US Internal Revenue Service (IRS) collections account for 95% of annual federal revenue. However, collections this year could drastically fall by 10% or £387.22 billion ($500 billion) compared to a year ago amid major workforce downsizing and dynamic taxpayer behaviour, reported The Washington Post, citing sources from the IRS and the US Treasury Department.
Federal officials expect reduced revenue this year as the April 15 tax filing deadline nears. Under US President Trump's directives, the Department of Government Efficiency, led by Elon Musk, has planned to trim the IRS workforce by 20,000 employees, with over 11,000 already laid off. The IRS is working harder to reallocate resources to keep internal systems operating, which has compelled it to drop several major investigations.
