Radio Interview (February 20, 2026)

Listen to this interview – MP3

[00:00:00] Host:
We’re going to say good morning to Steve Klitzner, the law offices of Steve Klitzner, FloridaTaxSolvers.com. Good morning to you, Stephen. How are you, sir?

[00:00:08] Steven:
Good morning, Michael. Doing great today.

[00:00:13] Host:
Excellent. So, you had mentioned to me just before we went on the “big, beautiful bill,” and we are hearing about that in relation to government shutdowns and that kind of thing. We still have a partial government shutdown. I had a flight that was canceled on me last minute just last weekend. I don’t know if that’s directly related or not, but the big, beautiful bill apparently is keeping a number of things going. And the IRS is up and going as well. What kind of changes did the big, beautiful bill, so to speak, create or cause for the taxpayer that we should be aware of?

[00:00:51] Steven:
Well, one thing is that it permanently locks in those Trump-era tax cuts. So that’s good. New tax brackets, higher standard deductions, some new deductions that didn’t exist before. And for people behind on their taxes, that’s a big deal too, because when we go back and file old returns, the math is going to look different. Some people who thought they may actually get money back aren’t. And some people who thought that they owed may actually get some money back. So don’t assume the numbers you remember from a few years ago.
I actually had somebody come in this week who hasn’t filed since around 2010. But the IRS only goes back six years. And when I started looking at things, I said, you know, I think you may be getting money back the last few years. Let’s get those returns done.

[00:01:51] Steven:
Another thing is that payroll withholding tables didn’t adjust to the new law. So you may have been paying in too much or too little over the last few years. And some people may get a surprise. There may be a surprise bill and you may start getting some surprise notices from the IRS. So you have to take a look at your withholdings and make sure you’re withholding the right amount coming up for 2026.

[00:02:19] Host:
So you could retroactively be penalized for under-withholding, is that right?

[00:02:24] Steven:
Well, yeah, for the most part. If they don’t change the withholding tables and you’re withholding at last year’s rates, that might not be enough. Or you may actually end up getting more of a refund than you thought.
And then we’ve got what everyone read about — the no tax on tips. So that doesn’t apply to everybody. My first thought was, as an attorney, I’ll just charge people a couple hundred bucks and take the rest in tips. It doesn’t work that way. This is for service workers, hospitality workers — anybody whose income really depends on gratuities. And there are some limitations, but this can dramatically change the current income picture for people.

[00:03:17] Steven:
They may have lower taxable income, which could help if they owe the IRS from years ago. And then we’ve got the overtime at the federal level. People who rely on overtime to make ends meet — this will put more money in their pockets, which is a good thing if you have IRS problems. Of course, now the IRS thinks you’re making less taxable income, so what you may have to pay for older taxes is less, because not all overtime and not all tips are going to be taxable. So that’s another big thing for many workers.

[00:04:00] Host:
Interesting. Stephen Klitzner, law office of Stephen Klitzner, PA tax attorney, FloridaTaxSolvers.com. …
Taxes are most certainly complicated. People don’t always get them right, even if they try. And you might find yourself having complications and starting to get those letters from the IRS. I’m intrigued a little bit by the person you mentioned who was a non-filer since 2010. That’s 16 years of looking over your shoulder. That must not be too comfortable.

[00:04:52] Steven:
No. And they had a list of questions. I felt bad because people prepare all these questions like going to a doctor. I nicely cut them off and said, we don’t need to talk about all these things — putting your house in a trust, inheritance — it doesn’t matter. I don’t think you owe any money.
So it was quite amusing. They felt a lot better. But now we’ve got to actually see the numbers.

[00:05:27] Host:
They must have gotten a stack of notices though, did they not?

[00:05:30] Steven:
No. They’ve been under the radar completely. Some people just are. But they’re getting older and wanted to put this behind them. They also came into some money, which concerned them. But they’ve been hiding under the sheets for quite some time.
Now both of them are W-2 employees, so unless they’re under-withholding a lot, they’re not going to owe that much.

[00:06:05] Host:
…That peace of mind that you bring is invaluable. You can work on solutions to their benefit and represent them to the IRS, whereby they might not even have to talk to the IRS now.

[00:06:35] Steven:
Yeah — they’ll never have to talk to them. That’ll be up to me. Once I get the transcripts, I’ll see what the IRS thinks they made and make sure the IRS hasn’t filed returns for them. One key that gave me optimism is they haven’t moved. The IRS knows where they are. Some people move ten times, and the IRS sends letters to a 15-year-old address that hurts their rights.
In their case, I felt optimistic we’ll be OK.

[00:07:56] Host:
That brings up a very good point — the best thing they did was contact you. … There are so many intricacies in dealing with the IRS that people don’t realize — for instance, you just mentioned three years for a refund and six years for returns. The average taxpayer has zero relationship with the IRS. That’s where you come in.

[00:08:45] Steven:
Yeah. Customer service is way down. Another big thing we’re seeing is the IRS rolling out new digital enforcement tools. They’re processing powers of attorney faster, tracking cases better — more automation. But they also have about a 27% staffing shortage and leadership turnover.
So automated parts are faster, but human parts are slower. If they levy your bank account, wages, or file a lien, notices go out quicker. But then you need a real person to fix it — and they’re not there. So taxpayers can’t ignore IRS mail anymore because the window to respond is shorter.

[00:10:22] Host:
Given automation and staffing, how about audits? What’s the rate now versus before?

[00:10:30] Steven:
We’re seeing more correspondence audits because there aren’t as many people physically auditing. The frustration is responding to them. Fortunately, it can’t be assessed until we get to appeals or tax court. As long as we’re on it early, they can’t steamroll people. But we are seeing a lot of them.

[00:11:29] Host:
We’ve been talking about international relations… but people might find they no longer have a usable passport due to tax issues. Is that still happening?

[00:11:57] Steven:
Yes. If someone owes around $65,000 or more and their passport is certified, they can’t renew or get a new one. They’re starting a pilot program in the Northeast to make it easier for a revenue officer to go to the State Department and say “take that passport.” It hasn’t happened widely yet. As long as we’re working with the IRS on resolution, passports will be safe.

[00:12:57] Host:
…Those 800-number companies promising solutions — they don’t have your relationships locally.

[00:13:34] Steven:
It’s a shame. They dupe people. You hear them on the radio and think they must be legitimate. But more often than not, you might as well give your money to the IRS. They don’t do the work and you get into deeper trouble.

[00:14:13] Host:
You can also converse with Josh on the website…

[00:14:41] Steven:
I better say he is intelligent or his mother — my wife — will yell at me. Josh is great. He’s usually the first person people speak to, gets background, sets up a time with me, and manages client relations. Then my staff and I deal with the IRS.

[00:16:10] Host:
So what else should we be aware of right now?

[00:16:16] Steven:
That’s it. Tax season is here. Corporate taxes March 15th, personal April 15th. You can get an extension to file, but not to pay — payments are still due April 15th. And the earlier you find a preparer, the better. If you don’t have one, call me and I’ll refer you to someone appropriate.

[00:16:58] Host:
We appreciate your expertise, sir. Thank you for being here this morning. We’ll talk again soon.

[00:17:18] Steven:
Thanks. Appreciate it, Michael.

[00:17:19] Host:
Have a good weekend.

[00:17:21] Host:
It is Steve Klitzner, law office of Steve Klitzner, tax attorney, South Florida and the Florida Keys…