The IRS still exists and continues to operate
No, the Internal Revenue Service was not eliminated during Donald Trump's presidency or after. The IRS remains a federal agency that collects taxes, processes returns, and enforces tax law. It continues to operate under the Treasury Department today, just as it has since 1913.
What did change during the Trump administration were funding levels, staffing, and enforcement priorities — not the existence of the agency itself. Understanding what actually shifted can help you know what to expect when you file your taxes or deal with the IRS.
Key Takeaways
- The IRS was not abolished or eliminated; it remains the federal tax collection agency under the Treasury Department.
- The Trump administration reduced IRS funding and staffing levels, which affected how quickly the agency could process returns and respond to taxpayers.
- Enforcement actions against high-income earners and large corporations decreased during this period, though enforcement against lower-income taxpayers remained relatively stable.
- Subsequent administrations have increased IRS funding again, which has expanded staffing and processing capacity.
How IRS funding and staffing changed
During the Trump administration, Congress reduced the IRS budget year after year. Between 2010 and 2020, the agency lost roughly 30 percent of its workforce through attrition and hiring freezes. Fewer employees meant longer wait times on the phone, slower processing of paper returns, and delayed responses to taxpayer inquiries.
These staffing cuts had real consequences. When the pandemic hit in 2020, the IRS struggled to process the volume of returns and stimulus-related paperwork. Backlogs that built up during this period took years to clear. The agency also had fewer auditors available to examine tax returns, particularly those filed by high-income individuals and corporations.
What changed about tax enforcement
The Trump administration did not change which taxes people owe or how the tax code works. What shifted was enforcement — the IRS's ability and willingness to audit returns and pursue unpaid taxes.
With fewer staff, the IRS conducted fewer audits overall. Audits of high-income earners and large corporations dropped more noticeably than audits of lower-income taxpayers. This meant some people and businesses faced less scrutiny, though it also meant the IRS collected less revenue from unpaid or underreported taxes.
The agency's audit rate — the percentage of returns examined — fell to historic lows. By 2020, the IRS was auditing less than 1 percent of all returns filed, down from roughly 1.1 percent a decade earlier.
How the IRS operates today
Since 2021, Congress has increased IRS funding significantly. The Inflation Reduction Act of 2022 allocated roughly $80 billion to the IRS over ten years, much of it directed toward hiring, technology upgrades, and enforcement. The agency has been rehiring staff and expanding its capacity to process returns and conduct audits.
This means current wait times and processing speeds are improving, though they remain longer than they were before the budget cuts of the 2010s. The IRS is also increasing audits again, particularly of high-income earners and corporations, as staffing levels rise.
Why people thought the IRS might be eliminated
Some politicians and commentators have proposed eliminating the IRS and replacing it with a different tax system — such as a national sales tax or a flat tax. These proposals have circulated for decades across different administrations. During the Trump years, some of his supporters discussed these ideas, but they remained proposals rather than policy.
Eliminating the IRS would require an act of Congress and a fundamental change to how the U.S. collects federal income tax. No president can dissolve the agency unilaterally. These proposals have not advanced into law.
What you need to know about filing taxes now
The IRS continues to process tax returns, issue refunds, and enforce tax law. You still file your return the same way — either on paper or electronically through the IRS website or a tax software provider. The important date remains April 15 (or the next business day if that falls on a weekend or holiday).
If you owe taxes or the IRS owes you a refund, the agency will handle it as it always has. Processing times have improved since the pandemic but may still be longer than in years past, especially if you file on paper or if your return requires manual review.
Frequently Asked Questions
Can the president shut down the IRS?
No. The IRS is a federal agency created by Congress, and only Congress can eliminate it or significantly restructure it. A president can request budget changes or direct enforcement priorities, but cannot dissolve the agency through executive action alone.
Did Trump change how much tax I owe?
The Trump administration did pass the Tax Cuts and Jobs Act in 2017, which changed tax rates and deductions for individuals and corporations. This changed how much tax some people owed, but it was a change to the tax code itself, not an elimination of the IRS. The IRS still collects whatever taxes the law requires.
Will the IRS audit me more now?
Audit rates are increasing as the IRS rehires staff, but they remain low overall. Your chances of being audited depend on your income level, the complexity of your return, and whether your reported income matches other records the IRS receives — not on which administration is in office.
Is the IRS still processing returns slowly?
Processing times have improved since the pandemic peak, but some returns still take longer than they did before 2020. Paper returns take longer than electronic ones. Returns that require manual review or that claim certain credits may also take additional time.
What if I disagree with the IRS about what I owe?
You have the same appeal and dispute options that existed before. You can request an audit reconsideration, file an appeal with the IRS Appeals Office, or take your case to Tax Court. The IRS Taxpayer Advocate Service can also help if you believe you have been treated unfairly.