{"id":273,"date":"2026-07-12T04:10:35","date_gmt":"2026-07-12T04:10:35","guid":{"rendered":"https:\/\/usabusinesschronicle.com\/?p=273"},"modified":"2026-07-12T04:10:35","modified_gmt":"2026-07-12T04:10:35","slug":"how-trump-and-doge-broke-the-irs","status":"publish","type":"post","link":"https:\/\/usabusinesschronicle.com\/?p=273","title":{"rendered":"How Trump and DOGE Broke the IRS"},"content":{"rendered":"<div>\n<p>The Internal Revenue Service may never be the government\u2019s most popular agency, but it could have been the most efficient.\u00a0<\/p>\n<p>Read more <a href=\"https:\/\/usabusinesschronicle.com\/?p=271\">Trump\u2019s Flimsy Argument for his \u201cTriumphal Arch\u201d<\/a><\/p>\n<p>In 2022, Congress passed the Inflation Reduction Act, which invested $80 billion to fix the IRS. In 2023, then-IRS Commissioner Danny Werfel submitted a 200-page modernization plan to Congress, promising a major overhaul of the agency\u2019s processes and technology. Among these reforms was Direct File, which debuted in 2024. The new free filing service won high marks from government auditors and was popular with taxpayers. Thousands of new staff also came on board to help taxpayers.\u00a0<\/p>\n<p>Then came Trump. And DOGE.\u00a0<\/p>\n<p>Overnight, says Werfel, all of the work to improve the IRS \u201cnot only stopped, but it reversed.\u201d Elon Musk\u2019s \u201cDepartment of Government Efficiency\u201d canceled the funding appropriated by Congress, fired thousands of workers, and tossed out Werfel\u2019s modernization plan. The Inspector General for Tax Administration reports that the agency lost between January 2025 and January 2026.\u00a0<\/p>\n<p>Today, signs of severe dysfunction abound:\u00a0<\/p>\n<ul>\n<li><strong>Tax time was a mess for millions of filers.<\/strong> National Taxpayer Advocate\u2019s mid-year report to Congress called this year\u2019s tax season \u201cfrustrating, confusing, and financially disruptive\u201d for many taxpayers. Many filers experienced delays in getting refunds; millions more saw delays in getting help. Some filers never managed to contact a human service rep.<\/li>\n<li><strong>No one\u2019s in charge. <\/strong>The IRS has not had a Senate-confirmed commissioner since President Donald Trump firedBilly Long last year, two months into his tenure. Trump appointed Social Security Commissioner Frank Bisignanoas the agency\u2019s \u201cCEO,\u201d which Senate Democrats decried as a \u201cfake job\u201d designed to circumvent Congressional oversight. Numerous top positions remain vacant.<\/li>\n<li><strong>ICE has had access to IRS data\u2014despite lacking the legal authority<\/strong>. The IRS has handed over nearly  to immigration authorities, according to a June report from the Inspector General for Tax Administration. Under Section 6103 of the tax code, \u201cReturns and return information shall be confidential\u2026 except as authorized\u201d by statute.<\/li>\n<li><strong>Billionaire tax cheats are breathing easier<\/strong>. The decimation of IRS staff has meant a dramatic decline in audits, especially for wealthier taxpayers. In particular, the \u201cGlobal High Wealth Unit\u201d\u2014which keeps an eye on billionaires\u2014lost 38 percent of its staff, according to the International Consortium of Investigative Journalists. (Trump, himself, don\u2019t forget, negotiated lifetime immunity from audit for himself and his family as part of his \u201cweaponization\u201d lawsuit against the federal government.)<\/li>\n<\/ul>\n<p>Even if you\u2019re not a fan of the IRS (or of paying taxes), these problems matter, Werfel says. \u201cThere\u2019s not an industrialized nation in the world that can exist and flourish if the tax system is chaotic,\u201d he said. \u201cIt\u2019s like an engine part under the hood. You don\u2019t have to celebrate it, but it needs to work.\u201d<\/p>\n<p>I hope you\u2019ll watch my interview with Werfel in this week\u2019s <em>Monthly<\/em> podcast (you can see a preview on our Substack here)\u2014not just to learn more about what\u2019s happened to the IRS but to hear from a seasoned, skilled government leader with genuine dedication to the public interest.\u00a0<\/p>\n<p>People like Werfel are what the federal government desperately needs\u2014but they\u2019ve been ruthlessly purged by the Trump administration and supplanted by cranks, incompetents, and loyalist toadies. Look no further than Fox News host Pete Hegseth, the cosplaying \u201cSecretary of War\u201d; or the acting Director of National Intelligence, Bill Pulte, who\u2019s ascended to one of the nation\u2019s most important and sensitive positions with no intelligence experience at all.\u00a0<\/p>\n<p>If you listen to Werfel, you\u2019ll understand what government could and should be. You will come away inspired\u2014and angered by what we have lost.\u00a0<\/p>\n<h2><strong>Don\u2019t miss at the <\/strong><strong><em>Monthly\u2026<\/em><\/strong><\/h2>\n<p><strong>Maine takeaways<\/strong><strong>.<\/strong> If you\u2019re a regular reader of the <em>Monthly<\/em>, you\u2019ll know that we haven\u2019t exactly been Graham Platner fans. Still, it gives us no joy to feel vindicated over Platner\u2019s implosion last week over rape allegations\u2014Democrats are now scrambling to find a viable candidate, making a must-win race even more challenging. Democrats can, however, learn some valuable lessons from this debacle:<\/p>\n<ul>\n<li>\u201c<em>Do not fetishize working-class voters<\/em>,\u201d writes Executive Editor-Digital Matt Cooper writes. \u201cThe idea that nominating a working-class Democrat would sway working-class voters was always reductionist and absurd.\u201d\u00a0<\/li>\n<li><em>Read internal polling with a skeptical eye, <\/em>warns Politics Editor Bill Scher. \u201cPlatner\u2019s polling network didn\u2019t manufacture Platner\u2019s support out of thin air. \u2026 But pumping out favorable polls at a sensitive phase of the campaign \u2026 warped perceptions about Platner\u2019s political durability and made it harder for skeptics to warn about the possibility of bigger scandalous shoes dropping.\u201d<\/li>\n<\/ul>\n<p>In a bonus column, Matt also offers advice on what Platner could have and should have said when he dropped his candidacy (i.e., not, as EMILY\u2019s List put it, \u201c11 minutes and zero accountability\u201d). Bill also writes that dropping Platner was the only way the Democratic Party could \u201cretain any credibility as the party of women\u2019s rights and the party that adheres to the rule of law.\u201d Read here and here.\u00a0<\/p>\n<p>Read more <a href=\"https:\/\/usabusinesschronicle.com\/?p=269\">The Platner Collapse Is a Cautionary Tale About Polling<\/a><\/p>\n<p><strong>How to Save Democracy<\/strong>. We\u2019re only four months away from the midterms, and anxiety is rising over the threat of election interference by the Trump administration. Legal Affairs Editor Garrett Epps writes that these concerns are justifiable\u2014but that citizens also have plenty of reason for hope. Pro-democracy groups are ready, he finds, and the administration will likely falter from its own incompetence. And every citizen has the power to act in their own defense of democracy: \u201cThe first and most important thing for citizens to do\u2026 is to vote.\u201d Read here.\u00a0<\/p>\n<p>Plus\u2026<\/p>\n<ul>\n<li>Jonathan Alter finds things to celebrate on America\u2019s 250th, despite the glum national mood: Americans are healthier, safer, and enjoy a better standard of living than they did at our bicentennial.\u00a0<\/li>\n<li>Law professor Rodger Citron reviews a new biography of Supreme Court Justice Samuel Alito to learn why the jurist seems so angry.\u00a0<\/li>\n<li>merrill goozner.com reacts to the Trump Administration\u2019s falsehood-filled attack on the Smithsonian.\u00a0<\/li>\n<li>James Zirin tears apart Trump\u2019s lame argument that the proposed \u201ctriumphal arch\u201d somehow fulfills Congress\u2019s aesthetic vision for D.C.\u00a0<\/li>\n<\/ul>\n<h2><strong>Coda (More on saving democracy\u2026)\u00a0<\/strong><\/h2>\n<p><em>NOTUS<\/em> reports that the Trump administration is threatening to prosecute any local election official who \u201cfacilitates noncitizens in receiving and casting ballots.\u201d It\u2019s yet another effort to interfere in state election processes (in addition to those that Garrett documents above). It\u2019s also based on two dangerously false premises\u2014that noncitizen voting is an issue, and that election officers are complicit.\u00a0<\/p>\n<p>Here\u2019s the truth:\u00a0<\/p>\n<ul>\n<li><strong>Noncitizen voting is nonexistent<\/strong>. Even the Heritage Foundation can\u2019t make a credible case that noncitizens vote. Moreover, it\u2019s already illegal.\u00a0<\/li>\n<li><strong>Local election officers are civically minded volunteers<\/strong>. Any U.S. citizen can volunteer to be a poll worker, and the U.S. Election Assistance Commission in fact encourages Americans to sign up and help their neighbors exercise the right of franchise.\u00a0<\/li>\n<\/ul>\n<p>I\u2019ve been an election officer in four elections now, and it\u2019s been an incredibly rewarding experience. It\u2019s also instilled enormous admiration in the processes that local leaders have developed to ensure election security.\u00a0<\/p>\n<p>In Fairfax County, Virginia, where I\u2019ve worked, election officers must undergo periodic training and work in bipartisan teams. All processes are meticulously laid out in detailed instructions, and there are redundant mechanisms for security. For instance, all of us witness the voting machines being unsealed, sign our names to various certifications, and doublecheck the tallies of paper ballots against the machine count throughout the day. We also require 100 percent ID checks against an electronic database\u2014it is literally impossible for an unauthorized person to vote. These processes moreover aren\u2019t unique to Fairfax County\u2014here\u2019s a useful explainer from the Bipartisan Policy Center on how all states ensure election security.\u00a0<\/p>\n<p>I strongly encourage you to volunteer at the polls, see democracy at work, and come away with your trust renewed. Then spread the word about the integrity of the process. Don\u2019t let the Trump administration\u2019s lies take hold.\u00a0<\/p>\n<p>P.S. Here\u2019s one more reason citizens need to step up to defend democracy. Trump\u00a0fired all of the members\u00a0of the bipartisan Election Assistance Commission this week as part of his effort to hijack this fall\u2019s elections.\u00a0State election officials condemned the move as \u201cirresponsible and dangerous.\u201d<\/p>\n<p>Thanks as always for reading this newsletter, and please subscribe, like, and share.\u00a0<\/p>\n<p>Read more <a href=\"https:\/\/usabusinesschronicle.com\/?p=267\">Whitewashing History<\/a><\/p>\n<p>Have a great week!<\/p>\n<p>Anne Kim, Senior Editor<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Internal Revenue Service may never be the government\u2019s most popular agency, but it could&#8230;<\/p>\n","protected":false},"author":1,"featured_media":272,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,19,2,76],"tags":[110],"class_list":["post-273","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-books","category-newsletter","category-politics","category-protecting-the-vote","tag-tagged-doge-donald-trump-internal-revenue-service-taxes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - 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