When the IRS sneezes, taxpayers catch a cold. But in 2025? It’s looking more like a full-blown flu outbreak — and JS Morlu is here to help you stay healthy.
Thanks to major federal budget cuts, the IRS is shedding staff like it’s going out of style. If you’re a small business owner, nonprofit director, high-net-worth investor, or government contractor waiting on a refund or dealing with a tax notice — the current chaos could put you on thin ice unless you know how to navigate it.
Let’s break it down.
What’s Really Going on at the IRS?
The IRS is facing a staffing crisis that’s hitting every level of its operations:
- Thousands of layoffs across auditing, call centers, and processing.
- Refund delays now likely to exceed the “normal” 21-day turnaround — even for e-filers.
- Phone support? It’s practically a ghost town.
- Audits are shifting from in-person discussions to scary AI-driven letters.
Put simply: fewer humans, more automation. And automation doesn’t understand nuance. It flags first, asks questions later.
Welcome to the Age of IRS Algorithms
The IRS has gone full robot mode, leaning heavily on its massive data-matching engine. Think of it as the ultimate tax detective — constantly scanning for mismatches and anomalies.
Here’s where it’s especially aggressive in 2025:
- W-2 Mismatches – If your employer says you earned $75,000, but you report $70,000? Boom. Red flag.
- 1099 Gaps – Freelancers, side hustlers, and gig workers beware. Even if you didn’t get a form, the IRS may still know.
- Stock Sales – Forgot to report some trades? The system didn’t.
- Payment Apps – Venmo, PayPal, Etsy, and DoorDash are now reporting more than ever.
- Interest Income – That dusty savings account that earned $10? Still reportable.
- 401(k) Withdrawals – Took out retirement money early? No penalty explanation? Flagged.
- Charitable Deductions – Donating big compared to your income? You may need backup proof.
- Home Office Write-Offs – If your deductions look too generous, expect scrutiny.
This matching system doesn’t sleep, doesn’t forget, and doesn’t care if it ruins your Saturday with a scary letter.
What This Means for You
Let’s use a couple of our fictional clients as examples.
Bob the Lamp Mogul
Bob runs a successful lamp design business and usually files his taxes solo using online software. But this year, he skipped reporting a few Stripe payments he received from boutique retailers. Result? An automated notice claiming underreported income.
Terry the Nonprofit Director
Terry’s nonprofit filed its Form 990 late due to a bookkeeping transition. The IRS sent a warning — and because there are fewer IRS agents to sort through the story, the issue escalated into penalty notices that now need appeals and documentation.
In both cases, this year’s IRS landscape turns small mistakes into big problems. That’s the trend across the board.
What You Should Do Right Now
1. If You’re Expecting a Refund
- File early.
- Triple-check your numbers.
- Make sure all 1099s, W-2s, and investment statements are included.
- If you’re not sure what the IRS sees? We can help you match it up.
2. If You Get a Notice
- Don’t panic — many notices are correctable.
- Don’t ignore it — the clock starts ticking the day it’s dated.
- Call JS Morlu — our tax resolution experts know how to get ahead of automated flags and make sure things don’t snowball.
3. If You’re Self-Employed or Running a Business
- Keep detailed records for deductions (especially for home office or vehicle use).
- Use digital tools to track income from all platforms.
- Talk to us about proactive tax planning — especially if you’re expecting growth or big investments this year.
Why This Year Isn’t the Time for DIY Taxes
In a normal year, DIY tax filing can be risky. In 2025, it’s downright dangerous. With fewer agents and more reliance on algorithmic detection, the IRS has become less forgiving and more robotic.
But here’s the twist: more notices don’t mean more audits — it just means more opportunities to fall into procedural limbo unless you respond the right way, quickly.
That’s where we come in.
How JS Morlu Has Your Back
At JS Morlu, we blend smart tech and experienced tax pros to give you a real-time edge. Whether you’re a business owner juggling 1099s or a nonprofit leader keeping up with reporting deadlines, we offer:
- Full IRS correspondence support — we interpret, respond, and resolve.
- Audit defense — if the IRS does escalate, we’re in your corner.
- Tax planning — so next year, you’re ahead of the game.
- Dedicated service — no bots here, just humans who know how to deal with robots.
Final Thoughts: Stay Calm, Get Help, Win Tax Season
The IRS may be in a tailspin, but you don’t have to be. With JS Morlu, you’ll get clarity, support, and real solutions — not just software. Whether it’s a mistyped figure or a real compliance challenge, we turn confusion into confidence.
📞 Call us today or book your free consultation at www.jsmorlu.com.