Could Elon Musk Affect When You Get Your Tax Refund?
Written by
Heather Altamirano
Edited by
Amen Oyiboke
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Tax season is underway, but with Elon Musk having influence over the Treasury Department as head of the Department of Government Efficiency (DOGE), there’s some confusion surrounding tax returns. Musk recently announced on X (formerly Twitter) he “deleted” an agency that developed the IRS Direct File system-a free service many taxpayers use to submit their taxes accurately.
The disruption comes at a time when major changes are happening within the IRS. President Donald Trump is expected to cut thousands of jobs at the agency during its busiest time, Reuters reported. Meanwhile, the IRS Commissioner Danny Werfel stepped down on January 20, 2025, after Trump announced he would nominate his own pick, according to Thomson Reuters.
So what does all of this mean for your tax refund? Experts explain.
What Does 18F Do?
18F is the digital team responsible for developing the IRS’ Direct File system, which is a free program to file taxes. According to the U.S. Treasury Department, the average taxpayer spends an average of $270 and 13 hours preparing their taxes, but the Direct File system saves Americans time and money. The program currently gives access to 30 million eligible taxpayers in 24 states, but has plans to expand to every state.
However, Musk stated he “deleted” the program, but according to the IRS Direct File it’s still up.
What Does This Mean For You Tax Return?
According to Angelo Crocco, CPA and owner AC Accounting, there is concern among financial experts, but “deletion of 18F doesn’t directly impact taxpayers’ immediate refund processes.”
David Brillant, tax and trust and estate lawyer and founder of Brillant Law agrees, but points out an issue that could cause a delay in tax refunds.
“Elon Musk’s deletion of 18F and request for IRS database access raises privacy concerns but shouldn’t directly affect refund timelines unless systemic changes occur,” he said.
Musk’s Access to Taxpayers Information
Musk has requested Department of Government Efficiency (DOGE) gain access to IRS taxpayer data to stop fraud and government waste, ABC reported. If granted, Musk and DOGE would have highly sensitive personal information for taxpayers such as Social Security numbers, income levels, child support payments and more. Experts say there are reasons for concern.
“If a private entity, even one as influential as Musk’s, were to gain access, it could lead to questions about privacy, security, and even potential misuse of data,” explained Danny Ray, founder of PinnacleQuote.
Crocco added, “Musk’s request for access to IRS data raises serious privacy and security concerns. If granted, such access could potentially compromise taxpayer information, highlighting the critical need for robust data protection measures.”
What’s Being Done?
According to NewsNation, 14 attorney generals from Democratic states are trying to prevent DOGE from gaining access to taxpayer’s personal information by seeking temporary restraining orders against Musk and his team.
What Does This Mean for Your Tax Returns?
“Allowing external access, even under the best intentions, could open the door to risks like data leaks or unauthorized use. Furthermore, this could slow down IRS operations, including tax refund processing, as resources may shift toward oversight and compliance,” said Ray.
A Federal Flat Tax
Musk wants to change the tax codes and that’s important to know because it will affect certain deductions and credits that middle-class and low-income filers benefit from.
Musk posted on X, “Simplifying the tax code will increase productivity, instead of incentivizing bizarre tax-avoidance behavior, which means Americans could see a federal flat tax,” per Newsweek.
“Musk’s advocacy for a federal flat tax rate could significantly alter the tax landscape if implemented,” Crocco said. “While touted as simplifying tax filings, it could also redistribute tax burdens unevenly across income brackets, potentially affecting taxpayers differently based on their financial situations.”
Brillant agrees and stated, “A federal flat tax, if implemented, could simplify the tax code but may disproportionately impact middle and lower-income taxpayers by reducing progressive tax benefits.”
Trump Expected To Fire IRS Employees
Trump has been slashing thousands of federal jobs and the IRS is expected to be on the chopping block next, Reuters reported. The move could cause chaos in the middle of a busy tax season and could create major disruptions for taxpayers, Ray suggests.
“The IRS processes millions of returns, issues refunds, and handles audits, so losing a significant number of workers would slow everything down,” Ray noted. “In fact, refunds could take much longer, leaving many Americans waiting for money they depend on. Furthermore, customer service would likely suffer, making it harder for people to get answers about their taxes or resolve issues.”
In addition, audits and disputes would likely take longer to process, creating financial stress for taxpayers.
“Overall, while reducing government waste is important, firing IRS employees during tax season could create chaos for taxpayers and delay the entire system,” Ray explained.
Taxpayers should be aware of how their personal information is handled and if changes could jeopardize their security or delay tax returns. With so many big changes taking place at once, it’s challenging to keep up, but experts say staying informed is the best approach.
“Taxpayers should stay informed about legislative developments and consult with tax professionals to understand potential impacts on their financial planning,” Crocco stated. “Keeping abreast of policy changes and maintaining accurate tax records will be crucial in adapting to any shifts in tax laws influenced by figures like Elon Musk.”
More From GOBankingRates
