Today, Optima Tax Relief’s Chief Tax Officer and Lead Tax Attorney, Phil, unpacks the meaning behind the term “New IRS,” and what it means if you owe back taxes.
What Is the “New IRS”?
The phrase “New IRS” refers to the agency’s major transformation driven by the Department of Government Efficiency (DOGE). DOGE promised to slash IRS staffing by tens of thousands, while replacing manual processes with automation and AI systems. Nearly 25% of the IRS workforce has already been cut since early 2025, with plans for more cuts.
More Notices and Enforcement Activity
Now, the IRS is applying scaled and automated enforcement methods. If you owe taxes, especially large amounts, expect:
- More IRS letters and collection notices
- More levies and wage garnishments, for example, federal payment levy program, wage garnishments and bank levies – especially for high balances
- Enforcement efforts flagged through automated systems and not just for high-income individuals but across all taxpayer segments
Why This Change Matters
- Staff cuts weaken human oversight: The agency lost thousands of experienced workers, including many IT and enforcement staff, which may limit its ability to interpret complex cases.
- Automation is rising: DOGE and the IRS leadership aim to offset staffing reductions with tech tools and AI for processing and compliance. But critics warn these systems aren’t yet mature enough to handle nuanced taxpayer issues.
What to Do If You Owe
The “New IRS” won’t delay enforcement. If you’re behind on taxes, now’s the time to act:
- Set up an Installment Agreement
- Request Hardship (Currently Not Collectible) status
- Work with a tax professional to reduce risk of garnishments or levies
If you need tax help, contact us today for a Free Consultation