The Internal Revenue Service may never be the government’s most popular agency, but it could have been the most efficient.
In 2022, Congress passed the Inflation Reduction Act, which invested $80 billion to fix the Internal Revenue Service. In 2024, the agency rolled out features like Direct File, a new free filing service for taxpayers. But Elon Musk's DOGE had other plans, including mass firings and data sharing agreements with ICE. The result is new risks for taxpayers.
Host: Anne Kim, Washington Monthly
Guest: Danny Werfel, former IRS Commissioner
Chapters
00:00 Introduction to Danny Werfel and IRS challenges
01:01 The importance of the IRS and public perception
02:04 The referee analogy and public trust
02:57 Modernization goals and digital interactions
05:30 Impact of current administration on the IRS
06:29 Performance before and after the Inflation Reduction Act
07:55 Reversal of modernization efforts in 2025
09:22 Lack of a clear modernization plan from the IRS
11:20 Recent IRS performance and taxpayer frustrations
12:21 Consequences of underfunding and staffing issues
16:39 The size and capacity of the IRS compared internationally
20:43 Doge's mistakes in IRS reform
23:05 Spending, capacity, and efficiency in government
27:08 Risks of rapid reform and the reflecting pool analogy
37:34 The concept and benefits of direct file
40:57 Challenges and opportunities in free file solutions
44:19 The future of IRS reform and innovation