The Internal Revenue Service (IRS) is facing turmoil as Elon Musk’s Department of Government Efficiency (DOGE) steps in during the crucial tax season.
According to reports, IRS employees are feeling “paralyzed” as chaos erupts across the agency.
In the midst of this, the agency is set to cut 20% to 25% of its workforce by May 15.
The future of the IRS, which has already been a target for Republican scrutiny, seems to be teetering on the edge.
Massive Job Cuts and Agency Overhaul
Sources reveal that the IRS, once a 100,000-strong workforce when Donald Trump took office, will be losing up to 25,000 workers.
The cuts will include around 5,000 IRS employees who recently took buyouts, along with an additional 7,000 probationary workers who were let go.
As the workforce shrinks, inside sources say the agency’s ability to collect taxes and provide essential services is crumbling.
IRS workers report that DOGE operatives have been demanding access to critical systems, creating an atmosphere of confusion and frustration.
“They’re bullying us with no clear guidance or accountability,” one IRS worker told CNN. “It’s a complete mess.”
A Shocking Takeover at the IRS
It all started when Gavin Kliger, a young tech expert, appeared at the IRS headquarters in Washington, D.C., seemingly without warning.
Kliger, who is part of Musk’s DOGE, arrived to seize control of the IRS’s tax administration systems.
Within moments, he was reportedly demanding access to taxpayer data, despite strict confidentiality laws protecting this sensitive information.
Kliger was soon joined by Sam Corcos, an entrepreneur known for designing apps.
His role appeared to be to streamline operations by cutting back on IRS programs meant to modernize the tax system.
Staffers reported that Corcos was eager to “delete” as many initiatives as possible, leaving workers scrambling to figure out if they even had the authority to make such decisions.
Thousands of IRS Workers Fired Amid the Chaos
As March unfolded, thousands of IRS employees were dismissed, including key personnel in auditing and customer service.
Over 110 taxpayer assistance offices are also scheduled to close, leaving vast regions without access to in-person help during the peak of tax season.
According to one union leader, “It’s routine to see people crying in the office,” while another source simply said, “We are paralyzed.”
Experts Warn of Long-Term Consequences
Tax professionals and veterans of the IRS are raising alarms about the agency’s future.
Nina Olson, former National Taxpayer Advocate, called the cuts “basically gutting the agency.”
Olson emphasized that new, young talent is being fired, leaving only the most experienced workers to retire, which poses a significant risk to the future of tax collection and service for American citizens.
Delays and Customer Service Crisis on the Horizon
With the IRS already struggling, the cuts are expected to result in severe delays, longer wait times, and a tax system more vulnerable to fraud.
One IRS employee warned that customer service would return to the chaotic days of long waits and disconnects.
The phone wait time, which had dropped to an impressive three minutes in 2024, could once again spiral back to the pre-reform nightmare.
The IRS Leadership Struggles Amidst the Downfall
The leadership vacuum at the IRS only adds to the chaos.
After Commissioner Danny Werfel resigned on Inauguration Day, his acting successor retired shortly after, leaving Melanie Krause, with just three years of experience, in charge.
With the agency’s leadership in freefall, questions linger about the real impact of Musk’s DOGE initiative.
Musk’s Silent Role and Controversy Surrounding Data Privacy
Elon Musk has yet to publicly comment on the situation, but his influence is being felt at every level.
Some critics, like former IRS Commissioner Werfel, have compared DOGE’s actions to a CEO barging into a bank and demanding access to all customer data.
Meanwhile, there are growing concerns about the agency’s role in sharing taxpayer data.
Allegations suggest that DOGE could be working to hand over sensitive information about undocumented immigrants, a move that could lead to mass deportations, violating longstanding taxpayer privacy protections.
Immigrant Rights Groups File Lawsuits Against DOGE’s Actions
In response, two immigrant rights groups have filed lawsuits, warning that the actions of DOGE could harm their members.
The lawsuit argues that if DOGE succeeds in accessing and sharing data, immigrants could face severe consequences, including arrest and detention.
The groups are calling on the IRS and Treasury to halt the release of this information.
The Quiet Crisis Behind the Scenes at the IRS
As tax season continues, most Americans remain unaware of the growing crisis within the IRS.
The agency responsible for collecting the revenue that funds the government is being torn apart, and its ability to function is rapidly deteriorating.
What’s unfolding at the IRS could have serious implications not only for taxpayers but for the entire U.S. government.