government

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.

The Shutdown Is Over. What Was The Result?

For those that are unaware, the longest shutdown in US history is officially over. To quickly bring you all up to speed, the US federal government must approve an operating budget annually (usually, it is confirmed before October 1st of every year). However, every once and a while, Congress – the people who vote on the budget – will disagree, and if the budget isn’t approved, then the government will shut down due to a lapse in funding. That’s what happened on October 1, 2025, and this shutdown lasted for 44 days (the previous record holder for longest shutdown was 35 days, back in 2018 – 2019).

Originally, this year’s budget disagreement centered on the expiration of Affordable Care Act (ACA) premium tax credits. These are set to expire on December 31, 2025, and these tax credits are what make it possible for health insurance through the ACA to be affordable. The expiration would mean that insurance costs would skyrocket for those that have insurance through the ACA. These credits are based on household income, and, considering the cost of living for most Americans, the credits are the only thing that have made healthcare insurance affordable and accessible. Many have remarked over how the insurance costs will double for most people that previously qualified for the credits. If the credits aren’t extended, insurance will likely be cost prohibitive for most of the families currently using insurance providers through the ACA Marketplace.

However, this temporary budget was passed without resolving the ACA expiration issue. As a result, the government reopened, and healthcare costs will increase drastically, starting on January 1, 2026. Elected officials who agreed to the temporary budget said that they did so because they were “promised” that the ACA issue will be revisited and resolved at a future date. It appears this whole shutdown was an exercise in futility: a complete disruption of government functions ended on a “promise” that is unlikely to materialize as expected. After getting this temporary solution, we may be facing furloughs again in January, when the current deal expires.

It’s a disappointing situation all the way around: so many people went without their salary, experienced disturbances in their government benefits, and were impacted by government closures, only for the proverbial can to be kicked further down the road. This was an expensive and careless exercise, it it doesn’t seem wise that these officials accepted a “promise” as a fair compromise for the precarious situation millions of Americans experienced this past 44 days. So, while I wish this was the end of the shutdown discussions, I anticipate I will be returning to this topic in a couple of months. Here’s hoping that the next few weeks will be a productive period for Congress, and that they will unite to ensure that Americans can continue to receive affordable healthcare rates.

The Reading List: Making The Most of Government Shutdown 2025

Well, we’re one month into the federal government shutdown, and with no end in sight, I figured I would share one thing that has been keeping me going: BOOKS! I have always loved reading, but I usually don’t have as much time to devote to my books as I prefer. So this break from work has given me plenty of time to catch up on my reading list.

I’m reading and re-reading a few books this month, and trying to take advantage of my significantly freed-up schedule. The books I’ve read so far this month are as follows:

Be Who You Came To Be by Estelle Gillingham, PhD

True Gifts by Jewel Veitch

Chic & Slim Encore by Anne Barone

The Joy of Less by Cary David Richards

As I type this blog post, I’m about halfway done re-reading The 12 Week Year by Brian P. Moran and Michael Lennington. I’m kicking off a 12 Week Year session in November, that will last me until the end of January. I want to test a few theories before sharing them on this blog, and I’ll be using the next 12 weeks for testing and perfecting a system that I’ve been tinkering with for the past few months.

I’m looking forward to sharing my progress as I work through my goals over the 12 week period. I figured this is a good time to start something new, since I used the previous few weeks to rest and relax. Now that I’m rested and feeling motivated, diving into a project that excites me is the perfect distraction from the chaos of federal employment.

For all of those affected by the shutdown, I sincerely hope that you’re taking care of yourselves, resting, and doing things you enjoy. And, I hope you all found time to read books that give you ideas on how to create the lives you desire and deserve.

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!

One Week Into The Government Shutdown: What’s Happening Now

It’s Day 8 of the 2025 Government Shutdown, and it looks like the federal government is no closer to an approved budget than it was last week. I’m guessing that this won’t be resolved within the week; in fact, I think it could be almost November before the funding bill is approved.

I’m writing this post as a furloughed federal employee who has prepared for this sort of thing, and I want to assure you all that I’m doing just fine. The unscheduled time off was perfect: I had just finished helping a friend relocate to her new home, and I was walking nearly 22,000 each day during the move. Additionally, I was helping her after I finished work every day, so I was helping with the move between 7 PM and 3 AM each night, for several days. By the time the shutdown was announced, I was sleep deficient and running on absolute fumes, so having a few days to properly rest and take care of myself was perfect.

Foresight has been a savior during this time. I save my money and live sensibly so that I can weather changes in income, and, given the many shutdown threats I’ve lived through over the past 20(!) years of federal employment, I am NOT surprised that this happened. I was working as a federal employee in 2013, which was when I experienced my first shutdown. My daughter was small and that was the perfect time to do some domestic travel and catch up on the sleep I’d been missing as a long-distance daily commuter. So, being wise, keeping a positive outlook, and using the break to my advantage has been good for me.

For those impacted by the shutdown, I’m sorry for any inconveniences you may have experienced. And for those that are just annoyed with all of this, just know that every federal employee understands and agrees with you. I sincerely hope that this gets resolved soon, so that we can get back to serving the public.

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.