Treasury Department's Efforts to Enhance IRS Efficiency Under Trump Administration

May 2, 2025 at 9:48 PM

The United States Treasury Department has been focusing on boosting the efficiency of the Internal Revenue Service (IRS) during the Trump presidency. According to data shared with FOX Business, there has been a noticeable increase in tax receipts and processed returns this filing season compared to the previous year. Deputy Treasury Secretary and acting IRS Commissioner Michael Faulkender emphasized the progress made in reforming the IRS to better serve American citizens. Additionally, the administration aims to finalize President Trump's tax agenda with bipartisan support. The IRS is also undergoing significant changes in its leadership structure and technological infrastructure to streamline operations.

Under the current administration, efforts have been made to enhance the operational effectiveness of the IRS. Since President Trump's inauguration, the IRS's IT budget has seen a reduction of $2 billion without affecting its operations. This was accomplished by cutting down on unnecessary contracts and unused licenses. Furthermore, the IRS is restructuring its technical teams by replacing non-technical personnel with qualified engineers. It was highlighted that only a small fraction of the staff working on IT programs were certified engineers, which contrasts sharply with industry standards.

Another key initiative involves the development of a unified application programming interface (API) layer. This project, which started over two decades ago and has consumed $4 billion, aims to simplify interactions between various applications and datasets. Presently, the IRS uses 12 fragmented APIs that complicate system upgrades. A unified API will not only improve taxpayer experiences but also facilitate more efficient product and service development for future use.

Through strategic budget cuts, leadership adjustments, and technological advancements, the Treasury Department is striving to create a more effective IRS under the Trump administration. By prioritizing qualified hires and investing in modernized systems, they aim to deliver a more streamlined and user-friendly service for both taxpayers and internal teams. These changes reflect a broader commitment to improving governmental processes and ensuring they align with contemporary needs.