• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Federal Watchdogs Raise IRS Security Concerns

    Less than a month from tax day, a pair of reports from federal watchdogs raises serious concerns about the Internal Revenue Service’s handling of sensitive and confidential taxpayer information.

    Potential security problems reportedly stem from inadequate measures to ensure the security of digital information, and from the IRS’s failure to properly vet the vast majority of its employees.

    The Government Accountability Office released a report on Friday focusing on the agency’s IT security measures. It found five potentially problematic shortfalls in the IRS’s treatment of digital taxpayer information.

    …the agency continues to face challenges in controlling access to its information resources. For example, it had not always (1) implemented controls for identifying and authenticating users, such as requiring users to set new passwords after a prescribed period of time; (2) appropriately restricted access to certain servers; (3) ensured that sensitive data were encrypted when transmitted; (4) audited and monitored systems to ensure that unauthorized activities would be detected; or (5) ensured management validation of access to restricted areas. In addition, unpatched and outdated software exposed IRS to known vulnerabilities, and the agency had not enforced backup procedures for a key system.

    GAO noted that the IRS “has not fully implemented a comprehensive information security program,” and hence has left taxpayer information vulnerable to security breaches.

    The report made five broad recommendations for actions that the IRS can take to remedy the problems, and said it would detail 23 separate measures to do so in a subsequent report.

    Douglas Shulman, the agency’s commissioner, assured the GAO that the IRS “will provide the detailed corrective action plan addressing each of the recommendations with our response to the final report.”

    “The security and privacy of all taxpayer and financial information is of utmost importance to us and the integrity of our financial systems continues to be sound,” he added.

    The Treasury Department’s Inspector General, meanwhile, raised its own concerns in a separate report released late last month. That report focused on the IRS’s hiring procedures, and found that the agency had failed to adequately screen more than three quarters of new hires.

    The IRS has implemented controls designed to ensure that applicants pursuing permanent or temporary employment with the IRS are suitable, and background investigation requests are properly initiated. However, our review at four of nine Employment Operations branch offices revealed that nearly 77% of the cases reviewed (507 of 662 cases) did not have sufficient documentation that would allow us to verify that the Employment Operations offices completed all of the required pre-screening steps before the employee reported for duty.

    The IG went on to recommend that the IRS direct its Human Capital Officer to develop policies to rectify the shortfall. The HCO told the IG in a subsequent letter, “we believe we can fully implement the recommendation to develop requirement and retention policies that ensure pre-screening actions are completed and fully documented in a consistent manner.”

    While in both cases the IRS expressed confidence that it would address security concerns, it remains to be seen whether the agency will manage to do so before the pre-tax day flood of information that waits just around the corner.

    Posted in Featured, Ongoing Priorities, Scribe [slideshow_deploy]

    4 Responses to Federal Watchdogs Raise IRS Security Concerns

    1. Mutantone says:

      just think of the money the nation would save if we had a flat tax rate across the board 7% on all earnings no matter where they came from no deductions just a flat 7%

    2. kenedy123 says:

      The security and privacy of all taxpayer and financial information is of utmost importance to us and the integrity of our financial systems continues to be sound

    3. I experienced the exact same thing during the past year, and yes it was tough initially, right until I observed a tax debt relief firm that helped me end up in an IRS agreement. I found the business I retained on ConsumerTaxReports.org. They have got accomplished all the investigation for you so you don't have to, saving you cash and time. It is best to check out the website to retrieve support with your tax debt problem. Here's the web page link: http://www.consumertaxreports.org .

    4. kamalbhatia says:

      i am tring for irs no from last 6 months but till it is not alloted

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×