Officials at the IRS and Treasury Department are anticipating tax revenue to drop more than 10% by April 15 compared with last year, The Washington Post reported Saturday, citing three people with knowledge of the situation.
The loss of tax receipts is expected as more individuals and businesses don’t file taxes or attempt to avoid paying balances owed to the IRS. The amount of lost federal revenue could top $500 billion, the paper said.
Officials said the prediction is directly linked to shifting taxpayer behavior and President Donald Trump‘s cuts at the IRS, the Post said.
Thousands are expected to lose their jobs at the agency as part of Elon Musk‘s Department of Government Efficiency spending reductions. Experts have warned that the cuts during tax season could materially impact filers.
The IRS has also noted increased chatter online from people saying they won’t pay taxes this year or will make aggressive claims they aren’t eligible for in a gamble that they won’t be audited, the Post reported.
The Treasury Department told the paper the story was “sensational and baseless” and said the anonymous sources “should be dismissed out of hand.”
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