The Department of Government Efficiency (DOGE), initiated during the Trump administration, resulted in substantial reductions to theInternal Revenue Service’s budget.
On Thursday, Sam Corcos, who is part of DOGE and also the founder and CEO at health tech company Levels, revealed that he has nullified approximately $1.5 billion worth of agreements tied to the Internal Revenue Service’s technology upgrade fund.
Corcos, who additionally acts as a special advisor to the Treasury, informed the Fox News Channel that his assessment revealedlegacy contracts with external tech consultants totaling tens of billions of dollars. This discovery is part of an initiative aimed at modernization that has faced delays for several decades.
I believe we have halted operations and reduced the modernization budget by approximately $1.5 billion up until now," Corcos stated. "Mostly, these cuts involved projects that were leading us into a downward spiral due to excessive complexity within our codebase.
These reductions originate from a yearly modernization fund of $3.7 billion, distinct from the $3.5 billion set aside for IRS IT infrastructure. Nonetheless, the scale and legitimacy of numerous DOGE-associated expenditure decreases have faced legal challenges in court.
Last week, the IRS stated it would halt technological upgrades to reconsider its strategy following recent developments in artificial intelligence. This move represents yet another adjustment from the initial $80 billion allocated for IRS investments under ex-President Joe Biden’s 2022 Inflation Reduction Act.
US Updates: Trump Signs Executive Order to Abolish Education Department; Criticizes Federal Reserve, Calls for Interest Rate Cuts; French Scientist Barred from Entry After Border Officials Examine Anti-Trump PostsThe contemporary upgrade initiative aimed at superseding obsolete computer systems from the 1960s, improving services for taxpayers, and bolstering the IRS’s capability to perform more complex examinations of wealthy individuals and enterprises.
For many years, Republican members of Congress have strived to decrease the budget for the IRS, claiming that it was designed to intimidate taxpayers. Several temporary funding solutions have already cut the initial $80 billion down by almost fifty percent.
Even with the reductions, Corcos commended the IRS' 8,000 professional IT staff, describing them as "highly collaborative" during the budget assessment. Nevertheless, he noted that the organization’s IT expenses still significantly exceed those of private sector banks handling comparable volumes of data.
(REUTERS)
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