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Democrats Demand Details From Palantir on Federal Contracts After Social Security, IRS Report

  • On Monday, a group of ten Democratic representatives addressed a letter to Palantir CEO Alex Karp, seeking clarification about the company’s growing federal contracts during the Trump administration.
  • The letter was prompted by a May New York Times article reporting that Palantir was assisting the IRS in developing an extensive, searchable government database containing sensitive taxpayer details, raising concerns about potential legal breaches.
  • Palantir strongly denied the accusations, stating it does not build surveillance technology or a central database on Americans and emphasized its 20-year government partnership and auditable data practices.
  • Lawmakers warned that creating such a database could violate the 1974 Privacy Act and tax code confidentiality rules, describing the potential system as a 'surveillance nightmare' that may expose Palantir to legal liability.
  • The dispute suggests increased scrutiny of Palantir’s role in federal data management and highlights broader privacy and legal challenges amid efforts to consolidate government information.
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The Register broke the news in on Tuesday, June 17, 2025.
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