economy
What's Going on With the IRS?
The Trump administration's budget cuts are looming over Tax Day.
TL;DR
- The IRS has experienced a significant decrease in staffing, losing nearly a fifth of its employees, which impacts its ability to address backlogs and outdated technology.
- Budget cuts have led to the departure of many senior employees, resulting in a loss of institutional knowledge and experience.
- Changes in immigration enforcement have led the IRS to share data with Homeland Security, potentially discouraging undocumented individuals from filing taxes.
- The IRS is struggling with a substantial "tax gap" (the difference between taxes owed and collected) and a backlog of unprocessed returns.
- Despite technological advancements in some areas, much of the IRS's essential infrastructure relies on outdated programming languages.
- Federal spending on the IRS is presented as a sound investment, with audits of high-income earners yielding significant returns.
- Customer service operations have been strained, requiring staff from other divisions to handle calls, regardless of their expertise.