Rep. Gerry Connolly, D-Va., the ranking member of the House Committee on Oversight and Government Reform, is calling for an investigation into what he says are “irresponsible” IT policies and the “abuse of Americans’ tax data” at the IRS by the Department of Government Efficiency (DOGE).
In a May 15 letter sent to IRS Acting Inspector General Heather Hill, Rep. Connolly raised his concerns over recent reports that DOGE is orchestrating a 30-day “hackathon” in partnership with Palantir – the software company cofounded by Peter Thiel – to replace core systems at the IRS.
According to Rep. Connolly, DOGE is attempting to create a “centralized master database of taxpayer information accessible by unknown external sources” such as Palantir.
“Reporting in the New York Times and Wired indicates that the Trump-Musk administration is not only in the process of replacing core systems at IRS using a hackathon, but has also forced the IRS to disclose Americans’ private information for law enforcement purposes,” the lawmaker wrote.
“I request that you investigate security, operational controls, and data privacy concerns associated with this new IT system at the IRS as well as the unprecedented law enforcement agreement to exploit Americans’ personal information from the IRS,” he added.
In addition to his Palantir concerns, Rep. Connolly also pointed to a recent CNN report revealing that the IRS and the Department of Homeland Security have reached an agreement to share sensitive taxpayer data with Federal immigration authorities.
The lawmaker noted that this practice would go against “years of the IRS promising to maintain the confidentiality of taxpayer information as required by the Internal Revenue Code.”
Rep. Connolly wants the Treasury Inspector General for Tax Administration (TIGTA) to launch an investigation addressing several questions, including what modernization plans DOGE has made for IRS systems.
Additionally, he wants to know what controls DOGE has put in place to limit access to sensitive taxpayer data. Rep. Connolly also wants to know the specifics of the data sharing agreement between the IRS, DHS, and Treasury, and if the agreement accounts for “the need for a court order to release taxpayer data under existing law.”
The lawmaker wants TIGTA to initiate an investigation into those questions and provide a preliminary briefing to Congress by May 29.