The Internal Revenue Service (IRS) is preparing to grant broad access to taxpayer data to an adviser from Elon Musk’s Department of Government Efficiency (DOGE), according to a draft agreement seen by Bloomberg Tax. The move, set to take effect on February 14, has raised concerns about data privacy and transparency, particularly among lawmakers and taxpayer advocates.
The draft agreement outlines plans for Gavin Kliger, a special adviser to the director at the Office of Personnel Management (OPM), to be temporarily detailed at the IRS. His role will involve software debugging, testing, programming, and implementing fraud prevention measures. However, the draft memo does not specify limitations on the extent of taxpayer data he can access, sparking concerns about potential overreach.
Typically, taxpayer data is protected from disclosure, with limited exceptions for law enforcement and state agencies. The memo’s lack of clear guidelines on data access raises questions about the scope of Kliger’s role and how taxpayer information may be utilized. While such interagency collaborations are not uncommon, the absence of explicit restrictions in this case has prompted scrutiny.
The agreement is set to last until mid-June, with the possibility of a 120-day extension. This development follows a legal battle in which 19 state attorneys general sued to block the Biden administration from permitting political appointees and special government employees to access government systems. Just last week, a judge extended restrictions on Musk’s team’s access to U.S. Treasury Department systems, further highlighting the contentious nature of these arrangements.
Kliger’s recent visit to the IRS has already drawn attention, particularly after he questioned IRS leadership on automation and compliance strategies. It remains unclear who Kliger will report to during his temporary assignment.
An IRS draft memo may grant a Musk adviser broad access to taxpayer data, raising privacy concerns and sparking legal challenges.