As tax season closes, a quiet but major shakeup at the IRS could soon hit Black families—and especially Black women—harder than expected.
Under plans led by billionaire Elon Musk’s Department of Government Efficiency (DOGE), the Internal Revenue Service (IRS) will cut its workforce by 18% by the end of May. While sold as a cost-cutting move, a panel of top tax experts warns the changes could slash government revenue by billions—and shift the burden even more onto working-class Americans.
At a national media briefing hosted by American Community Media on April 11, experts from Yale University, NYU’s Tax Law Center, and the Urban-Brookings Tax Policy Center broke down what’s at stake.
Fewer IRS Workers, Bigger Problems for Everyday People
“The IRS is going to collect about 97% of the revenues that fund the federal government,” said Natasha Sarin, a Yale Law and Finance Professor. But with the layoffs, Sarin warned the agency could “miss out on about $700 billion in taxes that are owed and won’t be collected.”
That missing money won’t just hurt Washington, D.C.’s bottom line—it will affect real people. Programs like Medicaid, SNAP (food stamps), and even refunds from the Child Tax Credit could feel the pressure.
“You’re paying for these incredibly generous tax cuts for the rich, if at all, by cutting Medicaid and SNAP,” said Michael Kaercher of the NYU Tax Law Center.
These programs are critical lifelines for many Black women, who are more likely to head households, care for extended family, and rely on services to bridge gaps in healthcare, food security, and income.
Tax Filing Could Get Harder—and More Expensive
The cuts also threaten the IRS’s Direct File program, a free system that lets taxpayers file taxes online without paying fees to outside companies like TurboTax.
Research shows that Black taxpayers overwhelmingly supported Direct File when it launched. A 2024 survey from the Urban Institute found that more than 60% of Black respondents said they would use a free government-run tax filing system if given the chance.
Without it, more low- and middle-income Americans—including Black women balancing budgets for themselves and their families—could be forced back into costly private systems or risk mistakes that lead to audits.
Trust in the System Is on the Line
Another brewing controversy is how the IRS is handling immigrant tax information. Under a new agreement with ICE, taxpayer data may now be shared with immigration enforcement.
Experts say this could scare people—especially those in immigrant families—away from filing taxes at all.
“We’re pushing immigrants further into the shadows,” said Aravind Boddupalli, Senior Research Associate at the Urban-Brookings Tax Policy Center. “And we’re all collectively worse off for it.”
While this directly affects immigrant families, it adds to a larger distrust of government institutions—something Black communities have long had to navigate.
As Sarin pointed out, “The breaches of trust that I think are going to stay with us for a long time to come.”
What Happens Next
At the same time these IRS cuts are happening, Congress is moving forward with a $5 trillion tax cut plan, largely benefiting the richest 5% of Americans.
Meanwhile, low- and middle-income families could face reduced services, higher costs, and greater financial insecurity.
“An enormous tax cut going primarily to the rich, paid for, if at all, on the backs of low and middle income Americans,” Kaercher summed up.
For Black women—who often sit at the intersection of multiple financial pressures—this new tax reality could mean more challenges ahead unless greater awareness, advocacy, and policy changes step in.
