The IRS still exists and still collects taxes

The IRS has not been eliminated. As of now, the agency continues to operate, collect federal income taxes, and process tax returns. No president has the power to abolish the IRS unilaterally — that would require an act of Congress, which has not happened.

What has changed over time are the IRS's budget, staffing levels, and enforcement priorities. These shifts happen under different administrations and depend on what Congress funds and what policies the sitting president's team chooses to pursue. Understanding what has actually changed — versus what people say might change — helps you know what to expect when you file or deal with the agency.

Key Takeaways

  • The IRS remains a functioning federal agency that collects taxes; eliminating it would require Congress to pass new law.
  • The IRS budget and staffing have fluctuated over decades based on congressional funding decisions, not on whether a president wants the agency to exist.
  • Proposed changes to tax policy or IRS enforcement are different from eliminating the IRS itself, and proposals do not automatically become law.
  • Your tax filing obligations and the basic mechanics of how taxes work have not changed based on recent political statements.

Why people talk about "getting rid of the IRS"

The phrase usually refers to one of two things: replacing the current income tax system with a different tax structure (like a national sales tax), or significantly reducing the IRS's budget and enforcement capacity. These are policy proposals, not current reality.

Some politicians and commentators have proposed replacing the federal income tax with alternative systems. Others have called for cutting the IRS budget to reduce enforcement activity. These are legitimate policy debates, but they remain proposals. A proposal to change the tax system is not the same as the IRS being eliminated or ceasing to operate.

What Congress controls about the IRS

Only Congress can eliminate a federal agency or fundamentally change the tax system. A president can direct the IRS to prioritize certain types of enforcement or deprioritize others, but cannot shut down the agency or stop it from collecting taxes that are owed under current law.

Congress sets the IRS's annual budget. When Congress funds the IRS at lower levels, the agency has fewer staff and less capacity to conduct audits or pursue certain cases. When Congress funds it at higher levels, the agency can hire more people and conduct more enforcement activity. These budget decisions happen every year and reflect the priorities of whoever controls Congress at that moment.

How IRS staffing and enforcement have changed

The IRS workforce has grown and shrunk over decades depending on congressional funding. Between 2010 and 2020, the IRS lost roughly 30 percent of its workforce as Congress reduced its budget. This meant fewer people to answer phones, process returns, and conduct audits. During the Biden administration, Congress increased IRS funding in 2022, and the agency began hiring again.

Staffing levels affect how long it takes to process your return, how quickly you get refunds, and how many audits the IRS can conduct. They do not change whether you owe taxes or whether the tax system itself exists. The agency still collects what it is owed under current law, even if it has fewer people doing it.

What would actually have to happen to eliminate the IRS

Eliminating the IRS or replacing the income tax system would require Congress to pass new legislation. This would involve writing a new tax code, deciding how to replace the revenue the federal government currently collects through income tax, and creating whatever new agency or system would collect taxes instead. This is a massive legislative undertaking that has not occurred.

Proposals to replace income tax with a national sales tax, a flat tax, or other systems have been introduced in Congress many times over many decades. None have passed. Even if one were to pass, there would be a transition period during which both the old and new systems would operate, and the IRS would not simply vanish overnight.

What you should do about your taxes right now

File your tax return as you normally would. The tax code that applies to you is the one Congress has written and that is currently in effect. You owe taxes under that code whether or not there are political discussions about changing the system. The IRS will process your return, send you a refund if you are owed one, or bill you if you owe money.

If you have questions about what you owe or how to file, the IRS website (irs.gov) has forms, instructions, and contact information. If you use a tax preparer or accountant, they can advise you on your specific situation based on current tax law.

Frequently Asked Questions

Could the IRS be eliminated in the future?

Only if Congress passes a law to eliminate it and replace the federal tax system with something else. This would be a major legislative change. While proposals to change the tax system have been made many times, none have become law. Any such change would take years to design and implement.

If the IRS budget gets cut, do I still have to pay taxes?

Yes. A smaller IRS budget means the agency has fewer resources to process returns and conduct enforcement, but it does not change what you owe under current tax law. You still have to file and pay what you legally owe. A budget cut affects the IRS's capacity, not your obligation.

What happens if Congress passes a new tax system?

There would be a transition period during which the government would phase in the new system and phase out the old one. You would receive information about how the new system works and what you need to do. The IRS or a replacement agency would continue collecting taxes during and after the transition.

Should I change how I file my taxes because of political changes?

No. File your taxes based on the tax law that is currently in effect. If Congress changes the tax code, you will receive updated forms and instructions. Tax professionals and the IRS website will explain any changes. Until a change actually becomes law, your filing obligations remain the same.