The Woodard Report

TWR Podcast Episode 121: IRS Shakeups, AI Breakthroughs: Turning Industry Chaos into Opportunity

Written by The Woodard Report Team | May 7, 2025 5:34:37 PM

Tax attorney Eric Green on automation, enforcement, and the massive opportunity for advisory services

In this episode of The Woodard Report Podcast, Heather Satterley welcomes Eric Green—founder of The Tax Rep Network and one of the nation’s leading experts on IRS representation—to unpack the chaos unfolding at the IRS. With mass layoffs, growing automation, and enforcement heating up, Eric breaks down how tax pros and accountants can step into a critical new advisory role to meet the moment—and build stronger, more profitable practices.

IRS downsizing is real—and it's creating a mess

Eric Green explains that recent IRS operational changes are making it harder for taxpayers to get help when they need it. He notes that the agency has laid off more than 2,000 ACS phone support agents and plans to close a third of its taxpayer assistance centers—at the same time that its digital infrastructure still lags behind.

“The ability for people to get to a human being, which was already bad, is going away,” Eric says. “But the online portals aren't really updated yet.”

Meanwhile, enforcement actions are accelerating—not slowing—through automation.

“We got a final notice on $600,000… It’s just all going automated,” he adds.

Chaos creates opportunity for trained advisors

With fewer humans at the IRS and more confusion for taxpayers, Eric sees a growing demand for representation.

“There are 26 million taxpayers in trouble… and these people need help.”

His advice? Tax pros should upskill now, get credentialed, and learn how the IRS system works from the inside out.

“There’s a huge need—and these folks will pay. If you solve someone’s tax nightmare, you’ve got a client for life.”

Automation isn’t replacing tax pros—it’s freeing them to grow

AI and automation are transforming the tax practice—but it’s not about replacement. It’s about leverage.

“Now you can build a machine. You go from being an employee of the worst boss in the world—yourself—to actually being a business owner.”

Instead of fearing technology, Eric urges firm owners to use it to increase capacity, reduce overhead, and scale up advisory services.

AI is here—and moving fast

Heather notes that change is accelerating:

“We're no longer saying, ‘In two years.’ It’s six months now. You’ve got to start training your team and implementing now.”

Eric agrees. Automation in tax isn’t just coming—it’s already improving accuracy, speed, and scalability.

Representing clients is high-value, high-demand work

Many tax pros don’t realize how powerful IRS representation can be. If you’re an EA, CPA, or attorney, you can work directly with the IRS and dramatically increase your rates.

“You're billing $150 an hour, you do representation, you're $300. And $300 is dirt cheap. My staff bills higher than that.”

And representation work is sticky: when you solve a client’s crisis, they’ll trust you for everything from tax prep to advisory.

How to “wake the dead”: Reopening bad assessments

In a preview of his Scaling New Heights session, Eric explains how to reopen final IRS assessments—especially CP2000 mismatches.

“You can do an audit reconsideration. There’s a doubt as to liability offer… You can actually sue in bankruptcy court if it’s a business.”

As automation increases and human review decreases, bad assessments will become more common—and pros who know how to fix them will be in high demand.

The IRS isn't getting kinder—just colder

Despite public messaging about being more taxpayer-friendly, the IRS is automating aggressively.

“It’s not surgical. It’s a chainsaw approach. That shock to the system is going to take a long time to work its way through.”

Final advice: Get ready—or get left behind

Eric’s golden rule for the next 6–12 months?

“There’s an opportunity here. You can literally transform your practice… and you’ll wish you had done it sooner.”

Listen to the full episode

Explore more in The Woodard Report Podcast Episode 121: The IRS Shake-Up: What It Means for Your Firm and Your Clients at woodard.com/podcast.

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