• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

1

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
FinanceTaxes

Tax Day: Can Trump Treasury Secretary Steven Mnuchin Make the IRS Great Again?

By
Jen Wieczner
Jen Wieczner
Down Arrow Button Icon
By
Jen Wieczner
Jen Wieczner
Down Arrow Button Icon
March 30, 2017, 7:30 AM ET
G20 Finance ministers meeting
The US Minister of Finance Steven Mnuchin speaks at a press conference at the congress centre during the the G20 Finance ministers meeting in Baden-Baden, Germany, 18 March 2017. Photo by: Franziska Kraufmann/picture-alliance/dpa/AP ImagesFranziska Kraufmann—Picture-Alliance/DPA/AP
Add Fortune on Google for similar content.

It’s the other part of tax reform that politicians don’t always like to talk about: How can the U.S. make sure the American tax system at least collects on what it’s owed?

With tax day, when 2016 taxes are due, around the corner on Tuesday, April 18 this year, that problem is top of mind for U.S. government officials on both sides of the aisle.

The U.S. Internal Revenue Service has been a favorite Republican pincushion for most of the past decade; budget cuts have deprived the IRS of nearly $1 billion in funding since 2010.

So when Donald Trump’s new Treasury Secretary Steven Mnuchin jumped to the defense of the agency during his confirmation hearing in January, saying he was “particularly surprised” and “concerned” that “the IRS is under-resourced to perform its duties,” it was akin to crossing a picket line.

After years of workforce shrinkage, Mnuchin even suggested that the IRS should expand by hiring more employees: “Perhaps, the IRS just started with way too many people, but I am concerned about the staffing of the IRS,” he said. “That is an important part of fixing the tax gap,” he added, referring to the amount of unpaid taxes.

A former Goldman Sachs (GS) banker, Mnuchin assured Congress that it would be “a very quick conversation with Donald Trump” to convince him that “we add people, and we make money.”

That was a far cry from Republican Ted Cruz’s erstwhile presidential campaign plan to abolish the IRS entirely.

Mnuchin also laid out his hopes to make filing and paying taxes simpler and more pleasant, proposing online taxpayer services on par with the e-commerce industry’s, and better technology to keep taxpayers’ data safe from cyberattacks. Cyber security has been a major challenge for the IRS in recent years, with hackers attempting to break into the IRS more than a million times every day, sometimes successfully.

“There should be simple ways that the IRS can interact with the American taxpayers,” Mnuchin testified. “If you can get good service in the retail online business, there is no reason why we can’t use that same type of technology for taxpayers to communicate.”

No one had bothered, it seemed, to clue in the political outsider from Wall Street to just how politically fraught the battle over IRS funding really is. When the subject of IRS modernization came up at the hearing, Mnuchin sounded a bit naive: “I hope that’s at least a bipartisan issue that we can all agree on,” he ventured. “This is something I feel very strongly about.”

But Mnuchin’s vision may not get far, as that promised conversation with President Trump seems to be proving harder than he anticipated. The White House’s new budget calls for a 2% reduction in IRS funding. A Treasury spokesperson says the IRS will make up for the shortfall by using new technology and taking advantage of increases in electronic tax filing (e-filing) to whittle down processes that in the past likely relied more on humans.

And the new Treasury Secretary seems to have found a compromise he can live with, even if it doesn’t address all the ways he dreamed of making the IRS great again. Trump’s budget, Mnuchin said in a statement, “will ensure that we have the resources we need to enforce the nation’s tax laws,” while also prioritizing “initiatives that promote technology, efficiency and modernization.” Taxpayers may have to wait for Tax Day 2018 to find out how well Mnuchin is following through on that goal.

A version of this article appears in the April 1, 2017 issue of Fortune.

About the Author
By Jen Wieczner
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

Forget the ceasefire — The U.S. and Iran are still locked in combat over the Strait of Hormuz as Tehran tries to shut down a competing route
Middle EastIran
Forget the ceasefire — The U.S. and Iran are still locked in combat over the Strait of Hormuz as Tehran tries to shut down a competing route
By Jason MaJune 27, 2026
6 hours ago
The contrarian view for Fed rate cuts: Payrolls will weaken, inflation will plunge, and Kevin Warsh was ‘largely performative’ in his hawkishness
EconomyFederal Reserve
The contrarian view for Fed rate cuts: Payrolls will weaken, inflation will plunge, and Kevin Warsh was ‘largely performative’ in his hawkishness
By Jason MaJune 27, 2026
6 hours ago
Atlanta Fed chief selection delay gives Warsh a say
BankingFederal Reserve
Atlanta Fed chief selection delay gives Warsh a say
By Jonnelle Marte, Saleha Mohsin and BloombergJune 27, 2026
14 hours ago
SpaceX, Charter discussed mobile phone partnership in U.S.
North Americaspace
SpaceX, Charter discussed mobile phone partnership in U.S.
By Kelcee Griffis and BloombergJune 27, 2026
15 hours ago
S&P keeps U.S. sovereign rating at AA+ with stable outlook
EconomyDebt
S&P keeps U.S. sovereign rating at AA+ with stable outlook
By Michael Mackenzie and BloombergJune 27, 2026
15 hours ago
erik
AIJobs
‘It’s not going away’: The Stanford economist who called the AI entry-level jobs crisis early has the receipts
By Nick LichtenbergJune 27, 2026
15 hours ago

Most Popular

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
18 hours ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
3 days ago
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
4 days ago
The 33-year-old executive Satya Nadella is trusting to fix Microsoft’s Copilot AI assistant
AI
The 33-year-old executive Satya Nadella is trusting to fix Microsoft’s Copilot AI assistant
By Sebastian HerreraJune 27, 2026
19 hours ago
The end of Putin’s regime will spring from war spending chaos, former central bank advisor says, amid military mutiny threat and fuel-shortage brawls
Europe
The end of Putin’s regime will spring from war spending chaos, former central bank advisor says, amid military mutiny threat and fuel-shortage brawls
By Jason MaJune 27, 2026
10 hours ago
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
Asia
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
By Nick LichtenbergJune 24, 2026
4 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.