Federal program DOGE, backed by Elon Musk, has caused a storm of protest with its suggestion that it carry out a 30-day “hackathon” at the Internal Revenue Service (IRS). The hackathon, planned to begin in mid-April 2025, aims to build a centralized “mega API” with easier access to taxpayer data. While supporters believe the tool would be able to modernize the IRS’s outdated systems, opponents believe it presents unprecedented risks to privacy and data security.
The “DOGE Initiative” and the “Mega API Vision”
DOGE’S hackathon aims to reduce the “broken” IRS’s “splintered” data systems into one “unified” application programming interface (API), permitting real-time access to confidential taxpayer data. The proposed system would initially connect to the agency’s 60-year-old COBOL-based Individual Master File, a database of Social Security numbers, work history, and tax returns, before being implemented in all internal systems. Sam Corcos, health-tech CEO overseeing the project, has defended the ambitious timeline by saying that past modernization efforts were mired in a “death spiral of complexity.”
Central to the plan is cooperation with third-party contractors, including Palantir, the data analysis firm co-founded by Peter Thiel. DOGE officials have been reported to have appointed Palantir to help relocate IRS data to a cloud platform, despite no public contract announcement. Gavin Kliger, a Databricks and DOGE employee, age 25, who has coordinated recruitment efforts to have dozens of IRS engineers participate at the hackathon, said a need to “break down silos” on the agency’s 60 scattered case management systems was the motive.
Security risks and internal backlash
IRS insiders and privacy groups have raised the alarm over merging taxpayer data into a single point of access. One anonymous IRS official described the mega API as “an open door managed by Musk,” noting that sensitive information is currently protected by compartmented security protocols. The action becomes more alarming considering DOGE’s move to place over 50 IRS technologists on administrative leave and lay off cybersecurity chiefs before the hackathon.
The API’s proposed scope—which includes names, addresses, tax returns, and access logs—could expose millions of Americans to identity theft if breached. Critics point to the IRS’s history of vulnerabilities, including a 2015 hack that compromised 100,000 taxpayers’ records and a 2021 leak by contractor Charles Littlejohn. “Centralizing this data is like storing all the crown jewels in one vault,” warned a former IRS cybersecurity advisor. “It’s a magnet for malicious actors”.
Political and public reactions
The hackathon has been severely criticized by lawmakers and tech billionaires. Senator Ron Wyden (D-OR) praised the IRS for initially rejecting DOGE’s requests for data sharing, calling the API proposal “a reckless experiment with Americans’ most private information”. Billionaire entrepreneur Mark Cuban appealed to taxpayers to use the IRS’s Direct File system—a program DOGE supposedly wants to do away with—to demonstrate demand for publicly available tools.
Public skepticism has been fueled by DOGE’s association with Musk, who faced criticism in the past over data practices at Tesla and X (previously Twitter). Watchdog groups assert the humongous API could be used for partisan misuse of tax dollars’ data, particularly when being hosted on a private cloud-based system. “This isn’t just about being effective; it’s about who gets access to the financial DNA of all Americans,” said Caitlin Seeley George of digital liberties group Fight for the Future.
The case for modernization
The supporters respond that the hackathon solves decades’ worth of IRS technology failures. The agency’s Individual Master File, which still is rooted in 1960s code, has consistently derailed modernization efforts for over $1.5 billion spent. Legacy systems cause improper payments—pegged at $46 billion annually—and slow down simple services like submitting forms online.
National Taxpayers Union analysts point out hackathons are proven problem-solving mechanisms in government, citing successes within the Financial Crimes Enforcement Network and Department of Veterans Affairs. “The IRS isn’t ‘hacking’—it’s at last receiving the collaborative tech surge it deserves,” opined Andrew Lautz of the Bipartisan Policy Center. DOGE officials stress that career Internal Revenue Service staff will direct the development of the API, with rigorous procedures to anonymize data while testing.
Balancing innovation and privacy
As the hackathon gets underway, the challenge is to reconcile DOGE’s breakaway approach with the IRS mandate to protect taxpayer confidentiality. While the mega API can streamline audits, accelerate refunds, and reduce paperwork, success hinges on robust encryption, as well as access controls. With the 2026 filing season in the balance if systems are compromised, the project is a high-stakes test of whether public-sector innovation can keep up with emerging threats in the digital era.
The outcome may redefine not just the IRS, but the boundaries of public-private partnerships in governance. As one DOGE engineer conceded: “We’re either going to fix this agency or break it beyond repair”.
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