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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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[–] pezhore@infosec.pub 64 points 6 days ago (2 children)

I filed mine mostly because I knew I was going to be getting a refund. I wanted to make sure that I got that money before the IRS was completely fucked. This may be the last year that I purposely overestimate my tax burden (e.g. paying more in taxes than I ideally should).

In the past, people would say that you're giving the government an interest-free loan - I didn't really care about that because I knew I would get that money back later. Now? I'm not so sure.

[–] RagingRobot@lemmy.world 4 points 5 days ago (1 children)

Yeah I usually do the same just to be sure I will never owe anything now I'll probably change it so I always owe

[–] MutilationWave@lemmy.dbzer0.com 2 points 5 days ago (1 children)

This is the right way to go unless you're totally incompetent with money or a gambling addict.

[–] Anti_Iridium@lemmy.world 2 points 5 days ago

Or living paycheck to paycheck making this the only way to save for big purchases. Not saying I was the best with money, but it was quite nice to guarantee a chunk of money at the beginning of the year.

[–] douglasg14b@lemmy.world 1 points 5 days ago

If you are an individual and not a business then the IRS already knows what you have been paid as long as you have been paid by a business.

It's already reported.

You can't dodge your taxes unless you are wealthy or a large corporation, us peons are already under the thumb.