
Former IRS commissioner calls Musk's layoffs 'huge mistake'
Clip: 2/24/2025 | 7m 32sVideo has Closed Captions
Why a former IRS commissioner says Musk's mass layoffs are a 'huge mistake'
The IRS is in the process of terminating more than 6,000 employees, around six percent of the agency’s workforce, as Elon Musk’s team continues its efforts to cut federal employees. Former IRS leaders who served under both Democratic and Republican presidents have called the mass layoffs a mistake. Laura Barrón-López discussed more with former commissioner Daniel Werfel.
Major corporate funding for the PBS News Hour is provided by BDO, BNSF, Consumer Cellular, American Cruise Lines, and Raymond James. Funding for the PBS NewsHour Weekend is provided by...

Former IRS commissioner calls Musk's layoffs 'huge mistake'
Clip: 2/24/2025 | 7m 32sVideo has Closed Captions
The IRS is in the process of terminating more than 6,000 employees, around six percent of the agency’s workforce, as Elon Musk’s team continues its efforts to cut federal employees. Former IRS leaders who served under both Democratic and Republican presidents have called the mass layoffs a mistake. Laura Barrón-López discussed more with former commissioner Daniel Werfel.
How to Watch PBS News Hour
PBS News Hour is available to stream on pbs.org and the free PBS App, available on iPhone, Apple TV, Android TV, Android smartphones, Amazon Fire TV, Amazon Fire Tablet, Roku, Samsung Smart TV, and Vizio.
Providing Support for PBS.org
Learn Moreabout PBS online sponsorshipAMNA NAWAZ: The Internal Revenue Service is in the process of terminating more than 6,000 employees, around 6 percent of the agency's overall work force.
It comes as Elon Musk's team, known as the Department of Government Efficiency, continues its efforts to cut the federal work force.
Our White House correspondent, Laura Barron-Lopez, has more -- Laura.
LAURA BARRON-LOPEZ: Amna, these firings come in the middle of tax filing season and target relatively recent hires.
Experts warn that this change will hurt the IRS' ability to investigate ultra-wealthy who are evading taxes.
Today, in a New York Times opinion piece, former IRS commissioners who served under both Democratic and Republican presidents, including Ronald Reagan and Donald Trump, called the mass layoffs a mistake.
They write that the firings -- quote -- "will shift the burden of funding the government from people who shirk their taxes to the honest people who pay them."
And they added that it will impede efforts by the IRS to simplify the tax filing process for everyone.
To discuss, I'm joined by one of the authors, Daniel Werfel, former commissioner of the IRS who resigned last month more than two years earlier than expected.
Mr. Werfel, thank you so much for joining us.
DANNY WERFEL, Former Acting Internal Revenue Service Commissioner: Good to be here.
LAURA BARRON-LOPEZ: An IRS commissioner from every administration, essentially, from Ronald Reagan to present, signed onto this op-ed.
Why do you see these layoffs as a mistake?
DANIEL WERFEL: Well, we got together as former commissioners and we tried to understand why this was being undertaken.
And we understood that it was being undertaken in the interest of cost efficiency.
And this made no sense to us.
All of us, all the previous commissioners have experience in the private sector.
And from our experience, we know that the bottom line is not just about cutting costs.
It's also about maintaining and increasing revenue.
So by cutting the IRS and depleting the ability of the U.S. government to collect revenue, you really are becoming less cost-efficient, not more cost-efficient.
And we wanted to put that right up in front in our op-ed and ask the question, why cut the part of the government that collects the revenue if you're going to try to be more cost-efficient?
LAURA BARRON-LOPEZ: What kind of impact could this have on Americans, especially in this season?
And will it make it easier for tax cheats?
DANIEL WERFEL: Well, it's my understanding that they're really focusing on those that are collecting overdue or balanced due taxes.
And so immediately you will see a reduction in the revenue coming in to fund the U.S. government.
But also a big layoff like this right in the middle of tax filing season is likely to be very disruptive.
And it's absolutely important that the IRS during this time is answering the phone, is maintaining those appointments in the walk-in centers and, really important, processing tax returns and getting people their refunds as quickly as possible.
And all the commissioners, we all talked about the fact that, during filing season, we try to not increase risk.
We try to maintain a lot of stability to make sure that people are getting their refunds on time.
And a giant layoff like this is bound to increase risk and it's very concerning.
LAURA BARRON-LOPEZ: The White House says that Treasury Secretary Scott Bessent thinks that there should be more firings on top of the current ones.
And all of this, Elon Musk says, is being done under the banner of fraud and waste, which you mentioned.
Do you think that there's a case for streamlining this agency?
What's your response to those claims of fraud?
DANIEL WERFEL: I certainly think there's an opportunity to modernize.
And during the transition, when I was at the IRS, I talked to the Trump transition team about opportunities to automate and add technology.
But there's work to be done before you start terminating employees, because you're going to lose performance if you're not ready to automate while you're cutting staff.
So, really, I do think there's opportunity in the future to streamline the IRS, but it has to be done thoughtfully.
I wouldn't do it during filing season.
And you raised the question about fraud.
There is absolutely too much fraud in the government.
There's too many tax scams.
And the IRS work force has worked tirelessly to try to address that fraud and address those tax scams.
And there's a lot of expertise and people at the IRS that you want to maintain to help protect people from these scams and to protect taxpayer dollars.
But here's the thing about fraud and error.
And I have been involved in fraud and error for pretty much my entire career of trying to prevent it.
And I never believe that I have the monopoly on the right answer.
But I have lessons learned.
And one of the lessons learned is we don't know when payments are going out the door whether they're fraudulent or not.
In order to get smarter about it, typically, what you do is two things.
You collect more information about the person or the organization receiving the payment.
LAURA BARRON-LOPEZ: About American taxpayers.
DANIEL WERFEL: About American taxpayers or businesses.
And you take more time and you do more diligence to validate whether the payment is an error or not.
And when this has been tried, when we have tried as a government to collect more information from the public to get a better sense of whether a payment is fraudulent or not, there has rightfully been pushback.
I don't want the government to have all this information.
I don't want this additional paperwork burden.
And I don't want the government to take so long to make the payment.
So a balance is made where, in the interest of speed and the interest of reducing paperwork burden on Americans, there is error in payments that go out.
And work has been done over time to reduce that error.
But if we're going to eliminate fraud and error, the way the Trump administration is describing, tough questions need to be presented on, what does that mean in terms of the information you're going to collect from Americans and businesses, and does that mean delays in payments that are going out?
LAURA BARRON-LOPEZ: I want to ask you about Elon Musk and his DOGE workers getting access to the IRS system, which contains personal tax information that you're talking about for individuals and businesses.
Why should taxpayers care that Musk, who's unelected, who says that he's policing his own conflicts of interest, have?
Why should they care about him having access to such material?
And who typically has access to it?
DANIEL WERFEL: What the government does when somebody comes in, whether it's an employee or a contractor, and says, I need access to this information, the government just doesn't hand it over.
They ask questions.
They ask questions like, why do you need this information?
How long do you need it for to achieve your objective?
And what is your proven trustworthiness to have this information?
And that's exactly what the government is doing.
People are coming in and asking for broad amount of information, information about every taxpayer, your bank account information, your address, your household makeup.
And before that information is just handed over in Musk, civil servants in the government are saying, OK, tell us why you need it and for how long you need it.
And if the answer doesn't match up, if the answer that comes across is, well, we really don't have a good explanation of why we need everybody's information and we don't know how long we need it for, well, then these civil servants are going to ask more questions before they hand the data over.
And as a citizen, where my information is in those systems and your information, I'm glad that the government is asking those questions before they just knee-jerk hand the data over.
LAURA BARRON-LOPEZ: Daniel Werfel, former IRS commissioner, thank you for your time.
DANIEL WERFEL: Thank you.
Altadena's Black homeowners face uncertain future after fire
Video has Closed Captions
Altadena's Black homeowners face challenging future after devastating wildfires (8m 53s)
A Brief But Spectacular take on working in the film industry
Video has Closed Captions
A Brief But Spectacular take on navigating an unpredictable industry (2m 51s)
Center-right wins Germany election, far-right gains support
Video has Closed Captions
Center-right party wins Germany's election as far-right doubles its support (4m 11s)
Ex-rear admiral says Trump replacing leaders with loyalists
Video has Closed Captions
Retired rear admiral fears Trump replacing military leaders with those 'loyal to him' (6m 7s)
News Wrap: Judge declines to restore AP White House position
Video has Closed Captions
News Wrap: Judge declines to restore AP's position in White House press pool (5m 40s)
Tamara Keith and Amy Walter on Trump's approval ratings
Video has Closed Captions
Tamara Keith and Amy Walter on Trump's approval ratings after one month in office (8m 27s)
Trump picks loyalist Bongino to be second-in-command at FBI
Video has Closed Captions
Trump picks loyalist Bongino to be second-in-command at FBI (4m 50s)
Ukraine marks 3 years since Russia's invasion
Video has Closed Captions
kraine marks 3 years since start ofRussia's invasion as Trump's stance raises concerns (2m 58s)
Providing Support for PBS.org
Learn Moreabout PBS online sponsorshipMajor corporate funding for the PBS News Hour is provided by BDO, BNSF, Consumer Cellular, American Cruise Lines, and Raymond James. Funding for the PBS NewsHour Weekend is provided by...