DOGE Adviser Says IRS Tech Upgrade Decades Behind Schedule, Billions In Debt

Corcos emphasized the critical nature of tax collection within the government, stating, “We cannot execute the fundamental functions of tax collection without incurring costs from numerous contractors. We must find a way to escape this predicament; we are currently in a very deep hole.”

Bessent added that the primary issue lies not with the IRS employees but with the agency’s contractors. “Many of the staff members are excellent. The problem lies with the consulting firms. They have wrapped themselves around our government like a boa constrictor, and the expenses are staggering. These costs are ultimately borne by the American taxpayer,” Bessent remarked.

Bessent remarked, “The entrenched interests, consultants, Democrats, and mainstream media are intent on undermining this project. This approach contradicts the principles of government efficiency; it is not about elimination or extinction. Sam and his team are enhancing the efficiency of government operations for the benefit of the American public. So, what is wrong with achieving better, more cost-effective, faster results while ensuring greater privacy?”

In a separate discussion, Musk informed Senator Ted Cruz (R-TX) on Monday that the so-called “magic money computers” within the U.S. government are producing payments “out of thin air,” leaving legislators in the dark regarding federal expenditures.

During an appearance on Cruz’s podcast, Musk disclosed that there are 14 such systems operating within the U.S. Treasury and various agencies, facilitating substantial transfers without adequate justification. He asserted that in departments utilizing these systems, reported expenditures could be misrepresented by as much as 5 percent of the budget when submitted to Congress, while Cruz indicated that these erroneous payments could amount to “trillions” of dollars.

Musk noted, “Most of these systems are located at the Treasury, but there are some at Health and Human Services, a few at State, and several at the Department of Defense.” He added, “We have identified 14 of these magic money computers that simply generate funds from nothing,” he told the Texas senator.

Elaborating on the findings of the Department of Government Efficiency (DOGE), the innovative entrepreneur explained that the existence of these computers hinders the Treasury Department from providing lawmakers with a complete picture of the federal government’s overall spending.

“You might assume that government computers communicate seamlessly, synchronizing to accurately account for fund allocations, and that the figures presented to you as a senator are indeed accurate. They are not,” he stated.