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Paul Spella

Tax Season Just Got More Confusing

The Atlantic

www.theatlantic.com › newsletters › archive › 2025 › 02 › tax-season-just-got-more-confusing › 681850

This is an edition of The Atlantic Daily, a newsletter that guides you through the biggest stories of the day, helps you discover new ideas, and recommends the best in culture. Sign up for it here.

Americans love to hate the IRS, that historically unpopular revenue-collection agency with its slow processes and fax machines and many, many forms. But recently, it has started to turn things around, at least by some measures: After receiving tens of billions of dollars from the 2022 Inflation Reduction Act (IRA), the agency’s customer-service wait times went down, its tech initiatives helped simplify tax filings for some, and its audits led to the recovery of more than $1 billion in unpaid taxes from wealthy Americans and corporations.

That progress may now be imperiled. As part of the Trump administration’s plan to downsize the federal government, the IRS has been ordered to start firing as many as 7,000 IRS employees in the middle of tax season, including 5,000 people who work on collection and enforcement; the total cuts represent about 7 percent of the agency’s workforce. More layoffs could come: Today, the Trump administration released a memo ordering all federal agencies to submit plans to eliminate more positions, including those of career officials with civil-service protection. The IRS’s acting commissioner, Doug O’Donnell, announced his retirement this week, and Billy Long, Donald Trump’s pick to replace him, has previously backed legislation that would abolish the IRS.

To imagine the future of a diminished IRS, look back to the 2010s. By 2017, the agency’s workforce had shrunk by roughly 14 percent compared with 2010. The agency’s audit rate was 42 percent lower in 2017 than in 2010. In that period, Americans saw slower refunds and delayed call times. There is a tendency to conflate efficiency with cost cutting, and sometimes leaner operations really do speed things up—but if the IRS can’t afford to update its arcane technology or hire skilled professionals, Vanessa Williamson, a senior fellow at Urban-Brookings Tax Policy Center, told me, it may struggle to operate efficiently.

In a shift of focus, the IRS has prioritized auditing wealthy people and corporations since receiving IRA funding. In 2022, The Washington Post reported that more than half of the IRS’s audits in 2021 targeted taxpayers whose incomes were less than $75,000, because those audits are simpler and can be automated; auditing wealthy people’s tax returns can require far more resources, especially if they have varied income streams and assets (and sophisticated lawyers or accountants). In May, former IRS Commissioner Danny Werfel announced that the agency would drastically ramp up its audits of wealthy corporations and people making more than $10 million. The taxes that rich people evade each year amount to more than $150 billion, he told CNBC in 2024. Investigating them could pay off: A 2023 paper estimated that every dollar the agency spends on audits of wealthy people could translate to $12 in recovered funds. And those who see their peers getting audited may be discouraged from cheating on taxes in the future, Williamson noted.

For generations, politicians have sought to politicize the IRS: In 1971, President Richard Nixon reportedly said that he wanted a new commissioner to “go after our enemies and not go after our friends,” and a former Trump chief of staff told The New York Times that Trump spoke of using the IRS to investigate his rivals during his first term (Trump denied this). The agency’s politicization and unpopularity was part of a “cycle that I hoped we had finally broken,” Natasha Sarin, a law professor at Yale and a former counselor at the Treasury, told me. When an agency struggles to perform its job well, its unpopularity makes getting more funding to improve its operations harder, and so forth.

The future of a major effort to improve the tax-filing system is uncertain too. As my colleague Saahil Desai explained last year, the agency’s pilot of a new, free tax-filing program, Direct File, was “a glimpse of a world where government tech benefits millions of Americans.” That the program “exists at all is shocking,” Saahil wrote. “That it’s pretty good is borderline miraculous.” Elon Musk posted earlier this month that he had “deleted” 18F, the government tech initiative that helped launch Direct File (though Direct File, now under the auspices of the IRS, will continue to accept tax returns for now). And Treasury Secretary Scott Bessent said, in his confirmation hearing, that Direct File would operate this year, but added that he would “study” it for future use.

Staffing—this year and in future filing seasons—is another concern: Janet Holtzblatt, a senior fellow at the Urban-Brookings Tax Policy Center, recommended that taxpayers file as soon as possible, because the IRS workforce may only continue to diminish if some of the remaining employees leave for new jobs, which could lead to tax-refund delays. Many of those who are left are also close to retiring. Before 2022, more than 60 percent of the IRS’s employees were reaching retirement age over the next six years, Holtzblatt told me. A new cohort of younger, more digitally savvy workers (many of whom were probationary agents) was gearing up to replace them. “The long-term effects are potentially worse than what might happen this year,” she said.

More mass layoffs and funding reductions could mean a shrunken and defanged IRS. If the agency doesn’t have the resources it needs to modernize and tamp down tax evasion, revenue won’t be the only thing affected—Americans’ already-shaky trust in the system could be too.

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Evening Read

Illustration by Paul Spella / The Atlantic. Source: Getty.

The Adolescent Style in American Politics

By Jill Filipovic

To a certain kind of guy, Donald Trump epitomizes masculine cool. He’s ostentatiously wealthy. He’s married to his third model wife. He gets prime seats at UFC fights, goes on popular podcasts, and does more or less whatever he wants without consequences. That certain kind of guy who sees Trump as a masculine ideal? That guy is a teenage boy.

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Stephanie Bai contributed to this newsletter.

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‘Constitutional Crisis’ Is an Understatement

The Atlantic

www.theatlantic.com › newsletters › archive › 2025 › 02 › constitutional-crisis-language-effective › 681800

This is an edition of The Atlantic Daily, a newsletter that guides you through the biggest stories of the day, helps you discover new ideas, and recommends the best in culture. Sign up for it here.

Grasping the scale of President Donald Trump’s assault on American governance is no small matter. The administration is challenging laws, claiming the right to reinterpret the Constitution, questioning judges’ powers, and arrogating new powers to itself. Seeking to convey the gravity of the situation, many commentators have labeled what’s happening a “constitutional crisis.”

That’s a mistake—not because what’s happening is not serious, but because it is so serious. This week, the Trump administration came the closest it has thus far to outright refusing to follow a judge’s order, after days of comments from Vice President J. D. Vance, Bureaucrat in Chief Elon Musk, and others questioning whether a president must follow court rulings. That’s a threat to the very basic question of whether a president is subject to the law or not—especially when so many things that Trump has done appear plainly illegal.

But the abstraction of constitutional crisis obscures the immediate danger, making what’s happening seem like an issue more for legal experts and policy wonks than for the everyday Americans who stand to lose not only essential government services but also fundamental rights. “A president refusing to abide by the law or the Constitution and ignoring court orders to stop his illegitimate actions would be a constitutional crisis like a bank robbery is a cash flow crisis,” Joseph Ura, a political scientist at Clemson University, told me via email.

A recent New York Times article reported that many legal scholars believe that the country is in a constitutional crisis, but it began by acknowledging, “There is no universally accepted definition of a constitutional crisis.” The law, for all its careful parsing of language, has a weakness for this sort of I-know-it-when-I-see-it formulation, but if even the professors can’t define it, how can the general public? Senator Elizabeth Warren, a former Harvard Law professor, warns that “we've got our toes right on the edge of a constitutional crisis,” which also raises interesting questions about the topography of a crisis.

At one time, appeals to the sanctity of the Constitution might have swayed more people, but one reason Trump has been able to dominate U.S. politics for so long is that voters are not feeling protective of their institutions. About six in 10 people in a 2022 New York Times poll said the constitutional order needs major reforms. In 2023, Pew found that just 4 percent of Americans think the political system is working very well. And in 2024, voters selected a guy who’d tried to overturn the previous election. Regardless of what law professors think, the populace has already decided that the Constitution is in crisis.

Perhaps I’m a cockeyed optimist, but I don’t think that means they want an unaccountable leader who is not beholden to laws, courts, or Congress. Already, Trump’s approval rating is down, and his disapproval rating is up. I noted last week that some of his supporters are regretting their choice. Many of the effects of sloppy cost cutting are going to be even more unpopular once voters feel them. But appeals to a system they’ve come to distrust are not the way to rally them.

A “constitutional crisis” certainly sounds bad, even if you can’t say what it is. But whatever fresh shock the term might have provided has been dulled by years of use. Google Trends tells a story of desensitization. Going back to 2004, there are sporadic spikes of interest in the term, such as during the 2008 financial crisis and around government shutdowns during the Barack Obama presidency. Then the line starts bouncing around like a flea when Trump takes office the first time. It calms again during the Biden administration but takes off on a dizzy, vertical ascent when Trump returns to office in 2025.

Commentators who labeled previous moments “constitutional crises” may not have been crying wolf, exactly, though in retrospect perhaps the term could have been reserved for the worst moments—January 6, for example—for maximum clarity. Regardless, you can’t hear about a problem on and off for years without it becoming less urgent. Trump isn’t just destroying norms; he’s established a state of crisis as the new norm.

And insofar as people do think of this as a “crisis,” that might only further empower Trump—who’s responsible for it in the first place. That’s because, in times of crisis, Americans usually look to the president to act quickly and decisively. That can be good in a bona fide external crisis, like an attack by a foreign country or a pandemic, but that’s not what’s happening now. “To the extent we’re in a crisis, it’s a crisis of too much executive energy,” Ura told me.

The better alternative is to describe exactly what’s happening: The president is taking actions he doesn’t have the power to take, disrespecting the rule of law, and attempting to revoke long-established rights. He is portraying himself as a king. Soon, he may openly defy an order from a duly appointed and confirmed federal judge. That would be a step closer to the end of American democracy than anything since January 6. Call that a catastrophe, call it lawlessness, call it a threat—just don’t call it a constitutional crisis.

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When Robert Frost Was Bad

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Bad poems never die, never really go away: The vigor of their badness preserves them. Up they float into bad-poem limbo, where their bad lines, loose and weedlike, drift and coil and tangle with one another eternally. Robert Frost, who turned 20 in 1894, uncertain of his gift, bouncing among stray gigs (actor’s manager, repairer of lights at a wool mill) in Lawrence, Massachusetts, had written a poem called “My Butterfly.” It begins like this: “Thine emulous fond flowers are dead too, / And the daft sun-assaulter, he / That frighted thee so oft …” It is what it is, a bad poem. A random-feeling extrusion of lyrical matter, like something that might come out of the tube when you pull the lever marked Poetry.

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Photo-illustration by Paul Spella. Source: Getty.

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P.S.

Whatever term you use, our domestic drama has made it easy for many Americans to overlook just how angry our neighbors to the north are about Trump’s rhetoric around Canada, whether it’s tariff threats or talk of annexation. Last night, Canadians got a chance to strike back in the final of the NHL’s 4 Nations Face-Off, and they took it, defeating the United States in overtime despite a pregame pep talk from Trump. To understand the stakes, I checked in with Nat Frum, an avid Canadian American hockey fan and the son of my colleague David Frum. “This was just a hockey game in a made-up, brand-new tournament created to replace an increasingly irrelevant all-star game—but it felt so much more than that,” Frum wrote in an email. “This felt like the only way Canada could fight back against these past two months of Trumpism and man, did it feel good to see that maple leaf raised on American soil.” It turns out American exceptionalism doesn’t extend to miracles on ice.

— David

Isabel Fattal contributed to this newsletter.

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