Introduction
In a series of explosive statements that have captured national attention.
A technology adviser working for the Elon Musk–run Department of Government Efficiency (DOGE) revealed shocking details about the state of the Internal Revenue Service’s (IRS) modernization efforts.
Speaking on Fox News alongside Treasury Secretary Scott Bessent and host Laura Ingraham.
Sam Corcos exposed that the IRS’s ambitious software and infrastructure upgrade is not only three decades behind schedule but also a staggering $15 billion over budget.
At the same time, Elon Musk himself described how “magic money computers” within several U.S. government departments are allegedly generating payments out of thin air, leaving lawmakers in the dark about the true extent of federal spending.
This article examines both of these revelations in detail. We explore the legacy issues plaguing the IRS modernization project, assess the claims about contractors’ roles in this expensive debacle, and delve into Musk’s assertion regarding the mysterious computer systems that could be distorting the federal budget. With profound implications for government efficiency, transparency, and national security, these developments highlight the urgent need for comprehensive reform in federal agencies.
Legacy Systems and the Need for Modernization
For decades, the IRS has relied on outdated technology to perform its core functions, including tax collection, data management, and processing of returns. According to Sam Corcos—an adviser tasked with modernizing the agency’s software systems—the IRS still operates many of its key functions on legacy mainframes running COBOL and Assembly. These outdated systems were initially developed in an era when the technology landscape was unrecognizable compared to today’s digital environment.
Corcos explains, “We’re dealing with infrastructure that was supposed to be replaced back in the mid‑1990s. In reality, it’s been 35 years since the promise of modernization was made, and we’re still stuck with these relics.” The cost of maintaining such legacy systems has ballooned, and the challenges of updating them have proven to be both technically and bureaucratically formidable.
The Scale of the Overrun: $15 Billion Over Budget
In his interview, Corcos disclosed that the modernization program is not only behind schedule but also more than $15 billion over budget. This enormous cost overrun has become emblematic of the difficulties faced by large government IT projects. In private industry, similar upgrades might cost a few hundred million dollars and be completed within a few years; however, the IRS project has spiraled into a multi-decade, multi–billion-dollar endeavor.
The scale of the cost overruns reflects both the technical challenges of integrating new systems with decades-old infrastructure and the systemic inefficiencies that have long plagued the agency.
“It’s a huge program,” Corcos noted. “We’re trying to transform a legacy system that has been in place for generations, and the challenges are compounded by the need to ensure continuity in critical tax collection operations.”
