IRS Changes and Challenges in 2025 Explained

As we navigate through changes brought by the new administration in 2025, there are significant developments within the Internal Revenue Service (IRS) that will impact taxpayers and tax professionals. The IRS is aiming to streamline its operations while facing the challenge of reduced staffing levels. With proposed federal workforce reductions and shifts in technology modernization efforts, understanding how these developments will affect IRS operations is crucial for maintaining compliance and efficiency in tax practices. 

In this episode, Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, are joined by Ron Wainwright, Tax Partner, and Kasey Pittman, Tax Managing Director. Together, they delve into the announced changes to the IRS workforce, discuss potential impacts on taxpayers and explore the ongoing technological transformations within the agency. 

Listen to learn more about:

• 02:02 – IRS workforce reductions
• 05:02 – Changes in IRS leadership
• 08:39 – IRS Priority Guidance Plan
• 12:33 – Technology modernization
• 17:19 – Impact on taxpayers
• 19:12 – Taxpayer assistance proposal
• 22:14 – Best practices with the IRS

Related Guidance 

• Article: Tracking Tax Reform: The Reconciliation Process
• Article: Recent IRS Guidance for the Definition of Employee
• Article: IRS Issues Final Regulations Impacting Micro-Captive Insurance Arrangements
• Article: IRS Guidance for Theft Losses From Online Scams
• Webinar Recording: Clean Energy Incentives, Prevailing Wage & Apprenticeship: IRS Insights

Chapters

• 2:02 IRS workforce reductions
• 5:02 Changes in IRS leadership
• 8:39 IRS Priority Guidance Plan
• 12:33 Technology modernization
• 17:19 Impact on taxpayers
• 19:12 Taxpayer assistance proposal
• 22:14 Best practices with the IRS