Palantir Technologies and the Department of Government Efficiency (DOGE) are working with the IRS on a bold initiative to streamline access to federal tax data.
Building a Unified IRS Data API
For three consecutive days, DOGE, a handful of Palantir engineers, and numerous IRS tech experts joined forces in what insiders have described as a “hackathon.” The objective? To construct a single, powerful API layer that integrates all IRS data systems into one unified access point.
This ambitious project aims to support cloud-based access to IRS records, potentially covering everything from taxpayer names and Social Security numbers to full tax return histories. With such an API, data from the IRS could be cross-referenced with external datasets from other federal agencies, opening the door to more advanced analytics and operational efficiency.
Palantir Foundry at the Core
Should the project progress as intended, Palantir’s Foundry platform is expected to become the central hub—or “read center”—for all IRS systems. Foundry specializes in organizing large datasets, building applications, and running AI algorithms. Once IRS data is indexed within Foundry’s “ontology” layer, it could enable swift querying and AI-powered insights.
Such transformation would allow analysts to interact with the database using natural language queries and intelligent filters, minimizing the need for legacy code and manual data extraction. This level of integration, however, raises important questions around access control and data privacy, especially considering the sensitive nature of tax records.
30 Days to Completion?
Sources close to the project reveal that engineers are optimistic about completing the initial build of the API in just 30 days. While this timeline is aggressive, the enthusiasm underscores the urgency and transformative potential of the initiative.
Leadership and Strategy Shifts
At the helm of the project is Sam Corcos, former health-tech CEO and ex-SpaceX engineer. He has been vocal about halting outdated engineering efforts and canceling legacy contracts, claiming over $1.5 billion in modernization budget has already been cut to prevent further codebase complexity. Corcos also serves as a special adviser to Treasury Secretary Scott Bessent.
“We’ve stopped work that was sending us down a spiral of inefficiency,” Corcos stated in a recent Fox News interview, emphasizing the need for lean, agile transformation across federal systems.
Executive Support and Broader Implications
The initiative aligns with President Trump’s executive order aimed at dismantling data silos across government agencies. While the stated goal is to reduce waste and fraud, critics warn that centralizing personal data into a single access point could pose serious security risks. As a result, the Government Accountability Office is now investigating DOGE’s handling of sensitive information across multiple federal departments.
Despite these concerns, the Treasury Department expressed optimism, saying in a statement: “This new leadership and direction will maximize our capabilities and serve as the tech-enabled force multiplier that the IRS has needed for decades.”
Palantir’s Government Footprint Expands
Palantir has long been a major player in government contracting, with its Gotham and Foundry platforms widely deployed across defense and intelligence operations. The company’s expanding role within DOGE reflects a broader trend of Silicon Valley’s growing influence in U.S. federal infrastructure.
This move also mirrors similar cloud modernization efforts in the private sector, such as Hypertec Cloud’s spin-off of 5C Group to enhance data center capabilities—further demonstrating the convergence of enterprise and government IT strategies.
What Happens Next?
As the IRS Roadmapping Kickoff event concludes and engineers return to their respective offices, the next 30 days will be pivotal. If successful, this API could revolutionize how government data is accessed and analyzed, setting a precedent for similar transformations across federal agencies.
However, the stakes are high. With Palantir’s software potentially serving as the gateway to the IRS’s most sensitive databases, questions around transparency, oversight, and ethical AI deployment will be more pressing than ever.
