IRS Data Consolidation Hackathon Sparks Privacy and Security Concerns

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A controversial plan to consolidate IRS data access through a single API has raised serious privacy and security concerns among experts and agency insiders.

The Department of Government Efficiency (DOGE), led by Elon Musk, will host a hackathon next week in Washington DC aimed at creating what they call a "mega API" - a unified system for accessing IRS data. The project involves dozens of engineers working to complete the task within 30 days.

Sam Corcos and Gavin Kliger, two key DOGE operatives at the IRS, are spearheading this initiative. Corcos, a health-tech CEO with SpaceX connections, has already halted existing IRS modernization projects, cutting approximately $1.5 billion from the budget.

The proposed API would potentially enable access to highly sensitive information, including taxpayer names, social security numbers, tax returns, and employment data. Currently, these records are deliberately separated across multiple systems with strict access controls.

Industry experts have expressed alarm about the accelerated timeline and potential risks. "That is not only not technically possible, that's also not a reasonable idea, that will cripple the IRS," said an IRS employee speaking on condition of anonymity.

The project may involve third-party vendors, with Palantir - co-founded by Peter Thiel - frequently mentioned as a potential partner. This has intensified concerns about private sector access to confidential tax information.

Recent personnel changes have added to the controversy. DOGE has placed approximately 50 IRS technologists on administrative leave and removed several key security officials, including the deputy chief information security officer.

"It's hard to imagine more sensitive data than the financial information the IRS holds," noted Evan Greer, director of Fight for the Future, highlighting the serious privacy implications of this ambitious data consolidation effort.

The IRS, Palantir, and DOGE representatives have not responded to requests for comment about the upcoming hackathon and its potential implications for taxpayer privacy.