annual Report also notes that 93% of FY2025 non-filer notice volume targeted tax year 2023. 

A taxpayer does not necessarily need to interact with an IRS employee for the agency to recognize that a return appears to be missing. Still, the program’s restart is important context when interpreting the increase in notices. 

The Automated Substitute for Return Program 

The Automated Substitute for Return (ASFR) program provides another example of how the IRS can identify potential non-filers and process cases through automated systems. According to government data cited in the Annual Report, ASFR closed approximately 592,800 cases in FY2025, a 135% increase compared with FY2023, and assessed about $2.9 billion. 

The report also found that cases closed after taxpayer contact increased 271% from FY2023 to FY2025, reaching approximately 161,900. However, about 430,900 cases—roughly 73% of FY2025 closures—were closed without taxpayer contact. These figures show the scale of automated case processing while highlighting that not every closed case involves direct communication with a taxpayer. 

Why Does Automation Change Taxpayer Perception? 

Automation can make enforcement feel fundamentally different. 

People Notice People More Than Systems 

A phone call from an IRS employee feels like enforcement. A computer-generated notice may not. But the difference is psychological rather than necessarily practical. 

A notice can still establish a deadline. It can still identify a balance. It can still warn of potential collection action. And a taxpayer’s failure to respond can still have consequences. 

Automated Enforcement Can Be Both Quiet and Broad 

An employee can only work on a limited number of cases at one time. An automated system can process enormous numbers of accounts. 

That is one reason automation matters to the future of tax administration. It can make certain enforcement activities less visible while allowing the IRS to process more cases. 

This may help explain why taxpayer perception and enforcement activity do not always move together. 

What Does the Taxpayer Survey Say About IRS Trust? 

The perception of enforcement is closely related to taxpayer trust. 

Only 18% Trusted the IRS to Help Resolve Their Situation 

The Annual Report found that only 18% of surveyed taxpayers agreed that they trusted the IRS to help them resolve their tax situation. Meanwhile, 52% disagreed and 31% were neutral. 

This is a different question from whether taxpayers believe the IRS enforces tax laws. 

A taxpayer can believe the IRS is capable of finding unpaid taxes while simultaneously believing the IRS is not the best source of help for resolving an individual tax problem. 

The 31% who were neutral about trusting the IRS are particularly notable. The Annual Report identifies this group as the most reachable, suggesting that clearer information and a better understanding of the resolution process may offer an opportunity to build confidence. 

Confusion and Distrust Show Up Together 

The Annual Report found that 88% of surveyed taxpayers could not confidently say what to do about their tax problem. 

Specifically: 

• 12% knew what to do. 

• 35% somewhat knew but were not confident. 

• 53% did not understand their options. 

The report does not link confusion to distrust, but it shows both: 88% could not confidently say what to do, and 52% disagreed that they would trust the IRS to help.  

Why Does This Matter for Taxpayers? 

The perception that nobody is watching can have real consequences. 

Uncertainty Can Make It Harder to Decide What to Do 

When taxpayers are unsure how consistently the IRS enforces its rules, it can be difficult to know what to expect or how urgently to respond. Some may assume that limited contact means their tax situation is unlikely to escalate, while others may worry about what a notice means without understanding the next steps. 

The survey findings suggest that uncertainty is not just about whether the IRS will take action. It is also about whether taxpayers understand their options and feel confident navigating the process. When that understanding is missing, it can be harder to make informed decisions about an outstanding tax liability. 

Trust Depends on Understanding the Process 

Trust in the IRS can be shaped by more than enforcement activity alone. Taxpayers may receive notices without seeing immediate collection action, or they may struggle to understand why the IRS has contacted them and what could happen next. That gap can contribute to uncertainty, even when enforcement tools remain in use. 

The report found that 88% of surveyed clients could not confidently say they understood what to do about their tax situation. Improving that understanding is an important step toward helping taxpayers respond to notices, evaluate their options, and make informed decisions. Clear information about the process can help taxpayers distinguish between what the IRS has done, what it may do next, and what steps they can take in response. 

What Should Taxpayers Do When They Are Unsure About IRS Enforcement? 

The answer is not to assume the IRS is either completely inactive or actively pursuing every taxpayer in the same way. 

Look at Your Own Account 

Taxpayers should focus on their individual circumstances. 

Review IRS notices and account information to determine whether: 

• Returns are missing. 

• A balance remains unpaid. 

• Penalties or interest have been assessed. 

• An installment agreement is active. 

• A collection deadline is approaching. 

• The IRS has warned about a levy or other action. 

Treat IRS Notices as Action Items 

A notice should not automatically be viewed as a reason to panic. It should be viewed as information about what the IRS believes is happening and what the taxpayer may need to do next. 

If the information is wrong, the taxpayer should follow the instructions for correcting or disputing it. If the balance is correct but cannot be paid in full, the taxpayer should determine whether a payment arrangement or another tax resolution option may be available. 

Frequently Asked Questions About IRS Enforcement 

Does the IRS really know who owes taxes? 

The IRS receives extensive information from taxpayers and third parties, including information reported on forms such as W-2s and 1099s. Automated systems can use that information to identify potential filing and payment issues. 

What percentage of taxpayers think the IRS enforces against people who owe? 

In Optima Tax Relief’s 2025 Annual Report survey, 49% of surveyed clients said the IRS finds and enforces against most people who owe. The remaining 51% said no (11%) or were not sure (39%), with figures rounded. 

Does not hearing from the IRS mean my tax debt is gone? 

No. A lack of recent communication does not necessarily mean an IRS balance has been canceled or that collection activity will not resume. 

Is IRS enforcement automated? 

Some IRS compliance and collection activities use automated systems, including automated notices and the Automated Substitute for Return program. 

Why do taxpayers distrust the IRS? 

The report does not establish a single cause of distrust. It cites survey responses about trust and uncertainty, along with Treasury Inspector General for Tax Administration (TIGTA) findings involving stalled cases and delinquency notices sent to some taxpayers who had already filed. These findings provide context for why some skepticism may be defensible, but they do not explain every respondent’s views. 

What should I do if I have an IRS balance but have not heard from the agency? 

Review your IRS account and determine the current status of the balance, including whether penalties, interest, or collection actions apply. Do not assume that a lack of recent notices means the balance has disappeared. 

Conclusion 

The question may not be whether the IRS is watching. The data suggests that the more important question is whether taxpayers believe the IRS is watching. 

In Optima Tax Relief’s 2025 Annual Report survey, 51% of respondents either did not believe the IRS enforces against most people who owe or were unsure whether it does. At the same time, millions of notices were issued, non-filer notices resumed at substantial volumes, and the ASFR program closed hundreds of thousands of cases. However, the gap between receiving notices and experiencing formal collection action, along with documented IRS process problems, helps explain why some taxpayers remain skeptical. 

A smaller, quieter IRS may change how taxpayers perceive enforcement, particularly when fewer people interact directly with IRS employees. But automated systems can continue identifying potential non-filers, issuing notices, and moving collection cases forward. The report’s findings suggest that enforcement activity and taxpayer distrust can coexist; the volume of notices alone does not fully explain whether taxpayers believe the IRS is consistent, reliable, or able to help them resolve their situations. 

For taxpayers, the takeaway is simple: don’t measure the seriousness of a tax problem by how loudly the IRS is knocking. A quiet period does not necessarily mean an account has been forgotten. Understanding your filing status, balance, notices, and available options is a better way to determine where your tax situation actually stands. 

If You Need Tax Help, Contact Us Today for a Free Consultation. 

This content is made available for informational and educational purposes only. Nothing included should be taken as a guarantee, warranty, prediction, or representation about your specific situation. This content is not intended to be a substitute for professional advice. We encourage you to consult with a tax professional to discuss your specific tax matters. Individual results may vary. Optima Tax Relief does not provide tax, financial, bankruptcy, accounting, or legal advice. 

Results were obtained from an anonymous survey of 374 Optima clients conducted from 5/5/26-6/30/26