Court Filing Alleges Unlawful Access to Taxpayer Data by US DOGE Service
The Center for Taxpayer Rights (CTR) and several other plaintiffs have filed a complaint against the Internal Revenue Service (IRS) and US Department of the Treasury, among others, alleging unlawful access to sensitive taxpayer information by the Department of Government Efficiency (i.e. US DOGE Service). The complaint, filed in the United States District Court for the District of Columbia on 17 February 2025, seeks declaratory and injunctive relief to protect the privacy and legal rights of millions of Americans (Case 1:25-cv-00457-CKK).
The plaintiffs, which also include the Main Street Alliance, the National Federation of Federal Employees, and the Communications Workers of America, AFL-CIO, claim that the US DOGE Service, led by White House official Elon Musk, has been granted unprecedented access to highly sensitive information systems at the IRS. This access allegedly violates multiple laws, including the Tax Reform Act, the Privacy Act, and the Administrative Procedure Act.
The complaint highlights the potential risks to taxpayer privacy, noting that the US DOGE Service could access social security numbers, information about individuals' income and net worth, bank account information, tax liability, sensitive information regarding deductions, such as charitable donations and dependents, and whether an individual's tax return has or is being investigated. The plaintiffs argue that this access could lead to misuse of taxpayer data, including the possibility of targeting individuals for political purposes, reminiscent of the abuses revealed during the Watergate scandal.
The plaintiffs are particularly concerned about the impact on vulnerable populations, such as low-income taxpayers, domestic violence survivors, and immigrants. The complaint states that the Low-Income Taxpayer Clinic (LITC) run by the Center for Taxpayer Rights represents many clients whose information is especially sensitive. The plaintiffs fear that the unauthorized access to this data could lead to increased distrust in the tax system and deter individuals from filing their taxes.
The IRS Taxpayer Bill of Rights explicitly prohibits the unauthorized disclosure of taxpayer information, ensuring that sensitive data remains confidential and protected. This principle is reinforced by Internal Revenue Code (IRC) § 6103, which mandates that tax returns and return information are to be treated as confidential and can only be disclosed under specific circumstances authorized by statute. IRC Section 6103 outlines stringent conditions under which IRS employees and other authorized personnel can access or disclose taxpayer information, emphasizing the importance of safeguarding taxpayer privacy and maintaining trust in the tax system.
The plaintiffs are seeking a temporary restraining order to halt the US DOGE Service's access to IRS systems until the court can fully consider the legality of the defendants' actions. They argue that without court intervention, the privacy and legal rights of millions of Americans will be at risk.
Report from Kelly Maurer, Associate, IBFD North America