New tax law changes present challenges to IRS and taxpayers

July 19, 2025
New tax laws changes offer chances for savings if you know how they affect you and are prepared to make the right moves. (Photo by Nataliya Vaitkevich)

By most accounts, the main 2025 tax filing season went remarkably well.

Internal Revenue Service National Taxpayer Advocate Erin M. Collins, in her report to Congress this summer, called it largely successful. Treasury Secretary Scott Bessent went further, describing 2025 as the “most successful tax filing season in years.”

But that’s not likely to be repeated during the 2026 tax filing season.

Cuts to IRS staff and operations by Department of Government Efficiency (DOGE) earlier this year are going to be felt for a long time. And now, thanks to the recently-enacted One Big Beautiful Bill (OBBB) Act, the reduced IRS staff will be dealing with a coming filing season full of change.

Now I know that weekends are supposed to be time to decompress from all that Monday through Friday throws at us. But if you’re here at the ol’ tax blog today, then you obviously are looking for some tax reading.

So this weekend’s Saturday Shout Outs go to some items addressing the 2026 tax season’s coming challenges.

The Good, the Bad, and the Ugly in the One Big Beautiful Bill Act analysis by Daniel Bunn, Alex Muresianu, and William McBride of The Tax Foundation notes in the ugly section that the new law “further complicates the tax code in several ways, sending taxpayers through a maze of new rules and compliance costs that in many cases likely outweigh potential tax benefits.”

The new tax bill burdens an already overburdened IRS commentary by Ellis Chen and Vanessa Williamson of The Brookings Institution look at how the new law will “create serious tax enforcement challenges for an agency that has already seen major staff cuts.” As for us filers, the Brookings duo adds, “The IRS receives more calls after major tax legislation, but it won’t be able to provide effective taxpayer service without restaffing.”

Cutting the IRS Enforcement Budget Is A Disservice To Taxpayers by Janet Holtzblatt for TaxVox, the blog of the Tax Policy Center. “When enforcement funding is cut, taxpayers potentially lose an important service provided by the IRS: the chance to gain clarity and, in some cases, certainty about what the tax code means for them before they file a tax return riddled with unintentional errors,” writes Holtzblatt.

Get ready now: I know, tax season is still almost six months away, so why worry about this now? Because the proverb is correct. Forewarned is forearmed.

Knowing about something that could be bad before it happens allows you to prepare for it. You can look into ways to approach the changes.

When that’s OBBB tax changes that apply to you, such as the state and local taxes (SALT) deduction increase or senior bonus or auto loan interest write-off or any of the other tax code revisions, you can start making your plans and relevant tax moves in time to maximize the changes to your vantage.

You also can start looking for a tax professional to help you make the appropriate OBBB-related moves this year, and claim any of the new tax breaks correctly next year.

But those tax planning moves can wait a couple more days. For now, after you finish reading this post, go out and enjoy your weekend, without any tax worries.

You also might find these items of interest:

Advertisements

🌟 Search Amazon Home Audio Products 🌟
The text link above is an affiliate ad. If you click through and then buy a product, I receive a commission.

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
6 tax moves to consider this June

June 3, 2026

Definitely take a break this June. But taxes don’t take vacations. So, you also should…

Read More
Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments