munk-a

Defunding the IRS is nothing but an effort to reduce tax enforcement. People that have relatively straightforward finances can be trivially audited in a formulaic way with data that's on hand - a lack of human auditing resources tends to benefit those with more complex finances which also tend to be the people with a lot of money who can afford to lobby for less enforcement funding.

Also for reference, in 2024 the IRS had a rate of return of 415:1, they'll obviously target the lowest hanging fruit first but for every dollar of funding received they collected 415 dollars of tax revenue that would have been missed. This is an obscenely efficient organization.

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kerblang

I'm starting to realize that an LLM isn't gonna take my job, but it's beginning to make the job aggravating enough to quit anyhow. So many managers have decided they're going to have an AI Miracle and aren't interested in hearing otherwise, no matter what staff tells them.

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dmix

The headline say 40% based off something a single person said at a conference while the same article says the federal inspector general is saying a 16% reducation, as well as this quote:

> According to a report by the US Treasury Inspector General for Tax Administration, the IT department had 8,504 workers as of October 2024. As of October 2025, it had 7,135.

wrs

I started a new LLC in December and applied for an EIN (company taxpayer ID, required for doing essentially anything else, like opening a bank account). Normally this is done online and takes two minutes. This time the online process failed and I had to fax the form in. Six weeks later, they faxed back the number.

To be clear: when it failed, I just got an error code and was told to fax in the paper form. Which contains exactly the same information I had just typed into the website.

I don’t think the IRS needs fewer tech people.

SamoyedFurFluff

The thing that makes me nervous is the statement that they plan to use AI. AI? The thing that is mathematically incapable of perfection, on finance information, for which perfection is table stakes? Not to mention all the privacy issues (although that boat has sailed).

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throw0101a

Consist strategy in hampering income:

> "Starve the beast" is a political strategy employed by American conservatives to limit government spending[1][2][3] by cutting taxes, to deprive the federal government of revenue in a deliberate effort to force it to reduce spending. The term "the beast", in this context, refers to the United States federal government and the programs it funds, primarily with American tax money, particularly social programs[1] such as education, welfare, Social Security, Medicare, and Medicaid.[3]

* https://en.wikipedia.org/wiki/Starve_the_beast

Of course the GOP isn't very good at cutting spending, so deficits (and debt) tend to go up under their administration.

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hinkley

It always sets off my spidey sense when people say 'leadership' because too many conflate management with leadership, and that is unfortunately not always true.

Few managers are actually leaders. Many are trumped up scribes. And many leaders are not managers.

neuroelectron

They can always learn a new skill like programming.

analog8374

AI audits for everybody. Of course they're going to do it.

JTbane

Feels terrible to be an American rn, I'm preparing for major errors and delays in the processing of my tax return.

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vhiremath4

My good friend Sam Corcos is leading these efforts as the CIO of the Treasury Department. I know a good conspiracy theory about lowering taxes for the rich is much juicier, but if anyone is interested in learning more, he did an excellent interview on Chris Williamson’s podcast about how inefficient the IRS is:

https://youtu.be/u4odAXoqRT8?si=UCpIBm8yy5aIaJcg

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jmyeet

Remember when the Biden administration massively increased IRS funding and the Right collectively lost their minds? They fairly successfully pushed the idea that these agents were going to go after average citizens. They never were and you're way too gullible if you ever believed that.

Every $1 spent on the IRS returns roughly $12 in revenue [1]. This revenue doesn't come from W2 employees. It comes from exposing tax fraud from complicated tax schemes used by the very wealthy and corporations. That's why the Right lost their minds about it.

The idea that you save money by cutting IRS funding in the budget is just so laughably false that I'm surprised anybody believes it.

[1]: https://budgetlab.yale.edu/research/revenue-and-distribution...

mschuster91

Starve the beast in action. The less employees the IRS has, the lower the chance there are enough staff on hand to audit the truly uber rich properly.

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tokyobreakfast

If you're not asking, "how many of these people did nothing?" you've never worked in the public sector.

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jdross

8,500 IT workers in the IRS is insane.

They barely have any products, and they contract externally for so much other work

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