Senators Ron Wyden and Elizabeth Warren are demanding answers from the IRS regarding a potential agreement that would grant Elon Musk’s DOGE broad access to sensitive taxpayer data. The senators expressed concerns that this access could lead to the weaponization of private financial information for political purposes.
The letter to Acting Commissioner Douglas O’Donnell cites reports that the White House is pressuring the IRS to agree to a memorandum of understanding (MOU) with DOGE. This MOU would reportedly provide DOGE software engineers extensive access to IRS systems, including the Integrated Data Retrieval System (IDRS).
According to the IRS website, the IDRS is a system that enables employees in the Campuses and the AreaOffices to have instantaneous visual access to certain taxpayer accounts.
Some capabilities of the system include:
■ Researching account information and requesting returns.
■ Entering transactions such as adjustments, entity changes, etc.
■ Entering collection information for storage and processing in the system.
■ Automatically generating notices, collection documents, and other outputs.
“It appears the MOU proposes giving DOGE team members access to the IRS Integrated Data Retrieval System (“IDRS”), raising serious concerns that Elon Musk and his associates are seeking to weaponize government databases containing private bank records and other confidential information to target American citizens and businesses as part of a political agenda,” the Senators wrote. “The IRS must immediately disclose to the Senate Committee on Finance the full extent of the potential access to IRS systems and data granted to DOGE team members so that the Committee can address any efforts by DOGE personnel to gain access to taxpayer records at the IRS, which may constitute criminal violations of federal privacy laws.
“Statutory protections under section 6103 and related statutes prohibit improper inspection, disclosure, and misuse of taxpayer information. Section 6103 was modernized nearly 50 years ago, with overwhelming bipartisan majorities in Congress, as part of a suite of reforms enacted to prevent misuse of taxpayer information by the executive branch in response to abuses by President Nixon. The potential consequences for breaching the protections of section 6103 include criminal penalties such as imprisonment and fines, as well as money damages through civil litigation.”
The Nixon’s administration used the IRS to harass and intimidate political opponents, a practice that led to significant reforms aimed at preventing future abuses.
Section 7217 of the Internal Revenue Code imposes strict limitations on high-ranking Executive Branch officials, including the President. This law prohibits these officials from:
- Requesting an audit or investigation of a specific taxpayer
- Interfering with an ongoing audit or investigation
The purpose of this section is to prevent the misuse of the IRS for political purposes or personal vendettas. Any violation of Section 7217 is considered a serious offense and is classified as a criminal act. Those found guilty of violating this law may face severe consequences, including:
- Monetary fines
- Imprisonment
The senators are demanding a swift response from the IRS, with a deadline of February 21, 2025, for answers to a detailed list of questions. These questions include:
- Providing copies of all MOUs being considered with DOGE.
- Identifying all non-IRS employees involved in proposing or negotiating the MOUs.
- Clarifying the terms of employment for DOGE team member Gavin Kliger at the IRS, including his access to tax return information.
- Detailing any restrictions on DOGE team members’ access to the IDRS system.
- Listing all DOGE team members currently employed at the IRS.
- Investigating a reported meeting between Gavin Kliger and senior IRS officials.
- Determining whether any taxpayer data accessed by DOGE team members has been copied or sent to non-governmental servers.
- Clarifying whether DOGE team members have been granted access to tax returns related to criminal investigations.
“Even if individuals affiliated with DOGE are employed by Treasury, their access to tax information may not be legal. For inspection of taxpayer information to be lawful, it must be made to or by an authorized person for an authorized purpose,” the Senators wrote. “While Treasury employees, such as IRS personnel, can access tax return information for their official duties involving tax administration, such as conducting audits or processing tax returns, they generally may not access them for reasons unrelated to those purposes. In addition, there are significant restrictions on access to tax return information for others in the employ of the federal government. There are serious statutory and regulatory restrictions on when employees outside the Treasury Department may gain access to tax return information. To date, no information on DOGE employees or any others executing orders on Musk’s behalf have revealed any clear, stated purpose as to why they need access to return information, whether they have followed all required laws to gain access to IRS systems, and what steps the IRS has taken to ensure that inspection of tax return is contained to authorized personnel and not disclosed to any unauthorized parties.
“No executive order requiring agency heads to provide DOGE personnel access to IRS records or information technology systems supersedes the federal tax code. Software engineers working for Musk seeking to gain access to tax return information have no right to hoover up taxpayer data and send that data back to any other part of the federal government and may be breaking the law if they are doing so. DOGE engineers also have no legal right to snoop around and inspect the tax returns of millions of American citizens unless expressly permitted under Section 6103.”
Warren and Wyden also raised the alarm that DOGE personnel meddling with IRS systems during tax filing season could cause breakdowns and delay tax refunds, potentially harming millions of Americans who rely on timely refunds.
The Internal Revenue Service (IRS) is set to terminate thousands of probationary workers during the ongoing tax season, with layoffs potentially beginning as early as this week. While the exact number of affected employees remains unconfirmed, the cuts are expected to target staff members who have been with the agency for less than one or two years and have not yet secured full civil service protections.
These layoffs are part of the Trump administration’s broader initiative to reduce the federal workforce, which includes directives to dismiss nearly all probationary employees lacking civil service protections. The cuts come at a critical time, as the 2025 tax season officially began on January 27, with the IRS anticipating over 140 million tax returns to be filed by the April 15 deadline.
