Inside DOGE, The IRS & How to Scam the US Government - Sam Corcos - #1004
Modern Wisdom
2025/10/09
Inside DOGE, The IRS & How to Scam the US Government - Sam Corcos - #1004
Inside DOGE, The IRS & How to Scam the US Government - Sam Corcos - #1004
Modern Wisdom
2025/10/09
Sam Corcos, a seasoned tech entrepreneur and CEO of Levels, shares his firsthand experience diving into the inner workings of the U.S. federal government as a special advisor to the Department of Government Efficiency (DOGE). Stepping away from the private sector, he offers a rare look at the systemic challenges plaguing agencies like the IRS, from broken procurement systems to outdated technology and deep cultural inertia.
Corcos reveals that government dysfunction stems not from malice but from structural flaws—non-technical leaders managing complex IT systems, pay caps deterring top engineering talent, and procurement processes riddled with waste. He details how DOGE identified bloated contracts, including a $100 million renewal for a $2 million service, and initiated reforms by removing underperforming officials and bringing in skilled technologists. Despite bipartisan support, progress is hindered by bureaucratic protections, fragmented data systems, and public mistrust fueled by media misrepresentation. True modernization, he argues, isn't about overhauling legacy systems but improving maintenance, leadership, and accountability. Efforts like streamlining FedRAMP and using targeted workforce reductions show promise, but lasting change requires reforming hiring, incentives, and performance evaluation—often needing congressional action. Ultimately, Corcos emphasizes that effective governance depends on people: placing technical experts in leadership and empowering them to make impactful, sustainable changes.
02:48
02:48
Recommended administrative leave for 50 IRS IT leaders due to lack of technical skills
09:21
09:21
The DOGE executive order allows immediate review of federal contracts.
14:35
14:35
The IRS receives 60 million faxes annually because officials believe it's secure
34:34
34:34
A vendor increased a government contract from $2 million to $100 million during renegotiation.
38:20
38:20
Rejecting a $35 million contract showed the need for leaders who care about taxpayer money
53:20
53:20
To get a license that suits one's purpose, create a fake auction among value-added resellers.
1:00:43
1:00:43
The 8A program allows contracts to skip procurement processes, leading to widespread abuse and billions in potential graft.
1:05:00
1:05:00
The IRS has had poor technical leadership for about 40 years
1:14:14
1:14:14
Only 100–200 of 12,000–13,000 IRS employees are highly effective
1:25:56
1:25:56
DOGE consists of mission-oriented people focused on stopping the growth of national debt.
1:35:43
1:35:43
True savings are known only at year-end by comparing planned vs. actual spending.
1:38:06
1:38:06
The top priority is to ensure all systems use the same information
1:43:03
1:43:03
Software systems require continuous maintenance like living organisms, not one-time fixes.
1:52:08
1:52:08
Recruiting cybersecurity leaders is hard due to low pay and high risk.
1:58:25
1:58:25
Around 25,000 IRS employees took the Deferred Resignation Program (DRP).
2:06:59
2:06:59
The young DOGE engineers are extremely smart but seen as 'infants' by older politicians
2:16:01
2:16:01
Solving tax-related problems offers significant leverage and attracts top data talent despite lower pay.
2:16:32
2:16:32
The final 20% of tax system implementation is disproportionately complex due to edge cases.
2:28:50
2:28:50
The IRS has the worst ATO process in the government, often taking years to authorize basic tools.
2:39:27
2:39:27
Non-technical leaders managing IT vendors lead to poor outcomes
2:48:35
2:48:35
Capable people often leave government for the private sector after mid-career due to financial and operational constraints.
