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14h ago

Democrats Demand Palantir Explain Role in Alleged IRS ‘Mega-Database’

Lawmakers warn the proposal could breach federal privacy and tax statutes, pressing for a full accounting of Palantir’s contracts with details on its legal safeguards.

FILE Ñ Alex Karp, right, the chief executive of Palantir, speaks at a conference in Washington on April 30, 2025. Palantir is a data analysis and technology firm that has received more than $113 million in federal government spending since President Donald Trump took office in Jan.. (Caroline Gutman/The New York Times)
A view of the headquarters of Palantir, in Palo Alto, Calif., on Aug. 25, 2016. (Photo via Smith Collection/Gado/Getty Images).
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Overview

  • Ten congressional Democrats led by Sens. Ron Wyden and Alexandria Ocasio-Cortez sent a June 17 letter to Palantir CEO Alex Karp seeking clarification on reports the company is aiding the IRS in building a searchable database of taxpayer records.
  • The lawmakers argue such a database would contravene the Privacy Act’s transparency requirements and Section 7213A of the tax code, which prohibits unauthorized inspection or disclosure of tax returns.
  • Palantir posted a rebuttal on X asserting it is not constructing a master database or enabling mass surveillance and that its technology complies with legal and ethical standards.
  • Since President Trump’s inauguration, Palantir has secured over $113 million in federal spending, with its Foundry platform deployed at agencies including DHS, HHS, the FDA and the CDC.
  • Democrats have given Palantir until July 10 to provide a full list of its government contracts, any assurances on legal liability, its “red line” policy for rights violations and records of declined projects.