General Commentary

The Future of the IRS in the Age of DOGE

Steve Perry

Published on: 02/07/2025

- In early 2025, the IRS laid off 7,000 employees (about 8% of its workforce) amid federal cost-cutting, with potential further cuts looming. - Concerns arise about delayed refunds, reduced customer service, and weaker tax enforcement due to fewer agents. - Audits may decline, increasing the risk of tax evasion, while the IRS plans to rely more on automation, AI, and data analytics for audit selection and enforcement. - Transitioning to AI-driven systems will be slow given the IRS’s outdated infrastructure, requiring major upgrades and fundamental changes. - Digital self-service tools and specialized hiring are expected to expand as part of the IRS’s new strategy. - Privacy and data security issues related to AI could erode public trust, challenging voluntary tax compliance. - Taxpayers will need experienced professionals like Steve Perry, EA, for effective representation and navigating complex rules, especially in areas like crypto taxation. - The IRS’s evolving enforcement approach signals a shift in how taxpayers negotiate and comply with tax laws going forward.

General Commentary

Latest Scam Report by the IRS

Steve Perry

Published on: 12/06/2025

Scams targeting taxpayers are on the rise, especially involving gift cards. Scammers often impersonate IRS agents, claiming the victim’s identity has been stolen and demanding payment through gift cards. Real IRS agents never demand immediate payment via gift cards, wire transfers, or prepaid debit cards. They always provide ID and send written notices before any contact. Threats of arrest, license revocation, or immigration action are illegal tactics used by scammers. If you suspect a scam, hang up immediately and report it to the Treasury Inspector General or the FTC. Never respond to unsolicited IRS emails—forward them to [[email protected]](mailto:[email protected]). Stay vigilant.

General Commentary

Cyber Security and the Business Owner

Steve Perry

Published on: 11/06/2025

Cybersecurity is critical for small businesses, especially those handling financial or employee data. Federal laws require written IT Security and Data Breach Response Plans. Even basic internet use makes businesses vulnerable to phishing, malware, and ransomware. Common threats often stem from deceptive emails. Business owners must train staff, restrict system access, and implement strong password policies. Daily encrypted backups, updated antivirus software, and secure Wi-Fi are essential. Physical security of devices and cyber insurance provide added protection. Consult cybersecurity experts when needed—many IT providers lack specific expertise. Proactive planning and vigilance can protect your business from costly cyber threats and breaches.

General Commentary

Challenges to Small Business from Regulation

Steve Perry

Published on: 09/06/2025

Running a business involves more than just the obvious costs like labor, materials, and rent. Business owners must also account for hidden regulatory expenses imposed by local, state, and federal governments. These include local business licenses, county taxes (often based on projected revenue), and state sales and income taxes. Federal taxes, especially employer payroll obligations like Social Security, Medicare, unemployment, and worker’s compensation, add significant cost—often turning a \$600 paycheck into over \$645 in actual cost. Misclassifying employees as contractors can lead to serious fines, so it's critical to follow IRS guidelines. Additionally, compliance with tax filing requirements demands time, expertise, and often professional assistance. Though this help incurs a cost, it's tax-deductible and far less expensive than penalties. All these factors must be included in pricing strategies to avoid financial pitfalls. Business owners should routinely review their finances, ideally with professional support, to adjust pricing or costs and ensure sustainability. Books, Taxes & More offers the expertise to help business owners stay compliant and profitable. Call 678-717-9818 for guidance.

General Commentary