IRS

DOGE gearing up for hackathon at IRS, wants easier access to taxpayer data

doge, IRS, Policy, syndication / Shannon Garcia / April 7, 2025

DOGE has already slashed and burned modernization projects at other agencies, replacing them with smaller teams and tighter timelines. At the Social Security Administration, DOGE representatives are planning to move all of the agency’s data off of legacy programming languages like COBOL and into something like Java, WIRED reported last week.

Last Friday, DOGE suddenly placed around 50 IRS technologists on administrative leave. On Thursday, even more technologists were cut, including the director of cybersecurity architecture and implementation, deputy chief information security officer, and acting director of security risk management. IRS’s chief technology officer, Kaschit Pandya, is one of the few technology officials left at the agency, sources say.

DOGE originally expected the API project to take a year, multiple IRS sources say, but that timeline has shortened dramatically down to a few weeks. “That is not only not technically possible, that’s also not a reasonable idea, that will cripple the IRS,” an IRS employee source tells WIRED. “It will also potentially endanger filing season next year, because obviously all these other systems they’re pulling people away from are important.”

(Corcos also made it clear to IRS employees that he wanted to kill the agency’s Direct File program, the IRS’s recently released free tax-filing service.)

DOGE’s focus on obtaining and moving sensitive IRS data to a central viewing platform has spooked privacy and civil liberties experts.

“It’s hard to imagine more sensitive data than the financial information the IRS holds,” Evan Greer, director of Fight for the Future, a digital civil rights organization, tells WIRED.

Palantir received the highest FedRAMP approval this past December for its entire product suite, including Palantir Federal Cloud Service (PFCS), which provides a cloud environment for federal agencies to implement the company’s software platforms, like Gotham and Foundry. FedRAMP stands for Federal Risk and Authorization Management Program and assesses cloud products for security risks before governmental use.

“We love disruption and whatever is good for America will be good for Americans and very good for Palantir,” Palantir CEO Alex Karp said in a February earnings call. “Disruption at the end of the day exposes things that aren’t working. There will be ups and downs. This is a revolution, some people are going to get their heads cut off.”

This story originally appeared on wired.com.

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Don’t use crypto to cheat on taxes: Bitcoin bro gets 2 years

A bitcoin investor who went to increasingly great lengths to hide $1 million in cryptocurrency gains on his tax returns was sentenced to two years in prison on Thursday.

It seems that not even his most “sophisticated” tactics—including using mixers, managing multiple wallets, and setting up in-person meetings to swap bitcoins for cash—kept the feds from tracing crypto trades that he believed were untraceable.

The Austin, Texas, man, Frank Richard Ahlgren III, started buying up bitcoins in 2011. In 2015, he upped his trading, purchasing approximately 1,366 using Coinbase accounts. He waited until 2017 before cashing in, earning $3.7 million after selling about 640 at a price more than 10 times his initial costs. Celebrating his gains, he bought a house in Utah in 2017, mostly funded by bitcoins he purchased in 2015.

Very quickly, Ahlgren sought to hide these earnings, the Department of Justice said in a press release. Rather than report them on his 2017 tax return, Ahlgren “lied to his accountant by submitting a false summary of his gains and losses from the sale of his bitcoins.” He did this by claiming that the bitcoins he purchased in 2015 were much higher than his actual costs, even being so bold as to claim he as charged prices “greater than the highest price bitcoins sold for in the market prior to the purchase of the Utah house.”

First tax evasion prosecution centered solely on crypto

Ahlgren’s tax evasion only got bolder as the years passed after this first fraud, the DOJ said.

In 2018 and 2019, he sold more bitcoins, earning more than $650,000 and deciding not to report any of it on his tax returns for those years. That meant that he needed to actively conceal the earnings, but he’d been apparently researching how mixers are used to disguise where bitcoins come from since at least 2014, the feds found, referencing a blog he wrote exhibiting his knowledge. And that’s not the only step he took to try to trick the Internal Revenue Service.