economy

'It’s hard to know exactly what the objective of DOGE was': Former IRS boss warns Elon Musk’s cuts to the tax agency will be felt in years to come

After Elon Musk’s Department of Government Efficiency (DOGE) slashed more than a quarter of the 100,000-person workforce at the IRS, the agency received 140.2 million individual returns and issued more than 90.4 million refunds, slightly down from the year before.

'It’s hard to know exactly what the objective of DOGE was': Former IRS boss warns Elon Musk’s cuts to the tax agency will be felt in years to come

TL;DR

  • Former acting IRS Commissioner Douglas O’Donnell believes Elon Musk's DOGE cuts will have future repercussions for the agency.
  • The IRS reported a successful 2026 tax season, but O'Donnell warns of long-term impacts due to workforce reductions and budget constraints.
  • Decades of underinvestment in modernization and technology have weakened the IRS, and the DOGE cuts have reversed progress.
  • The agency's budget is set to decrease, potentially impacting enforcement operations and programs like Direct File.
  • The IRS faces challenges in adopting AI and improving systems with reduced funding.

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