IRS Data Access Risks: DOGE's Push for Efficiency Raises Concerns

Image credits: Annabelle Gordon/Reuters

The Department of Government Efficiency (DOGE), a special entity created by President Donald Trump and run by Elon Musk, has been pressing for authorized access to IRS data systems, raising concerns over taxpayer privacy and potential system disruptions during tax-filing season. The IRS has extensive and complex data systems containing highly sensitive personal and financial information on more than 100 million individual tax filers and businesses. The mere fact that DOGE is seeking such quick access has been alarming to many people, including the potential that DOGE team members may access some types of tax data illegally, even if inadvertently, or illegally expose that data to third parties.

A group of taxpayer advocates, small business groups, and unions has filed an emergency suit in federal court to "halt DOGE's unfettered and lawless access to personal data at levels that endanger the privacy of hundreds of millions of Americans." Former IRS commissioner John Koskinen noted that DOGE's actions may pose risks to Americans who are preparing to file their taxes, as the group presses the IRS for access to its systems. He stated that they run the risk of inadvertently triggering errors and having the tax-filing system shut down. Koskinen also emphasized that even the IRS typically doesn't tinker with its systems during the filing season because everyone's priority at the agency is to ensure a smooth experience, and that security and privacy concerns should be the top priority.

Several factors may make it more difficult for a filer to get their refund in a timely way, look up their tax data online, upload a document, or even file their return. These include distractions, lack of sufficient training to use the systems, and misinterpretations and misguided orders. Whichever systems DOGE team members are hoping to navigate, it takes a fair amount of training to do so capably, said Mark Mazur, a former director at the IRS Office of Research, Analysis, and Statistics. Mazur also noted that there's a high risk that DOGE members may misinterpret the data they are viewing, and that efficiency should not come at the cost of taxpayer privacy and security.

The potential consequences of DOGE's actions are far-reaching, and experts warn that any mid-stream changes to data systems or potential IRS layoffs that materially may affect taxpayers' filing experience will be noticed. Koskinen notes that it runs the risk of making life very difficult for tax filers and tax preparers, and that it makes absolutely no sense. The situation has sparked concerns over the potential large-scale consequences if DOGE breaks things like the IRS data systems or the federal government payment systems, which could affect large numbers of regular Americans. As the tax-filing season continues, it remains to be seen how DOGE's push for efficiency will impact taxpayers and the IRS.

In conclusion, the Department of Government Efficiency's push for IRS data access has raised significant concerns over taxpayer privacy and potential system disruptions during tax-filing season. As the situation continues to unfold, it is essential to prioritize security and privacy concerns, and to ensure that any changes to the IRS data systems are made with caution and careful consideration. The potential consequences of DOGE's actions are far-reaching, and it is crucial to protect the sensitive personal and financial information of taxpayers. The IRS and DOGE must work together to find a solution that balances the need for efficiency with the need to protect taxpayer privacy and security.