The Trump administration is planning to sell a major IRS computing center crucial to processing the tax returns of millions of Americans, just in time for tax season. The IRS Enterprise Computing Center in Martinsburg, West Virginia, is included on a list of over 400 "empty and underutilized" federal properties marked for liquidation.
The Martinsburg data center has for decades housed the IRS's "Master File," an authoritative national record of tax return data and tax status for every tax-paying American individual and corporation. This database contains a historical computerized archive of every return and refund, making it a critical component of the agency's operations. While its systems are vital around tax season, its databases are queried year-round.
On Tuesday, the Martinsburg center was flagged by the General Services Administration as one of hundreds of "noncore" facilities that should be sold off to save the federal government money. However, just last year, a GSA work order for roof repairs described the facility as "a critical component of IRS's operations," emphasizing its high priority during peak season.
Despite these assurances, it's unclear if the administration intends to shutter the installation or eventually lease it back from private owners. The GSA or IRS did not immediately respond to a request for comment. Shortly after the list was published, the GSA quickly amended and then deleted it entirely, leaving agencies in a state of confusion and disarray.
Travis Thompson, a tax attorney with Boutin Jones and expert on IRS technology practices, told The Intercept that the Martinsburg computing center is "absolutely mission-critical infrastructure" for the IRS. He noted that the data housed at Martinsburg is regularly tapped for internal investigations to ferret out fraud.
Thompson speculated that if the sale goes through, it could result in either private ownership and leaseback or shutdown entirely. However, housing the computer systems under privatized ownership raises questions about protecting taxpayer data and privacy. An interruption of service would present potentially widespread disruption to the IRS and American taxpayers.
The IRS is buying an AI supercomputer from Nvidia, which was previously installed at Martinsburg. In a statement, Sen. Ron Wyden said that private ownership is more likely, citing concerns about the security and integrity of taxpayer data.
"If the Trump administration really sold this site," Wyden stated, "the IRS data system would be down to a single backup facility in Memphis, and all it would take to knock the entire agency offline is one hack or power outage. It'd be an economic disaster." Wyden also expressed skepticism about the motivations behind the sale, suggesting that Trump and other party elites might be trying to exploit the system for personal gain.
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