Rep. Joyce Questions Sec. Bessent on IRS Budget Cuts and Modernization

IRS Budget Cuts and IT Modernization

• 🎯 The FY2026 skinny budget proposes a $2.5 billion cut to the IRS.
• 📉 Congress has already reduced IRS funding by approximately $41.7 billion in recent years.
• 💡 Secretary Bessent stated the IRS is 30 years behind on IT modernization, with up to $50 billion potentially wasted.
• 🛠️ The proposed budget decrease is largely focused on IT spending to right-size the agency.

IRS Staffing and Historical Context

• 🚶‍♂️ A significant number of IRS employees have opted for early retirement or regular retirement.
• ⚖️ The goal is to return the IRS to its pre-Inflation Reduction Act staffing and infrastructure levels.
• 📌 Bessent emphasized that these changes aim to streamline operations and benefit taxpayers.