Palantir Technologies, the data analytics company known for its deep ties to US defense and intelligence agencies, recently participated in an initiative with Elon Musk’s Department of Government Efficiency (DOGE) group and Internal Revenue Service engineers to construct a “mega API,” according to WIRED.
The project involved a three-day intensive session ending April 10th, during what sources called a “hackathon,” aimed at constructing a single interface potentially overlaying all IRS databases. Sources revealed to WIRED that DOGE intends for Palantir’s Foundry software—a platform adept at organizing huge datasets and powering AI analysis—to operate as the central “read center of all IRS systems.”
Such a setup could grant centralized visibility into, and potentially the power to modify, highly sensitive taxpayer information like names, addresses, Social Security numbers, and employment records. Notably, the proposed IRS API layer could also potentially allow comparison of IRS data against interoperable datasets from other agencies.
A Pattern Of Government Data Projects
The involvement with the IRS is consistent with Palantir’s established history of undertaking large-scale data analysis projects for sensitive government clients handling sensitive information. For instance, the company formed an AI consortium with defense tech firm Anduril Industries in 2024 to address defense data gaps; the companies stated their joint objective was “Our goal is to deliver the technological infrastructure, from the edge to the enterprise, that can enable our government and industry partners to transform America’s world-leading AI advancements into next-generation military and national security capabilities.”
Further illustrating this pattern, Palantir partnered with Microsoft Azure in 2024, aiming to deploy its software suite, including Foundry and its AI Platform (AIP), onto secure Azure Government cloud platforms, even extending to Top Secret environments.
These defense sector projects utilize Palantir’s experience managing highly sensitive data (like SCI) and integrate AI tools, such as GPT-4 via Azure or potentially Anthropic’s Claude models, for complex government operations. The company has a track record of securing major government deals, including a $480 million Pentagon contract for the Project Maven AI initiative announced in May 2024 and a prior $178 million contract for the Army’s TITAN ground station vehicle. Palantir CEO Alex Karp has commented positively on DOGE’s aims, and former Palantir staff have reportedly taken up key positions within government IT and DOGE.
An Ambitious Plan for IRS Data
The IRS “mega API” initiative is being driven under the objective of efficiency, led by Sam Corcos, a tech CEO and former SpaceX engineer who acts as a special adviser to Treasury Secretary Scott Bessent. Corcos has been forthright about streamlining efforts, telling Fox News in March concerning IRS modernization, “We’ve so far stopped work and cut about $1.5 billion from the modernization budget. Mostly projects that were going to continue to put us down the death spiral of complexity in our code base.”
The speed is also notable; WIRED reported engineers felt the API could be finished within 30 days. This rapid development approach echoes the “bootcamps” mentioned in the context of the Palantir-Microsoft defense partnership, hinting at a possible methodology for project initiation.
Official Context and Unanswered Questions
In response to WIRED’s initial reporting, the Treasury Department provided its view on April 12th, describing the three-day session not as a hackathon but as an “IRS Roadmapping Kickoff” designed for system streamlining. A spokesperson stated, “there is no contract signed yet and many vendors are being considered, Palantir being one of them.”
They also added, “The Treasury Department is pleased to have gathered a team of long-time IRS engineers… Through this coalition, they will streamline IRS systems… This new leadership and direction will maximize their capabilities and serve as the tech-enabled force multiplier that the IRS has needed for decades.”
Despite this framing, the potential use of Palantir’s Foundry—a platform whose “ontology layer” can generate APIs from organized data and enable AI-driven queries—remains a focal point. Implementing such capabilities inherently requires the AI systems to access and process the sensitive taxpayer data.
Data Privacy and Oversight Concerns
This IRS project unfolds against the backdrop of a recent executive order from President Donald Trump pushing agencies to break down internal “information silos.” While potentially improving efficiency, the centralization of vast datasets, like those held by the IRS, carries inherent security and privacy implications. Key details regarding who would control access permissions for this potential “read center” and what governance structures would prevent misuse or unauthorized modification of taxpayer records remain unclear based on initial reports.
These concerns are amplified by an ongoing Government Accountability Office probe into DOGE’s handling of sensitive data at Treasury and other departments, which was reported by WIRED before the IRS API project details surfaced.
