Is the IRS Really Cracking Down in 2025? Absolutely, and Taxpayers Are Paying the Price
Yes, the IRS has significantly ramped up its collection efforts in 2025, bringing back enforcement tactics we haven’t seen this aggressively in years. After a long stretch of scaled-back activity during the pandemic and its aftermath, the agency has returned to full-force collections—and it’s catching many taxpayers off guard. We’re seeing a steep rise in bank levies, wage garnishments, property seizures, and unannounced visits from Revenue Officers.
At Tax Crisis Institute, we’ve been in this fight for over 40 years, and while this isn’t the most aggressive IRS enforcement we’ve ever seen, it is a major and sudden shift compared to the last five years. This isn’t just a quiet policy update. It’s a clear signal that the IRS is no longer sitting back. The tone has changed, the pace has picked up, and taxpayers who have fallen behind are now facing real and immediate consequences.
A Shift in IRS Collection Practices
IRS collection efforts 2025
After a period of relative leniency during the COVID-19 pandemic, IRS has significantly ramped up its collection efforts in 2025. This includes a noticeable increase in the issuance of bank levies, wage garnishments, and property seizures. The agency is once again prioritizing aggressive enforcement tactics and is using funding from the Inflation Reduction Act to support these efforts. In fact, the IRS has already collected over $482 million from high-income taxpayers with past-due balances.
But the impact isn’t limited to wealthy taxpayers. At Tax Crisis Institute, we’ve seen firsthand how harshly these changes are hitting everyday people—even those experiencing serious personal hardships. One of our clients was dealing with IRS threats while her husband was in hospice care. We immediately stepped in with thorough documentation and a compelling case for compassionate relief. In years past, a situation like this would have led to a reasonable pause in enforcement. But despite our comprehensive advocacy and the deeply human circumstances, the Revenue Officer pushed forward. It was a clear example of the more rigid, enforcement-first mindset that is becoming alarmingly common—and a reminder of why skilled representation matters more than ever. We fought for that family, and we continue to fight for clients facing situations that demand empathy and understanding—especially in the moments when you need that most, the moments where there are far more important things to focus your energy on than your taxes. that we’re seeing more and more, and it means we have to fight even harder for compassion and fairness.
Stories like this reflect more than just a shift in tone. They point to a deeper and more systemic change in the IRS’s enforcement culture. Compassionate pauses and case-by-case discretion—once common, especially in hardship situations—are being replaced by a one-size-fits-all, enforcement-first approach.
The impact of this shift is profound. Taxpayers who are struggling with normal, human things like illness, grief, job loss, or other personal crises are now being met with less flexibility and fewer opportunities for relief. It creates a climate of fear and confusion, where even honest people trying to resolve their situation can feel trapped or punished. And the truth is, life doesn’t pause just because you owe back taxes. People still need to care for their families, manage their health, and grieve their losses. This change not only makes it more difficult to work directly with the IRS, but it also raises the stakes for making mistakes or missing deadlines. In this new environment, proactive, informed action is more important than ever.
This shift makes it critically important for taxpayers to act early and get expert help. With the right strategy and representation, there are still ways to stop enforcement, resolve back taxes, and regain control before things escalate.
The IRS’s Embrace of AI Is Making Things Even Less Human
In 2025, the IRS has expanded its enforcement toolkit by rolling out artificial intelligence (AI) systems to help target non-compliance and flag high-risk returns. While the agency says it’s doing this to improve efficiency—especially after cutting over 11% of its staff including thousands of enforcement positions—the result has been an even more impersonal, rigid approach to collections. Treasury Secretary Scott Bessent has publicly emphasized that this “AI boom” is intended to make up for lost manpower by speeding up collections and audits.
But speed comes at a cost. AI-driven systems can identify discrepancies on paper, but they can’t understand nuance, context, or humanity. For taxpayers navigating real-life crises—like medical emergencies, grief, or sudden job loss—the ability to explain their situation to a human being matters. That window for empathy is shrinking fast.
With 27 active IRS AI projects focused on compliance and enforcement, and more in development, taxpayers are increasingly being treated like data points instead of people. This is one more reason why having knowledgeable, compassionate representation matters. In a system run by algorithms, your advocate needs to be someone who knows how to push back, how to get a human on the line, and how to make your story heard.
The Broader Impact of IRS Staffing Cuts
IRS staffing cuts don’t necessarily mean the agency stops collecting taxes. Instead, they often mean the IRS reallocates its resources—focusing more on enforcement and collections, and less on providing help to taxpayers who need it.
According to the Center for American Progress, cutting the IRS workforce by half could result in approximately $909 billion in lost tax revenue over the next decade. Even a reduction of 40,000 employees is projected to lead to a $724 billion decrease in revenue during the same period (americanprogress.org). Former Treasury Secretary Lawrence H. Summers warned that, “There is no policy justification for weakening the tax system and decimating the IRS. The IRS will lose revenue but we all will lose as well—not just in access to a tax system that is able to serve us the way we deserve but also in our collective faith and trust that the tax laws will be fairly administered.”
Meanwhile, the IRS has publicly reported a 5% increase in total tax receipts this year and has described itself as operating with “more efficient” enforcement strategies, leaning heavily on technology and automation to make up for the personnel gaps (foxbusiness.com).
The tradeoff is clear: while collections are up, help is harder to find. Customer service wait times are longer. Appeals and hardship programs are harder to access. And for many taxpayers, simply getting someone to listen is becoming impossible. When the IRS directs its limited resources toward enforcement and away from assistance, it creates a system where people in genuine need fall through the cracks.
This is a seismic shift. It’s not just about frustration. It’s about real harm. People going through some of the hardest moments of their lives—grief, illness, caretaking, unemployment—are being met with notices, levies, and automated threats instead of support. They’re forced to navigate a bureaucracy that no longer has time for context, compassion, or common sense.
The system, which never felt warm, helpful, or fair to many Americans in the first place, feels even colder, more robotic, and significantly less fair now. And it means that now, more than ever, taxpayers need advocates who will step in and fight for the dignity, context, and relief they deserve.
The collection data makes it plain:
- In FY 2024, the IRS collected over $98 billion through enforcement activities
(Source: IRS Financial Report) - They initiated more than 3.8 million compliance actions, including nearly 1.2 million underreporting cases, adding $7.7 billion in tax assessments
(Source: IRS Compliance Data) - In FY 2023 alone, the IRS closed 582,944 audits, recommending $31.9 billion in additional taxes
(Source: 2023 IRS Data Book)
If you’ve received a levy notice, a Revenue Officer visit, or even just a threatening letter, don’t wait to take action. The IRS is stepping up its efforts, but with the right representation, you still have time. You still have options. And we’re here to help.
What Are Your Options If You Owe Back Taxes in 2025?
Even with the IRS ramping up enforcement, there are still powerful tools available to help taxpayers resolve their debt and avoid the most severe consequences. The key is taking action early—before your wages are garnished, your bank account is frozen, or a lien is filed against your home.
If your situation is relatively simple, such as one or two years of unfiled taxes or a small balance due, you may be able to handle things yourself by contacting the IRS directly. But it’s important to act quickly and follow through completely. Waiting too long or missing a step can make things worse.
However, if your case is more complicated—such as owing large balances, having multiple unfiled years, facing enforcement actions, or dealing with a Revenue Officer—we strongly recommend getting professional help. We’ve seen many cases where taxpayers tried to handle things alone and unintentionally made the situation more expensive, more stressful, and harder to fix. The IRS process can be unforgiving, and it helps to have someone who knows the law and your rights in your corner.
Here’s what we help clients with every day at Tax Crisis Institute:
Here’s what we help clients with every day at Tax Crisis Institute:
- Stopping Levies and Garnishments: We act quickly to halt bank levies or wage garnishments before they drain your accounts or disrupt your paycheck.
- Filing Back Tax Returns: Unfiled tax years? We help clients catch up safely, without triggering unnecessary scrutiny.
- Installment Agreements: For those who can pay over time, we negotiate affordable monthly payments that fit your real financial situation.
- Offer in Compromise: When appropriate, we help clients settle with the IRS for less than they owe. It’s not for everyone, but it works when used strategically.
- Currently Not Collectible Status: If you’re experiencing financial hardship, we can request that the IRS pause collections entirely until your situation improves.
- Penalty Abatement: We often get penalties removed or reduced due to reasonable cause—especially when backed up by documentation and the right legal strategy.
- Bankruptcy and Tax Discharge Options: In certain situations, bankruptcy can offer a strategic and lawful path to resolving back tax debt. While not every tax debt is dischargeable, we help clients understand when and how bankruptcy might offer lasting relief and walk them through the process when it applies.
Learn more about how these strategies work.
Take Control Before the IRS Does
The IRS may be moving faster and hitting harder in 2025, but that doesn’t mean you’re out of options. In fact, this is exactly when the right action makes the biggest difference. The worst thing you can do is freeze. If you’re receiving letters, phone calls, or threats of levies or garnishments, the time to act is now—before things escalate.
Too often, we talk to people who delayed out of fear, confusion, or the hope that maybe the IRS would go away. But IRS problems don’t go away. They grow. Interest and penalties build up. Enforcement actions get more serious. And the emotional toll gets heavier. But it doesn’t have to be that way.
At Tax Crisis Institute, we specialize in stepping in early and decisively—before things spiral. We understand the system, we know how to talk to the IRS, and most importantly, we fight for real people who are trying to do the right thing. Whether you’ve just opened your first IRS letter or have been ignoring the problem for years, there is a path forward.
This isn’t just about fixing numbers on paper. It’s about protecting your income, your family, your future, and your peace of mind. We take the weight off your shoulders, guide you through every step, and advocate for you when it matters most.
Reach out to us through our website. We’re here to listen, help, and fight for you—because no one should have to face the IRS alone. The worst thing you can do is freeze. If you’re receiving letters, phone calls, or threats of levies or garnishments, the time to act is now.
At Tax Crisis Institute, we specialize in stepping in before things spiral. We understand the system, we know how to talk to the IRS, and most importantly—we fight for real people. Whether you’re facing your first letter or have years of unfiled returns, there is a path forward.
You don’t have to face this alone. With experienced professionals by your side, you can reclaim your peace of mind, protect your paycheck, and finally breathe again.