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IRS braces for $500bn drop in revenue as taxpayers skip filings in wake of DOGE cuts (www.independent.co.uk)

submitted 6 days ago by MicroWave@lemmy.world to c/economics@lemmy.world

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Summary

The IRS anticipates a $500 billion revenue loss as taxpayers increasingly skip filings following cuts from Elon Musk under Trump.

The IRS, set to downsize by 20% by May 15, has seen increased online chatter about avoiding taxes, with individuals betting auditors won’t scrutinize accounts.

Experts warned that workforce reductions could cripple the agency's efficiency.

Treasury officials predict a 10% drop in tax receipts compared to 2024.

Former IRS commissioners have criticized the cuts, warning of dysfunction and reduced collection capacity.

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[–] metaStatic@kbin.earth 91 points 6 days ago (2 children)

no taxation without representation.

[–] Makhno@lemmy.world 24 points 6 days ago (3 children)

Except taxes are still taken out of wages, filing or no

[–] rf_@lemmy.world 26 points 6 days ago (4 children)

So what’s the point of this dance we do every year where the govt is coyly asking us to guess how much we owe or are owed?

[–] neatobuilds@lemmy.today 29 points 6 days ago

To give hrblock a cut of your money

[–] Kecessa@sh.itjust.works 27 points 6 days ago (1 children)

Civilized countries skip that bullshit and you only need to fill taxes if you disagree with the statement they sent you

[–] Ledericas@lemm.ee 12 points 6 days ago

tax filing companies intentionally lobbied against any kind of centralized filing, it helps billionaires too.

[–] Ledericas@lemm.ee 10 points 6 days ago

to give TURBOTAX AND h&r block some of the money. turbo tax heavily spammed one of my emails ever since he won, when before they barely sent any kind of emails.

[–] Revan343@lemmy.ca 5 points 5 days ago

Selling TurboTax subscriptions

[–] suite403@lemmy.world 4 points 6 days ago (2 children)

Yea, my wife wants to wait and I'm like, why? We're just screwing ourselves. Assuming the IRS even processes refunds at this point.

[–] neon_nova@lemmy.dbzer0.com 3 points 6 days ago

I have to pay as taxes are not taken out of my pay regularly. But, I am still paying it because I don't want to get audited in 5 years and they be like you need to pay it plus interest.

[–] MutilationWave@lemmy.dbzer0.com 1 points 5 days ago

If you're owed money, take it, then adjust your shit at work so that doesn't happen anymore. I owe money because of contract work I did so I'm filing for an extension and see how it shakes out.

[–] gamermanh@lemmy.dbzer0.com 1 points 5 days ago (1 children)

You know you can tell your workplace not to do that, right?

[–] douglasg14b@lemmy.world 0 points 5 days ago

And then you get fucked by automatic IRS systems that put a lean on everything you own?

Your employer already reports out what you're paid. The IRS already knows, and automated systems can easily harm you.

[–] surewhynotlem@lemmy.world 6 points 6 days ago

That has to be paired with a literal violent overthrow of the government. Otherwise it doesn't work. Just ask D.C.