The Department of Government Efficiency (DOGE), a newly formed agency that’s already drawing both interest and criticism, is reportedly organizing a hackathon with a bold goal: building a “Mega API” to integrate and centralize all IRS data. That’s right—DOGE, formed with the purpose of streamlining bloated and inefficient federal systems, now aims to take on the mammoth task of rebuilding how the Internal Revenue Service manages and shares its vast ocean of taxpayer data.
This announcement has set off alarm bells among privacy advocates, tax professionals, and government watchdogs. A “hackathon” may sound like a fun, Silicon Valley-style weekend event, but when the stakes are high—like the privacy of every American taxpayer—many are questioning whether this approach is safe, legal, or even feasible.
What Is the Department of Government Efficiency (DOGE)?
Department of Government Efficiency is not just a clever acronym—it’s one of the boldest political experiments in recent U.S. history. Created through an executive order by former President Donald Trump, the Department of Government Efficiency was launched on January 20, 2025. The department’s vision? To root out inefficiency, waste, and what it calls “bureaucratic deadweight” across federal institutions.
Led with tech entrepreneur Elon Musk’s influence and powered by his vision of speed, disruption, and “first principles” thinking, DOGE has quickly made headlines. The department has already:
- Gained backend access to critical federal systems
- Slashed staff across multiple agencies
- Halted modernization projects mid-stream
- And now, it plans to overhaul the IRS.
In less than six months, Department of Government Efficiency has upended conventional norms. But the hackathon plan is its most ambitious—and controversial—move yet.
The Hackathon and the ‘Mega API’ Vision
DOGE’s new initiative is being led by Sam Corcos, who took control of the IRS’s tech operations earlier this year. His plan is deceptively simple: cancel the IRS’s ongoing modernization projects, slash the agency’s tech budget by $1.5 billion, and reallocate those resources toward a 30-day hackathon that will produce a new, centralized Mega API.
So, what exactly is a “Mega API”?
Think of it as a single digital gateway to access all IRS data. Instead of siloed databases, multiple disconnected tools, and outdated internal systems, this API would be the one stop for all things tax-related—from individual records to enforcement data to internal audit trails.
The idea is to streamline how data flows across IRS platforms and make it easier for internal and external stakeholders to access information in real time. Supporters say this could eliminate inefficiencies, reduce fraud, and modernize a crumbling IT infrastructure that dates back to the 1960s.
Key Figures behind the Plan
Aside from Corcos, another major player is Gavin Kliger, a 25-year-old engineer with close ties to DOGE’s inner circle. Despite his youth, Kliger has already been given unprecedented access to sensitive IRS systems, including the Integrated Data Retrieval System (IDRS), one of the most critical and confidential data systems the IRS maintains.
Kliger and Corcos have reportedly called in tech talent from Palantir, SpaceX, and other Musk-affiliated firms to participate in the hackathon. But critics are pointing out a glaring issue: these engineers, while brilliant, may lack the security clearance and regulatory understanding needed for handling such sensitive data.
This mix of Silicon Valley ambition and Washington bureaucracy has raised eyebrows—not just within the IRS, but also in Congress.
Privacy and Security Concerns
The biggest issue? Trust.
Centralizing all IRS data into one platform may improve access, but it also presents a terrifying single point of failure. If that system is breached, it’s not just some agency reports on the line—it’s the complete financial history of every working American.
DOGE’s recent decision to place senior IRS cybersecurity officials on administrative leave only fuels fears. Without these seasoned professionals in the room, who is safeguarding the system? And how do we ensure there’s accountability if something goes wrong?
Privacy experts have also flagged the hackathon’s short timeline. Building a secure, scalable, and compliant API isn’t a weekend project. Rushing it increases the risk of bugs, vulnerabilities, and noncompliance with existing data protection laws like the Federal Information Security Management Act (FISMA).
Democratic Lawmakers Sound the Alarm
In a rare bipartisan moment, even those typically skeptical of government bloat are worried.
Representatives Lori Trahan, Suzan DelBene, and Shontel Brown have formally requested an investigation into DOGE’s access and handling of sensitive federal data. Their concerns center on:
- Unauthorized data access by DOGE employees without security clearance
- Rehiring of controversial figures, such as Marko Elez, who has a history of inappropriate online behavior
- The legality of DOGE’s data usage practices, especially regarding consent and transparency
Their letter specifically questions how DOGE obtained, used, and stored HR data from the Department of Health and Human Services (HHS), which adds another layer of concern to an already controversial initiative.
Impact on the IRS Workforce and Tax Season
DOGE has already floated proposals to slash the IRS workforce by a third. That’s tens of thousands of employees—many of whom handle audits, investigations, and customer service. With budget cuts and staff layoffs, it’s uncertain how the upcoming tax season will play out.
Experts warn that this hollowing out of the IRS could lead to a surge in tax fraud, especially by the ultra-wealthy, who already manage to avoid taxes through loopholes and under-enforcement.
The Inflation Reduction Act of 2022 provided around $80 billion for rebuilding the IRS and improving compliance with taxes among the highest income earners. However, DOGE’s actions could undermine these efforts in full.
The Bigger Picture: Efficiency vs. Oversight
Amid this issue lies an argument of philosophy between government and business: Should it run like an enterprise, cutting expenses and streamlining processes to the max? Do you think it is better to focus on supervision, regulation, and public good even if it is slow or costly?
Department of Government Efficiency leans hard toward the first vision. Its motto is speed, innovation, and disruption. But critics say these traits, while admirable in startups, can be catastrophic when dealing with millions’ personal and financial lives.
In the absence of proper checks and balances, the consequences of failure can be catastrophic, ranging from data security breaches to massive losses in financial assets and a general lack of trust in government agencies.
Conclusion
The Department of Government Efficiency (DOGE) is a bold experiment, and its push for a centralized Mega API through a 30-day hackathon is nothing short of revolutionary. But revolutions often come at a price.
While modernization is sorely needed within the IRS, doing it hastily—without appropriate oversight, input from cybersecurity experts, and legal compliance—could backfire catastrophically. Centralizing IRS data through an untested API built at breakneck speed may save money in the short term, but it risks long-term damage to privacy, public trust, and federal infrastructure.
As Department of Government Efficiency races toward its goals, one thing is clear: The rest of the nation, and indeed the world, is watching closely.