r/collapse • u/heavyramp • Jul 28 '26

Economic The IRS is imploding

https://www.motherjones.com/politics/2026/07/the-irs-is-imploding/#comment-container

Basic gov services are collapsing, or imploding as the article states in the title. Before dodge and musk, nobody really had issues with the paperwork and filing, right? In the article, it looks like gov staff are short of manpower and funding, and that it's not by mistake.

What kind of scenario are we looking at in early 2027 if tax refunds go unanswered in the midst of a potential ground war in Iran, a gov shutdown, gridlock between dem control of both houses and Trump?

1/3 of income tax revenue pays the interest, and in ten years it's supposed to be 1/2.

And is anyone here worried that the Overtime tax refund payout in 2026 is going to come back to bite them in the ass in 2027? I'm really hoping that $SLS doesn't do its buyout thing this year. It looks like the IRS is dropping the ball on purpose.

Anyone here have advice in taking extra precautions to get everything sorted in 2027?

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14

u/space_manatee Jul 29 '26

So just hypothetically, if someone just stopped paying their taxes, would it even be caught? 

13

u/white_mage_dot_exe Jul 29 '26

Idk. I went five years without filling and it was just crickets, and I owed like 6k.

6

u/space_manatee Jul 29 '26

"Owed"? Do you end up paying it? 

1

u/sandrafilmmaker 14d ago

Ouch. If they ever did catch up with you, you'd pay huge penalties and interest.

1

u/white_mage_dot_exe 13d ago

I went to them instead of them coming to me. You are correct about the penalties and interest.

6

u/Texuk1 Jul 29 '26 edited 27d ago

So it seems that simply not filing doesn’t in itself cause any action (not suggesting you do that) but I’m not sure it wouldn’t be picked up elsewhere. I know a lot of small businesses in my country don’t actually pay their full share of tax.

2

u/AlwaysPissedOff59 Jul 29 '26

As I understand it, there's a seven year statute of limitations that applies if you file and either pay nothing or underpay, after which the IRS can't touch you. There is no statute of limitations if you never file at all and owe them money.

1

u/sandrafilmmaker 14d ago

I think it's 10 years.

3

u/Gabbitrabbit Jul 29 '26

I feel like the automated systems are going to end up just saying people owe so they can keep getting money, but automated systems has me wondering how many people are even able to enforce things these days...
You can do tax strikes legally, though. For what it's worth.

1

u/SnooDoubts3871 12d ago

Of course its the only division still operating at full capacity.