Elon Musk, a billion-dollar entrepreneur, has a new target in his sights: the Internal Revenue Service (IRS). With his Department of Government Efficiency (DOGE), Musk is going to revolutionize the work of the agency, sparking intrigue, as well as controversy. Here, Musk’s bold action is discussed, touching on his motives, actions, and potential effects of his work with the IRS.
DOGE tackles spending in government
As a “special government employee” in his appointment to his post by President Trump, Musk has been tasked to cut government spending through DOGE. The move is in line with Musk’s advocacy of government spending reductions and efficiencies. However, his involvement has been a point of concern in that his company, Tesla, has not paid a federal tax in 2024 despite reporting billions of dollars in revenue. The move has created doubts in some that Musk is qualified to set federal fiscal policy.
Access to sensitive systems
The controversy was exacerbated when Musk’s team in DOGE was given access to sensitive government payments systems, such as those that handle tax refunds. The entry was temporarily blocked in a federal court, yet it sent shockwaves of concern to legislators that it breached security of taxpayers’ details, in addition to a politicization of key payments systems.
IRS Direct File in a state of confusion
Musk further stoked controversy when he said on social media platform X that he had “deleted” 18F, the digital services agency responsible for designing the IRS Direct File system. The revelation created confusion regarding readiness of the free file tax program. Contrary to Musk’s revelation, the Direct File program is up again for the 2025 tax season. The program, introduced to be offered in 25 states for the 2025 tax season, allows eligible taxpayers to file their federal return to the IRS for free.
On-site inspection of IRS operations
Gavin Kliger, one of Musk’s lead team members, traveled to the IRS to ascertain the agency’s operations. Kliger’s visit to the IRS, sitting in on high-level executives’ meetings, has created questions regarding Musk’s extent of control and interference. The worry of Senator Ron Wyden was that DOGE’s entry in the IRS would lead to combing over a treasure trove of info on every American citizen’s tax return and slowing of tax refunds.
Possible effects and risks
The entry of Musk in the IRS has created a multitude of challenges:
- Data privacy: The grant of access to Musk’s team is sparking questions regarding security and confidentiality of taxpayers’ information.
- Political meddling: Members of Congress worry that there is potential for interference in work of the IRS in a political manner.
- Conflicts of interest: Musk’s role as a government advisor in addition to heading companies of considerable financial interest is sparking questions regarding potential conflict of interest.
- Program interruptions: The ambiguity regarding the Direct File program and scrutiny of IRS operations can interfere in the process of taxes.
IRS efforts to shield taxpayers
Amidst these fears, the IRS and its Coalition Against Scam and Scheme Threats (CASST) partners brought new reforms to the 2025 filing season to protect taxpayers from scams and schemes. The new reforms consist of a new form to manage the Fuel Tax Credit and increased scrutiny of “other withholding” claims.
As Musk’s team pushes further into the IRS, there is a growing clamor for more transparency and oversight. Senators Elizabeth Warren and Ron Wyden called on the Government Accountability Office (GAO) to open a review of how Musk was permitted to gain access to systems.
The long-term impact of Musk’s entry into the IRS is to be watched. As his fans boast of potential added efficiency and government spending reductions, his critics warn of potential attacks on data privacy, political manipulation, and program disruption. As events continue to play out, taxpayers and legislators in turn will be watching to see just how Musk’s bold move is going to transform the IRS and the tax filing process.
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