FRANKLIN, Tenn. (WTVF) — You probably know the saying. Nothing in life is certain except death and taxes.
What's different about this tax season, however, is the uncertainty surrounding the Internal Revenue Service.
The new administration's Department of Government Efficiency has laid off more than 7,000 IRS employees so far. President Donald Trump's hiring freeze means no new roles at the IRS can be filled. And that's not all.
In Franklin, a massive IRS office will close after DOGE decided to terminate the lease seven years early. The 135,373-square-foot space is at 127 International Drive.
So, how could all this impact taxpayers? We asked an expert.
Even before the DOGE cuts impacted the IRS workforce, I was interested in talking to SFA Wealth Management about tax season. Roughly 140 million tax returns are processed every year. Many people rely on tax refunds to pay off Christmas debt, buy spring clothes, or get the kids ready for camp.
I asked David Globke, vice president at the wealth management group, how people should spend their returns in this economy.
"It really depends on how far you've stretched yourself," David Globke said. "What we always tell a client at our firm is pay down high interest debt first before you even begin the thoughts of savings. If your debt load is low and you can't afford to save, you should try to put that in something discretionary, so you can save for yourself for retirement."
Our chat quickly shifted to what is on the minds of so many taxpayers. How will layoffs and lease terminations at the IRS impact them?
DOGE is hoping to save government money by slashing leases on government buildings. Reportedly, it plans to cut a total of 61 IRS spaces.
Globke said taxpayers' ability to get assistance before April's filing deadline could get tricky because of the cuts.
"Those appointments may not even be available by filing time," Globke said.
According to the DOGE website, it has achieved an estimated savings of $105 billion through a combination of cuts. It claims that ending the Franklin lease early will save about $32 million.
The IRS office in Franklin is currently the largest building in the state occupied by federal workers.
We've identified four other federal offices in Middle Tennessee that are also facing cuts. Here are the potential savings from those reductions:
- Social Security Office in Nashville: 4,133 sq. ft., saving $142,577
- Occupational Health and Safety Office in Nashville: 1,540 sq. ft., saving $33,110
- Food and Drug Administration Office in Nashville: 14,004 sq. ft., saving $388,552
- Natural Resources Conservation Office in Gallatin: 6,017 sq. ft., saving $119,016"
No doubt, there's a lot of confusion because of the speed at which all of these changes are happening.
"I think there's a lot that needs to be broken down and things need to be simplified because the changes are happening so rapidly it's difficult to keep a grasp," Globke said.
We are working to find out when the local leases will end and what that means for the workers.
Do you have more information about this story? You can email me at hannah.mcdonald@newschannel5.com.
Shred the gnar with Patrick - the snowboarding lawyer that will remind you not to take things too seriously! His cheeky, cheerful attitude is contagious. His only complaint? The lack of chairlifts at the Tennessee State Capitol of course. Watch his story for an instant pick-me-up on a frigid day.
-Rebecca Schleicher
