Right-Wing Aligned Tech Company Is Assisting Trump in Likely Mass Violations of Privacy Act and Tax Privacy Laws

Washington (June 17, 2025) - Senator Edward J. Markey (D-Mass.), today joined Senator Ron Wyden (D-Ore.), Ranking Member of the Senate Finance Committee, Representative Alexandria Ocasio-Cortez (D-N.Y.), and seven other Members of Congress in questioning Palantir about reports that Palantir is helping the IRS to build a government-wide, searchable, “mega-database,” connecting sensitive tax and other data the government holds about American citizens. Building such a database likely violates multiple federal laws limiting the accessing and sharing of Americans’ private information, including the Privacy Act and tax privacy laws. 

“The unprecedented possibility of a searchable, ‘mega-database’ of tax returns and other data that will potentially be shared with or accessed by other federal agencies is a surveillance nightmare that raises a host of legal concerns, not least that it will make it significantly easier for Donald Trump’s Administration to spy on and target his growing list of enemies and other Americans,” the members wrote to Palantir CEO Alex Karp. 

The letter is cosigned by Senators Jeff Merkley (D-Ore.), and Elizabeth Warren (D-Mass.), and Representatives Sara Jacobs (D-Calif.), Summer Lee (D-Pa.), Jim McGovern (D-Mass.), Rashida Tlaib (D-Mich.), and Paul Tonko (D-N.Y.). 

Sections 6103 and 7213A of the tax code protect tax returns and return information from unauthorized access or disclosure, with criminal penalties for violations, the members pointed out, while the Privacy Act of 1974 requires detailed transparency and procedural steps for accessing and combing government data about Americans. Contractors like Palantir are not exempt from those laws. 

“The IRS hiring Palantir to help it establish a ‘mega-database”’ of government-held personal data, including sensitive taxpayer data, for seamless processing for a limitless number of purposes blatantly violates the notice, transparency, and procedural requirements of the Privacy Act,” the members wrote. “As you should be aware, contractors are explicitly covered by many of the Privacy Act’s requirements.”

The full scope of Palantir’s work for the Trump Administration is unclear, but publicly available contracts indicate its tendrils are reaching nearly every corner of the federal government. The Department of Defense recently awarded Palantir a $795 million contract - which could increase to $1.3 billion - to lead data fusion and artificial intelligence programs throughout the U.S. military. The Trump Administration has deployed Palantir’s Foundry software at the Department of Homeland Security, Department of Health and Human Services, Food and Drug Administration, Centers for Disease Control and Prevention and National Institutes of Health.

The company is reportedly helping U.S. Immigration and Customs Enforcement combine data sets in order to speed up deportation of immigrants. Trump’s deeply unpopular deportations have included raids on hotels and construction sites and U.S. citizens being wrongly targeted in order to meet arbitrary quotas set by the White House. 

The members requested Palantir answer the following questions: 

• Please provide a list of all current Palantir contracts with the United States government. For each contract, please provide the following information: the dollar value of the award, the agency that awarded the contract, the name of the Palantir software or product being deployed as part of the contract, and a detailed description of the services being performed as part of the contract.
• Has Palantir sought or received assurances from the U.S. government that its executives, board members, and employees will not be held responsible for violations of federal law, including the internal revenue code?
• Has Palantir provided insurance coverage or commitments to pay legal costs and fines to any of its executives, board members, or employees in connection with the company’s work for the U.S. government or any foreign government.
• What services, features, or assistance, if any, has the Trump Administration requested and Palantir declined to provide, due to concerns related to privacy, civil liberties, or potential violations of federal, state, or international law.
• Is Palantir aware of the requirements placed on agencies and contractors by the Privacy Act of 1974?  Have you advised the government of those requirements, or offered to assist in their compliance?  Do you believe the government is currently satisfying its requirements under the Privacy Act? 
• Does the company have a “red line” for potential violations of human rights, U.S. law or international law by the Trump Administration that would result in Palantir terminating its services for the U.S. government?
• How many Palantir employees have quit since January 20, 2025, citing the company’s work for the Trump Administration?

Read the full letter to Palantir here.

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