Elon Musk’s Doge To To Dire15,000 IRS employees

According to an Associated Press, the Internal Revenue Service (IRS) will fire 15,000 employees next week during the tax season. The major termination is under Elon Musk’s Office of Government Efficiency (DOGE). This is a temporary institution created by an executive order to reduce federal employment and reduce government spending.

The layoffs come after the Trump administration ordered all federal agencies to terminate probation employees who do not have civil service protections. It is unclear whether more IRS workers will be affected, but sources say the cuts are happening rapidly.

IRS blocks workers from shopping during tax season

The administration had already launched a “deferred resignation program,” designed to drive out federal employees with buyout offers. The deadline for applications is February 6th, and accepting workers will continue to receive compensation until September 30th after quitting their job.

However, for IRS employees working on the 2025 tax season, the acquisition was off limits. The agency sent a letter telling them they had to stay until the April 15th tax return deadline before they left.

The IRS begins processing tax returns on January 27th, hoping to process over 140 million filings before the cutoff. The agency was on track to expand its business after receiving $80 billion through Biden’s Inflation Reduction Act. The funds were intended to hire thousands of new workers and upgrade their enforcement skills.

But the plan fell apart. Republicans hold back much of their money, and Elon’s Doge now eliminates positions instead of creating them.

14 states are suing dogge for government overreach

Elon’s Doge is more than just cutting jobs. It also manages federal data. The attorney general of 14 states sued this week, accusing them of operating without oversight. The lawsuit filed in Washington federal court argues Doge is making a decision that only Senate-approved officials should be allowed to do so.

The complaint alleges that Elon’s team has “virtually unconfirmed powers” and violates constitutional rules regarding government agencies. The Attorney General has argued that Doge is legally suspicious as Trump’s executive order did not pass Congress.

A federal judge ruled courtesy of Elon on Friday, denying Doge’s attempt to block access to government records. Unions and nonprofits had applied for a temporary restraining order and were trying to stop Doge from collecting data from three federal agencies. Ministry of Labor, Ministry of Health and Human Services, Consumer Financial Protection Bureau

Judge John Bates, appointed by George W. Bush, said the case was a “close question,” but ultimately ruled Doge was an agency. This means that employees can be sent to other government agencies and access records under economic law.

“The plaintiffs do not show any substantial possibility that (Doge) is not an agent,” Bates wrote. “If so, (Doge) could detail the employee to other institutions that are consistent with economic law.”

Federal judges question Doge’s legal structure

Elon’s Doge is designed to operate outside of regular government channels. Instead of answering the Office of Management and Budget (OMB), we report directly to Trump’s Chief of Staff.

Judge Bates calls the structure “strange” and claims agency privilege when it is convenient, saying that the doge was built to “avoid being an agency.”

“They put a lot of effort into avoiding being an agency, but in this case you are an agency,” Bates said. “It just seems to be putting a burden on faith credit.”

The ruling gives Elon’s team full access to federal data, and the Department of Justice supports them. Government lawyers argued that Doge employees were “detailed” government workers. This means that you have a legal right to see sensitive records.

Elon reposted the X’s ruling, writing “LFG.”

Concerns about access to Elon’s federal data

Union lawyers representing workers at the Department of Labor say Doge will have access to confidential financial, medical and employment records.

Attorney Mark Samburg told the court that DOGE employees can extract taxpayer information, employee complaints, workplace safety violations and medical history data.

Some records include ongoing investigations of Elon’s own companies. Both Tesla and SpaceX are reviewing workplace issues, and there are concerns that Doge can access those files.

Samburg warned that the ruling could have “serene effects” on government whistleblowers. Employees may be hesitant to report issues or file a complaint if they believe Doge has access to their information.

“The sensitive information of millions of people now stands at the immediate risk of illegal disclosure,” Samburg said.

Trade unions and advocacy groups have sought a temporary restraining order to prevent Doge from drawing data until more scrutiny. Judge Bates denied the request.

For now, Elon’s agency is moving forward. The IRS ends next week. Layoffs, data access and litigation are all in motion.