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2025 is shaping up to be one of the most difficult years in recent memory for American taxpayers. A perfect storm of aggressive IRS enforcement, economic uncertainty, and complex tax rules is putting enormous pressure on individuals and small business owners alike. Many are already behind on taxes or facing audits, while others fear they may be next. What’s worse—relief options exist, but most people don’t know about them or feel intimidated to ask for help.
Whether you’re a freelancer, a W-2 employee with side gigs, or a small business owner, understanding how the IRS is operating this year—and how you can legally protect yourself—is more important than ever.
The Key Challenges Taxpayers Face in 2025
Rising Audits for High Earners and Business Owners
The IRS has ramped up audits, especially targeting those earning over $400,000 annually and those with business-related deductions or large write-offs. Thanks to additional IRS funding from recent federal legislation, more staff and improved analytics are being used to flag unusual returns.
For business owners, this means greater risk even from honest mistakes. Improper recordkeeping, vague deductions, or inconsistent income reports can now trigger a review. Many taxpayers are caught off guard, having assumed that audits were rare.
Learn more about how to protect yourself from audits.
Confusion Over Self-Employment and Gig Worker Taxes
Freelancers, Uber drivers, content creators, and other gig workers often struggle with quarterly tax payments, proper deductions, and tracking income from multiple sources. With the rise in 1099 forms and digital payment reporting rules (like thresholds for Venmo or PayPal), many self-employed workers are underreporting income without realizing it.
The IRS is using more tech tools to identify mismatches between what’s reported and what third-party platforms submit—leading to unexpected tax bills and penalties.
Check out your tax relief options as a freelancer.
Increased Fear of IRS Penalties and Wage Garnishments
The fear of losing wages or having bank accounts frozen is rising. Many taxpayers are now finding out that their debt has quietly grown due to penalties and interest. Once a balance becomes “seriously delinquent,” the IRS can initiate aggressive collection actions like wage garnishments or tax liens.
Some even face passport restrictions under certain debt thresholds. For many, this creates a financial snowball effect—where one missed payment quickly becomes overwhelming.
Here’s how to stop wage garnishment.
Limited Knowledge of Tax Relief Programs
Programs like the Offer in Compromise (OIC) or Currently Not Collectible status can drastically reduce or pause tax payments, but few know they exist—or how to apply correctly. The paperwork is complex, and mistakes can lead to denial or delay.
Some people also assume they don’t qualify because of their income, when in fact the IRS considers household expenses and ability to pay—not income alone.
Explore IRS tax relief options.
Financial Setbacks and Unexpected Hardship
Economic uncertainty, rising healthcare costs, job loss, and divorce are leaving many families unable to meet their tax obligations. These life events are often sudden and leave taxpayers in survival mode—paying for rent or food instead of the IRS.
Unfortunately, the IRS doesn’t automatically grant leeway for hardship unless it’s formally requested. Without proper representation, people often miss out on hardship-based relief like Currently Not Collectible status.
Stigma or Fear of Getting Professional Help
Many are reluctant to reach out for assistance because they feel embarrassed, believe they should fix it alone, or fear they can’t afford tax help. In reality, professional tax resolution services can often save more money than the cost of hiring help.
Priority Tax Relief offers free consultations and payment options, helping you move forward without shame or financial strain.
Take the First Step Toward Relief
The IRS won’t stop until your balance is paid or legally resolved. But that doesn’t mean you have to face them alone. Whether you’re buried in back taxes or unsure what to do after receiving an IRS letter, Priority Tax Relief is here to help.
Frequently Asked Questions: What’s Making 2025 Even Tougher for Taxpayers
Why is the IRS cracking down more in 2025?
The IRS received increased funding under recent federal initiatives and is actively working to close the “tax gap”—the difference between taxes owed and taxes paid. With new audit tech and more agents, they’re focusing on higher-income brackets, small businesses, and 1099 workers.
What if I can’t pay my taxes this year?
You don’t have to pay everything upfront. There are structured IRS programs like Installment Agreements and the Offer in Compromise that can significantly reduce or spread out payments based on your financial situation.
Are gig workers really being audited?
Yes. Gig workers are under increasing scrutiny, especially those earning via online platforms like Etsy, DoorDash, or freelance marketplaces. Many do not properly file quarterly taxes or deduct expenses correctly.
What happens if I ignore an IRS letter?
Ignoring IRS letters can lead to serious consequences, including liens, levies, and garnishments. Always respond quickly—even if it’s to dispute the debt or request a delay.
Can I stop a garnishment once it starts?
Yes. Garnishments can be paused or reduced if you apply for relief. A tax professional can file the necessary forms and negotiate with the IRS to show financial hardship or qualify for a payment plan.
Is tax relief available for middle-income earners?
Absolutely. Tax relief is based on your ability to pay, not your income alone. If your necessary expenses (like housing, medical bills, or dependents) exceed your income, you may still qualify.
