Wednesday, March 05, 2025

How DOGE's Cuts to the IRS Threaten to Cost More Than DOGE Will Ever Save

Dave Nershi was finalizing a report he'd worked on for months when an ominous email appeared in his inbox. Nershi had worked as a general engineer for the Internal Revenue Service for about nine months. He was one of hundreds of specialists inside the IRS who used their technical expertise -- Nershi's background is in chemical and nuclear engineering -- to audit byzantine tax returns filed by large corporations and wealthy individuals. Until recently, the IRS had a shortage of these experts, and many complex tax returns went unscrutinized. With the help of people like Nershi, the IRS could recoup millions and sometimes more than a billion dollars on a single tax return. But on Feb. 20, three months shy of finishing his probationary period and becoming a full-time employee, the IRS fired him.

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Slashing IRS staff will end up costing the U.S. government. Multiple studies have shown that for every dollar spent by the IRS, the agency returns between $5 and $12. New @propublica.org by @andykroll.bsky.social

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-- Chris Morran (@themorrancave.bsky.social) March 5, 2025 at 6:25 AM

Comments

Any man or woman of average intelligence could have figured this out.

Something that elegantly explains what Trump is doing.

#1 | Posted by Zed at 2025-03-05 09:27 AM

Someone needs to ask the foreign-born, unelected, deep state ketamine addict why his companies starve their accounts receivable departments of employees and resources to do their jobs. He will scoff at the question and say that would not happen. And so the trap opens...

#2 | Posted by catdog at 2025-03-05 09:56 AM

As I understand it there are about $1 trillion in unpaid federal taxes each year.

So the federal budget would actually be one trillion less each year if the IRS was able to do its job.

Isn't it interesting that Trumpy does not want them to be able to get that money ?

You would think that DOGE would be all about getting that money.

#3 | Posted by donnerboy at 2025-03-05 10:09 AM

"the federal budget"

That should have said "federal deficit". But hopefully you got the point.

#4 | Posted by donnerboy at 2025-03-05 12:11 PM

The United States is losing $1 trillion in unpaid taxes every year, Charles Rettig, the Internal Revenue Service commissioner, estimated on Tuesday, arguing that the agency lacks the resources to catch tax cheats. The so-called tax gap has surged in the last decade.

Oct 13, 2021
https://www.nytimes.com
Tax cheats cost the U.S. $1 trillion per year, I.R.S. chief says.

#5 | Posted by donnerboy at 2025-03-05 12:32 PM

So Trump gets his tax cut for the rich without Congress!

#6 | Posted by danni at 2025-03-06 01:39 AM

The United States is losing $1 trillion in unpaid taxes every year,

But the deficit!

#7 | Posted by Nixon at 2025-03-06 07:03 AM

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