IRS to pause modernization efforts under Trump

The Internal Revenue Service (IRS) is pausing the operational overhaul it started during the Biden administration and is set to make changes to its workforce, senior Treasury Department officials said on a Friday call with reporters.
A Treasury Department official said that the U.S. tax collection agency has an opportunity to make a strategic pause on its modernization effort.
The official took an indirect swipe at the initial $80 billion in additional funding given to the IRS in Democrats’ 2022 Inflation Reduction Act, saying that a large investment often yields a small outcome.
The announcement of a pause follows Thursday reports in multiple media outlets saying the IRS would shed as much as 20 percent of its workforce amid inquiries at the agency by the Department of Government Efficiency (DOGE).
The Washington Post reported Thursday that DOGE officials told the acting IRS chief to get rid of more than 18,000 jobs, representing about 20 percent of the agency’s workforce.
Treasury Department officials said Friday they didn’t have a specific number in mind for the amount of IRS jobs they want to cut but that the agency had an opportunity to realign its workforce.
The IRS announced it was getting rid of nearly 7,000 trial employees earlier this year.
Treasury Department officials also said the Direct File program launched during the Biden administration, which is an online portal allowing taxpayers to file their taxes directly with the IRS, was being reviewed. Treasury Secretary Scott Bessent has said the program would be available for the 2025 tax season.
Multiple outlets also reported Thursday that acting IRS Commissioner William Paul, a career agency employee, would be replaced by Andrew De Mello, who was nominated as the inspector general for the Education Department during Trump’s first term.
Treasury officials declined to comment on these reports on the Friday call with reporters.
Republicans have been gunning for the funds enabling the IRS overhaul since it was first announced in 2022. When Republicans took control of the House in 2023, the first piece of legislation they passed was a rescission of the IRS funds.
During funding fights over the course of 2023 and 2024, Republicans were able to claw back 20 percent over the initial $80 billion funding boost for the IRS and managed to freeze most of the remaining funds set aside for increased audits and additional tax enforcement, much to the annoyance of the Biden White House during its final weeks in office.
As of September last year, the IRS spent $9 billion, or 16 percent, of the remaining$60 billion in Inflation Reduction Act (IRA) funding that was available to the agency, the Treasury Inspector General for Tax Administration (TIGTA) said in a report released Friday.
The largest expenditure has been $3.7 billion for employee compensation, the TIGTA report concluded.
Treasury Department officials said Friday they also were reviewing enforcement practices at the IRS.
Each year, the IRS fails to collect around $700 billion in taxes owed to the government, an amount that’s known as the tax gap. Former IRS commissioner Charles Rettig told Congress in 2022 that the gap could be as large as $1 trillion, or nearly 4 percent of U.S. gross domestic product in the last year that it was measured.
-
USDA pauses funding to University of Maine after Trump clash with governor
The U.S. Department of Agriculture (USDA) announced Tuesday it is temporarily pausing funding to the University of Maine System, a move that comes after President Trump and the state’s governor got ...The Hill - 3d -
Judge denies Pulitzer board’s request to pause Trump lawsuit during presidency
A Florida judge Monday denied the Pulitzer Prize Board’s request to pause President Trump’s defamation lawsuit while he is in the White House, an argument Trump’s lawyers themselves have made in ...The Hill - 3d -
US pauses water-sharing negotiations with Canada over Columbia River
Break in talks comes as Trump escalates trade war with Canada and threatens its sovereignty. The United States has paused negotiations with Canada on a key water-sharing treaty as Donald Trump ...The Guardian - 2d -
Panama Will Release Migrants From Detention Camp, Challenging Trump’s Deportation Efforts
More than 100 people deported by the United States have been held in a remote camp for weeks. Their release could pose a challenge to President Trump’s deportation efforts.The New York Times - 6d -
Greenland’s likely new prime minister rejects Trump takeover efforts
‘We don’t want to be Americans. We don’t want to be Danes. We want to be Greenlanders,’ says Jens-Frederik Nielsen. Greenland ’s probable new prime minister has rejected Donald Trump ’s effort to ...The Guardian - 1d -
Trump administration halts funding for two cybersecurity efforts
The Trump administration has cut millions of dollars in federal funding from two cybersecurity initiatives, including one dedicated to helping state and local election officialsABC News - 3d -
Federal Grant Program Opens Door to Elon Musk’s Starlink
Under new rules from President Trump’s Commerce Department, a $42 billion high-speed internet effort will no longer favor fiber-optic cable.The New York Times - Mar. 6 -
Kleptocrats to benefit from Trump DoJ’s anti-corruption pause, experts warn
Former prosecutors criticize Pam Bondi’s decision to halt enforcement of bribery laws as short-sighted and dangerous. A radical makeover at the US department of justice has seen key drives to fight ...The Guardian - 4d -
Justices to Consider Trump Request to Lift Nationwide Pause on Birthright Citizenship Order
The justices requested responses by early April from the states and groups who had challenged the executive order.The New York Times - 3h -
IRS chief counsel demoted and replaced with DOGE ally
IRS' top lawyer replaced amid DOGE's alleged push to share taxpayer info with other federal agencies.CBS News - 1d -
Stocks tank and egg prices soar under Trump | Lloyd Green
Once again, the American economy is under the gun and under a microscope. In 2016, voters in the UK opted to leave the European Union hoping that the day after would deliver something better. ...The Guardian - 2d -
Trump economic team’s effort to calm recession fears falls flat
Calling bad news a temporary phenomenon didn’t work out well for Biden and it won’t for Trump, former Treasury Secretary Larry Summers said.MarketWatch - 2d -
How the Stock Market Has Done Under Trump
When President Trump entered his first term, stocks were steadily marching upward. This time, the trajectory has inverted.The New York Times - 13h -
DOD schools allowed to resume athletic events this weekend after pause
Sporting events had been postponed in response to President Trump's executive order restricting government-funded travel.Yahoo Sports - 9h -
Pace of deportation flights under Trump is slower than under Biden
Countries that received more deportation flights don't see major changes and predict that the year will end with fewer deportees than previous years.NBC News - 1d -
Trump’s Birthright Citizenship Order Reaches the Supreme Court
Trump administration lawyers asked the justices to limit the sweep of decisions by three lower courts that issued nationwide pauses on the policy.The New York Times - 23h -
Received an audit letter from the IRS? Do these 3 things now
It's never fun to get this type of letter from the IRS, but there are steps you can take to resolve the situation.CBS News - 4d -
'Wealthy tax dodgers' could benefit from IRS layoffs, Democrats warn
Democrats says "wealthy tax dodgers" could see less IRS scrutiny amid agency layoffs. Here's what to know.CNBC - 3d -
Commerce secretary says Trump wants TikTok deal done under current deadline
Commerce Secretary Howard Lutnick on Friday said President Trump would like to hammer out a deal on TikTok's future ownership under the current deadline, saying the president "doesn't like to ask ...The Hill - 7h -
Champagne and Parmigiano under threat from Trump’s tariffs
Producers warn Europe’s finest foods and wine could become unaffordable for ordinary US consumersFinancial Times - 4d -
5 risks facing the US economy under Trump
The fundamentals of the U.S. economy are in good shape, with low unemployment and robust growth in recent quarters. But warning signs have been flashing and markets have been sliding amid policy ...The Hill - 1d -
Under G.O.P., Congress Cedes Power to Trump, Eroding Its Influence
On spending, oversight and other issues, Republican lawmakers have willingly ceded power traditionally reserved for Congress to the Trump White House.The New York Times - 15h -
What alcohol would cost more under 200% Trump tariff?
Experts say President Donald Trump's proposed tariff on European Union alcohol would be disruptive to the U.S. market and consumers.The Hill - 11h -
UN to rent Bangladesh property owned by former regime associate
Sobhan family under scrutiny amid efforts to claw back billions of dollars allegedly lost under Sheikh Hasina’s ruleFinancial Times - 3d -
Evening Report — Senate Democrats under pressure over stopgap
Presented by National Council on Aging {beacon} Evening Report TRUMP FIRST 100 DAYS © Greg Nash Senate Dems under pressure over stopgap THE PRESSURE IN CONGRESS has shifted to Senate Democrats, ...The Hill - 2d -
Sen. Lindsey Graham: A pause in U.S. help for Ukraine could be 'worse than Afghanistan'
Sen. Lindsey Graham warned of potential disastrous consequences for Ukraine if the Trump administration doesn't restart military aid and intelligence sharing.NBC News - 4d -
House Democrats hold annual retreat under specters of shutdown and Trump
House Democrats are spending three days in Leesburg, Virginia, for their annual retreat to plan their path forward as a partial government shutdown looms and Republicans advance President Trump's ...CBS News - 1d -
'Wealthy tax dodgers' could benefit from IRS layoffs, Democrats warn
As the IRS faces mass layoffs, Congressional Democrats warn those staffing cuts could undermine the agency’s progress in collecting unpaid funds from “wealthy tax dodgers.”NBC News - 3d -
Live updates: Trump meets with NATO leader; judge blasts effort to fire federal workers
The Senate must pass a short-term funding bill before the government shutdown, while the White House has pulled its nominee for the CDC and President Trump has threatened Europe with more tariffs ...The Hill - 1d -
Trump's terms for restarting Ukraine aid are still murky
"The president of the United States did not say it has ended. He said it is paused," said U.S. envoy to Ukraine Keith Kellogg.CBS News - 4d -
Meet the Federal Bureaucrat Who’s Become the Face of DOGE Resistance
Karen Ortiz, an administrative judge at the EEOC, went public with her concerns about mass firings and adminstration efforts to pause all LGBTQ discrimination cases, achieving an unusual moment of ...Inc. - 3d -
What does the first job report under Trump mean for the economy?
A new jobs report released Friday shows 151,000 new jobs were added last month short of the 170,000 jobs expected. The early data does not yet take into account the mass layoffs across the federal ...NBC News - 6d -
At Columbia, Tension Over Gaza Protests Hits Breaking Point Under Trump
There were protests, arrests, the departure of the school’s president. Then, a new administration arrived in Washington.The New York Times - 2d -
Changes to Justice Department's Civil Rights Division under Trump
The Justice Department last year reached an agreement with the city of Louisville to reform its police department in the wake of the fatal police shooting of Breonna Taylor, which occurred five ...CBS News - 23h -
Creating art under Trump will become harder but it will remain vital | Seph Rodney
The president’s attacks on diversity and immigration have already affected many artists and will affect many more in the coming months. One of the most pernicious effects of a bully’s intimidation ...The Guardian - 15h -
Ukraine tries to bolster troops in Kursk as Putin's forces advance
Ukraine tries to reinforce troops in Russia's Kursk region as Putin's forces retake ground amid Trump's aid and intel pause.CBS News - 4d -
States sue to block dismantling of Education Department
The lawsuit asks a judge to immediately pause the Trump administration's mass firings and declare that the dismantling of the Department of Education unlawful.ABC News - 1d -
As Ebola Spreads in Uganda, Trump Aid Freeze Hinders Effort to Contain It, U.S. Officials Fear
Two more people are reported dead from the disease, and dozens are in isolation, as the outbreak grows.The New York Times - Mar. 7 -
Trump considers four bids to buy TikTok as deadline for deal looms
President Donald Trump is considering four bids to purchase the social media app TikTok. NBC News’ Steve Romo reports on who the potential buyers could be ahead of the pause on TikTok set to expire.NBC News - 3d
More from The Hill
-
Live updates: Senate taking final vote on averting shutdown; Trump lays out plan for DOJ
The Senate inched closer to funding the government before the deadline Friday. Needing 60 votes to keep the lights on and prevent a shutdown beginning Saturday morning, the House-passed continuing ...The Hill - 32m -
Tech stocks return to earth
Presented by Ericsson — Plus: Exclusive look at "Middle Tech" AI push {beacon} Technology Technology The Big Story Tech stocks return to earth as AI explosion fizzles The world’s biggest ...The Hill - 36m -
Watch live: NASA launches SpaceX mission to return Boeing Starliner crew from space station
NASA and SpaceX are set to launch the Crew-10 mission to retrieve astronauts Suni Williams and Butch Wilmore from the International Space Station on Thursday evening. Williams and Wilmore, part of ...The Hill - 42m -
ACLU releases video of Mahmoud Khalil's ICE arrest
The American Civil Liberties Union (ACLU) on Friday released the full video of Palestinian activist and Columbia University graduate Mahmoud Khalil’s arrest last weekend as outrage grows over his ...The Hill - 45m -
Judge denies temporary relief in lawsuits challenging Guantánamo migrant detentions
A federal judge on Friday declined to grant temporary injunctive relief to plaintiffs in two lawsuits challenging the Trump administration’s efforts to detain migrants at Guantánamo Bay. U.S. ...The Hill - 55m
More in Politics
-
Live updates: Senate taking final vote on averting shutdown; Trump lays out plan for DOJ
The Senate inched closer to funding the government before the deadline Friday. Needing 60 votes to keep the lights on and prevent a shutdown beginning Saturday morning, the House-passed continuing ...The Hill - 32m -
Tech stocks return to earth
Presented by Ericsson — Plus: Exclusive look at "Middle Tech" AI push {beacon} Technology Technology The Big Story Tech stocks return to earth as AI explosion fizzles The world’s biggest ...The Hill - 36m -
Watch live: NASA launches SpaceX mission to return Boeing Starliner crew from space station
NASA and SpaceX are set to launch the Crew-10 mission to retrieve astronauts Suni Williams and Butch Wilmore from the International Space Station on Thursday evening. Williams and Wilmore, part of ...The Hill - 42m -
ACLU releases video of Mahmoud Khalil's ICE arrest
The American Civil Liberties Union (ACLU) on Friday released the full video of Palestinian activist and Columbia University graduate Mahmoud Khalil’s arrest last weekend as outrage grows over his ...The Hill - 45m -
Judge denies temporary relief in lawsuits challenging Guantánamo migrant detentions
A federal judge on Friday declined to grant temporary injunctive relief to plaintiffs in two lawsuits challenging the Trump administration’s efforts to detain migrants at Guantánamo Bay. U.S. ...The Hill - 55m