IRS
IRS lacks transparent plans to leverage tech in the face of staffing cuts, GAO and employees say
Agency leaders are “shoving AI at us,” one IRS employee said, despite the fact that “they don’t have the right tools for us yet.”
The IRS wants to shrink its workforce by nearly 4,000 — and use technology to make up the difference
“Without modernization, the IRS would be unable to sustain performance with a reduced headcount,” the budget document says.
Trump’s FY27 budget proposes boosts and cuts to tech operations
Agencies like CISA, NIST and the IRS would see notable reductions in their budgets for next year, while programs at Energy and the VA would get additional financial support.
IRS’ move away from paper checks has delayed tax refunds for nearly 1.5 million Americans
Other government agencies are also moving away from paper checks. The Social Security Administration has warned claimants still receiving their benefits via paper checks that their benefits could be disrupted.
IRS faces AI skills gaps after pushing tech talent out, watchdog finds
The agency drained about 40% of its IT staff last year, GAO said.
IRS CEO largely dodges questions about data sharing at IRS, SSA
Frank Bisignano cited “current litigation” for why he could not provide further details about IRS data sharing with ICE, and he disputed court records detailing how DOGE employees handled data at SSA.
Senators demand to know the IRS’ path forward following the end of Direct File
The IRS ended the online, direct-to-government filing program last fall and is doubling down on the free tax filing options it offers through tax prep companies in a partnership called Free File.
'Setting this agency up for failure': Amid staffing crunch, IRS taps employees with no relevant experience to assist during filing season
The tax agency is taking unusual steps to prepare for its busy season after watchdog finds it is severely underprepared.
Trump signs law requiring the IRS to clean up adjustment notices
Lawmakers hope that clearer notices when the IRS makes simple math or clerical fixes on tax returns should cut down on headaches for taxpayers.
IRS returns to relying on tax prep companies for free filing options without Direct File
A new report from the tax agency that was requested by congressional Republicans said that dropping Direct File “is in the best interests of American taxpayers and the IRS.”
Exclusive
Direct File won’t happen in 2026, IRS tells states
The free service that allowed taxpayers to file online directly with the IRS was used by hundreds of thousands of taxpayers in 2024 and 2025, who gave it high marks — although tax prep companies and Republicans have sought its end.
Exclusive
On Tuesday, the Trump admin said furloughed feds were not guaranteed back pay. On Wednesday, it sent notices saying they were
Just one day after taking a different argument, the Trump administration notes federal law guarantees back pay for employees sent home during a shutdown.
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Bisignano to lead IRS in addition to SSA duties, raising questions about the Senate confirmation process
Experts warned that the move could further facilitate the consolidation of Social Security and IRS databases for use in immigration enforcement.
IRS announces the phased end of paper check refunds
The Trump White House set a Sept. 30 deadline for the Treasury Department to stop cutting paper checks, although the IRS said it will still be issuing a “limited number” of checks where there is no alternative option.
Breaking News
IRS is canceling its layoff plans, will ask some it fired or pushed out to return
After pushing 26,000 employees out, the tax agency is scrambling to find enough personnel to carry out its duties.
The Trump administration is considering notifying probationary employees they were fired for cause, actually
The proposal comes despite a new audit finding 99.5% of the 7,300 fired IRS probationers had received fully successful performance ratings, or no ratings at all.
Trump’s 'big, beautiful bill' directs Treasury to find a replacement for Direct File
The IRS debuted Direct File — which enabled taxpayers to file online with the agency for free — as a pilot in 2024 and it received largely positive reviews from those that used it.
Democrats press Palantir about reported creation of IRS ‘mega-database’
The possible creation of a shareable, governmentwide database of Americans’ personal information would be a “surveillance nightmare,” 10 House and Senate Democrats wrote in a letter to the tech company.
IRS isn’t sufficiently checking the performance of its identity proofing vendor
The identity validation service, ID.me, is the only option for taxpayers looking to access the more sensitive online services offered by the IRS.
Workforce cuts could complicate IRS goal to modernize in the next two years
Agency leaders say they want to complete the “vast majority” of its modernization efforts within the next couple of years.
