A priority of Trump 2.0 Admin according to Treasury Secretary Scott Bessent is "enforcement." And judging from the round of bank levies & garnishments we are seeing at WATAX in 2025, he isn't kidding!
To get a better understanding of how levies on bank accounts & wage garnishments happen, let's look at where they are sourced from the IRS:
Automated Collection System (ACS) Levies. ACS is the division that sends out threatening letters. Going back to 2016, these letters have often been more bark then bite. But in 2025, this is not the case. We are seeing levies on bank accounts (and wages). But from our survey, these are pretty big balances 1/ And on client's with high incomes. 2/ The notice of lien filing and right to Collection Due process hearing letter is becoming important and a clear measure of whether you might be exposed.
Revenue Officer (RO) Levies. There's nothing new about RO Levies. If a local agent is assigned to collect your back taxes and received unfiled returns and you don't cooperate, you will get levied. Nothing has changed here and this has been consistent for decades.
OTHER UPDATES WITH IRS: With recent legislation in Trump 2.0 adding a few trillion to the deficit, our thinking is Bessent and Treasury will continue to enforce collections to minimize the growing deficit. It also appears that DOGE has disappeared from the IRS after their quick sweep after the inauguration. We see some functionality and stability in summer of 2025. Rumors had it that IRS might further reduce their 80,000 workforce. We're skeptical.
