DOGE cryptocurrency co-founded by Elon Musk requests IRS for taxpayer data to update system and improve efficiency

Elon Musk’s DOGE is now turning its sights on the IRS and making an unprecedented push for access to highly sensitive financial data housed within the organization raising alarms over privacy, security, and government overreach. 

According to an explosive report from The Washington Post, the Department of Government Efficiency (DOGE) is requesting access to a classified IRS system that contains the personal financial records of millions of Americans.

The request, which is reportedly under review, would grant DOGE sweeping access to IRS ‘systems, property, and datasets’ through a memorandum of understanding. 

Of particular concern is DOGE’s potential access to the Integrated Data Retrieval System (IDRS) – a heavily protected database used by IRS employees to review taxpayer records, update information, and issue official notices.

Given the system’s ability to retrieve personal identification numbers, bank account details, and other sensitive financial data, IRS officials have reportedly expressed deep reservations.

The report notes that taxpayers whose information is wrongfully reviewed or disclosed may be entitled to financial damages, underscoring the severity of the potential risk posed by DOGE’s request.

A senior Trump administration official defended the move, stating that DOGE’s mission is to ‘eliminate waste, fraud, and abuse, and improve government performance to better serve the people.’ 

The official further insisted that the request is being conducted ‘legally and with the appropriate security clearances.’

Elon Musk ‘s DOGE is now turning its sights on the IRS and making an unprecedented push for access to highly sensitive financial data housed within the organization

The request, which is reportedly under review, would grant DOGE sweeping access to IRS ‘systems, property, and datasets’ raising alarms over privacy, security, and government overreach

Critics, however, see the request as an alarming overreach by a department that has already faced scrutiny for its broad ambitions. 

Experts have warned that allowing political appointees access to IRS databases is ‘highly unusual,’ raising concerns about potential misuse of taxpayer data.

Nina Olson, a former taxpayer advocate, did not mince words when addressing the potential consequences of DOGE’s request. 

‘The information that the IRS has is incredibly personal,’ she told The Post. 

‘Someone with access to it could use it and make it public in a way, or do something with it, or share it with someone else who shares it with someone else, and your rights get violated.’

The IRS, already grappling with outdated technology and cybersecurity concerns, now finds itself at a crossroads. 

While DOGE claims its goal is to streamline and modernize government functions, experts fear that granting such access could set a dangerous precedent, opening the door for political manipulation of taxpayer data.

The IRS and the Treasury Department have not responded to inquiries regarding DOGE’s request leaving many questions unanswered about how the situation will unfold. 

A senior Trump administration official defended the move, stating that DOGE’s mission is to ‘eliminate waste, fraud, and abuse, and improve government performance to better serve the people’

It’s not the first time DOGE has sought access to highly sensitive government systems. 

Earlier this month, the department requested entry into the Treasury Department’s federal payment system – a move that was temporarily blocked by a federal judge. 

This weekend it was announced how 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, with the cuts happening as soon as next week.

It comes as the Trump administration intensified sweeping efforts to shrink the size of the federal workforce, by ordering agencies to lay off nearly all probationary employees who had not yet gained civil service protection.

It’s unclear how many IRS workers will be affected.

Previously, the administration announced a plan to offer buyouts to almost all federal employees through a ‘deferred resignation program’ to quickly reduce the government workforce. 

The program deadline was February 6, and administration officials said employees who accept will be able to stop working while still collecting a paycheck until September 30.

However, 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.

It is unclear how many workers will be impacted by the layoff announcement plan.

January 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 Biden administration invested heavily in the IRS through an $80 billion infusion of funds in Democrats’ Inflation Reduction Act, which included plans to hire tens of thousands of new employees to help with customer service and enforcement as well as new technology to update the tax collection agency.

Republicans have been successful at clawing back that money with Musk and DOGE calling for the US to ‘delete entire agencies’ from the federal government as part of his plan to radically cut spending and restructure its priorities.

Elected officials are trying to fight against DOGE plans. Attorneys general from 14 states challenged the authority of to access sensitive government data and exercise ‘virtually unchecked power’ in a lawsuit filed Thursday.