U.S. Treasury Cuts IRS IT Budget Without Disruptions

U.S. Treasury Secretary Scott Bessent announced a $2 billion cut from the IRS IT budget without operational disruptions. Additionally, he aims to save millions by automating paper form processing, reducing costs from $450 million to under $20 million by the end of Trump's second term.

The U.S. Treasury has implemented substantial budgeting changes, announcing a $2 billion cut to the IRS's information technology budget without causing any operational disruptions, according to Treasury Secretary Scott Bessent.

Speaking before a House Appropriations subcommittee, Bessent outlined the administration's efforts to make the IRS more efficient. The Treasury plans to automate the processing of paper forms significantly, aiming to reduce this area of expenditure dramatically.

Currently, the IRS spends approximately $450 million on processing paper forms, with approximately 6,500 full-time staff. The push towards automation is expected to lower these costs to under $20 million by the end of President Trump's second term, according to Bessent.