Americans Call for Tax Reform as IRS Budget Cuts Spark Filing Concerns

Americans Call for Tax Reform as IRS Budget Cuts Spark Filing Concerns

By Marcus Hartley

March 20, 2025 at 01:18 AM

Millions of Americans are expressing growing concerns over IRS budget cuts, fearing longer refund wait times, increased tax fraud, and fewer resources for taxpayers.

IRS building exterior view

IRS building exterior view

Recent budget cuts have significantly impacted the IRS, with a 7% workforce reduction and a $20.2 billion budget slash over the next decade. These changes are part of broader government cost-cutting measures under the U.S. Department of Government Efficiency.

Key impacts on taxpayers include:

  • Longer refund processing times (38% of Americans concerned)
  • Increased risk of tax fraud (32% worried about reduced enforcement)
  • Limited access to taxpayer assistance
  • Potential delays in tax return processing

A recent Savanta survey revealed critical taxpayer concerns:

  • 70% want simplified tax codes
  • 36% lack confidence in maximizing deductions
  • 36% fear making filing mistakes
  • Nearly half don't fully understand tax form completion

The IRS Direct File program, launched in 2024 and available in 25 states, offers free tax filing services. However, its future is uncertain as some lawmakers push for its elimination, despite 67% of Americans supporting expanded free filing options.

Recommendations for taxpayers:

  1. File taxes early to minimize refund delays
  2. Monitor IRS updates about Direct File and tax code changes
  3. Utilize available online resources and tools
  4. Stay informed about changing deadlines and requirements
  5. Consider professional help for complex tax situations

While Americans continue pushing for a simpler tax system, current budget constraints and political debates make immediate improvements unlikely. Taxpayers should prepare for potentially longer processing times and reduced support services in the coming tax seasons.

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