IRS Modernization Lagging; Republicans Seek to Extend Tax Cuts Without Offsetting Costs

The IRS faces decades-old infrastructure issues, with modernization efforts billions over budget and years behind schedule, according to a Department of Government Efficiency (DOGE) representative. Recent cuts have saved the agency $1.5 billion. The IRS is reevaluating its technology modernization investments due to new AI technologies. Meanwhile, Republicans are seeking to extend the Trump tax cuts, which are set to expire at the end of 2025. These cuts would cost $4 trillion over the next decade. Some Republicans propose offsetting the extension by cutting Medicaid and food benefits. Treasury Secretary Scott Bessent said the Trump White House favors pretending the costs don't count. The Congressional Budget Office estimates that permanently extending the Trump tax cuts without paying for them would significantly increase the national debt.