Bessent says $2 billion cut from IRS technology budget without disruptions
By David Lawder WASHINGTON () -U.S. Treasury Secretary Scott Bessent on Tuesday said the Trump administration has cut $2 billion from the IRS information technology budget without operational disruptions and intends to save hundreds of millions more by automating processing of paper forms. "Last year, the IRS spent approximately $450 million on paper processing with nearly 6,500 full-time staff dedicated to the task," Bessent said in testimony before a U.S. House of Representatives Appropriations subcommittee hearing. "Through policy changes and automation, Treasury aims to reduce this expense to under $20 million by the end of President (Donald) Trump's second term." Savings so far have come from eliminating, renegotiating and refocusing "wasteful" information technology (IT) and professional services contracts, including unused software licenses that had been auto-renewed for years, Bessent said, adding that this effort would reduce futu...