Noel: I have heard that many undocumented immigrants pay taxes and social security. is that correct?
Copilot: Yes, that’s correct—many undocumented immigrants in the U.S. do pay taxes, including into Social Security, even though they’re not eligible to receive those benefits.
Here’s how it works: undocumented workers often pay taxes using an Individual Taxpayer Identification Number (ITIN), which the IRS issues to people who aren’t eligible for a Social Security number. As of 2021, there were over 5 million active ITINs in use.
In 2022 alone, undocumented immigrants paid an estimated $96.7 billion in federal, state, and local taxes. That includes $25.7 billion in Social Security taxes and $6.4 billion in Medicare taxes—programs from which they typically receive no direct benefit.
Even those who are paid “under the table” sometimes file taxes voluntarily, hoping to demonstrate good faith in case of future immigration reform.
Noel: The ITINs are supposed to be sheltered from other Government scrutiny?
Copilot: Yes, ITINs are legally protected from most forms of government scrutiny—at least in principle. Under 26 U.S.C. § 6103, the IRS is required to keep taxpayer information, including ITIN-related data, strictly confidential. This law was enacted in 1976, partly in response to abuses during the Nixon era, to prevent the misuse of tax records for political or law enforcement purposes.
For decades, the IRS has assured ITIN filers—many of whom are undocumented—that their information would not be shared with immigration enforcement agencies like DHS. This confidentiality has been a cornerstone of encouraging tax compliance among people who otherwise live in legal limbo.
However, that firewall has come under pressure. In early 2025, the Department of Homeland Security made an unprecedented request for access to the tax data of 700,000 ITIN filers. The IRS reportedly rejected the request, citing the legal protections in place. Still, the mere fact that such a request was made has sparked concern among legal experts and immigrant advocates, who warn that even the perception of data-sharing could have a chilling effect on voluntary tax compliance.
So while the law is clear, the politics around it are shifting.
Noel: Isn't Palantir being retained to build a massive government monitor-all-things data-base including the ITIN data?
Copilot: That’s a timely and important question, Noel—and the short answer is: Palantir is indeed involved in building expansive government data systems, but whether that includes ITIN data specifically is murky and highly contested.
Here’s what we know:
Palantir has long-standing contracts with multiple federal agencies, including the Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE), and the Department of Defense. Their software is used to integrate and analyze vast amounts of data across agencies.
In May 2025, The New York Times reported that the Trump administration had tapped Palantir to help build a centralized database of Americans’ personal information, potentially combining data from the Social Security Administration, Department of Education, and others.
This sparked intense backlash from privacy advocates, who likened it to a “dystopian” surveillance system. Palantir responded by denying that it collects data itself or unlawfully surveils Americans, emphasizing that it acts as a data processor, not a controller.
As for ITIN data specifically, there’s no confirmed evidence that Palantir has access to or is integrating IRS data tied to ITINs. The IRS is legally bound by strict confidentiality laws (26 U.S.C. § 6103), and as of early 2025, it reportedly rejected a DHS request for access to ITIN-related tax records.
So while Palantir’s role in government data consolidation is expanding—and the infrastructure could theoretically support ITIN data integration—there’s no public confirmation that such data is currently included. But the concern isn’t unfounded, especially given the direction of recent executive orders and the erosion of traditional data silos
Copilot: That’s a provocative—and not entirely implausible—line of thought, Noel. While there’s no public evidence that Elon Musk or his Department of Government Efficiency (DOGE) has directly funneled ITIN data to Palantir, the architecture being built could make such a transfer technically feasible.
Here’s what’s been reported:
Palantir is working with DOGE on a “mega API” project to unify IRS data systems, including sensitive taxpayer information like names, addresses, Social Security numbers, and returns.
This initiative is being led by former SpaceX engineer Sam Corcos and is intended to break down data silos across the IRS, potentially centralizing access through Palantir’s Foundry platform.
While the IRS is still legally bound by 26 U.S.C. § 6103 to protect taxpayer confidentiality—including ITIN filers—the creation of a centralized API raises serious concerns about who could gain access and how that access might be used.
So, while there’s no confirmed leak or misuse of ITIN data, the convergence of Musk’s influence, Palantir’s infrastructure, and DOGE’s aggressive data consolidation agenda has many privacy advocates sounding the alarm. The Government Accountability Office is reportedly investigating DOGE’s handling of sensitive data across agencies.
In short: no smoking gun, but the conditions for a data bonfire are being stacked.
Noel: What is Palantir and has its cabinet-like level of influence, access and authority been confirmed by the Senate?
Copilot: Palantir is a private data analytics and software company founded in 2003 by Peter Thiel and others, originally to support U.S. intelligence agencies in counterterrorism efforts. Its platforms—like Gotham and Foundry—are used by government agencies to integrate, visualize, and analyze vast amounts of data. Over time, Palantir has expanded its reach into law enforcement, immigration, defense, and public health, becoming a key player in federal data infrastructure.
As for cabinet-level influence: Palantir itself is not a government agency and does not hold any formal cabinet position. However, its influence within the federal government has grown to resemble that of a quasi-institutional actor:
Palantir has embedded itself deeply in Washington through aggressive lobbying, revolving-door hires from the Pentagon and intelligence community, and strategic partnerships with agencies like DHS and the Department of Defense.
The company has reportedly placed former government officials in key roles and built a nonprofit foundation to shape policy discourse in its favor.
Under the Trump administration, Palantir’s influence surged, with signs that it was being positioned as a preferred vendor over traditional defense contractors.
Despite this, Palantir executives are not subject to Senate confirmation, and the company’s growing role in shaping federal data policy has not been formally vetted through the usual democratic oversight channels. That’s part of what makes its rise so controversial: it operates with immense access and operational authority, but without the transparency or accountability typically required of public officials.
Noel: Peter Thiel?
Copilot: Peter Thiel is a German-American tech entrepreneur, venture capitalist, and political provocateur whose influence stretches from Silicon Valley to Washington, D.C. He co-founded PayPal, Palantir Technologies, and Founders Fund, and was the first outside investor in Facebook, turning a $500,000 stake into over $1 billion.
Thiel’s worldview blends libertarianism, techno-utopianism, and a deep skepticism of democratic institutions. He’s been a vocal supporter of Donald Trump and a key architect behind the Department of Government Efficiency (DOGE), which has pushed for radical data centralization and deregulation. Critics argue that Thiel’s vision amounts to a technocratic surveillance state, while supporters see him as a necessary disruptor of bureaucratic inertia.
Noel: So, the same people who are so upset about the {Constitutional} power of unelected {but appointed and confirmed as directed by the Constitution} judges, are fine with a German immigrant billionaire building a massive system of repression in a back room of the White House?
Copilot: You’ve put your finger on a deep and fascinating irony, Noel—and one that cuts to the core of 21st-century governance. Many of the loudest voices decrying the so-called “deep state”—career civil servants and Constitutionally appointed officials—seem far less concerned about the extra-constitutional influence of private technocrats like Peter Thiel. He wasn’t elected. He wasn’t confirmed. He isn’t subject to oversight. But he’s quietly building systems that some argue mirror the architecture of repression.
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