Enjoy doing your taxes this year, because next year will be a nightmare

Donald Trump's "skinny budget" puts the tax man on a diet, and that could put a dent in how much money Uncle Sam collects from individuals and businesses.

While it might be nice to have the (already slim) chance of getting audited even less likely, experts warn that anemic enforcement could have wide-ranging ripple effects on compliance and revenue. Although it's not a cut of the same magnitude as the 31 percent cut to the EPA, the 14 percent reduction proposed for the IRS in Trump's budget would necessitate a sharp cutback in enforcement and customer service.

"The IRS is heavily dependent on people... That means cutting some services," said Roberton Williams, a senior fellow at the Urban Brookings Tax Policy Center.

Billions of Dollars Lost?

"It's penny-wise and pound-foolish," said Robert Weinberger, a senior fellow at the Aspen Institute's Initiative on Financial Security. "They'll lose billions in revenue in order to save a few hundred million dollars."

The IRS is one of the few government agencies that pays for itself; for every dollar of funding it receives, it contributes $4 to federal coffers.

Since 2010, the agency's budget has already been cut 17 percent. The Center for Budget and Policy Priorities found that the number of employees dropped by 14 percent, and enforcement personnel fell by 23 percent.

"This is the undermining of a basic function of government," said Chuck Marr, director of federal tax policy at the Center.

RELATED: Guide to the most commonly-used tax forms

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Guide to commonly-used US tax forms
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Guide to commonly-used US tax forms

The 1040 family of tax forms is for federal income tax and is absolutely essential for all.

The 1040EZ form is the simplest version and is typically filed by those who:

  • Have no dependents
  • Are younger than 65
  • Earned less than $100,000
  • Don’t plan to itemize deductions

Form 1040A is more comprehensive than 1040EZ, but simpler than the regular 1040. It's beneficial for those who earn less than $100,000 and don’t have self-employment income -- but who want to make adjustments to their taxable income, such as child tax credits or deductions for student-loan interest. Note that it doesn't allow for itemized deductions.

Form 1040 is filled out by those who make $100,000 or more, have self-employment income or plan to itemize deductions.

The W-2 is completed by employers document each employee's earnings for the calendar year. You will want to take a look at this tax form for important information you'll need to fill out your 1040, 1040A or 1040EZ. 
The 1098 form is filled out by those who:
  • paid interest on a mortgage
  • paid interest on a student loan 
  • paid college tuition
  • donated a motor vehicle to charity

The 1099 series is reports all income that isn’t salary, wages or tips, and must be reported on both the state and federal level.

1099-DIV reports dividends, distributions, capital gains and federal income tax withheld from investment accounts, including mutual fund accounts.

1099-INT trakcs interest income earned on investments.

1099-OID (Original Issue Discount) is provided if you received more than the stated redemption price on maturing bonds.

1099-MISC documents self-employment earnings, as well as miscellaneous income such as royalties, commissions or rents. It covers all non-employee income that is not derived from investments.

If you receive a refund that you're unable to pay in full, you can request a monthly installment plan using Form 9465.
Don't forget to notify the IRS if you move! Use Form 8822 to change your address with the Internal Revenue Service. Otherwise, notices, refunds paid with a paper check and other correspondence relating to your personal, gift and estate taxes will be sent to your former address.
Anyone who has been employed by a company has completed a Form W-9. The W-9 is used by employers for payroll purposes -- and the information on the W-9 is used to prepare employee paychecks during the year and W-2 forms at the end of the year. 
The W-4 is an IRS form completed for employers know how much money to withhold from your paycheck for federal taxes. Accurately completing your W-4 can both ensure you don't have a big balance due at tax time and also prevent you from overpaying your taxes.
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Related: A Visual Guide to President Donald Trump's Budget

Erin Towery, an assistant professor of accounting at the University of Georgia, noted that the IRS's duties have increased in recent years because the agency is tasked with administering the Affordable Care Act provisions and penalties, a function agents have had to add to their plate even as funding shrank.

"They're actually giving the IRS more responsibility but they're cutting their budget," she said, and with the workforce stretched so thin, the IRS can only go after the most egregious violators. "The problem with that is they're leaving money on the table," she said. "It's going to reduce U.S. government revenues."

Greenlighting Tax Evasion

The audit rate already is at a historic low, experts point out. "If they cut into that any further, it's pretty obvious what the impact would be on compliance," said George Yin, a professor of law and taxation at the University of Virginia.

"If you starve enforcement, basically, you're giving a gift to wealthy scofflaws, giving a green light to fraudsters and identity thieves," Weinberger said.

Fewer audits increase the temptation to cheat, Williams said. "A longer-run worry, as people realize that auditing's not occurring, is there's less incentive to be complete and accurate in filing your tax returns," he said. "Over time, that erodes the system and confidence that everybody's paying their fair share."

See a photo from each day of Trump's first 100 days:

101 PHOTOS
Donald Trump's first 100 days in office, a photo for each day
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Donald Trump's first 100 days in office, a photo for each day
US President Donald Trump takes the oath of office with his wife Melania and son Barron at his side, during his inauguration at the U.S. Capitol in Washington, U.S., January 20, 2017. REUTERS/Kevin Lamarque TPX IMAGES OF THE DAY
U.S. President Donald Trump waves as he leaves the Central Intelligence Agency (CIA) headquarters after delivering remarks during a visit in Langley, Virginia U.S., January 21, 2017. REUTERS/Carlos Barria TPX IMAGES OF THE DAY
U.S. President Donald Trump shows a letter from former President Barack Obama at a swearing-in ceremony for senior staff at the White House in Washington, DC January 22, 2017. REUTERS/Carlos Barria
U.S. President Donald Trump holds up the executive order on withdrawal from the Trans Pacific Partnership after signing it in the Oval Office of the White House in Washington January 23, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump speaks to reporters while signing an executive order to advance construction of the Keystone XL pipeline at the White House in Washington January 24, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump, left, speaks as U.S. Vice President-elect Mike Pence, center, and John Kelly, secretary of U.S. Homeland Security, stand during a visit to the Department of Homeland Security (DHS) in Washington, D.C. U.S., on Wednesday, Jan. 25, 2017. Trump acted on two of the most fundamental -- and controversial -- elements of his presidential campaign, building a wall on the border with Mexico and greatly tightening restrictions on who can enter the U.S. Photographer: Chip Somodevilla/Pool via Bloomberg
U.S. President Donald Trump speaks briefly to reporters as he arrives aboard Air Force One at Joint Base Andrews, Maryland, U.S. January 26, 2017. REUTERS/Jonathan Ernst
WASHINGTON, DC - JANUARY 27: British Prime Minister Theresa May shakes hands with U.S. President Donald Trump in The Oval Office at The White House on January 27, 2017 in Washington, DC. British Prime Minister Theresa May is on a two-day visit to the United States and will be the first world leader to meet with President Donald Trump. (Photo by Christopher Furlong/Getty Images)
U.S. President Donald Trump, flanked by Chief of Staff Reince Priebus (R), speaks by phone with Russia's President Vladimir Putin in the Oval Office at the White House in Washington, U.S. January 28, 2017. REUTERS/Jonathan Ernst
Activists march to the US Capitol to protest President Donald Trump's executive actions on immigration in Washington January 29, 2017. REUTERS/Aaron P. Bernstein TPX IMAGES OF THE DAY
U.S. President Donald Trump speaks before signing an executive order while surrounded by small business leaders in the Oval Office of the White House in Washington, D.C., U.S., on Monday, Jan. 30, 2017. Trump said he will dramatically reduce regulations overall with this executive action as it requires that for every new federal regulation implemented, two must be rescinded. Photographer: Andrew Harrer/Bloomberg via Getty Images
WASHINGTON, DC - JANUARY 31: (AFP OUT) U.S. President Donald Trump shakes hands with Robert J. Hugin, Executive Chairman, Celgene Corporation, as he meets with representatives from PhRMA, the Pharmaceutical Research and Manufacturers of America in the Roosevelt Room of the White House on January 31, 2017 in Washington, DC. According to its website, PhRMA 'represents the country's leading biopharmaceutical researchers and biotechnology companies.' Kenneth C. Frazier, Chairman and CEO of Merck & Co. looks on from left. (Photo by Ron Sachs - Pool/Getty Images)
Rex Tillerson, U.S. Secretary of State for President Donald Trump, left, speaks as U.S. President Donald Trump listen after the swearing-in ceremony in the Oval Office of the White House in Washington, D.C., U.S., on Wednesday, Feb. 1, 2017. Tillerson won Senate confirmation as secretary of state after lawmakers split mostly along party lines on President Trump's choice of an oilman with no government experience but a career negotiating billions of dollars of energy deals worldwide. Photographer: Michael Reynolds/Pool via Bloomberg
WASHINGTON, DC - FEBRUARY 2: President Trump and Vice President Mike Pence meet with Harley Davidson executives and Union Representatives on the South Lawn of the White House in Washington, DC on Thursday, Feb. 02, 2017. (Photo by Jabin Botsford/The Washington Post via Getty Images)
U.S. President Donald Trump waves as he arrives at West Palm Beach International airport in West Palm Beach, Florida, U.S., February 3, 2017. REUTERS/Carlos Barria
U.S. President Donald Trump and First Lady Melania Trump attend the 60th Annual Red Cross Gala at Mar-a-Lago club in Palm Beach, Florida, U.S., February 4, 2017. REUTERS/Carlos Barria
US President Donald Trump watches the Super Bowl with First Lady Melania Trump (R) and White House Chief of Staff Reince Priebus (L) at Trump International Golf Club Palm Beach in West Palm Beach, Florida on February 5, 2017. / AFP / MANDEL NGAN (Photo credit should read MANDEL NGAN/AFP/Getty Images)
U.S. President Donald Trump salutes as he arrives at MacDill Air Force Base in Tampa, Florida, U.S., February 6, 2017. REUTERS/Carlos Barria
U.S. President Donald Trump receives a figurine of a sheriff during a meeting with county sheriffs at the White House in Washington, U.S. February 7, 2017. REUTERS/Kevin Lamarque TPX IMAGES OF THE DAY
U.S. President Donald Trump speaks while Brian Krzanich, chief executive officer of Intel Corp., left, listens during a meeting at The White House in Washington, D.C., U.S., on Wednesday, Feb. 8, 2017. Trump defended his power to put limits on who can enter the U.S., saying it shouldn't be challenged in the courts even as a three-judge panel weighs whether to reinstate restrictions on refugees and travelers from seven predominantly Muslim nations. Photographer: Chris Kleponis/Pool via Bloomberg
U.S. President Donald Trump watches as Vice President Mike Pence (R) swears in Jeff Sessions (L) as U.S. Attorney General while his wife Mary Sessions holds the Bible in the Oval Office of the White House in Washington, U.S., February 9, 2017. REUTERS/Kevin Lamarque
Japanese Prime Minister Shinzo Abe is greeted by U.S. President Donald Trump (L) ahead of their joint news conference at the White House in Washington, U.S., February 10, 2017. REUTERS/Joshua Roberts
US President Donald Trump and First Lady Melania Trump pose for photos with Japanese Prime Minister Shinzo Abe and his wife Akke Abe at Trump's Mar-a-Lagoresort in Palm Beach, Florida, on February 11, 2017 prior to dinner. / AFP / NICHOLAS KAMM (Photo credit should read NICHOLAS KAMM/AFP/Getty Images)
U.S. President Donald Trump arrives on Air Force One at Joint Base Andrews, Maryland, U.S., February 12, 2017. REUTERS/Carlos Barria
Canadian Prime Minister Justin Trudeau (L) and U.S. President Donald Trump shake hands during a joint news conference at the White House in Washington, U.S., February 13, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump listens to U.S. Secretary of Education Betsy DeVos speak at meeting with teachers and parents at the White House in Washington, U.S., February 14, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump (2ndR) and first lady Melania Trump greet Israeli Prime Minister Benjamin Netanyahu and his wife Sara (L) as they arrive at the South Portico of the White House in Washington, U.S., February 15, 2017.REUTERS/Kevin Lamarque
U.S. President Donald Trump announces Alexander Acosta as his new nominee to lead the Department of Labor during a news conference at the White House in Washington, U.S., February 16, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump walks with his grandchildren Arabella and Joseph to Marine One upon his departure from the White House in Washington, U.S., February 17, 2017. REUTERS/Carlos Barria
U.S. President Donald Trump and first lady Melania Trump acknowledge supporters during a "Make America Great Again" rally at Orlando Melbourne International Airport in Melbourne, Florida, U.S. February 18, 2017. REUTERS/Kevin Lamarque
The motorcade of U.S. President Donald Trump turns into Trump International Golf Club in West Palm Beach, Florida U.S., February 19, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump announces his new National Security Adviser Army Lt. Gen. H.R. McMaster (L) and that acting adviser Keith Kellogg (R) will become the chief of staff of the National Security Council at Trump's Mar-a-Lago estate in Palm Beach, Florida U.S. February 20, 2017. REUTERS/Kevin Lamarque TPX IMAGES OF THE DAY
WASHINGTON, DC - FEBRUARY 21: (AFP OUT) President Donald Trump tours the Smithsonian National Museum of African American History & Culture on February 21, 2017 in Washington, DC. (Photo by Kevin Dietsch - Pool/Getty Images)
Director of the Office of Management and Budget Mick Mulvaney (L) listens to U.S. President Donald Trump speak during a "strategic initiatives" lunch at the White House in Washington, U.S., February 22, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump arrives for a meeting with experts on addressing human trafficking at the White House in Washington, DC, U.S. February 23, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump addresses the Conservative Political Action Conference (CPAC) in Oxon Hill, Maryland, U.S. February 24, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump leaves after a dinner at Trump International Hotel in Washington, U.S., February 25, 2017. REUTERS/Yuri Gripas
WASHINGTON, DC - FEBRUARY 26: AFP OUT President Donald Trump delivers brief remarks before a toast during the annual Governors' Dinner in the East Room of the White House February 26, 2017 in Washington, DC. Part of the National Governors Association� annual meeting in the nation's capital, the black tie dinner and ball is the first formal event the Trumps will host at the White House since moving in last month. (Photo by Chip Somodevilla/Getty Images)
WASHINGTON, DC - FEBRUARY 27: U.S. President Donald Trump poses with the Historically Black Colleges and Universities in the Oval Office of the White House, on February 27, 2017 in Washington, DC. (Photo by Aude Guerrucci-Pool/Getty Images)
US Vice President Mike Pence (L) and Speaker of the House Paul Ryan (R) applaud as US President Donald J. Trump (C) arrives to deliver his first address to a joint session of Congress from the floor of the House of Representatives in Washington, DC, USA, 28 February 2017. REUTERS/Jim Lo Scalzo
U.S. President Donald Trump looks up while hosting a House and Senate leadership lunch at the White House in Washington, U.S. March 1, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump tours the pre-commissioned U.S. Navy aircraft carrier Gerald R. Ford at Huntington Ingalls Newport News Shipbuilding facilities in Newport News, Virginia, U.S. March 2, 2017. REUTERS/Jonathan Ernst 
U.S. President Donald Trump, joined by U.S. Senator Marco Rubio (from L), U.S. Education Secretary Betsy DeVos and White House advisor Jared Kushner, thanks fourth-grade students for the "Happy Birthday Florida" card they gave him as he visits their classroom at Saint Andrew Catholic School in Orlando, Florida, U.S. March 3, 2017. REUTERS/Jonathan Ernst
WEST PALM BEACH, FL - MARCH 04: US President Donald Trump waves from his vehicle as he stops while being driven past supporters near his Mar-a-Lago resort home on March 4, 2017 in West Palm Beach, Florida. President Trump spent part of the weekend at the house. (Photo by Joe Raedle/Getty Images)
WASHINGTON, DC - MARCH 05: President Donald J. Trump walks across the South Lawn towards the White House on March 5, 2017 in Washington, DC. Trump is returning from a weekend at his Mar-a-Lago club in Palm Beach. Florida. (Photo by Erik S. Lesser-Pool/Getty Images)
U.S. Secretary of State Rex Tillerson (L) and U.S. Attorney General Jeff Sessions stand together after speaking on issues related to visas and travel after U.S. President Donald Trump signed a new travel ban order in Washington, U.S., March 6, 2017. REUTERS/Kevin Lamarque
Beside a painting of Hillary Clinton, U.S. President Donald Trump makes a surprise appearance in front of a tour group at the White House in Washington, U.S. March 7, 2017. REUTERS/Kevin Lamarque
WASHINGTON, DC - MARCH 8: First Lady Melania Trump arrives at a luncheon she was hosting to mark International Women's Day in the State Dining Room at the White House in Washington, DC on Wednesday, March. 08, 2017. (Photo by Jabin Botsford/The Washington Post via Getty Images)
WASHINGTON, DC - MARCH 09: US President Donald Trump greets Dorothy Savarese, CEO of Cape Cod Five Mutual Company, during a National Economic Council listening session with the CEOs of small and community banks, in the Roosevelt Room at the White House on March 9, 2017 in Washington, D.C. (Photo by Kevin Dietsch-Pool/Getty Images)
U.S. President Donald Trump talks with Representative Greg Walden (R-OR) during a healthcare meeting with key House Committee Chairmen at the White House in Washington, U.S., March 10, 2017. REUTERS/Carlos Barria
POTOMAC FALLS, VA - MARCH 11: President Donald Trump has a working lunch with staff and cabinet members and significant others at his golf course, Trump National on March 11, 2017 in Potomac Falls, Virginia. (Photo by Pete Marovich-Pool/Getty Images)
A boy looks at a man dressed in the likeness of U.S. President Donald Trump as ultra Orthodox Jewish men dressed in Purim costumes take part in the reading from the Book of Esther ceremony performed on the Jewish holiday of Purim, a celebration of the Jews' salvation from genocide in ancient Persia, as recounted in the Book of Esther, in Jerusalem March 12, 2017. REUTERS/Ammar Awad
U.S. President Donald Trump is applauded by his cabinet as he signs an executive order entitled "Comprehensive Plan for Reorganizing the Executive Branch" in the Oval Office at the White House in Washington, U.S. March 13, 2017. REUTERS/Jonathan Ernst
U.S. President Donald Trump and Saudi Deputy Crown Prince and Minister of Defense Mohammed bin Salman enter the State Dining Room of the White House in Washington, U.S., March 14, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump takes the stage for a rally at Municipal Auditorium in Nashville, Tennessee, U.S. March 15, 2017. REUTERS/Jonathan Ernst
Ireland's Prime Minister Enda Kenny (R) presents a traditional gift of a bowl of shamrocks to U.S. President Donald Trump during a St. Patrick's Day reception at the White House in Washington, U.S. March 16, 2017. REUTERS/Jonathan Ernst
German Chancellor Angela Merkel (L) and U.S. President Donald Trump walk to a joint news conference in the East Room of the White House in Washington, U.S., March 17, 2017. REUTERS/Joshua Roberts
The motorcade of U.S. President Donald Trump makes its way to Trump International Golf Club in West Palm Beach, Florida, U.S., March 18, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump speaks to reporters with New England Patriots owner Robert Kraft at his side aboard Air Force One as he departs West Palm Beach, Florida, U.S., to return to Washington March 19, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump walks on the South Lawn of the White House to board Marine One before departing to Louisville, Kentucky, in Washington U.S., March 20, 2017. REUTERS/Carlos Barria
U.S. President Donald Trump receives a NASA jacket during a signing ceremony for S442, the NASA transition authorization act, in the Oval Office of the White House in Washington, U.S., March 21, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump attends a meeting with the Congressional Black Caucus Executive Committee at the White House in Washington, DC, U.S., March 22, 2017. REUTERS/Carlos Barria
U.S. President Donald Trump reacts as he sits on a truck while he welcomes truckers and CEOs to attend a meeting regarding healthcare at the White House in Washington, U.S., March 23, 2017. REUTERS/Carlos Barria TPX IMAGES OF THE DAY
WASHINGTON, DC - MARCH 24: U.S. President Donald Trump meets with Medal of Honor recipients in the Oval Office of the White House on March 24, 2017 in Washington, DC. The meeting with decorated war heroes took place on Medal of Honor Day (Photo by Olivier Douliery-Pool/Getty Images)
U.S. President Donald Trump leaves after a dinner at Trump International Hotel in Washington, U.S., March 25, 2017. REUTERS/Yuri Gripas
Security personnel stand watch as U.S. President Donald Trump's motorcade arrives at the Trump National Golf Club in Potomac Falls, Virginia, U.S., March 26, 2017. REUTERS/Joshua Roberts
Interior Secretary Ryan Zinke (C) receives a pen after U.S. President Donald Trump signed H.J. Res. 57, in the Roosevelt room of the White House in Washington, U.S., March 27, 2017. REUTERS/Carlos Barria
U.S. President Donald Trump holds up an executive order on "energy independence," eliminating Obama-era climate change regulations, during a signing ceremony at the Environmental Protection Agency (EPA) headquarters in Washington, U.S., March 28, 2017. REUTERS/Carlos Barria
US President Donald Trump jokes with New Jersey Governor Chris Christie during a meeting about opioid and drug abuse in the Roosevelt Room at the White House in Washington, DC, on March 29, 2017. / AFP PHOTO / NICHOLAS KAMM (Photo credit should read NICHOLAS KAMM/AFP/Getty Images)
US President Donald Trump shakes hands with Danish Prime Minister Lars Lokke Rasmussen at the White House in Washington, DC, March 30, 2017. / AFP PHOTO / JIM WATSON (Photo credit should read JIM WATSON/AFP/Getty Images)
U.S. President Donald Trump leaves after speaking at a schedule signing ceremony of executive orders on trade as Vice President Mike Pence (C) reacts at the Oval Office of the White House in Washington, U.S., March 31, 2017. REUTERS/Carlos Barria
TOPSHOT - People wearing masks of US President Donald Trump take part in the 32nd Annual April Fools Day Parade in New York on April 1, 2017. The theme for this years parade is MAKE RUSSIA GREAT AGAIN! The Grand Marshall will be a Donald Trump look-alike. The full parade was actually a April Fools' prank. / AFP PHOTO / TIMOTHY A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)
The motorcade of US President Donald Trump arrives at Trump National Golf Club in Potomac Falls, Virginia, April 2, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
WASHINGTON, USA - APRIL 03 : (----EDITORIAL USE ONLY MANDATORY CREDIT - 'PRESIDENCY OF EGYPT / HANDOUT' - NO MARKETING NO ADVERTISING CAMPAIGNS - DISTRIBUTED AS A SERVICE TO CLIENTS----) U.S. President Donald Trump meets Egyptian President Abdel Fattah el-Sisi (R) at the White House in Washington, United States on April 3, 2017. (Photo by Presidency of Egypt / Handout/Anadolu Agency/Getty Images)
U.S. President Donald Trump holds up a chart showing the complexity of regulations as he speaks at the 2017 North America?s Building Trades Unions National Legislative Conference in Washington, U.S., April 4, 2017. REUTERS/Joshua Roberts
U.S. President Donald Trump (L) and first lady Melania Trump (2ndL) welcome Jordan?s King Abdullah (R) and Queen Rania at the White House in Washington, U.S., April 5, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump and First Lady Melania Trump welcome Chinese President Xi Jinping and first lady Peng Liyuan at Mar-a-Lago estate in Palm Beach, Florida, U.S., April 6, 2017. REUTERS/Carlos Barria 
U.S. President Donald Trump and China's President Xi Jinping chat as they walk along the front patio of the Mar-a-Lago estate after a bilateral meeting in Palm Beach, Florida, U.S., April 7, 2017. REUTERS/Carlos Barria
US President Donald Trump looks out the window as he departs the Mar-a-Lago estate in Palm Beach, Florida, April 8, 2017. / AFP PHOTO / JIM WATSON (Photo credit should read JIM WATSON/AFP/Getty Images)
Marine One carrying U.S. President Donald Trump prepares to land on South Lawn of the White House in Washington, U.S., April 9, 2017. REUTERS/Joshua Roberts
US President Donald Trump claps for Neil Gorsuch after he took the judicial oath during a ceremony in the Rose Garden of the White House April 10, 2017 in Washington, DC. / AFP PHOTO / Brendan Smialowski (Photo credit should read BRENDAN SMIALOWSKI/AFP/Getty Images)
U.S. President Donald Trump, center, speaks during a strategic and policy discussion with executives at the White House in Washington, D.C., U.S., on Tuesday, April 11, 2017. The Trump administration has been hobbled by botched policy roll-outs and an early failure on another signature promise -- health-care reform -- and it remains to be seen whether Trump's infrastructure pledges can translate to a permanent boost for business. Photographer: Olivier Douliery/Pool via Bloomberg
U.S. President Donald Trump (R) addresses a joint news conference with NATO Secretary General Jens Stoltenberg in the East Room at the White House in Washington, U.S., April 12, 2017. REUTERS/Jonathan Ernst 
WEST PALM BEACH, FL - APRIL 13: US President Donald Trump arrives on Air Force One at the Palm Beach International Airport to spend Easter weekend at Mar-a-Lago resort on April 13, 2017 in West Palm Beach, Florida. President Trump has made numerous trips to his Florida home and according to reports has cost over an estimated $20 million in his first 80 days in office. (Photo by Joe Raedle/Getty Images)
Supporters of U.S. President Donald Trump drive outside the Mar-a-Lago estate in Palm Beach, Florida, U.S., April 14, 2017. Picture taken April 14, 2017. REUTERS/Yuri Gripas
Protestors take part in the 'Tax March' to call on US President Donald Trump to release his tax records on April 15, 2017 in Washington, DC. / AFP PHOTO / Mandel Ngan (Photo credit should read MANDEL NGAN/AFP/Getty Images)
U.S. President Donald Trump and his son Barron board Air Force One at Palm Beach International Airport in West Palm Beach, Florida, U.S. after Easter weekend, April 16, 2017. REUTERS/Yuri Gripas
U.S. President Donald Trump and his son Donald Trump, Jr., watch children roll Easter Eggs at 139th annual White House Easter Egg Roll on the South Lawn of the White House in Washington, U.S., April 17, 2017. REUTERS/Joshua Roberts
U.S. President Donald Trump speaks before signing an executive order directing federal agencies to recommend changes to a temporary visa program used to bring foreign workers to the United States to fill high-skilled jobs during a visit to the world headquarters of Snap-On Inc, a tool manufacturer, in Kenosha, Wisconsin, U.S., April 18, 2017. REUTERS/Kevin Lamarque TPX IMAGES OF THE DAY
U.S. President Donald Trump holds up a New England Patriots jersey as Head Coach Bill Belichick (L) watches during an event honoring the Super Bowl champion New England Patriots at the White House in Washington, U.S., April 19, 2017. REUTERS/Joshua Roberts
US President Donald Trump shakes hands with Italian Prime Minister Paolo Gentiloni (R) during a press conference in the East Room at the White House in Washington, DC, April 20, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
U.S. President Donald Trump shakes hands with Aya Hijazi, an Egyptian-American woman detained in Egypt for nearly three years on human trafficking charges, after she was flown back to the United States on Thursday, in the Oval Office of the White House in Washington, U.S., April 21, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump awards a Purple Heart to Army Sgt First Class Alvaro Barrientos at Walter Reed National Military Medical Center in Bethesda, Maryland, U.S., April 22, 2017. REUTERS/Yuri Gripas
Guests watch a video of U.S. President Donald Trump as he addresses the 15th Plenary Assembly of the World Jewish Congress in New York City, U.S., April 23, 2017. REUTERS/Brendan McDermid
With U.S. Ambassador to the United Nations Nikki Haley at his side, U.S. President Donald Trump hosts a working lunch with ambassadors of countries on the UN Security Council at the White House in Washington, U.S., April 24, 2017. REUTERS/Kevin Lamarque
U.S. President Donald Trump delivers the keynote address at the U.S. Holocaust Memorial Museum's "Days of Remembrance" ceremony in the Capitol Rotunda in Washington, U.S, April 25, 2017. REUTERS/Yuri Gripas
Sydney Chaffee receives the 2017 National Teacher of the Year award from U.S. President Donald Trump during an event at the Oval Office of the White House in Washington, U.S., April 26, 2017. REUTERS/Carlos Barria
U.S. President Donald Trump looks out a window of the Oval Office following an interview with Reuters at the White House in Washington, U.S., April 27, 2017. REUTERS/Carlos Barria
U.S. President Donald Trump arrives onstage to deliver remarks at the National Rifle Association (NRA) Leadership Forum at the Georgia World Congress Center in Atlanta, Georgia, U.S., April 28, 2017. REUTERS/Jonathan Ernst
People cheer as U.S. President Donald Trump appears on stage at a rally in Harrisburg, Pennsylvania, U.S. April 29, 2017. REUTERS/Carlo Allegri
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Related: Trump Lobbied for Tax Change 25 Years Ago That Forgave Real Estate Losses

The agency itself has sounded warnings about its continued ability to catch tax cheats. "We are especially concerned about the effect that the reduction in our workforce has had on audits," Commissioner John Koskinen told the American Institute of Certified Public Accountants in 2015. "We're seeing clear evidence of a longstanding decline in revenue coming from audits," he said.

Between 2005 and 2010, the IRS earned an average of nearly $15 billion a year from audits, but since that time, Koskinen said, the average has fallen to $10.5 billion.

Tax compliance experts say this makes it easier for small businesses, especially ones where most transactions are conducted in cash, to dodge their tax responsibilities. "Businesses that operate in cash don't pay about 50 percent of the tax liability they owe," said Leigh Osofsky, an associate professor of law at the University of Miami School of Law.

A Decline in Customer Service

Along with enforcement, less money for the IRS means fewer customer service agents who can answer taxpayer questions or help out in the case of tax-related identity theft, a problem that has been growing in recent years.

According to the National Taxpayer Advocate's fiscal year 2016 report, "There is no doubt that the deficiencies in taxpayer service are substantially attributable to a lack of resources." It detailed the millions of taxpayers who were unable to get a response from the IRS when they called or sent letters, and pointed out that taxpayers have to dig into their pockets to pay for help from an accountant because they couldn't get assistance from the IRS.

The National Taxpayer Advocate argued that this inability of the IRS to serve taxpayers will generate frustration that will eventually have a detrimental effect on compliance, a prediction other tax experts also echo.

"It leads to mistrust and resentment," Marr said. He added that the effect of a smaller IRS labor pool would be compounded when paired with a massive overhaul of the tax structure that the Trump administration has made a top priority for this year. "One would think if you're having this massive rewrite of the tax code, you'd be trying to put the IRS back on its feet," he said.

"It sounds popular to cut the funds of the IRS, but it's pretty short-sighted, given that they're serving the role of raising the revenue," Osofsky said.

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