A major initiative to overhaul how taxpayer data is accessed at the Internal Revenue Service (IRS) has sparked serious privacy and security concerns among agency workers and experts.
The Department of Government Efficiency (DOGE), led by Elon Musk, is organizing a hackathon in Washington, DC next week. The goal is to develop a centralized API (application programming interface) that would provide unified access to IRS data systems.
Sam Corcos, a health-tech CEO with SpaceX connections, and Gavin Kliger, a former Databricks employee, are spearheading the project as DOGE operatives at the IRS. Their ambitious plan aims to complete the API development within just 30 days.
"It's basically an open door controlled by DOGE for all Americans' most sensitive information with none of the rules that normally secure that data," warned an IRS employee who spoke on condition of anonymity.
The current IRS infrastructure operates through multiple separate systems with strict access controls. The proposed "mega API" would consolidate access to sensitive taxpayer information including Social Security numbers, tax returns, and employment data.
Industry giant Palantir, founded by Peter Thiel, has emerged as a potential third-party vendor to manage aspects of the data project. The company recently received high-level federal security clearance for its cloud services.
IRS technical staff have expressed grave concerns about the accelerated timeline. "That is not only not technically possible, that's also not a reasonable idea, that will cripple the IRS," stated another anonymous IRS employee.
The Treasury Department defended the initiative in a statement, claiming it would "streamline IRS systems to create the most efficient service for the American taxpayer."
The project aligns with a March 20 executive order directing agencies to eliminate information silos. However, privacy advocates worry about the implications of centralizing such sensitive data.
As DOGE moves forward with dramatic changes at the IRS, including recent administrative leaves for dozens of technology staff, questions remain about the security and privacy implications of this unprecedented data access overhaul.