 During the transition , many or most of the employees of the IRS ( 105 @,@ 978 in 2005 ) would face loss of employment . The Beacon Hill Institute estimate is that the federal government would be able to cut $ 8 billion from the IRS budget of $ 11 @.@ 01 billion ( in 2007 ) , reducing the size of federal tax administration by 73 % . In addition , income tax preparers ( many seasonal ) , tax lawyers , tax compliance staff in medium @-@ to @-@ large businesses , and software companies which sell tax preparation software could face significant drops , changes , or loss of employment . The bill would maintain the IRS for three years after implementation before completely decommissioning the agency , providing employees time to find other employment . 
