Elon Musk said his DOGE will pursue IRS, with plans to cut the budget.

Elon Musk is targeting one of Washington's biggest targets: the Internal Revenue Service. Along with entrepreneur Vivek Ramaswamy, this eccentric billionaire plans to cut the budget of the agency and rethink how Americans handle taxes. The duo's ambitions don't stop there. They are directing $2 trillion in federal spending cuts, addressing agencies they deem cumbersome or outdated through the Department of Government Efficiency (DOGE). "The IRS is a mess," Elon said, pointing out the agency's inefficiency and years of scandals. He proposed a free tax filing app, suggested audits, and called for mass firings to reduce what he sees as "excessive administrative bloat." He conducted a survey on X, asking people what he should do with the IRS, and over 60% voted to completely abolish the IRS budget.

In addition, DOGE plans to cut federal funding to other agencies, including the Consumer Financial Protection Bureau (CFPB) and the Department of Education. Federal spending cuts DOGE is targeting multiple agencies and programs as part of a $2 trillion spending cut plan. CFPB, a financial activities oversight agency, tops Elon's list. "Abolish CFPB", Elon posted on X, sparking a debate about the agency's future. Critics argue that this agency overlaps with other agencies, making it redundant. The 2025 project, a Trump-era initiative, also advocated for its elimination. The Department of Education is also not safe. Vivek has proposed a "massive cut", even saying that all agencies could be eliminated. Trump, who has supported the dissolution of this department for many years, seems to be doubling down on that goal. Even the enormous budget of 1 trillion dollars from the Pentagon is not considered a limit. Vivek has criticized the Department of Defense for what he calls rampant waste. He declared that the Pentagon burns $125 billion a year on bureaucratic machinery. Ironically, Elon's SpaceX, with $3.6 billion in federal defense contracts, has not gone bankrupt. DOGE also has plans to redirect $535 million currently allocated to the Corporation for Public Broadcasting (CPB), which oversees PBS and NPR. Elon and Vivek argued in an essay in The Wall Street Journal that this funding was not allowed by Congress. They see this as another example of reckless federal spending. IRS In Focus According to the Wall Street Journal, Elon has negotiated to develop a tax filing application supported by the government. What is the idea? Simplify tax season and reduce reliance on third-party services like TurboTax, which have faced accusations of misleading taxpayers. Elon and his DOGE team want to completely simplify tax laws, making the average American less painful. The IRS has long been a target of criticism. In 2013, the agency was accused of targeting conservative Tea Party groups, leading to public outrage and congressional investigations. Ernst, who heads the DOGE group in the Senate, called the agency a symbol of inefficiency. "IRS wastes taxpayers' money. It's time to be held accountable," she posted on X. DOGE's plan includes an IRS audit and a review of the agency's spending. Elon and Vivek want to reduce the workforce, eliminating what they call "excessive administrative growth." Elon also proposes relocating agencies like the IRS out of Washington, hoping to narrow the agency's influence and operating costs. DOGE's aggressive strategy could lead to significant job losses. Elon and Vivek have proposed placing those appointed by DOGE into agencies to assess minimum staffing needs. The goal is simple: identify essential personnel and dismiss the rest. "Large-scale layoffs" are part of the plan, along with severance payments and incentives for early retirement. Elon also proposed strict return-to-office policies for federal employees, requiring them to be present one day a week. He hopes many will voluntarily resign. The Department of Justice, the Federal Trade Commission, and the Securities and Exchange Commission are also within the scope of DOGE's focus. Although specific plans for these agencies have not been disclosed, reductions are expected. In addition, the agency also faces allegations of poor and ineffective management. Critics point out outdated technology and delays in processing tax returns. In November 2024, a former IRS employee pleaded guilty to filing fraudulent tax returns, further adding to the list of issues facing the agency. Another issue is tax evasion preparers. A 2014 study found that many preparers filed inaccurate tax returns, often inflating the amount of refund. Efforts to regulate these activities have faced legal challenges, making taxpayers vulnerable to fraud. The IRS is also accused of denying compensation requests without valid reasons, especially during the COVID-19 pandemic. These controversies have eroded public trust. Elon's criticism aligns with the common view that the IRS is overstaffed, inefficient, and prone to abuse.