WASHINGTON — Elon Musk’s Department of Government Efficiency has requested access to a sensitive IRS data system that retains the personal tax information on millions of Americans, two sources familiar with the matter told ABC News.
The system, known as the Integrated Data Retrieval System, or IDRS, is used by IRS employees to review tax information, issue notices to taxpayers and update taxpayer records.
Access to the files, which is tightly controlled within the agency, had not been granted as of this weekend, several sources told ABC News.
Still, the request itself is still being seen with alarm both within the government and among privacy experts who say access to Americans’ private taxpayer data by Musk could be extraordinarily dangerous.
Musk, estimated to be the richest man in the world, has criticized federal judges for curbing his power and called for their impeachment. Musk also has alleged without evidence or examples of wrongdoing that federal workers were defrauding taxpayers.
The IRS will lay off thousands of probationary workers in the middle of tax season, according to two sources familiar with the agency’s plans, and cuts could happen as soon as next week.
“We do find it rather odd that there are quite a few people in the bureaucracy who have ostensibly a salary of a few hundred thousand dollars, but somehow managed to accrue tens of millions of dollars in net worth while they are in that position … We’re just curious as to where it came from,” Musk told reporters on Feb. 12 while in the Oval Office with President Donald Trump.
Earlier this month, DOGE employees demanded access to the Treasury Department’s vast federal payment system responsible for managing trillions of dollars in government expenditures. That access triggered a lawsuit by 19 states and has been temporarily blocked by a federal judge.
Sources say one DOGE staffer arrived at the IRS last Thursday seeking meetings with various offices about how the IRS collects and manages data and what each business unit within the IRS does. It is not clear whether that staffer made the request to access IDRS or if it came through via the White House.
The White House did not respond to ABC News’ request for comment.
According to the Washington Post, which first reported the development, the IRS is considering a memorandum of understanding that would give DOGE officials access to several systems, including IDRS.
Elizabeth Laird, a former state privacy officer now with the Center for Democracy and Technology, said there are serious legal questions around DOGE accessing large data sets of information and how they are handling it. Questions include: Who exactly is accessing the government data at these agencies? Are they government employees or third-party contractors? What information are they accessing exactly and how are they using it? If they are transferring data to AI software, what are the security risks involved?
“People who share their most sensitive information with the federal government do so under the understanding that not only will it be used legally, but also handled securely and in ways that minimize risks like identity theft and personal invasion, which this reporting brings into serious question,” Laird said.
Musk and the White House have not said what federal data the DOGE team has been able to get to, or what’s been done with the data that’s been acquired.
When pressed by reporters on what checks are in place to ensure Musk — whose companies have billions of dollars in current federal contracts — is accessing data to his advantage, the billionaire insisted that DOGE posts all of its activity on its website “so all of our actions are maximally transparent.” As of Sunday, the DOGE site included a list of mostly canceled government contracts and a message on its “savings” tab: “Receipts coming over the weekend!”
FILE – Tesla and SpaceX Chief Executive Officer Elon Musk speaks at the SATELLITE Conference and Exhibition in Washington, Monday, March 9, 2020.
AP Photo/Susan Walsh, File
According to one person familiar with DOGE’s efforts, Musk’s request to access the IRS system would not allow them to change any data within it. But if granted, the access would allow unfettered access to access any person’s tax filings.
According to an IRS rulebook for the system posted online, anyone accessing IDRS is specifically not allowed to review the personal tax information of relatives, friends, neighbors or celebrities.
“IDRS users shall not access the account of any taxpayer or another IRS employee unless there is a business need and access has been formally authorized as part of the user’s official duties,” the agency states.
The policy notes: “Willful unauthorized disclosure, access or inspection of non-computerized taxpayer records, including hard copies of returns – as well as computerized information – is a crime, punishable upon conviction, by fines, prison terms and termination of employment.”
While a district court judge in Manhattan has temporarily blocked DOGE’s access to the Treasury Department system for now, a separate ruling by another district court judge has allowed DOGE to access data at the Department of Labor, Department of Health and Human Services, and the Consumer Financial Protection Bureau.
ABC News’ Hannah Demissie contributed to this report.
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