Major tax changes overstretch the IRS and divert attention from current priorities

Adequate IRS Resources Especially Important If Major Tax Changes Enacted Fundamental changes to the tax system are high on Republicans’ legislative agenda. Their proposals are expected to be similar to plans put forward last year by House Republicans and President Trump during the campaign, which would dramatically alter the individual and business tax systems.[25] A revamped tax code would have major implications for IRS resources. IRS staff would need to become familiar with the new tax system in order to interpret and enforce tax laws and counsel taxpayers. Changes to information technology systems would likely be needed to reflect new policies. And tax legislation often requires the IRS to lead extensive rulemaking processes to develop and finalize new regulations. Each of these responsibilities could strain IRS resources in any funding environment, let alone one in which IRS funding is being cut.