Reporting has indicated that the Department of Government Efficiency (DOGE) may have unlawfully inspected or disclosed taxpayer data, including sensitive personal information such as taxpayer identification numbers, addresses, bank account information, tax liability, and details on taxpayers’ transactions. As experts on the laws governing the tax system and taxpayer information, the Tax Law Center has published numerous resources to educate policymakers, tax professionals, and the public about the myriad protections for taxpayer data.
It is highly concerning that DOGE affiliates have gained access to systems at SSA that appear to contain sensitive taxpayer information, according to reporting by the Washington Post and a declaration by the former acting SSA chief of staff. Improper inspection or disclosure of tax data at SSA is unlawful, since the same stringent laws that protect tax data at the IRS from unlawful use, inspection, or disclosure also apply to tax data held at other agencies. This post highlights several issues and areas for further investigation by reporters, lawmakers, oversight bodies, and the public.
DOGE May Already Have Access to Sensitive Taxpayer Information Through Agencies Other Than the IRS
March 4, 2025
Many agencies besides the IRS already hold sensitive and legally protected taxpayer data, including the Bureau of Fiscal Services, the Department of Education, and the Department of Health and Human Services. Has DOGE gained access to legally protected taxpayer information at an agency outside the IRS, even in the absence of the broad data sharing agreement DOGE is currently seeking? This question is important, because there are major risks to taxpayer rights and data, and potential criminal penalties and fines. This piece runs through some of the safeguards that govern access to data held at other agencies, including IRS’s responsibility for ensuring compliance.
DOGE Efforts Create Major Risks for Taxpayers–and May Generate Criminal and Civil Penalties
March 3, 2025
In response to reports that DOGE representatives are seeking an "omnibus" agreement that would allow taxpayer data to be shared with multiple agencies, this piece discusses the potential legal risks, including potentially violating the rights of millions (or even hundreds of millions) of taxpayers and racking up potentially billions of dollars (or even hundreds of billions or more) in fines payable by the government. We also discuss risks beyond the tax system, such as stopping valid Social Security and other benefit payments, inadvertently triggering large-scale data breaches, and partisan use of data for personal gain or to target enemies.
It was recently reported that a representative of the Department of Government Efficiency (DOGE) was stationed at IRS and seeking extraordinarily broad access to systems that include sensitive personal information including taxpayer identification numbers, addresses, bank account information, tax liability, and details on taxpayers’ transactions. It has since been reported that this representative will be given read-only access to a more limited set of “anonymized” tax data. But we have no detail on what it will mean for the data to be “anonymized” and “in a manner that cannot be associated with, directly or indirectly, any taxpayer.” It could still contain return information that, while not containing names, could easily be traced back to identifiable taxpayers — especially if DOGE cross-references across data sets it has access to, including tax data it accesses through other agencies beyond the IRS. Transparency about the purpose of DOGE access is also necessary to determine whether all laws and rules are being followed.
Understanding the Tax System’s Protections Against Political Interference in the Tax Code
February 21, 2025
Nonpolitical, even-handed administration of the tax laws is crucial to the integrity of the tax system, but several recent developments raise increased concerns about the possibility of political interference in IRS operations. Overwhelming bipartisan majorities in Congress have enacted specific provisions making various abuses related to IRS data, audits, and investigations a crime punishable by imprisonment and/or fines. Section 7217 makes it illegal for many political officials within the Executive Branch — including the President; Vice President; and any employee of the Executive Office of the President (EOP), where DOGE is situated — to request an audit or investigation of a particular taxpayer, or to interfere with an ongoing audit or investigation. This post lays out the history and mechanisms of the key provisions in the tax code that protect against Executive Branch and other forms of interference with the administration of the tax code.
Understanding Taxpayer Privacy Protections Under Section 6103 and Related Statutes
February 10, 2025
The tax code’s statutory protections prohibit improper inspection, disclosure, and misuse of taxpayer information. This post offers an analysis of these protections and how they relate to recent reporting that persons affiliated with the Department of Government Efficiency (DOGE) have accessed systems that could include taxpayer information. The post lays out the contours of the tax code’s protections, why Congress enacted them, their limited exceptions, and enforcement mechanisms that are available when those protections are violated. It also raises questions relevant to determining whether persons affiliated with DOGE are or have unlawfully inspected or disclosed taxpayer data.