Elon Musk is taking aim at one of Washington’s biggest targets: the Internal Revenue Service. Together with entrepreneur Vivek Ramaswamy, the eccentric billionaire has a plan to slash the agency’s budget and overhaul the way Americans handle their taxes.

The duo’s ambitions don’t stop there. They are spearheading $2 trillion in federal spending cuts, eliminating agencies they consider bloated or outdated through the Department of Government Efficiency (DOGE).

“The IRS is a mess,” Elon has said, citing inefficiencies and scandals that have plagued the agency for years. He has proposed a free tax-filing app, proposed audits and called for mass layoffs to ease what he sees as “administrative sprawl.”

He conducted a poll on X, asking people what he should do about the IRS, and over 60% voted to completely defund the IRS.

Additionally, DOGE plans to cut federal funding to other agencies, including the Consumer Financial Protection Bureau (CFPB) and the Department of Education.

Cut Federal Spending

DOGE is targeting multiple agencies and programs as part of a $2 trillion spending cut plan. The CFPB, an agency that oversees financial practices, is at the top of Elon’s list. “Delete the CFPB,” Elon posted on X, sparking debate over the agency’s future.

Critics say the agency overlaps with other agencies, making it redundant. Project 2025, a Trump-era initiative, also pushed for its elimination.

The Department of Education is also not safe. Vivek has proposed “massive cuts,” even saying that entire agencies could be eliminated. Trump, who has advocated dismantling the department for years, appears to be getting his allies to double down on that goal.

Even the Pentagon's massive $1 trillion budget is not the limit. Vivek has criticized the Defense Department for what he calls rampant waste. He claims the Pentagon burns through $125 billion a year on bureaucracy.

Ironically, Elon’s SpaceX, with $3.6 billion in federal defense contracts, is not bankrupt yet. DOGE also 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 op-ed in the Wall Street Journal that the funding was not authorized by Congress, calling it another example of reckless federal spending.

IRS In Sight

Elon has been in talks to develop a government-backed tax-filing app, according to a Wall Street Journal report. The idea? Simplify tax season and cut out third-party services like TurboTax, which have faced accusations of defrauding taxpayers.

Elon and his DOGE team want to radically simplify the tax code, making it less painful for average Americans. The IRS has long been a target of criticism.

In 2013, the agency was accused of politically 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. “The IRS wastes taxpayer money. It’s time to be held accountable,” she posted on X.

DOGE’s plan includes an audit of the IRS and a review of its spending. Elon and Vivek want to cut the workforce and eliminate what they call “administrative sprawl.” Elon also proposes moving agencies like the IRS out of Washington, hoping to reduce the agency’s influence and operating costs.

DOGE’s aggressive strategy could lead to significant job losses. Elon and Vivek have proposed placing DOGE appointees into agencies to assess their minimum staffing needs. The goal is simple: find the essential people and fire the rest.

“Massive layoffs” are part of the plan, along with severance payments and early retirement incentives. Elon also proposed a strict return-to-office policy for federal employees, requiring them to show up five days a week. He hopes many will voluntarily leave.

The Department of Justice, the Federal Trade Commission, and the Securities and Exchange Commission are also in DOGE’s crosshairs. While specific plans for these agencies have not been revealed, cuts are expected.

The agency has also faced accusations of mismanagement and inefficiency. Critics point to outdated technology and delays in processing tax returns. In November 2024, a former IRS employee pleaded guilty to filing fraudulent tax returns, adding to the agency’s list of problems.

Another problem is fraudulent tax preparers. A 2014 study found that many preparers filed inaccurate returns, often inflating their refunds. Efforts to regulate these practices have faced legal challenges, leaving taxpayers vulnerable to fraud.

The IRS has also been accused of denying claims without justification, especially during the COVID-19 pandemic.

These controversies have eroded public trust. Elon’s criticism fits with a broader view that the IRS is overstaffed, inefficient, and prone to abuse.