A technology adviser working for Elon Musk’s Department of Government Efficiency (DOGE) has made shocking revelations about the Internal Revenue Service (IRS) and the federal government’s spending systems. During a Fox News interview with Treasury Secretary Scott Bessent on The Ingraham Angle, Sam Corcos—tasked with modernizing the IRS’s outdated infrastructure—exposed that the agency’s tech overhaul is more than three decades behind schedule and billions of dollars over budget.
IRS Modernization Delayed by Decades, Billions Over Budget
Corcos revealed that the IRS has been struggling to modernize its tax collection system for over 30 years, yet the project remains unfinished with a staggering $15 billion overrun.
“This is a huge program that is already 30 years behind schedule and $15 billion over budget,” Corcos stated. “The IRS still relies on legacy infrastructure—old mainframes running COBOL and Assembly. The challenge is transitioning to a modern system, something virtually every major bank has already done.”
Despite private sector financial institutions successfully modernizing their systems in just a few years, Corcos highlighted that the IRS’s system was originally supposed to be delivered in 1996—yet remains unfinished to this day.
“Typically, in industry, this takes a few years and maybe a few hundred million dollars,” he added. “We’re now 35 years into this.”
IRS Dependent on Contractors Draining Taxpayer Dollars
Beyond outdated software, Corcos pointed out another major issue: government dependency on expensive contractors. He explained that the IRS’s core tax collection functions rely heavily on third-party consultants, significantly driving up costs for taxpayers.
“A huge part of our government is collecting taxes,” he noted. “Yet, we cannot perform basic tax collection functions without paying a toll to contractors. We are in a deep hole, and we need a way out.”
Treasury Secretary Scott Bessent echoed this concern, emphasizing that the real problem isn’t IRS employees, but rather consulting firms entrenched within the agency.
“Many of the IRS employees are fantastic,” Bessent said. “The problem is these consulting groups. They’re like a boa constrictor—wrapping around the government and squeezing out billions in taxpayer dollars.”
Bessent Calls Out Special Interests Blocking Reform
Bessent further accused special interest groups, mainstream media, and Democratic leaders of deliberately obstructing efforts to improve government efficiency.
“The entrenched interests—the consultants, the Democrats, and the mainstream media—want to kill this modernization project,” Bessent claimed. “We’re not trying to eliminate government; we’re trying to make it more efficient for the American people. What’s wrong with a system that works better, cheaper, faster, and offers more privacy?”
Elon Musk Exposes Federal “Magic Money Computers” Sending Billions Without Oversight
In a separate revelation, Elon Musk made staggering claims about federal spending mismanagement, telling Senator Ted Cruz (R-TX) that mysterious “magic money computers” exist within the U.S. government—generating payments “out of thin air” with little oversight.
Speaking on Cruz’s podcast, Musk disclosed that his Department of Government Efficiency (DOGE) team uncovered 14 such systems inside various agencies, including the U.S. Treasury, Health and Human Services (HHS), the State Department, and the Department of Defense (DOD).
“They’re mostly at Treasury, but some are at HHS, State, and the Defense Department,” Musk explained. “We’ve now found 14 ‘magic money computers.’ They just send money out of nothing.”
Billions in Unaccounted Government Spending?
According to Musk, these unmonitored financial systems prevent lawmakers from fully understanding the government’s total spending. He warned that federal financial records presented to Congress could be off by as much as 5%—a discrepancy that could potentially amount to trillions of dollars in improper payments.
“You may think government computers all talk to each other and synchronize spending,” Musk said. “But they don’t. The numbers presented to Congress aren’t even real numbers.”
Senator Ted Cruz suggested that these improper payments could total in the trillions, making it one of the largest financial mismanagement scandals in U.S. history.
Musk-Led Government Efficiency Push Faces Resistance
The revelations about IRS failures and unchecked government spending have intensified scrutiny over the Biden administration’s management of federal agencies.
With Musk’s DOGE initiative pushing for greater financial transparency and efficiency, many expect increased political pushback from special interest groups and bureaucrats resistant to reform. However, if his team successfully overhauls the IRS and exposes the full scope of federal spending inefficiencies, it could reshape how the government handles taxpayer money for years to come.