- DOGE, led by Elon Musk, is hosting a hackathon next week in Washington, DC, to develop a unified API for accessing IRS data, aiming to complete it within 30 days, as reported by Wired.
- Sam Corcos and Gavin Kliger are driving the initiative, having already cut $1.5 billion from IRS modernization projects to simplify systems, though concerns persist about the feasibility and privacy risks.
- The proposed API could centralize sensitive taxpayer data into a cloud platform, potentially involving Palantir, but IRS sources warn the rushed timeline could disrupt operations and compromise security.
The Department of Government Efficiency (DOGE), under Elon Musk’s leadership, is pushing a transformative agenda at the Internal Revenue Service (IRS), aiming to consolidate its fragmented data systems into a single, streamlined framework. As reported by Wired, DOGE is set to host a hackathon in Washington, DC, next week to develop a “mega API”—a unified interface designed to connect the IRS’s disparate software systems. This API would enable seamless data exchange, potentially centralizing sensitive information such as taxpayer names, addresses, Social Security numbers, tax returns, and employment records into a cloud-based platform.
At the forefront of this initiative are Sam Corcos and Gavin Kliger, two DOGE operatives deeply embedded in the IRS’s operations. Corcos, a health-tech CEO with ties to Musk’s SpaceX and a special adviser to Treasury Secretary Scott Bessent, has already made significant waves. In a March interview with Fox News’ Laura Ingraham, he disclosed that DOGE has slashed $1.5 billion from the IRS’s modernization budget, halting projects he believes were exacerbating systemic complexity. Kliger, a former UC Berkeley student who worked at AI company Databricks until 2020, serves as a special adviser at the Office of Personnel Management. Together, they are mobilizing dozens of the IRS’s top engineers for the hackathon, with a goal to deliver the API within 30 days—a timeline sources told Wired is technically unfeasible and risks disrupting critical operations, including next year’s tax filing season.
The proposed API would initially target the IRS’s legacy mainframes, which still run on outdated languages like COBOL and Assembly, before expanding to encompass all internal systems. Wired’s sources describe this as creating a “read center of all IRS systems,” where authorized users could access and potentially manipulate the agency’s entire data repository. Currently, the IRS operates on dozens of compartmentalized systems, both on-premises and in the cloud, with access tightly controlled to protect taxpayer privacy. A centralized API could theoretically allow data to be exported to external systems, including those of private entities like Palantir (PLTR), a software firm co-founded by Musk associate Peter Thiel, which DOGE has repeatedly mentioned as a potential partner.
This consolidation effort dovetails with a March 20 executive order from President Donald Trump, which mandated federal agencies to eliminate data silos to combat fraud and waste. However, Wired notes that such centralization raises significant privacy concerns. An IRS source warned that schematizing the agency’s vast datasets could take years, particularly for newcomers like Corcos and Kliger, who lack deep experience in tax systems. Corcos himself acknowledged his learning curve on Fox News, stating, “There is a lot of stuff that I don’t know that I am learning now.” While he highlighted his software expertise as his primary qualification, he also stressed that the focus is on turning things around—especially given the scale of the challenge. “We have a $3.5 billion operations maintenance budget, we have a $3.7 billion modernization effort within IT,” he noted. “There is a lot of budget and we are way beyond any reasonable cost for what you would expect at a private company for this.”
The stakes are high. The IRS’s existing systems undergo rigorous vetting to safeguard taxpayer data, and any new infrastructure would require similar scrutiny. An IRS employee told Wired that the API could become “an open door controlled by Musk for all Americans’ most sensitive information with none of the rules that normally secure that data.” Privacy advocates, like Evan Greer of Fight for the Future, echoed this, noting the unparalleled sensitivity of IRS-held financial data.
DOGE’s broader track record amplifies these concerns. Last week, Wired reported that DOGE cut modernization projects at other agencies, including plans to shift the Social Security Administration’s systems from COBOL to modern languages like Java. At the IRS, DOGE’s actions have been abrupt: last Friday, approximately 50 technologists were placed on administrative leave, followed by more cuts on Thursday, including senior cybersecurity and technology officials. Kaschit Pandya, the IRS’s chief technology officer, is among the few remaining tech leaders. Corcos has also signaled plans to dismantle the IRS’s Direct File program, a recently launched free tax-filing service, and intends to stay at the agency for just six months.
The hackathon, framed by a Treasury spokesperson as the “IRS Roadmapping Kickoff,” will involve a select group of the agency’s most talented engineers. The spokesperson told Wired that this effort aims to maximize efficiency and deliver long-overdue technological advancements. Yet, the accelerated timeline – down from an initial estimate of one year to mere weeks – has sparked alarm. An IRS source warned Wired that such haste could “cripple” the agency, undermining systems critical to its mission.
Palantir’s potential involvement adds another layer of complexity. The company, which earned the highest FedRAMP security approval in December for its cloud-based platforms like Gotham and Foundry, is well-positioned for government contracts. CEO Alex Karp, speaking in a February earnings call, embraced the disruptive ethos DOGE represents, stating, “We love disruption and whatever is good for America will be good for Americans and very good for Palantir.” Neither Palantir, Corcos, nor Kliger responded to Wired’s requests for comment.
Earlier this year, The Washington Post reported that a February memo sought to grant Kliger access to personal taxpayer data, though he ultimately received only read-only access to anonymized records, akin to academic research datasets. Corcos, arriving weeks later, demanded detailed taxpayer and vendor information to combat fraud, per the Post. These moves reflect DOGE’s broader push to rewire how sensitive data is handled, raising questions about oversight and accountability.
The IRS’s technological overhaul is a microcosm of a larger debate: balancing efficiency with security in an era of rapid digital transformation. APIs have long enabled interoperability across industries, from banking to healthcare, but their application to a repository as vast and sensitive as the IRS’s demands precision. The functioning of software systems suggests that while APIs can simplify data flows, they also introduce single points of failure if not rigorously secured. The IRS’s current architecture, though cumbersome, reflects decades of deliberate segmentation to mitigate risks—a principle that a “mega API” could challenge unless paired with robust encryption, access controls, and auditing.
Wired’s reporting underscores the tension between ambition and caution. DOGE’s vision could modernize an agency long criticized for outdated infrastructure, but the breakneck pace and sweeping scope risk unintended consequences. For now, the hackathon looms as a pivotal moment, with the IRS’s future – and the privacy of millions – hanging in the balance.
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