One Taxpayer’s IRS Fight Just Exposed Everything
Why the IRS Is Struggling: A Simple Guide to What’s Happening and Why It Matters
TL;DR: The IRS has lost a huge chunk of its workers recently. This means phones go unanswered, mail piles up, and people can’t get help fixing mistakes. Experts say this isn’t just a "bad season"—it’s a breakdown years in the making that hurts regular people the most.
Meet the Expert: Stephanie Mencimer
Stephanie Mencimer is a senior reporter for Mother Jones. She didn’t just read about IRS problems—she lived them. When she tried to fix a routine tax issue, she hit a wall: endless hold times, dropped calls, and letters with errors no one could explain. Her reporting connects her personal headache to a much bigger national crisis.
The Big Picture: How We Got Here
1. The "Slow-Motion" Cut (Before 2025)
- Where it started: Ogden, Utah—home to a massive IRS center.
- What happened: Over several years, the IRS lost about 30% of its entire workforce.
- Who left: Everyone—from mailroom clerks to senior auditors.
- The warning: Insiders said, "You can’t cut a third of the staff and still process the country’s taxes."
2. A Brief Comeback (2023–2024)
- Funding boost: The Inflation Reduction Act gave the IRS new money.
- Hiring spree: They brought on thousands of new workers.
- Results: Phone answer rates went up, backlogs went down. Things were improving.
3. The Sudden Stop (January 2025 Onward)
- New administration, new cuts: Hiring froze, probationary workers were fired, and 40% of the IT department was wiped out.
- Instant reversal: All progress vanished.
- The numbers don’t lie:
- Calls answered: Dropped to a tiny fraction.
- Mail backlog: Jumped from 3 million to 7 million pieces in one year.
Important: This isn’t just "government being slow." The IRS’s own data—plus reports from the Treasury Inspector General and the Taxpayer Advocate Service—confirm the collapse.
"Best Tax Season Ever" vs. Reality
Officials said: "This was the best filing season ever!"
Practitioners said: "Wait until April 16th."
How They Pulled Off the "Good" Numbers
- Emergency redeployment: The IRS pulled staff from everywhere—including IT—to answer phones only during the April rush.
- Short-term fix: It worked for the filing window, but left zero capacity for everything after.
What Happens After April 15th?
- Error letters go out (like the one Stephanie got).
- Taxpayers call to fix them → No one answers.
- Even pros can’t get through:
- Low-income tax clinic lawyers: Can’t reach anyone.
- Special "practitioner priority lines": Busy or useless.
- 50-year veterans: "Never seen it this bad."
The Human Cost: Who Gets Hurt Most?
In-Person Help Centers: Vanishing
| Era | Centers Open & Staffed |
|---|---|
| Biden peak | 100+ |
| Now | ~40 |
- Who needed them: Elderly, non-English speakers, people without tech access.
- Catch-22: To get an appointment, you must call the IRS—which you can’t do.
High Stakes for Low-Income Families
- Predatory preparers promise big refunds → file bogus claims.
- IRS catches it later → family owes thousands.
- No way to respond → IRS can seize bank accounts, garnish wages, even take homes.
- Ripple effect: Credit ruined, housing lost, generational poverty deepened.
Critical Point: The IRS has extraordinary collection powers. If you can’t reach them to say "This is a mistake" or "I need a payment plan," the machinery moves without you.
The Management Philosophy: What’s Driving This?
Stephanie’s take: "I don’t think there is a coherent philosophy. It’s short-sighted—almost nihilistic."
Misunderstanding the Machine
- Myth: "AI and automation will fix it."
- Reality: The IRS handles 330+ million people. Its systems are massive, complex, and held together by experts.
- Firing 40% of IT = breaking the very tools meant to modernize.
Who Benefits from a Broken IRS?
- Wealthy interests who hate enforcement (audits on high earners require skilled staff).
- Ideologues who believe "taxation is theft" and want the collector hobbled.
The Democracy Angle
"Nelson Mandela’s first act as president? Build a functioning revenue service. He knew: no working tax system = no working democracy."
—Stephanie Mencimer
- Taxes fund roads, schools, defense, Social Security, disaster relief.
- Fair collection = shared burden, shared benefit.
- Gut the IRS → the honest pay more, the connected pay less.
Summary: What You Need to Know
| Issue | What’s Happening | Why It Matters to You |
|---|---|---|
| Staffing | ~30% cut over years, then 40% of IT fired in 2025 | Fewer humans to fix errors, answer calls, process mail |
| Phones | Answer rates near zero | You can’t resolve issues, get payment plans, or stop collections |
| Backlog doubled to 7M+ pieces | Refunds delayed, amended returns stuck, notices sent in error | |
| Walk-in Centers | 100+ → ~40 | Vulnerable populations lose their only lifeline |
| Enforcement | Weakened by design | Wealthy tax cheats face less scrutiny; honest filers carry the load |
| Democracy | Revenue service eroded | Government can’t fund what voters want |
FAQ: Your Questions Answered
1. Why can’t the IRS just use AI to answer phones and process mail?
AI helps with simple, repetitive tasks. But tax issues are often nuanced: a missing form, a life change, a preparer’s error. The IRS tried modernizing—but firing the IT team building those tools stopped progress cold.
2. If I get a letter from the IRS saying I owe money, what should I do?
- Don’t ignore it. The IRS can levy your bank account or wages automatically.
- Respond in writing (certified mail) and keep calling.
- Contact a Low-Income Taxpayer Clinic (LITC)—they’re free and know the system.
- Document everything: dates, times, names, what was said.
3. Are my tax dollars being wasted on an inefficient agency?
Actually, the IRS is one of the most efficient revenue collectors in the world—it costs ~$0.34 to collect $100. The problem isn’t bloat; it’s deliberate starvation of resources.
4. Will things get better after tax season?
Not automatically. The post-filing season (April–December) is when complex issues surface. With current staffing, backlogs will grow, not shrink, unless hiring resumes and expertise is rebuilt.
5. What can I do as a regular citizen?
- File early and accurately (use Free File if eligible).
- Keep meticulous records for at least 7 years.
- Contact your representatives—tell them IRS funding affects your refund, your services, your fairness.
- Support VITA/TCE sites (volunteer tax help for seniors/low-income).
Final Thought
The IRS isn’t a villain—it’s the plumbing of democracy. When the pipes burst, everyone’s basement floods. Fixing it isn’t about politics; it’s about whether we want a government that works for all of us.
"You can’t have a functioning democracy if your government can’t work for people."
—Stephanie Mencimer, quoting the lesson of Nelson Mandela
Based on an interview with Stephanie Mencimer, Senior Reporter at Mother Jones, conducted by Terry Gerton for Federal News Network.