WASHINGTON — Elon Musk's Department of Government Efficiency seeks access to troves of sensitive taxpayer data at the IRS, two people familiar with the inner workings of the plan told The Associated Press on Monday.
If successful, Musk and his group would have access to millions of tightly controlled files that include taxpayer information, bank records and other sensitive records.
The people who spoke to the AP and requested anonymity said DOGE is specifically seeking to access the IRS' Integrated Data Retrieval System, which enables employees "to have instantaneous visual access to certain taxpayer accounts," according to the IRS website.
Meanwhile, a federal judge on Monday questioned the authority of Musk and DOGE but was skeptical of a request to block the organization from accessing sensitive data and firing employees at half a dozen federal agencies.
U.S. District Judge Tanya Chutkan held a hearing on a request from 14 states for a temporary restraining order seeking to curtail Musk's power in President Donald Trump's quest to downsize the federal government. Chutkan said she would rule within 24 hours.
Democratic attorneys general from 14 states filed a lawsuit challenging what they called Musk's “unchecked power.” The states seek to block DOGE from firing employees and accessing data at the federal Office of Personnel Management along with six federal agencies that oversee health and human services, education, energy, transportation, labor, and commerce.
The attorneys general argued that Musk's actions at the helm of DOGE can only be taken by a nominated and Senate-confirmed official under the Constitution. They also said citizens have concerns about the secure handling of sensitive information.
The federal government countered that DOGE is acting in an advisory role, they don’t need Senate confirmation to access data, and that the states hadn’t shown Musk’s hunt for waste and fraud had harmed them.
While Chutkan seemed skeptical if a temporary restraining order was merited, she seemed sympathetic to some of the states’ claims
“One of the challenges in plaintiff’s motion is that this is essentially a private citizen directing an organization that’s not a federal agency to have access to the entire workings of the federal government, fire, hire, slash, contract, terminate programs all without apparently any congressional oversight,” the judge said in describing the states' claim.
Advocates fear that the potential unlawful release of taxpayer records could be used to maliciously target Americans, violate their privacy and create other ramifications.
Sens. Ron Wyden, D-Ore., and Elizabeth Warren, D-Mass., sent a letter Monday to acting IRS Commissioner Douglas O'Donnell, demanding copies of any memos that would grant IRS system access to Musk or DOGE. The senators also seek justifications for DOGE efforts to inspect tax returns and private bank records.
Along with fears that DOGE access to taxpayer data might be illegal, "we are also extremely concerned that DOGE personnel meddling with IRS systems in the middle of tax filing season could, inadvertently or otherwise, cause breakdowns that may delay the issuance of tax refunds indefinitely," the letter reads.
"Any delay in refunds could be financially devastating to millions of Americans who plan their budgets around timely refunds every spring."
Jan. 27 was the official start date of the 2025 tax season, and the IRS expects more than 140 million tax returns to be filed by the April 15 deadline.
The Washington Post first reported Sunday on DOGE's plans to access taxpayer data.
The news comes as the IRS plans to lay off thousands of probationary workers in the middle of tax season, according to two sources familiar with the agency's plans who were unauthorized to discuss them publicly. Cuts could happen as soon as this week.
Previously, IRS employees involved in the 2025 tax season were told they will not be allowed to accept a buyout offer from the Trump administration until after the taxpayer filing deadline, according to a letter sent recently to IRS employees.
A new account on Musk's social media site, called DOGE IRS, says, "DOGE is seeking help from the public!" The account asks users to reach out "with insights on finding and fixing waste, fraud and abuse relating to the Internal Revenue Service."
During Monday's hearing, Judge Chutkan noted that DOGE doesn’t seem to be moving in any orderly or predictable fashion, making it difficult for states to know what is coming next. Chutkan asked for the Justice Department to submit information about past and upcoming employment terminations.
“DOGE’s actions in this arena have been very unpredictable and scattershot, and I have no idea whether that is by design or simply by virtue of the scope of their remit,” Chutkan said.
