Palantir is quietly collaborating with the IRS and Elon Musk’s Department of Government Efficiency (DOGE) on a sweeping new project to unify access to federal tax data.
The so-called “mega API” aims to streamline how IRS records are shared internally and across select agencies, WIRED has learned. The project has raised privacy concerns and drawn attention for its mix of tech titans and federal bureaucrats working behind the scenes.
A Fusion of Big Tech and Big Government
For the past three days, IRS engineers, Palantir developers, and DOGE operatives have reportedly met in closed-door strategy sessions to design the infrastructure for the new IRS mega API.
According to IRS officials who spoke with WIRED, the project’s goal is to:
- Centralize decades of taxpayer data
- Enable secure inter-agency queries via a unified portal
- Integrate AI tools for fraud detection and audit triggers
“This is not just an upgrade. It’s an entirely new nervous system for the IRS,” one official said.
Who’s Involved
- Palantir Technologies, the controversial data analytics firm cofounded by Peter Thiel and known for its ties to U.S. intelligence agencies
- DOGE (Department of Government Efficiency), Elon Musk’s loosely structured federal reform office focused on “streamlining bureaucracy through technology”
- Dozens of career IRS engineers and several White House technology advisors
Musk reportedly described the project internally as “the IRS, but with SpaceX-level software.”
Concerns About Surveillance and Scope
Palantir’s involvement has raised familiar red flags about civil liberties. The company’s past work with ICE, predictive policing programs, and defense agencies has drawn intense scrutiny from privacy advocates.
“You’re combining the country’s most powerful surveillance software with its most sensitive financial database,” said one watchdog group director. “What could go wrong?”
IRS insiders emphasized that the mega API will be used strictly for internal agency functions and not for public or commercial access.
A Test Case for AI-Driven Governance?
Sources familiar with the project say AI tools will likely be embedded in the new platform to help flag tax anomalies, improve audit efficiency, and reduce fraud.
Palantir has pitched similar AI-powered platforms to foreign governments for years. Now, with DOGE’s backing, it may finally get a chance to pilot its vision at scale inside the U.S. government.
Palantir’s surprise appearance alongside Musk’s DOGE in redesigning IRS infrastructure signals a bold, controversial shift in how federal data is handled. Whether it results in greater efficiency or Orwellian oversight will depend on who’s watching—and who’s coding.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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