Senators press Treasury on IRS staffing, CBO projections and DirectFile future
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Summary
Committee members questioned Treasury Secretary Bessent about whether recent cuts and rapid hiring at the IRS will reduce revenue collection from high‑income taxpayers, asked for specific disagreements with CBO projections, and pressed Treasury on the future of the DirectFile electronic tax return program.
Senators at the appropriations subcommittee hearing pressed Treasury Secretary Bessent about the effect of personnel and technology changes at the Internal Revenue Service on revenue collections, particularly from wealthy taxpayers, and sought the administration’s plans for the DirectFile electronic filing program.
Senator Van Hollen asked whether Treasury agreed with the Congressional Budget Office’s projection that recent tax changes would reduce revenue relative to prior law. Secretary Bessent said he disagreed with some CBO assumptions and offered to provide the committee with specific analysis on where Treasury differs. "Yes, sir," he told the senator when asked to supply that analysis.
The committee discussed staffing quality after rapid hiring. Bessent relayed that a whistleblower and Treasury review had flagged problems with hiring quality under the previous administration, saying some hires met only some criteria and “there were a few examples of, people who are not qualified at all.” He argued the department plans to use technology, including artificial intelligence, to raise auditor productivity and improve collections, saying the goal is to enhance "collections, [taxpayer] service and fraud" through better technology and targeted staffing.
Members also questioned the future of DirectFile, the IRS program that lets taxpayers with simple returns file for free. Bessent said Treasury is "looking at DirectFile" and had delayed making decisions until after the filing season; he committed to provide the committee an assessment and to follow up after the hearing.
On technology modernization, Bessent said the IRS technology update has been a long effort, with about $50 billion spent over decades and planned spending in the billions; he said the department cut some planned spending this year to avoid funding wasted projects that are largely "patches on patches" and emphasized priorities of collections, compliance and customer service.
Committee members asked for written follow‑up on specific assumptions and disparities with CBO scoring; Bessent agreed to provide those materials.
