Why the IRS Is Breaking and What Taxpayers Need to Know Now

What started as a conversation about making taxes approachable turned into a revealing deep dive into the current state of the IRS — and why taxpayers, practitioners, and business owners are feeling the fallout.

In this special episode of The Lyon Share Podcast, Ed Lyon is joined by tax attorneys and tax communicators Mary Lundstedt and Ashlee Hall for an unfiltered discussion on IRS dysfunction, ERC chaos, audit bottlenecks, and why accountability matters more than ever.

This episode pulls back the curtain on what’s really happening inside the IRS, how technology and staffing cuts are colliding, and why even correct tax positions are being denied without review.

About the Guests

Mary Lundstedt
Tax attorney, former Bloomberg and Thomson Reuters professional, and co-creator of a growing tax education community on LinkedIn. Mary specializes in tax controversy, IRS accountability, and making complex tax issues understandable — and sometimes even entertaining.

Ashlee Hall
Tax attorney and former Deloitte professional with deep experience in ERC, IRS audits, appeals, and proactive tax planning. Ashlee bridges planning and controversy, helping taxpayers navigate both opportunity and enforcement.

Key Topics Covered
Why the IRS is more chaotic than ever

Staffing cuts, decentralization, outdated systems, and failed automation efforts are creating longer delays, misrouted cases, and unexplained denials.

ERC fallout and “Disallowance Gate”

How AI-driven ERC denials clogged courts, froze legitimate refunds, and exposed serious flaws in IRS decision-making.

No law requiring the IRS to issue refunds

A shocking reality most taxpayers don’t know — and why it should concern everyone.

Technology without infrastructure

Why AI can’t fix broken systems built on decades-old databases and magnetic tape.

Practitioners now educate the IRS

Experienced tax professionals increasingly spend time teaching IRS agents how the law applies — instead of the other way around.

Loper Bright and agency overreach

How recent Supreme Court rulings challenge unchecked regulatory power and what it means for tax enforcement.

Why small government without preparation creates bigger problems

Reduced enforcement staffing without functional systems leaves taxpayers trapped in unresolved disputes.

Key Takeaways

Fewer IRS agents does not mean fewer problems

Legitimate claims are being denied without review

Technology alone cannot replace trained professionals

ERC exposed systemic failures that affect all taxpayers

Accountability matters more than ever

Preparation and documentation are essential defenses

Memorable Quotes

“There is no statute requiring the IRS to issue your refund.”
“The IRS is denying first and reviewing later — if ever.”
“We’re no longer just representing taxpayers. We’re educating the IRS.”
“Technology doesn’t fix chaos — infrastructure does.”

Who Should Listen

Business owners and entrepreneurs

Tax professionals and advisors

ERC claimants

Anyone worried about audits or refunds

Taxpayers who want to understand enforcement risk

Why This Episode Matters

This isn’t about politics.
It’s about process, fairness, and what happens when systems fail.

Understanding the current IRS environment helps taxpayers:

Set realistic expectations

Protect themselves proactively

Avoid panic when issues arise

Connect & Subscribe

Follow Ed Lyon on LinkedIn
Visit EdwardLyon.com
Subscribe to The Lyon Share Podcast on Apple Podcasts, Spotify, and YouTube
The Lyon Share Podcast is a practical, no-nonsense show focused on tax strategy, financial decision-making, and real-world planning for business owners and high-income earners.

Hosted by CPA and tax strategist Ed Lyon, each episode breaks down complex tax concepts into clear, actionable insights covering small business taxes, retirement planning, real estate strategies, IRS rules, and proactive year-round tax planning.

This podcast is for entrepreneurs and professionals who want to stop overpaying taxes, understand the rules before they change, and make smarter financial decisions with confidence.

Видео Why the IRS Is Breaking and What Taxpayers Need to Know Now канала Edward Lyon