Former IRS Commissioner Charles Rettig on IRS Cuts, Automation, and the End of Human Judgment
Charles Rettig—the former IRS Commissioner—recently wrote an op-ed on DOGE and its impact on the IRS.
To put it lightly, he's not a fan.
Intro
In his Op-Ed, Rettig discusses the extent of the cuts at the IRS, including:
Nearly 5,000 employees gone through buyouts.
Hundreds of IRS locations likely to close.
Probationary hires being quietly let go.
Whole departments, including specialized exam teams and data scientists, eliminated under the banner of modernization.
It all sounds sleek and tech-forward—until your client gets a levy notice and can't get in touch with anyone to help them get it released.
Why This Matters:
If you serve clients in the financial industry, then what happens at the IRS impacts your practice.
The fewer trained humans at the IRS, the more automated processes go unchecked.
➲ That means:
Clients get flagged by systems that don’t understand nuance
Refunds and credits get delayed without explanation
Collections become harsher and faster
And your clients are left spinning, panicked, and calling you at 6 a.m.
➲ In this week's newsletter, I’ll unpack the four biggest red flags Charles Rettig raised—and what they mean for you and your clients.
The Exit of IRS Expertise
Broken Tech With No One Watching
Collections at the Speed of Software
Customer Service on Life Support
1. The Exit of IRS Expertise
Rettig discusses how it's not just "people" the IRS is losing; it's losing experience and wisdom.
Experienced agents, examiners, and compliance officers are being pushed out—people who could distinguish between a client who made a mistake and one who was playing games.
The ones who knew how to read a situation, not just a spreadsheet.
Taxpayers will feel that loss.
Badly.
2. Technology With No One Watching
Rettig also notes that for all the talk about the new technology that's going to be ushered in; the IRS has launched more tech tools in the last two years than in the previous twenty, including digital interfaces, AI-driven analysis, and mobile-friendly filings.
All great—except, according to Retig, DOGE is and will continue to terminate many of the data scientists and experts who built and maintain those systems.
3. Collections at the Speed of Software
Rettig mentions that fewer humans at the IRS does not mean less enforcement.
It means more computer systems doing the work: sending final notices, freezing refunds, and issuing levies— but all without talking to the taxpayer first.
I believe his point is that with no one there to answer calls and speak to taxpayers who might otherwise have put a hold on these types of notices, there's more room for error and less room for human judgment.
I absolutely agree with that sentiment.
4. Customer Service is Already on Life Support
Finally, Rettig also makes a point that I've been talking about for months.
When things go wrong, taxpayer service reps are the first people whom taxpayers talk to in order to fix it.
When those reps are laid off, taxpayers will have no one to help them resolve it.
Or if they do, the wait times could be egregiously long.
I'm able to get through to reps, but taxpayers won't.
TL;DR
⏩ Charles Rettig, former IRS Commissioner, warns of the effects staffing cuts will have on taxpayers and their tax issues.
⏩ The IRS is losing experienced professionals and replacing them with no one.
⏩ Technology is growing, but oversight is shrinking.
⏩ Collections will become more automated and not only less compassionate but also less wise.
⏩ Taxpayer services will decline when clients need them the most.
Let's Talk...
➤ A broken IRS just makes everything harder for taxpayers.
➤ Are you already seeing signs of IRS dysfunction with clients who have tax problems?
