Government Efficiency Department Targets IRS Waste, Modernization Delays

The Department of Government Efficiency (DOGE), under the Trump administration, is intensifying its scrutiny of the Internal Revenue Service (IRS), aiming to tackle longstanding inefficiencies and reduce wasteful spending. A DOGE advisor, Sam Corcos, highlighted the immense scale of the challenges facing the IRS, particularly regarding its reliance on external contractors and the stalled modernization of its technology infrastructure.

Corcos, speaking on "The Ingraham Angle" on Fox News, described the current situation as a "deep hole," emphasizing that the IRS’s core function of tax collection is unduly burdened by excessive contractor costs. He stated that the goal is to "figure out how to get out of this hole" and streamline the agency’s operations.

The DOGE’s investigation focuses on the IRS modernization program, which Corcos characterized as a significant point of concern. He pointed out that the program is already "30 years behind schedule" and "15 billion dollars over budget." The IRS’s legacy infrastructure, a relic of the past, presents a major obstacle to efficiency. While major banks have successfully modernized their systems, the IRS continues to grapple with outdated technology.

Corcos, the CEO and co-founder of Levels, drew a stark comparison, noting that the IRS is decades behind industry standards in terms of technological advancement. He said “Were now 35 years into this program. If you ask them now, its five years away, and its been five years away since 1990. It was supposed to be delivered in 1996, and its still five years away," highlighting the persistent delays and lack of progress.

Treasury Secretary Scott Bessent, recently confirmed, echoed Corcos’s concerns, expressing surprise at the level of "entrenched interests" that seem to perpetuate the problems within the IRS. He described these interests, primarily consultant groups, as a "boa constrictor" or "python" that has "constricted themselves around our government." Bessent stated that the costs associated with these consultants are "unbelievable" and ultimately passed on to the American taxpayer.

Corcos further revealed that approximately 80% of the IRS’s $3.5 billion operations and maintenance budget is allocated to contractors and licenses, underscoring the agency’s heavy reliance on external entities. The DOGE’s broader mission, spearheaded by Elon Musk, aims to dismantle government bureaucracy, reduce regulations, cut wasteful spending, and restructure federal agencies.

However, the DOGE’s actions have faced criticism from Democrats and segments of the media. Bessent countered these criticisms, arguing that the DOGE’s efforts are not about eliminating government functions but rather about making them "more efficient to work for the American people." He questioned, "So whats wrong with it working better, cheaper, faster, and with more privacy?"

Bessent outlined his top three priorities for the IRS as collections, privacy, and customer service, arguing that none of these are currently being adequately served. He emphasized the need to ensure that taxpayers receive the service they deserve, pay their fair share, and have their information handled securely. He added that the tax process should be "done quickly, smartly and privately."

The focus on streamlining and modernizing the IRS reflects a broader push by the Trump administration to improve government efficiency and accountability. The DOGE’s involvement signals a commitment to addressing long-standing issues within the agency, particularly its reliance on expensive contractors and outdated technology.

The success of these efforts, however, remains to be seen. Overcoming entrenched interests, navigating complex bureaucratic processes, and implementing meaningful technological upgrades will require sustained effort and political will. The DOGE’s scrutiny of the IRS and its proposed reforms are likely to continue to be a subject of debate and scrutiny.

The core problem appears to be the modernization of the IRS infrastructure. Legacy systems are outdated and the cost of maintenance alone is staggering. This has to be addressed and solved. This will lead to a much more efficient IRS and reduced costs overall. It is a win/win for the tax payer.

The claims of "entrenched interests" also deserves greater attention. It begs the question: Who are these contractors and what political connections do they have? It is unlikely that simply improving efficiencies would elicit such resistance from the other party. Something is definitely rotten in Denmark, as Shakespeare would say.

The bottom line is, the average American taxpayer is the one who is paying for all of this. They deserve an IRS that is operating at peak efficiency and in a way that is least costly. It remains to be seen if this goal will be realized.