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The IRS is Tightening its Belt

by | Apr 1, 2026 | Contracts, IRS, Taxpayers |

The IRS may be saving hundreds of millions of dollars by cancelling certain contracts, although the effect on service to taxpayers is not yet known.  In early 2025, the IRS reviewed more than 3,000 contracts and identified 334 contracts to cancel, with a potential cost savings of approximately $645 million. The following services are the five largest categories measured by potential savings; the services expected to be impacted are these: E-file Updates, Information Returns Updates, Taxpayer 180 Support Services, Taxpayer First Act Initiative Support, and 85 contracts with Expert Witness Testimony impact. To read the complete report, click here.

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