Tax season

No More Direct File Through IRS

As of this tax season, Internal Revenue Service’s free filing option, Direct File, has officially been discontinued. This program was praised by a number of tax filers and even by the Government Accountability Office in one of its reports, but IRS decided that the program was too costly to continue. In November 2025, a Treasury Department report discussed how Direct File was no longer a priority, and resources should be redirected to expanding the Free File program, which outsources free tax filing options to partner programs.

This is unfortunate, as the platform was reportedly easy to use. It’s interesting that several of the larger tax preparation software companies were opposed to the IRS offering a free option, even though this option was initially only applicable to simple tax returns. It’s safe to say that the bigger tax preparation companies knew that the implementation of a simple and cost effective filing option would eventually mean the loss of many customers over time, specifically since the direct filing capabilities would eventually expand and become more sophisticated and comprehensive over time.

Though Direct File is no more, IRS continues with the Free File program, which is still beneficial for filers with an adjusted gross income of $89,000 or less. For taxpayers over the AGI ceiling, fillable forms are available for free through the IRS website.

While the discontinuance of Direct File is unfortunate, it’s good that there are still a number of affordable digital filing options for taxpayers that need it. You may view the free file partners and fillable forms by clicking on this link. Filing season will begin on January 26, so you have time to review the different platforms and see which one works best for you.

The Big Tax Update You Haven’t Heard About

Recently, I was catching up on tax updates in the latest issue of Accounting Today, and I came across an article that stopped me in my tracks. Have you all heard about the Internal Revenue Service Math and Taxpayer Help Act (IRS MATH Act, or H.R.998)?

In the midst of the confusion that happened with the federal government shutdown (which I’ve already written about here and here), this bill was quietly passed by Congress and sent to President Trump for his signature. This bill aims to promote more clarity with IRS notices, particularly with math or clerical notices that are sent to taxpayers after filing their returns.

While I’m usually skeptical of any tax legislation that is passed (as we all should be), I think H.R. 998 is an excellent step in the right direction. When I worked for IRS, I spent a large amount of time explaining notices to taxpayers, both as a contact representative and as an auditor and tax specialist. Even with the push for plain English writing (no jargon allowed), taxpayers were still confused about what certain notices meant, as well as the appropriate response after getting those notices.

H. R. 998 outlines a number of requirements for IRS contact with taxpayers via notices. When the IRS issues a notice for a math/clerical error, it must:

  • Deliver the notice to the taxpayer’s last known address.  
  • Provide a clear description of the error including the specific type of error, the applicable Internal Revenue Code section, and the exact line of the tax return it pertains to.
  • Include an itemized computation showing the adjustments required to correct the error.
  • Provide the telephone number for the IRS automated transcript service so taxpayers can follow up.
  • Clearly state the deadline for the taxpayer to request an abatement of any tax assessed because of the error.

Additionally, the bill clarifies the penalty abatement procedure and subsequent notices, letting taxpayers know that they can use their formal, flexible right to request abatement in any case where they believe that the tax calculation is incorrect. Further, the bill instructs the IRS to design and implement a pilot program exploring alternative delivery methods for math/clerical-error notices (such as certified or registered mail).

The beauty of this bill is that if your return triggers a math/clerical error notice from the IRS, you should expect more detailed information in subsequent notices. This will help you – or your tax professional – assess and respond more effectively. This clearer notice and abatement process strengthens taxpayer rights and transparency: it makes it easier to understand where the error lies, how to respond, and what timeframe applies.

I’m curious about how the IRS will implement the pilot program and ensure compliance with the new standards. I’ll be looking out for updates on this program in the future. In any case, I’m excited for how improved IRS communications will impact compliance, and I’m thrilled to see how the tax system is evolving in favor of more clarity for taxpayers.

There’s only one thing missing from this fantastic bill: a presidential signature! This bill passed Senate unanimously on October 20, 2025, and has been sent to the President for his signature. As we wait for the bill to become a law, we can peruse Congress’s website, which lists all of the bills currently in process. If you want to see which tax bills are on the horizon, check out the Ways & Means committee. They write the legislation that ends up as tax law.

There are several other tax updates that I’m excited to share with you all. Look out for those post soon! Take care.

Three Weeks of Government Shutdown 2025 – What’s Happening Now

Well, here we are 21 days into the shutdown, which ties this shutdown with the one that occurred in 1995-1996. Per the latest reports, there is no end in sight, which means that this is quickly becoming a possible contender for the longest shutdown in US history.

On my end, all has been well. I’m happy that my resources have sustained me thus far, and I”m just waiting patiently as things get sorted out with the federal government. Things may become direr for employees who weren’t able to prepare for the shutdown (thinking specifically of those newer employees, or those that have had recent or drastic changes in their financial circumstances). Please keep those folks uplifted in your thoughts: this may be an especially difficult time for them.

I’ve been employing a lot of selective information consumption at this time. However, some of my favorite sources for shutdown and general government information have been:

  • Federal News Network (enough general information on here to keep most people well informed)
  • NPR (great if I prefer to get my news via radio)
  • Heather Cox Richardson (government explained through a historian’s perspective: refreshing and informative)
  • LinkedIn News (though I often find myself conducting quite a bit of fact-checking to confirm the veracity of the statements I’m reading)

As soon as I have more details, I’ll be sure to share with you all. Until then, I’m standing by and waiting, just like the rest of the federal workforce.

In the meantime, I’ve been resting, traveling a little, and reading a lot. In previous furloughs, I learned that the most important thing I can do is occupy my time with things I enjoy and avoid obsessing about the things I cannot control. That has been instrumental in making sure that I don’t feel anxious or stressed, because worrying changes nothing. As a result, I always end up feeling pretty good about the uncertainty surrounding these closures. I use the time wisely and find ways to make the time off as fun as I can, too.

That’s it for this week in the Government Shutdown. Here’s hoping we’ll have some good news soon!

Shutdown Updates – What’s Happening With The IRS

Well, as this federal government shutdown toils on, many people may have questions regarding their tax obligations. After all, October 15th is the deadline for submitting tax returns after requesting an extension of time to file. What will happen to those returns that are submitted while nearly half of IRS’s employees are furloughed? And, what if you have some other tax questions that you need answered?

If you aren’t aware, IRS had a contingency plan that covered five shutdown days, but with the shutdown extended into its second week, nearly half of the workforce has been furloughed. You can expect that any IRS contact you need to make may be impacted by the reduced workforce. (You can read more about some of the general details here: IRS Shutters ‘Most Operations’, Furloughs Employees as Shutdown Continues). Fortunately, IRS published its contingency plan on its website, which spells out which functions will continue to operate, and which will cease. You can view the contingency plan here.

The functions that will continue during the furlough are:

  • Criminal Investigations (CI) (law enforcement operations, ongoing investigations, and protection of officials)
  • Data and property protection (computer systems management and taxpayer remittances)
  • Limited taxpayer services (disaster relief or safety focused only)
  • Filing season preparation (forms design, IT testing and modernization)
  • Contract oversight (for contacts necessary for life/property safety or exemption functions)

The functions that will cease during the furlough are:

  • Routine taxpayer services (call centers, walk-ins)
  • Non-disaster transcript processing
  • Non-automated collections and legal counsel for non-exempt matters
  • Research, planning and training not related to exempt activities
  • Most administrative and HQ functions not tied to safety or property protection

For those that have tax concerns, you may be wondering what should you do while you wait for IRS to go back to fully operational status. I tried the 1-800 number for IRS earlier today and found that indeed they are receiving calls, but you won’t be able to connect to a live person unless its related to disaster relief or some major safety concern. Also, as I mentioned earlier, the October 15th extension deadline is looming, and this furlough is unlikely to be a valid reason for not submitting your tax returns. So you will want to remit your returns anyway, since the data and property protection teams are still operating during this time (they will receive the documents, but processing wont’ resume until the furlough ends). Unfortunately, if you need a transcript and you’re not living in a disaster area, your request will not be processed during this time (keep this in mind if you were completing a process that requires income verification, like asset purchases).

Please know that in cases of shutdown, there are usually no pauses in automated collection actions: the time frames and system-generated documents generally continue as normal. So if you are currently under a payment plan, the shutdown will not stop or prevent you from having to pay on your balance owed. Also, if you were anticipating a refund, there is a good chance that that too will be automatically (systemically) issued if you were anticipating a direct deposit. I am unsure how this will impact paper checks. Additionally, if you are under criminal investigation (hopefully not!) and were hoping that the furlough meant you’d get a break, I hate to be the one to tell it to you, but the CI team is still hard at work and investigations will continue.

These reduced services can be a bit frustrating, but the shutdown is temporary and will be resolved at some point. Right now is a great time to sort through your documents in anticipation of your next year filing, or you can review some of the changes from the One Big Beautiful Bill Act (if you want me to share my notes in a future post, let me know!) Previously, we heard talks of tax collections being reduced or the IRS being eliminated. But with an estimated 80% or so of government funding coming from the IRS, the chances of a completely dissolved Internal Revenue Service are slim. So if you’re hoping that the temporary government shutdown will lead into a permanent shutdown of Internal Revenue Service, I wouldn’t bet on it. But who knows? Anything is possible.

Do you have any tax questions or are you still wondering what’s next for the federal government? Leave your questions below, and I’ll do my best to answer them!

Why The Previous IRS Commissioner Was Perfect For The Job

Upon hearing that IRS recognizes that they need more staff but doesn’t seem to be clear how to best accomplish this, I decided to research the current leadership, to see if the organization had the right people to realize their goals. The things I learned about Internal Revenue Service Commissioner Billy Long initially made me raise a brow, but since I believe in nuanced interpretations, I carefully considered what I learned about him and comfortably concluded that he is actually a very good fit for this role. Unfortunately, as I was completing my analysis, Long was removed from the position of Commissioner! That being said, a little background on Long is still worth considering, even if it’s just for the purpose of comparing the qualifications of future appointees.

Commissioner Long is a former congressman from Missouri, and he previously supported initiatives to abolish IRS. Additionally, there have been questions about Long’s ethical background, as he was once employed by a firm that obtained fraudulent Employee Retention Credits (ERC) on behalf of their clients. Long has stated that he did not partake in any wrongdoing, and Senate agreed with him, confirming him as commissioner in June 2025. Long was removed from his role as Commissioner in August 2025, less than 60 days after he started.

Here is why I think Commissioner Long was perfect for the role:

  • He has very little actual experience working in tax administration. This may be unusual for IRS commissioners but not for other public roles: there are a number of elected officials that have ZERO experience that qualifies them to participate in the committees in which they serve. The lack of relevant experience isn’t the disadvantage you would expect: it often serves as a prompt to dive deeper and really do the work of understanding how things work from the inside out. Long was in a perfect position to see IRS through fresh eyes.
  • In this role, he could have reconfigured the IRS in a way that best supported his vision for a fair, efficient revenue generator for the US. As a critic of the current IRS setup, he has a much deeper understanding of the flaws that can be fixed within the system. By focusing on fixing those issues, he could have set in motion the kind of changes that would actually make IRS a much better vehicle for financially supporting its goals and objectives.
  • I believe in the Emperor Sung effect when it comes to putting critics in positions that were initially opposed to (see The 48 Laws of Power by Robert Greene, Law 2, “Observance of the Law” for more context). There’s something transformative that happens when critics inhabit the roles they initially opposed. This gives them the opportunity to see firsthand where processes break down and how they can actually fix the problem. It’s very rare that someone gets into these positions and doesn’t have a shift in their perspective and interpretations. I believe that Commissioner Long was far more invested in cementing his legacy as a brilliant leader that transformed the behemoth that is IRS, than to be the one that dismantled the agency because of previously held viewpoints.

In any case, we won’t get to see Long usher in changes to the IRS. He has been appointed as Ambassador to Iceland (I can’t say whether that’s a promotion or not: I’ll let you be the judge of that) so we’ll just have to keep an eye out for the next commissioner and wait to see what changes will come. Long seems excited about his new role and I’m sure he’ll share many updates as he settles into his ambassadorship.

I’m interested in who will be appointed next. In the meantime, I’ll watch for updates on IRS’s hiring initiatives and implementation of the OBBBA in the weeks and months to come.

The IRS “Hiring” Fiasco: The Least Surprising Development of 2025

I will apologize in advance for any snark that you detect in this post. I try to keep things elevated and fairly neutral, but this latest chaotic development from the Internal Revenue Service concerns me, and I don’t want to dilute my thoughts as I address the issues that I see when it comes to the latest hiring “push” from the Service.

Last week, the Internal Revenue Service announced that it would be hiring several thousand employees as contact representatives and tax examination technicians, while simultaneously getting rid of direct filing capabilities (taxpayers are once again going to have to figure out how to use commercial tax filing software if they want to submit electronic returns). This hiring “push” comes after months of intentionally reducing a number of the employees that were already doing collection and tax resolution tasks. Many of these employees were not at the top of their pay scales – they were fairly newer hires – and now the Service will be tacking on the cost of re-hiring people at the same levels of the ones that were just terminated earlier this year.

If that isn’t wacky enough, it gets even more chaotic. The job announcement for contact representatives was posted on July 29th, and canceled on July 31st. Yes, you are reading that correctly: within 72 hours of posting the job, it was canceled on the federal government’s hiring platform, USAJobs. Why was it canceled so quickly? It’s possible that IRS had already gotten the maximum number of applications they were seeking. But, it’s far more likely that the post was published hastily, and it likely was missing a number of critical details. Whenever I’ve seen jobs posted and taken down quickly, it’s usually because the HR Department was ill-prepared and put up an inaccurate, incomplete announcement (most likely scenario) or the requested number of applications (let’s say, no more than 200 or 500) was received (this is very unlikely). The whole thing smacks of impulsive decision making and poorly completed, rushed work.

Oh, that quickly removed announcement? It was only eligible for certain categories of IRS employees anyway: specifically, current IRS employees, and IRS career transition employees (those were previously fired or otherwise subjected to reduction-in-force actions [layoffs]). So, they terminated people, only to attempt to hire the same folks back, at the same pay rates that they were using before. In summary, this whole game of layoffs and rehires is an expensive exercise in futility.

I also mentioned that there is an announcement for tax examination technicians. That post is still available, but it’s for that same limited group of IRS employees (current IRS and career transition IRS employees), which, again, makes the vast majority of people ineligible to apply. Additionally, the tax exam tech posting was done so hastily that the hyperlinked video on the job announcement doesn’t work at the time of this posting: the promotional video generally provided to potential employees isn’t even viewable! All of this smacks of rush work and poor execution from IRS. And of course, the tax exam tech job caps at roughly $60,000, with no telework or remote work options, and the expectation of developing into a technical advisor, classroom instructor or on-the-job trainer (with no additional pay: you’d be getting the same compensation as someone that didn’t train fellow employees).

I’ve seen disorganized hiring efforts before, but this one has to be one of the most comical, considering how the IRS wants to hire back the same people that were unceremoniously discarded several months ago. If I was one of those terminated employees, this game of “keep away” that IRS is playing with people’s livelihoods would completely turn me off to working for them again. However, for those that decide that they want to try it again, and find a way to make these games work for them . . . I have some strategies coming for you later this week. Make sure to come back so I can explain exactly how to WIN while working an IRS job. I’ll talk to you all soon!

3 Things To Do In March For Financial Health

Welcome to March! As we get closer to the spring equinox, we can’t help but feel the freshness and the energy of “new starts”. While this may be the beginning of the next season, this is also the season for completion, specifically, the completion of major financial obligations, such as tax filing. For the month of March, here are three things you can do to ensure and promote your financial health.

  • Review your budget and see how you’re doing. If you set up a budget for the year, this is a good time to look at how you’re doing and make adjustments. I’ve found it’s best to look at the previous quarter objectively: don’t beat yourself up over financial missteps, just commit to doing better in the future, and move on. Looking at your numbers at this point is also good if you have a tax year that differs from the standard calendar (January to December). Fiscal year filers may find it useful to see what’s happening in March, as this is often their mid-year point, and as such, a good time to make big changes to ensure that they finish strong.
  • File Forms 1120S and 1065, as well as applicable Schedule Ks. This is the time to file tax returns for partnerships and S-corps (unless you’re on a different tax year schedule). Schedule Ks should also be filed at this point. If this doesn’t apply to you, then start gathering the financial documents needed to file your tax returns (especially if you file a 1040). Review those documents and make sure that the information that has been reported is correct.
  • Update your beneficiaries on insurance policies and retirement accounts. While you’re in the process of reviewing and reconciling, it may be a good idea to review all of your insurance policies and retirement accounts. Make sure that the correct beneficiaries are listed, and take time to read through the benefits available under each policy. It’s worthwhile to check these regularly, and confirm whether your comprehension is still clear and accurate.

That’s all for March. Do you have any financial moves you’re making this month? I’d love to hear all about it!

3 Things To Do In February For Financial Health

Hello February!

On my end, it’s been a rather . . . intense start to this new year. I’m looking forward to calmer days in the weeks to come. That being said, I want to encourage you all to continue taking steps to improve or protect your financial health, even when life is hectic. This month, I wanted to focus on a few things that can be done quickly and that don’t take a lot of time. Taking care of your finances doesn’t require a ton of time-consuming projects.

Here are three things you can do to stay on top of your finances in February:

  • Pull your free annual credit reports. Annual credit reports are a right. This website will allow you to get free copies of your credit reports from the three reporting bureaus (Equifax, Experian, and TransUnion) for free. Just because you pull the reports doesn’t mean that you have to analyze them today: put them aside until you have the time to review them. If it helps, schedule the time needed to review them, so this task doesn’t fall through the cracks. Also, Equifax is currently allowing up to SIX free reports per year for anyone within the United States (these extra annual reports will be available until 2026). So after you make corrections to your report, you can allow a month or two, then pull the Equifax report to see if the changes are displaying.
  • File Form 1096 for information returns. If you or your business made payments that should be reported on 1099s, 1098s, W-2s, and a number of other information returns, then you have to file this form. Depending on the number of forms that need to be filed, this may not necessarily be a quick task. But it’s the beginning of the month: if you do paper mailed information returns, it’s still early enough to order this form from IRS (you can’t use the online version for submission). Form 1096 is the cover sheet for hard-copy information returns: you simply have to count how many of each information return you’re sending into IRS, then jot it down on the form. If you don’t have to file information returns, then of course you can skip this tip.
  • Move your savings to an account with a better interest rate. Bankrate has a listing of the current rates of both physical and digital banks offering high yield savings accounts. Do your research then move your coins.

That’s it for February: short and sweet, because your time is precious. Talk to you all soon!

3 Things To Do in January for Financial Health

Welcome to 2023! I hope that the end of last year and the beginning of this year was enjoyable for you all. In the Mid-Atlantic region, we were delighted to get some warmer weather just in time for the New Year. It was a pleasant change from the bitterly cold temperatures we had during Christmas weekend. As the clock switched from 2022 to 2023, there were many things to celebrate and appreciate: I count all of you, dear readers, as blessings.

To start your financial year right, here are a few things that you can prioritize for January. It’s early enough to get a great headstart on a lot of tasks that can feel overwhelming once the calmness of the holiday break transitions back to business as usual.

  • Continue refining your financial vision and commit to eliminating any habits that don’t serve your financial health. I’d advise you reject the New Year resolution mentality (unless it works for you: in that case, do it!) If resolutions haven’t been successful for you in the past, it’s time to try something different. Instead of coming up with a large, dramatic change for the year, why not just spend a little time refining your vision for the year (I discuss this vision in December’s financial health recommendations). Even if you did a great job of creating your financial vision last year, or in other years past, it’s still a good exercise to review what’s working, see what isn’t working for you, and make sure what you’re currently doing is putting you on the path to what you desire. If you identify any sabotaging activities or habits, commit to eliminating the one that is easiest to drop. If you focus on dropping a simple but damaging habit, then you can get a quick “win” that gives you the momentum to take on bigger challenges as they arise.
  • Download a tax calendar and start putting the dates on your digital and paper calendars now. It’s so easy to pull up the calendars, print them, and forget them. Don’t do that! You can find IRS’s calendar here. You can find additional federal tax calendars for specific professions and businesses here, and you can search for “tax calendar” on your respective state and local websites to see additional dates that need to be recorded on your business and personal calendars. If you pay a financial consultant, accountant, or tax preparation service to manage your numbers, you can help them to help you, by knowing when certain payments or forms are due to be submitted. Little known fact: one of the penalties that IRS regularly enforces is failure to file timely, and it is one of their heaviest (non-criminal) penalties. You can avoid it just by keeping up with the dates!
  • Pay your last estimated tax payment for tax year 2022. This payment is due to be submitted by January 17 this year. Use Form 1040-ES to submit it. If you had a particularly successful final quarter of 2022, consider adding a little more money to your payment, to help prevent underpayment penalties.

Those are the three tips for January, just in time to help you all hit the ground running! Have a great day, and I’ll talk to you all soon.

Extensions Due on October 17th

Just a gentle (or firm, depending on what you require) reminder: all of those extended tax returns are due on October 17th. If you’ve been following this blog since the summer, then you know I’ve been sounding the alarm on tax return extensions and how to prepare for filing those. Along with filing extended tax returns, this is the time to do any withdrawals of excess IRA contributions made during calendar year 2021 (excess contributions must be withdrawn to avoid penalties). This is also the time to contribute to solo 401(k) simplified employee pension (SEP) plan for tax year 2021 if you extended the filing time for Form 1040.

Whew, that’s a lot! There is still time to do a few things to close out tax year 2021 if you’ve extended your time to file. For most tax preparers, October 17th is the end of their tax season, and they can finally have a chance to rest before the beginning of the next tax season. However, if you’re a business owner, you may have a different tax filing date. If so, keeping up with the general extension dates and assigning specific tasks to complete on those dates can be a fantastic way of staying ahead of the surge of work that comes when its time to file taxes.

That’s all: get those extended taxes filed! Talk to you all soon!