Institute on Taxation and Economic Policy (ITEP)

IRS

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The Trump Administration Slashed Taxes for H&R Block and Raised Costs for Tax Filers

• By Joe Hughes

Tax-prep giant H&R Block paid no federal taxes on its U.S. income in 2025. It also made a public disclosure, required by the European Union, characterizing one-third of its global profits as earned in Ireland, a low-tax country where the company offers no tax services and has only 15 employees.

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IRS Cuts Could Cruise on Autopilot; New Bill Aims to Restore Funding to Help Taxpayers and Fight Tax Cheats

• By Sarah C. G. Christopherson

This fall, Congress could allow billions of dollars in IRS funding to disappear on autopilot. However, the Stop CHEATERS Act would restore the multi-year mandatory funding rescinded from the IRA and account for recent cuts to the IRS’s base budget.

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Why Corporations Must Pay More

• By Steve Wamhoff, Amy Hanauer

Corporate tax reforms could be more resilient than proposals to tax wealth or unrealized capital gains while achieving the same goal of more adequately taxing the income of billionaires.

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The Final Frontier of Tax Avoidance: Elon Musk’s SpaceX Has $1.9 Billion to Gain from Defunding the IRS

• By Matthew Gardner

A year after Elon Musk’s Department of Government Efficiency (DOGE) cut a swath of destruction through vital federal agencies including the Internal Revenue Service, Musk’s apparent antipathy toward the IRS suddenly makes more sense.  

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Trust Reform is Needed to Protect States, Especially in the Wake of IRS Enforcement Cuts

• By Sarah Austin

Trust use is widespread among the wealthiest households, with reports showing that roughly half of the nation’s wealthiest people rely on trusts for tax avoidance reasons

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Intuit Helped Limit Americans’ Tax Filing Options While Raking in Millions in Tax Breaks

• By Joe Hughes

As tax filing season begins, families have fewer options than last year, thanks to the heavy lobbying efforts of big tax-preparation corporations like Intuit (the parent company of TurboTax).

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Trump Raises the Price of Filing a Tax Return

• By Joe Hughes

The move was expected, given heavy lobbying from tax prep companies like Intuit and H&R Block to put a halt to the IRS’s popular Direct File program.

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Leaving Billions on the Table: Trump-Induced Brain Drain Leaves the IRS Struggling to Prevent Corporate Tax Avoidance

• By Matthew Gardner

The IRS's capacity to prevent big multinational corporations from avoiding income taxes is facing a generational crisis.

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IRS Enforcement Boost Was Supposed to Last 10 Years. Congress Killed It in Under Three.

• By Sarah C. G. Christopherson

The IRS was set to overhaul how it audits the ultra-rich. Now most of that funding is gone.

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Dismantling Access to the Truth is a Big Deal

• By Erika Frankel

As federal data systems erode, the U.S. risks losing the impartial information needed for sound policymaking and public trust.

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Trump Administration’s English-Only IRS Would Undermine Public Trust and Boost Budget Deficits

• By Matthew Gardner

The Trump administration’s push to make English the official U.S. language threatens decades of progress in taxpayer services for non-English speakers, risking cuts to IRS multilingual support, harder tax filing, lower compliance, and an undermined agency mission.

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Trump’s Firing of BLS Commissioner is Part of Larger Erosion of Federal Data Infrastructure

• By Emma Sifre

Last week, President Trump fired the Commissioner of the Bureau of Labor Statistics in apparent retaliation for weak jobs numbers. The move drew sharp criticism for spooking investors and weakening trust in official data. But it also reflects a deeper problem: the ongoing erosion of the federal data infrastructure.

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What Corporations Have to Gain from the Gutting of the IRS

• By Matthew Gardner, Spandan Marasini, Steve Wamhoff

Seven huge corporations recently announced that in 2024 they were allowed to collectively keep $1.4 billion in tax breaks from previous years that they had publicly admitted would likely be found illegal if investigated – all because the tax authorities were unable to identify and disallow them before the statute of limitations ran out.

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Ending Direct File Program is a Gift to the Tax-Prep Industry That Will Cost Taxpayers Time and Money

• By Jon Whiten

The Trump administration reportedly plans to shutter the IRS Direct File program before it has a chance to get fully off the ground, taking away a free option for people to file their tax returns directly to the agency. Ending Direct File is another gift from this administration to large corporations, this time to the multibillion-dollar tax prep industry that profits from you filing your taxes.

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IRS Cooperation with ICE Will Damage Public Trust, Putting Tax Revenues in Jeopardy

• By Marco Guzman

Attempts by the Department of Homeland Security to secure private information from the IRS on people who file taxes with an Individual Taxpayer Identification Number is a violation of federal privacy laws that protect taxpayers. It is also a change that could seriously damage public trust in the IRS, which could jeopardize billions of dollars in tax payments by hardworking immigrant families.

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Sharp Turn in Federal Policy Brings Significant Risks for State Tax Revenues

• By Carl Davis

Summary The new presidential administration and Congress have indicated that they intend to bring about a dramatic federal retreat in funding for health care, food assistance, education, and other services that will push more of the responsibility for providing these essential services to the states. Meeting these new obligations would be a challenging task for […]

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Turning IRS Agents to Deportation Will Reduce Public Revenues

• By Carl Davis, Jon Whiten

The Trump Administration’s plan to turn IRS agents into deportation agents will result in lower tax collections in addition to the harm done to the families and communities directly affected by deportations.

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Defunding the IRS Would Cost Taxpayers

• By Joe Hughes

As Congress negotiates a bill for federal funding during the lame-duck session, lawmakers would be wise to remember that stripping funds from the IRS costs more than it saves. On the table in the appropriations bill is a $20 billion recission of funds to the nation’s tax administration. While this may look like a spending cut, it will increase deficits by $46 billion due to a drop in the agency’s capacity to enforce taxes on…

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Which States Have Joined IRS Direct File?

• By ITEP Staff

The IRS has opened its free tax filing service called Direct File to every state for the 2025 tax filing season. Direct File was made possible by President Biden’s Inflation Reduction Act, which provided new resources for the IRS to improve customer service and ensure taxpayers claim the benefits and deductions for which they are […]

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States Should Opt Into IRS Direct File as the Program is Made Permanent

• By Jon Whiten

While there is plenty of room to expand Direct File at the federal level, states can take matters into their own hands and bring this benefit to their residents by opting into the program.

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TurboTax Maker Puts a Pink Spin on Exploitative Financial Products

• By Amy Hanauer

This op-ed originally appeared in MSNBC Tax preparation behemoth Intuit (maker of TurboTax) recently unveiled a new campaign branding itself as a feminist company. “When it comes to the complexities of the tax code, women encounter distinct challenges,” reads a post on the company’s official blog, “and here at Intuit, we’re committed to empowering prosperity for […]

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Congress Should Enhance – Not Diminish – IRS Capability this Tax Season

• By Joe Hughes

While funding cuts to the IRS may have been necessary as a political matter to avoid harmful agency shutdowns, they are severely misguided as a policy matter. By all serious accounts, cuts to IRS funding increase the deficit due to uncollected taxes – mostly from big businesses and the very wealthy.

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IRS Commissioner, New GAO Report Highlight Importance of Proper IRS Funding

• By Joe Hughes

A new GAO report and Commissioner Werfel’s testimony highlight the value and necessity of a well-funded and functioning IRS. Most families and businesses do their best to pay taxes accurately and on time. The nation benefits from a modern revenue agency that can make this process as easy and simple as possible and identify complex tax schemes that deprive the country of revenues.

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Three Things to Know This Tax Filing Season

• By Joe Hughes

The IRS Direct File pilot is currently open to eligible taxpayers here. Millions of American families have now received their W-2s for 2023, signaling the start to a new tax filing season. The IRS has set January 29 as the first date that people can file their tax returns for the previous year, and the […]

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The Latest Convoluted Arguments in Favor of Rich People Not Paying Taxes

• By Steve Wamhoff

Two Senate hearings last week focused on how the richest Americans are avoiding and evading taxes in ways that ordinary Americans could hardly imagine. All the experts brought in to testify seemed to agree that the House GOP’s recent tactic of “paying for” a spending proposal by cutting IRS funding makes no sense because it […]