DOGE's cost-cutting team has come knocking at the IRS

Members of the IRS are reportedly on edge as a member of Elon Musk’s Department of Government Efficiency team paid a visit to the agency, signaling heightened scrutiny of the tax agency as the administration pushes for cost-cutting measures across the federal government.

According to multiple news outlets, Gavin Kliger, a senior staffer on the team, came to the IRS on Thursday requesting information on each of its business units, its priorities over the next 90 days, and potential risks it faces.

While there was no immediate indication that Kliger accessed IRS systems, employees were reportedly uneasy about the presence of an outsider evaluating the agency’s operations.

Citing an internal IRS email, CNN reported that employees were instructed to refer any inquiries regarding the visit to a designated inbox.

“Anyone getting an inbound on a group of high-profile visitors to the IRS should have them send their query to the inbox. We’ve elevated this inquiry to Treasury. We’re awaiting further instruction,” the email reportedly stated.

Musk’s initiative, backed by President Donald Trump, has focused on identifying inefficiencies and cutting federal spending. The IRS visit follows a broader effort by the administration to review agency budgets and eliminate certain contracts. According to Reuters, senior IRS executives received instructions to assess and identify potentially “non-essential” consulting contracts – those that primarily produce reports, research, or coaching services.

“Consistent with the goals and directives of the Trump administration to eliminate waste, reduce spending, and increase efficiency, GSA has taken the first steps in a government-wide initiative to eliminate non-essential consulting contracts,” an email to IRS executives reportedly stated.

Despite growing concerns over the impact of these efforts, Trump defended the DOGE initiative – which has also reached other agencies including the Treasury and the CFPB – clarifying that while the team would be scrutinizing the IRS, the tax agency would not be shut down.

“I think the Internal Revenue Service will be looked at like everybody else. Just about everybody’s going to be looked at… [DOGE is] doing a hell of a job, it’s an amazing job,” he told reporters.

The widely reported January missive from the Office of Personnel Management titled "Fork in the Road" had also raised concerns at the IRS, according to Barron's. The memo outlined a "deferred resignation" package for employees across several federal agencies, which gave them a choice between tendering their resignation by February 6 and securing benefits and pay through the end of September, or staying in their positions with the caveat that they could be downsized in the interim.

That sparked questions over whether a segment of the IRS who are crucial for tax filing season would be put at risk by the Trump administration's campaign to shrink head counts across the federal system. Those fears were allayed by another email circulated Wednesday, which clarified that those working in taxpayer services, IT, and the Taxpayer Advocate Service must remain on the job through mid-May.

“Exempt employees whose positions are deemed critical are required to remain working through at least May 15, 2025, even if they respond to the OPM email by the February 6 deadline,” the email reported by Barron's said.

Doreen Greenwald, national president of the National Treasury Employees Union, expressed skepticism about the administration’s workforce reduction efforts given the mixed messaging between the OPM's original memo and the newer email Wednesday.

“Not only is this a clear case of bait-and-switch – they were originally told they would be paid to not work through Sept. 30 – but it proves that the terms of OPM’s so-called offer are unreliable and cannot be trusted,” she said to Barron's.