As Elon Musk’s Department of Government Efficiency’s effect quickly grows within the organization, leading positions and workers cuts are looming in the weeks leading up to Tuesday’s individual income tax filing deadline.
Chief Information Officer Rajiv Uppaul is expected to leave the organization after two decades, according to an internal message that the Washington Examiner reviewed on Monday.  ,
The IRS, which has much valued tax security as a top priority, has been stung by the federal government’s drive to increase data-sharing to help officials find those who have broken legal immigration laws, according to a current and former employee of the organization.  ,
The IRS has long advocated for duty adherence among people who reside and work in the United States and are not citizens, giving claims that their income details may be private and not be passed to immigration authorities. These people use special taxpayer identification figures rather than Social Security numbers to record their returns.
Our best leaders feel the Trump presidency is breaking a moral standard, so we are seeing them depart in droves, according to an IRS staff who spoke on the condition of anonymity for fear of retaliation. When the company is busiest, this is not the time for large adjustments at the agency.
The Treasury Department has defended its shifts because they emphasize the IRS’s current systems.  ,
” As we work on IT development and organizational restructuring the company to better serve the tax, we are even in the midst of breaking down data warehouses that have for too long stood in the way of identifying spare, fraud, and misuse and bringing criminals to justice,” said the organization. We think that these objectives are necessary for a more effective and safer government, according to a statement from a Treasury Department official.
The IRS announced a round of layoffs earlier this month that could reduce its workforce by up to 20 000 people, or nearly a quarter of its total workforce. A federal judge recently reinstated roughly 7, 000 probationary workers who were terminated starting in February, despite the uncertainty as to whether or not they had actually resumed their jobs. According to reports, the agency’s workforce, which is estimated to be 90,000, could be reduced in the coming months.  ,
The DOGE cuts are in line with a Republican pledge to cut back on audits aimed at wealthy Americans. The Biden administration provided the IRS with nearly$ 80 billion in additional funding, primarily aimed at recovering unpaid taxes from the wealthy. Republicans criticized the audit initiative as an attack on middle-class people and small businesses.  ,
All of this coincides with Tuesday’s tax filing deadline. IRS revenue agents are raising the alarm that the agency’s capacity to investigate tax evasion by corporations and high-income earners has declined, ultimately resulting in a decline in government revenue.
The IRS employee said that because I currently have more than two times as much work as I did before, these layoffs will ultimately cause collections and audits and our organization won’t be able to generate the same amount of revenue. We’ve also been informed of errors on the website that indicate the incorrect deadline for extension payments and misidentified tax forms, making it “very messy and sloppy” before our biggest day.”
The “log in” button on the website, which is located at the top right of the navbar, was not there like it should be on most websites. It was oddly placed in the middle of the page below the fold.
The *soon* change could be implemented is July, according to an IRS engineer. twitter.com/9mOgoi0RQ3
— Department of Government Efficiency ( @DOGE ) April 9, 2025
Elon Musk posted about changes DOGE is making to the IRS website last week while officials have not responded to questions regarding errors on the IRS website.
This engineer collaborated with the DOGE team to remove the bureaucracy, and the project was completed in 71 minutes. See before and after images below, Musk wrote. The IRS has some excellent employees who are “merely being strangled by bureaucracy.”
Even though the IRS reported bringing in more than$ 5.1 trillion in revenue during fiscal 2024, job cuts may have an impact on its ability to generate revenue. The IRS has been working to close what is known as the” tax gap,” or the gap between what taxpayers owe and what is actually paid. This annual gap, according to recent data and official statements, could be between$ 600 billion and$ 1 trillion.
According to a study released by the National Bureau of Economic Research in 2021, the IRS typically recovers between$ 5 and$ 12 in revenue for every dollar it spends on enforcement.
IRS CHIEF MELANIE KRAUSE RESERVES AFTER AGENCY ACCEPTES IMMIGRANTS’ DATA TO ICE.
According to the Washington Post, the Treasury Department is already anticipating a decrease of at least 10 % in the IRS ‘ tax revenue this spring as a result of the recent cuts. Over$ 500 billion is the amount of that shortfall, surpassing the annual budgets of the majority of federal agencies.
