A 25-year-old employee from Elon Musk’s Department of Government Efficiency (DOGE) is set to access the IRS’s sensitive tax database, according to reports. Software engineer Gavin Kliger will gain credentials for the system that tracks tax returns and personal information as DOGE continues to cut spending across the federal government, the New York post reported.
“Waste, fraud, and abuse have been deeply entrenched in our broken system for far too long. It takes direct access to the system to identify and fix it,” White House spokesman Harrison Fields said in a statement first reported by CNN. Kaiger will be gaining access to several files related to Americans’ personal tax documents.
New Kid on the Block
“DOGE will continue to shine a light on the fraud they uncover as the American people deserve to know what their government has been spending their hard earned tax dollars on,” the White House added.
The IRS estimates it collects about $540 billion less each year than what is owed, contributing to more than a quarter of the federal deficit. Musk aims to reduce this deficit significantly with a push to cut $1 trillion in government spending.
DOGE may focus on examining how funds are allocated to Democratic priorities, like green energy tax incentives, as well as reviewing deductions that President Trump has urged Congress to remove in an upcoming tax bill, including the carried-interest loophole and benefits for sports team owners.
Trump seeks the removal of those benefits to fund his campaign promises to eliminate taxes on tips, overtime, and Social Security benefits, though the exact costs are still only roughly estimated.
Taxpayer information is protected by law and can only be revealed in specific cases, like a decision by the House Ways & Means Committee.
DOGE’s involvement with the IRS database could be one of its most sensitive actions yet, as increasing enforcement on everyday taxpayers is likely to provoke significant political opposition.
Hitting on IRS Now
Republicans, including Trump, strongly opposed former President Joe Biden’s $80 billion increase in IRS funding through the 2022 Inflation Reduction Act, fearing it would lead to the hiring of up to 87,000 new IRS agents to scrutinize the finances of middle-class Americans.
While much of the tax evasion happens among the wealthy, experts argue that well-funded people are less attractive targets for tax enforcers because they can afford to drag out legal battles.
For example, Biden is accused of underpaying the IRS by up to $500,000 in 2017 and 2018 by using an “S Corporation” to route speaking fee income, allowing him to avoid Medicare taxes by reporting a lower amount of income as salary instead of business profits.
Hunter Biden, the former president’s son, was under investigation for years for allegedly failing to pay millions in taxes on foreign earnings and various other infractions, including treating a $10,000 sex club membership and a $3,852 Lamborghini rental as business expenses.
Hunter was initially offered a probation-only plea deal in June 2023, but after IRS whistleblowers claimed the investigation was being delayed, the deal fell apart. He later pleaded guilty to $1.4 million in tax fraud and was pardoned by his father.
