Elon Musk’s DOGE taps IRS for sensitive taxpayer data; Democrats protest, White House says: ‘to identify and fix’ fraud

Elon Musk's Department of Government Efficiency has tapped the Internal Revenue Service (IRS) for access to sensitive taxpayer data, AP reported citing two unnamed sources.

If the access is successfully granted, Musk's DOGE team would be privy to “millions of tightly controlled files that include taxpayer information, bank records and other sensitive records”, the report noted.

DOGE Specifically Seeking Access to IRS' Integrated Data Retrieval System

As per the sources, DOGE is specifically seeking to access the IRS’ Integrated Data Retrieval System. As per the IRS website. this system allows employees “to have instantaneous visual access to certain taxpayer accounts”.

However, concerns have arisen of potential leaks of taxpayer records and potential for malicious targeting of Americans, if their privacy is breached. There are also fears of other negative impacts.

White House Defends DOGE Actions: ‘To Identify and Fix’

Replying to AP's emailed queries, White House spokesperson Harrison Fields told the publication that “waste, fraud, and abuse have been deeply entrenched in our broken system for far too long. It takes direct access to the system to identify and fix it.”

He added, “DOGE will continue to shine a light on the fraud they uncover as the American people deserve to know what their government has been spending their hard earned tax dollars on.”

Democrats Up in Arms About Potential Security and Privacy Concerns

Democratic lawmakers sent a letter to acting IRS Commissioner Douglas O’Donnell on February 17 to block DOGE's plans to again access to IRS data. Senators Ron Wyden (Oregon) and Elizabeth Warren (Massachusetts) have demanded copies of any memos that would grant IRS system access to Elon Musk or DOGE. They are also seeking justifications for DOGE efforts to inspect tax returns and private bank records.

The letter stated: “… We are also extremely concerned that DOGE personnel meddling with IRS systems in the middle of tax filing season could, inadvertently or otherwise, cause breakdowns that may delay the issuance of tax refunds indefinitely. Any delay in refunds could be financially devastating to millions of Americans who plan their budgets around timely refunds every spring.”

States Challenge DOGE Access to Sensitive Govt Data

Additionally, attorneys general from 14 states last week challenged DOGE's authority of DOGE to access sensitive government data from the US Treasury. They called out Elon Musk's team for “virtually unchecked power”.

The lawsuit, filed in federal court in Washington, cited constitutional provisions that delineate the powers of Congress and the president, to note that actions taken by Elon Musk as chief of DOGE can only be taken by a nominated and Senate-confirmed official.

(With inputs from AP)