According to TIGTA IRS Workforce Reduction Report, Since January 2025, there have been several executive orders to reduce the size of the federal workforce. 

In February 2025, the IRS had approximately 103,000 employees. Since then, more than 11,400 IRS employees either received termination notices as probationary employees or voluntarily resigned, representing an 11% reduction to the agency's workforce. 

This is separate from and in addition to IRS Appeals Staffing Cuts and Hundreds of Deferred Resignations.

Specifically:

• 7,315 probationary employees received termination notices.
• 4,128 employees were approved to accept the Deferred Resignation Program (an additional 522 employees are pending approval).

This is our first report on IRS workforce reductions and it focuses on the probationary employees identified for termination and the employees who voluntarily participated in the initial Deferred Resignation Program. 

We'll periodically update this report to highlight further reductions, including the impacts of the second Deferred Resignation Program and Reductions in Force.

Have an IRS Tax Problem?

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)

Read more at: Tax Times blog

On November 3, 2020 we posted The IRS Wealth Squad - The Super-Richest's Worst Nightmare, where we discussed that high-net-worth individuals may find themselves the focus of unwanted attention from the Internal Revenue Service. 

Now TIGTA reveals the results of these Internal Revenue Service targeted sweeps of so-called high-income non-filers, which have largely been successful in closing cases and collecting revenue, but the agency could do more to target certain areas and collect tracking data better, the Treasury Inspector General for Tax Administration said.

The Sweeps From 2021 And 2022 Resulted In More Case Closures And Dollars Collected Than High-Income Nonfiler Cases Not Handled Through Sweeps, TIGTA Said In A Report.

HINF sweeps cases worked by revenue officers from Fiscal Years 2021 through 2022 were more impactful in terms of case closures and dollars collected than non-sweeps HINF cases. As a percentage of cases worked, revenue officers secured more returns under sweeps than non-sweeps and referred significantly more returns to Examination. For Tax Years 2014 through 2020, revenue officers consistently collected more per sweep case than non-sweep case. 

Sweeps were conducted throughout the United States and internationally. However, there are several geographic areas in the continental United States that have a high number of HINFs where limited or no sweeps were conducted. There are opportunities for more sweeps in places like eastern New Mexico, western Texas, northwestern Nevada, and Wyoming. 

TIGTA'S review also found that the sweeps tracking data could be improved. Missing, incomplete, and/or inaccurate data were found in data fields such as the taxpayer’s name, address, revenue officer identifier, and case assignment date. These errors were not identified and corrected before this review. We worked with the IRS to make corrections so that the data reviewed for this audit were accurate and complete. However, the IRS would benefit from complete and accurate data to track the results of sweeps. 

Finally, Field Collection is not always using sweeps to help train and develop employee skills. While the sweeps desk guide provides the IRS with many opportunities to develop employee skills, Collection management is not always taking advantage of them. These activities have the potential to make sweeps an even more effective tool.

Are You Being Audited by the IRS Wealth Squad?

Contact the Tax Lawyers at 

Marini & Associates, P.A.

 

for a FREE Tax Consultation

at www.TaxAid.us or www.TaxLaw.ms

or Toll Free at 888-8TaxAid (888 882-9243)

 

Read more at: Tax Times blog

Did you know that owing the IRS can put your passport at risk? That’s exactly what happened to Drew Pfirrman, a Florida resident who recently lost his Tax Court case after the IRS certified his “seriously delinquent tax debt.”

What Happened?

·         Unreported Income: The IRS found Pfirrman had over $367,000 in unreported income for 2018 and hit him with a six-figure tax bill, penalties, and interest.

·         IRS Notices Ignored: He missed his chance to challenge the debt through the proper IRS channels.

·         Passport in Jeopardy: When his tax debt grew to over $182,000, the IRS notified the State Department, threatening his passport.

Can You Fight It?

Pfirrman tried to argue that his debt was lower and that partial payments should help. But the Tax Court ruled it can’t reconsider the original tax bill in a passport case. Only full payment of the debt (or qualifying for a special exception) can get your passport privileges restored.

The Lesson

Don’t ignore IRS notices. If you owe big, act fast-set up a payment plan or pay in full. Once the IRS certifies your debt, it’s too late to argue about the amount in court, and your travel plans could be grounded. 

See also our post TC Determines That Taxpayer's Debt Was 'Seriously Delinquent' Even after He Paid Tax to Reduce Balance below $50,000 where we discussed that once a certification of a seriously delinquent tax debt has been made, it may be reversed "if the debt with respect to such certification is fully satisfied." I.R.C§ 7345(c)(1) (emphasis added).

If You Have Serious Delinquent IRS Debt, You Should Consult with Experienced Tax Attorneys, As There Are Several Ways Taxpayers Can Avoid Having the IRS Request That the State Department Revoke Your Passport. 

  Want To Keep Your US Passport?
 

 

Contact the Tax Lawyers at 

Marini & Associates, P.A.

for a FREE Tax Consultation Contact us at:

www.TaxAid.com or www.OVDPLaw.com 

or Toll Free at 888-8TaxAid (888)882-9243.

References

1.       https://www.currentfederaltaxdevelopments.com/blog/2025/3/18/irs-properly-certified-seriously-delinquent-tax-debt-to-state-department-leading-to-potential-loss-of-passport             

2.      https://www.thetaxadviser.com/issues/2025/mar/certification-of-seriously-delinquent-tax-debt-not-erroneous/           

3.      https://www.leagle.com/decision/intco20250318g64  

4.      https://www.irs.gov/pub/irs-access/p5827_accessible.pdf   

5.       https://www.irs.gov/businesses/small-businesses-self-employed/revocation-or-denial-of-passport-in-cases-of-certain-unpaid-taxes 

Read more at: Tax Times blog

The IRS Independent Office of Appeals, led by Chief Liz Askey since last year, is currently navigating significant workforce challenges. At the start of the calendar year, Appeals had about 1,777 employees. However, the office is experiencing notable attrition:

·         Approximately 77 probationary employees are on administrative leave and unable to work.

·         Over 300 employees have signed deferred resignation agreements, with another 100 pending.

·         A substantial portion (43%) of staff are retirement-eligible or early retirement-eligible, contributing to the high number of departures.

As a result, Askey projects that by the end of the current fiscal year, the Appeals workforce will be reduced to around 1,324 employees. Compounding these losses, the office is under a hiring freeze for both internal and external candidates. Askey anticipates that after current workforce reduction and reshaping efforts conclude, Appeals may be able to hire from the IRS compliance function to address short-staffing.

Summary Table: IRS Independent Office of Appeals-Current State

Case Cycle Times: Progress Despite Constraints

Despite these staffing reductions and hiring limitations, Appeals has made measurable progress in reducing case cycle times:

·         The average cycle time for non-docketed cases in fiscal year 2025 is now 274 days, the lowest level in six years.

·         This is a significant improvement from the 2022 National Taxpayer Advocate report, which cited a 365-day average for non-docketed cases-a 103% increase over 2017 cycle times.

·         Askey attributes this improvement to targeted efforts, including analyzing and reducing delays in getting cases to Appeals and implementing a "paperless pilot" for scanning smaller case files upon receipt, streamlining case handling.

Askey remains "cautiously optimistic" that these trends will continue, even as workforce changes persist.

Conference Options: In-Person, Virtual, and Hybrid

Appeals offers taxpayers several ways to resolve disputes, including:

·         In-person conferences

·         Telephone conferences

·         Video conferences (using Microsoft Teams)

·         Correspondence or secure messaging

The office has a longstanding policy of accommodating taxpayer preferences for conference format, especially for larger and more complex cases. While there was a temporary shift to virtual conferences due to recent travel policy changes, a new travel approval process is now in place. Appeals Officers can again travel for in-person conferences, though more lead time is required for approval.

For taxpayers not near an Appeals office, the office continues to use "circuit riding," where Appeals Officers travel to more convenient locations, and is seeking public input on improving accessibility and hybrid conference options.

Have an IRS Tax Problem?

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)

References:

1.       https://www.irs.gov/appeals/what-to-expect-from-the-independent-office-of-appeals  

2.      https://www.irs.gov/newsroom/improving-nationwide-access-to-irs-appeals-public-input-wanted    

3.      https://www.irs.gov/appeals/appeals-expands-access-to-video-conferences 

4.    https://irstaxtrouble.com/irs-appeals-guidance-on-in-person-conferences/

Read more at: Tax Times blog