Annual report examines the retreat in IRS enforcement capacity, growing taxpayer skepticism, and what ultimately prompts taxpayers to address unresolved tax issues.
SANTA ANA, CA / ACCESS Newswire / October 6, 2026 / A new report from Optima Tax Relief finds that while the IRS has experienced a significant decline in workforce and traditional enforcement capacity, taxpayers continue to face automated notices and assessments-creating a gap between perceptions of IRS enforcement and the agency's current activity.
The Optima Tax Relief Annual Report combines federal enforcement data, government audit findings, and information from Optima clients to examine taxpayer perceptions, why many delay addressing tax problems, and what ultimately motivates them to seek help.
Since January 2025, the IRS has lost roughly 30% of its workforce, while Collection staff has declined 41% since fiscal year 2024. Appeals revenue has fallen 71% over three years, and Inflation Reduction Act enforcement funding ended December 31, 2025.
As traditional enforcement has become less visible, taxpayer confidence has also declined. Fifty-one percent of respondents said they either did not believe the IRS enforces against most people who owe or were unsure, while just 18% said they would trust the IRS to help resolve a tax problem.
"We are really happy to share the results of our Annual Report," said David King, Chief Executive Officer at Optima Tax Relief. "The behavior of taxpayers who owe is critical to effective tax administration and to closing the tax gap. If these insights prove useful, everyone benefits."
However, automated enforcement remains active. The IRS's Automated Substitute for Return (ASFR) program closed 592,800 cases in fiscal year 2025, up 135% from fiscal year 2023, and generated approximately $2.9 billion in additional assessments. The report notes that some of this increase reflects the clearing of a backlog after the program was paused intermittently beginning in 2020.
The report also found that many taxpayers remain uncertain about how to address tax problems:
- 88% could not confidently explain what steps they needed to take.
- 53% said they did not understand their options.
- 29% said realizing that waiting was making the situation worse prompted them to act.
- 32% said affordable early-stage help could have prevented their situation from escalating.
For those who sought professional help, the decision was driven more by outcome concerns than fear of enforcement. Thirty-eight percent wanted the best possible outcome, while 24% did not trust themselves to handle the IRS correctly. Only 5% cited fear of IRS enforcement.
"Most taxpayers with a tax problem aren't ignoring it. They're often overwhelmed, worried about what they may owe, or simply don't know where to start," said Philip Hwang, Chief Tax Officer at Optima Tax Relief. "The important thing is to take that first step, understand where you stand and what options are available, so you can make an informed decision about the path forward. DoSomething."
The full Optima Tax Relief Annual Report examines IRS enforcement trends, taxpayer perceptions, automated notices, compliance behavior, and the experiences of taxpayers who sought professional tax resolution assistance.
The full survey results can be viewed at https://optimataxrelief.com/optima-tax-relief-annual-report/2025/
About Optima Tax Relief:
Optima Tax Relief is the nation's leading tax resolution firm assisting individuals and businesses struggling with unmanageable IRS and state tax debts. Optima's commitment to delivering unparalleled service and results has earned the company numerous honors, including the International Torch Award for Ethics from the Better Business Bureau and Civic 50 recognitions for corporate responsibility and community involvement. Optima has helped tens of thousands of taxpayers yearly achieve financial relief and peace of mind.
Contact:
Amy Potter
Sr. Director of Communications
amyh@optimataxrelief.com
1 (800) 536-0734 x1265
SOURCE: Optima Tax Relief
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/new-optima-tax-relief-annual-report-finds-taxpayers-see-a-quieter-ir-1231908
