Doing Next Year's Taxes May Be More of a Nightmare: Analysis | NBC 7 San Diego
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Doing Next Year's Taxes May Be More of a Nightmare: Analysis

"They'll lose billions in revenue in order to save a few hundred million dollars"

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    Doing Next Year's Taxes May Be More of a Nightmare: Analysis
    Bloomberg via Getty Images, File
    1040 Individual Income Tax forms for the 2015 tax year are pictured. Taxpayers have until Monday, April 18 to file.

    The tax man goes on a diet under President Donald Trump's proposed "skinny budget," and that could affect how much money the IRS collects — and a sharp cutback in enforcement and customer service, NBC News reports.

    The budget calls for a 14 percent reduction in the IRS' operating budget, andthat follows a 17 percent drop in funding since 2010. That's despite the agency paying for itself — it contributes $4 for every dollar of funding it receives.

    "It's penny-wise and pound-foolish," said Robert Weinberger, a senior fellow at the Aspen Institute's Initiative on Financial Security. "They'll lose billions in revenue in order to save a few hundred million dollars."

    The impact of further cuts will be fewer audits, which may increase the temptation to cheat, and fewer customer service agents who can answer taxpayers' questions.