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Treasury Department and IRS officials are predicting a decrease of more than 10% in tax receipts by the April 15th deadline compared with 2024, said sources who spoke on the condition of anonymity to share nonpublic data. That would amount to more than $500bn in lost federal revenues. The prediction, officials say, is directly tied to changing taxpayer behavior and President Donald Trump’s actions to reduce staff at the agency. Senior tax agency officials issued detailed warnings about those outcomes to the incoming Trump administration before the president took office. The IRS has dropped investigations of high-value corporations and taxpayers, according to several agency employees involved in those inquiries, because it’s had to triage resources to keep internal systems operating. Two agency commissioners have resigned since Trump took office. The IRS’s head of compliance, Heather Maloy, stepped down effective Friday. A Treasury Department spokesperson described the claims as "sensational and baseless," adding that they "should be dismissed out of hand."
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