IRS to give Elon Musk’s team access to sensitive taxpayer data

The IRS is preparing to grant a Musk-led team access to taxpayer records, raising concerns over privacy and political influence.

Elon Musk speaks as U.S. President Donald Trump signs an executive order in the Oval Office at the White House on February 11, 2025, in Washington, DC. Photo by Andrew Harnik/Getty Images

By Alana Salsabila and Anna Fadiah

The Internal Revenue Service (IRS) is preparing to provide a team working with Elon Musk’s Department of Government Efficiency (DOGE) access to its systems, including sensitive taxpayer data, according to sources familiar with the matter. The move has raised concerns about privacy and political influence over the agency’s operations.

IRS systems contain confidential financial records of millions of Americans, including tax returns, Social Security numbers, addresses, banking details, and employment information. Granting access to an external team, even under the guise of improving efficiency, has sparked debate over the potential risks of such unprecedented oversight.

“Waste, fraud, and abuse have been deeply entrenched in our broken system for far too long,” White House spokesman Harrison Fields said. “It takes direct access to the system to identify and fix it.”

Fields added that DOGE will “shine a light on the fraud they uncover,” arguing that taxpayers deserve to know how their money is being spent. However, critics argue that such access by political appointees could compromise taxpayer privacy and undermine the IRS’s independence.

Expanding government data access

The IRS’s decision comes amid growing scrutiny over Musk’s team pushing the boundaries of government data access beyond what is typical for political appointees. The Treasury Department has already faced legal challenges after Musk’s lieutenants began scrutinizing the Bureau of the Fiscal Service’s system, which handles federal government payments.

Gavin Kliger, a software engineer brought into the Office of Personnel Management under the DOGE initiative, was reportedly working at IRS headquarters last week. According to sources, he will soon be assigned as a senior adviser to the IRS’s acting commissioner. While the exact scope of his role is still being determined, he is expected to receive broad access to IRS systems.

As of Sunday evening, Kliger had not yet obtained access to sensitive IRS data, according to two sources familiar with the situation. However, discussions are ongoing about a memorandum of understanding that could grant DOGE staff members access to the Integrated Data Retrieval System, which contains taxpayer account information.

Legal challenges over Musk-led access

Efforts by Musk’s team to gain access to Treasury Department and IRS data have already led to legal battles. This month, 19 state attorneys general, led by Letitia James of New York, sued to block the Trump administration’s policy allowing political appointees and “special government employees” from Musk’s team to access federal financial data.

A federal judge extended a court order on Friday blocking Musk’s team from accessing Treasury Department payment systems. A final ruling is expected in the coming months, but the legal challenges could set a precedent for any further attempts to grant access to IRS data.

The controversy comes as the IRS prepares to lay off thousands of employees as part of the Trump administration’s broader cost-cutting initiative across federal agencies. The Biden administration had been in the process of a multibillion-dollar IRS overhaul before Republicans moved to rescind much of the agency’s funding.

Treasury Secretary Scott Bessent has emphasized the need for technological upgrades at the IRS. “I have three goals: collections, privacy, and customer service,” Bessent said in a Fox Business interview last week. “And I don’t think there’s anyone in the country who thinks the IRS has achieved its potential in any of those areas.”

Trump calls for IRS audit amid political scrutiny

Former President Donald Trump has long been critical of the IRS, frequently alleging that the agency targeted him with unfair audits. Over the weekend, Trump appeared to support Musk’s team taking a closer look at the agency.

In a fundraising email on Saturday, Trump suggested that the IRS itself should be audited. “Are you sick of being targeted and harassed by the IRS?” he asked supporters. “Well, maybe it’s time that somebody audited them for a change!”

As legal battles unfold, the potential for Musk’s team to gain access to IRS data remains uncertain. Critics warn that such a move could compromise taxpayer privacy and set a dangerous precedent for political influence over federal financial institutions. Supporters argue that increased oversight is necessary to root out inefficiencies and mismanagement.

The IRS’s next steps will likely face intense scrutiny from lawmakers, legal experts, and privacy advocates, as the debate over government data access and accountability continues.