By Ashley Burnside

As we anticipate Tax Day, the April 15 deadline for Americans to file their annual tax return, many households are waiting for their refunds, which will include critical tax credits like the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). Although the wealthy can find ways around paying taxes, the tax filing process should be designed to ensure that everyone pays their fair share. That’s because the revenue from our tax returns is reinvested into critical public goods that we all rely on, like public schools and roads.

But this year, the Internal Revenue Service (IRS) is under threat, and the agency will have less bandwidth and fewer resources to process tax returns and provide support to the taxpayers who need it. The proposed IRS layoffs and funding cuts to the agency will harm taxpayers and hurt our economy. And the data requests for access to payment systems by Elon Musk’s Department of Government Efficiency (DOGE) are a threat to the security and protection of Americans.

IRS Funding and Staffing is a Critical Investment to Help Americans File Their Taxes

Having a fully staffed and funded IRS is important to our country’s well-being. Workers are required to file their taxes each year, but the process can be expensive, time-consuming, and complicated. Many taxpayers turn to private companies like Turbo Tax and H&R Block to file their taxes because they aren’t able to access free services within their communities—leading to an average cost of $140 to file taxes.  Americans spend an average of 8 hours filing their return.

All of us have surely been left scratching our heads at some point when trying to understand what numbers to use when reporting our income or whether a particular deduction applies to our circumstances. For gig workers and college students, the tax filing process can be especially complex. Tax filers are often scared to file incorrectly and to be penalized—creating even more anxiety in an already complicated process.

For all these reasons, we must have a fully funded and fully staffed IRS with comprehensive customer service available and resources to make tax filing more accessible. But the Trump Administration has threatened to cut up to half of the IRS workforce and to dramatically cut funding for the agency.

When we invest in IRS staff who can help audit wealthy taxpayers, this leads to more revenue for our nation. Unfortunately, these staff are under threat from the Trump Administration. Through the Inflation Reduction Act, lawmakers invested $80 billion in the IRS, and this additional revenue has already had positive benefits. The IRS improved its ability to offer customer service – reducing phone wait times to an average of just over 3 minutes during the 2024 tax filing season. The agency answered about 90 percent of phone calls during the filing season as well. The IRS also used the increased funding to begin improving outdated interfaces and technology and to audit complex, high-income tax filers who evade paying their taxes. As of December 2024, the IRS collected $1.3 billion from very wealthy taxpayers who had not paid their overdue tax debt or filed their tax returns. Importantly, every $1 spent on auditing individuals with high incomes garners an additional $12 in revenue for our nation.

Investments in the Direct File Tool and Taxpayer Assistance Clinics are Vital

The IRS has established the Direct File tool, which provides a free and easy way for people to file their taxes online. In 2024, the program’s first year, 12 states used Direct File and users saved an estimated $5.6 million in tax preparation fees. This year, 25 states have implemented the tool. Lawmakers should invest in the IRS to help make the Direct File tool permanently available. In addition, lawmakers should invest in Volunteer Income Tax Assistance (VITA) clinics that help people file their taxes.

Stealing Private Taxpayer Data Will Reduce Trust and Lead to Less Revenue

DOGE is attempting to access private taxpayer data—including from filers with Individual Taxpayer Identification Numbers (ITINs), which are often used by immigrants. This risks the trust and security of Americans and may make people in immigrant communities reluctant to file their taxes, reducing the revenue our nation gets from these taxpayers. The administration has also proposed transferring IRS staff to the Department of Homeland Security where they could assist with deportations. Diverting IRS employees away from their primary functions, such as collecting revenue from the ultra-wealthy who may be evading taxes, to focus instead on deportation would reduce public revenues by billions of dollars annually. This would ultimately reduce efficiency within IRS tax collection systems.

We Must Invest in the IRS, Not Deplete It

Lawmakers should invest in the IRS, not deplete it. Tax filers are better off when our nation invests in resources like the Direct File tool and customer support services. And our economy is better off when lawmakers invest in staff who can audit the wealthiest individuals to raise revenue for public goods and ensure everyone is following the law and paying their fair share. Due to these disruptions in the IRS, the Department of Treasury anticipates a decrease of more than 10 percent—some $500+ billion—in tax receipts in 2025 compared to 2024. The proposed cuts to the agency are part of a larger plan by lawmakers to fund tax breaks for the very wealthiest Americans and corporations at the expense of everyday people.