Bessent says $2 billion was cut from IRS technology budget without disruptions

WASHINGTON, May 6 (Reuters) - U.S. Treasury Secretary Scott Bessent on Tuesday said the Trump administration has cut $2 billion from the IRS information technology budget without any operational disruptions and intends to save hundreds of millions more by automating processing of paper forms.

"Last year, the IRS spent approximately $450 million on paper processing with nearly 6,500 full-time staff dedicated to the task," Bessent said in testimony before a House Appropriations subcommittee hearing. "Through policy changes and automation, Treasury aims to reduce this expense to under $20 million by the end of President Trump’s second term."