IRS and Treasury officials expect tax revenues to fall by more than 10% by April 15 compared to last year, the Washington Post reported Saturday, citing three people on the situation.
Loss of tax receipts is expected as more individuals and businesses do not attempt to file taxes or avoid balances due to the IRS. The amount of federal revenue loss could exceed $500 billion, the paper said.
Officials said the forecast has a direct connection to changing taxpayer behavior and President Donald Trump’s cuts in the IRS.
Thousands are expected to lose their jobs at the institution as part of Elon Musk’s government efficiency spending cuts. Experts warn that cuts during the tax season could have a significant impact on filers.
The IRS also reported that it is focusing on an increase in online chatter from people who say they will not pay taxes this year or make a positive claim that gambling will not be audited.
The Treasury told the paper that the story was “sensational and unfounded,” and that an anonymous source was “uncontrollable.”
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