IRS Faces Security and Management Issues, Inspector General Reports

Recent reports highlight significant lapses in IRS data security, including contractors with failed background checks retaining access to sensitive systems.

• The Treasury Inspector General for Tax Administration (TIGTA) found the IRS lacks adequate controls to prevent unauthorized data removal.
• An IRS contractor leaked tax information of thousands of wealthy individuals, sparking calls for investigations and tax reform.
• Despite failing background checks, 19 contractors maintained access to sensitive IRS systems as of July 2023.
• TIGTA has repeatedly identified deficiencies in the IRS's audit trail logs since 2002, affecting the monitoring of unauthorized access.
• IRS Commissioner Daniel Werfel claims improvements in data security following funding from the Inflation Reduction Act.

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