In a recent appearance on Fox News' "The Ingraham Angle," U.S. Treasury Special Adviser Sam Corcos shed light on the significant challenges facing the Internal Revenue Service (IRS).
Corcos revealed that the agency is not only lagging three decades behind schedule but is also grappling with a budget overrun of $15 billion. His remarks come amid ongoing discussions about the need for fiscal prudence and efficiency within government agencies.
As reported by the Daily Caller, calls for budgetary cuts to the IRS emerged in February, just before the agency began laying off between 120 and 150 employees from its Denver office. During the broadcast, Corcos, alongside U.S. Treasury Secretary Scott Bessent, was questioned by host Laura Ingraham about his role and objectives.
Corcos explained, "Ive been brought in to look at the IRS modernization program in particular, as well as the operations and maintenance budget." He emphasized his commitment to addressing the agency's outdated systems, stating, "This is a huge program thats currently 30 years behind schedule, and its already $15 billion over budget."
Ingraham, seeking clarity for her audience, prompted Corcos to elaborate on the modernization efforts. Corcos described the IRS's infrastructure as antiquated, akin to the legacy systems once used by banks. "The IRS has some pretty legacy infrastructure," he noted. "Its actually very similar to what banks have been using. Its old mainframes running COBOL and assembly. The challenge has been, how do we migrate that to a modern system?"
The issue of IRS modernization is not new. In 2021, the Biden administration proposed a significant expansion of the IRS workforce, aiming to add 87,000 employees over a decade to combat tax evasion, as reported by Politico. This proposal also included an $80 billion budget increase for the agency. However, such measures faced potential resistance in Congress, highlighting the ongoing debate over the size and scope of government.
Corcos further illustrated the protracted nature of the IRS's modernization efforts, stating, "Typically, in industry, this takes a few years, maybe a few hundred million dollars. Were now 35 years into this program." He added, "Weve actually been, if you ask them now, its five years away, and its been five years away since 1990. It was supposed to be delivered in 1996, and its still five years away."
Meanwhile, the Trump administration has reportedly set its sights on reducing the IRS workforce, particularly within the Taxpayer Advocate Service (TAS). According to The Washington Post, plans are underway to cut over 20% of TAS staff, with an estimated 430 of the current 1,900 employees expected to be affected in the initial phase. This move aligns with a broader conservative agenda focused on streamlining government operations and reducing bureaucratic inefficiencies.
The ongoing challenges at the IRS underscore the need for a balanced approach to government reformone that prioritizes both fiscal responsibility and the effective delivery of services. As the debate continues, stakeholders must weigh the benefits of modernization against the costs and potential disruptions associated with such an extensive overhaul.
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