President Trump did not sign an order replacing the IRS or ending federal income taxes. His administration proposed studying an agency to collect tariffs and other foreign-source revenue, while the IRS continued operating and processing tax payments.
False
President Trump signed an executive order establishing an External Revenue Service to replace the IRS and eliminate federal income taxes.
Trump Pitches External Revenue Service to Collect Tariffs: What to Know - The New York Times
Source: nytimes.com
At a glance
Verified September 4, 2026Key Evidence
The January 2025 action ordered an investigation into whether an External Revenue Service could be created and how it might collect tariffs. It did not itself establish the agency or replace the IRS.
IRS records published in 2026 continued to describe the IRS as the agency receiving tax-liability payments and implementing federal payment changes under Executive Order 14247. Those records are inconsistent with the claim that the IRS had been replaced or that federal income taxes had been eliminated.
PolitiFact’s review found that the social-media claim overstated Trump’s proposal: income taxes remained in place, and the order did not eliminate tax returns or the federal income tax.
The reporting
What the Evidence Shows
The claim combines a real proposal with two unsupported outcomes. On January 20, 2025, President Donald Trump directed officials to examine the feasibility of creating an “External Revenue Service” focused on collecting tariffs and other revenue from foreign sources. The order called for an investigation and recommendations, rather than immediately creating a new agency, abolishing the IRS, or ending the federal income tax.
The New York Times reported this distinction on January 21, 2025.nytimes.comnytimes.comTrump Pitches External Revenue Service to Collect Tariffs: What to Know
Primary trail
Verified Sources10
Open source