IRS loses millions of sensitive tax records, says Treasury inspector general.
The IRS Loses Millions of Sensitive Taxpayer Records
In a shocking revelation, a federal watchdog has reported that the IRS has lost millions of sensitive taxpayer records at two different agency facilities. This alarming incident raises concerns about the security of personal taxpayer information and the potential for tax refund fraud and identity theft.
Missing Records and Empty Boxes
The Treasury Inspector General for Tax Administration’s report highlights the disappearance of millions of business and individual tax records. These records were supposed to be transferred from a closed California storage facility but were found to be missing. Additionally, thousands of records were also unaccounted for at a warehouse in Utah. It is worth noting that the IRS stored these records on microfilm backup cartridges.
During the investigation, the watchdog discovered seven empty boxes at the Utah facility, which should have contained up to 168 microfilm cartridges. Each cartridge has the capacity to hold up to 2,000 photographic images. Surprisingly, the IRS personnel at the location were unable to provide any information about the whereabouts of these cartridges.
Adding to the mystery, the contractor responsible for creating the backup cartridges went out of business in 2018, further complicating the situation.
A Disturbing Pattern
This is not the first time the IRS has faced scrutiny over mishandling taxpayer information. In March 2021, it was revealed that the agency had destroyed 30 million unprocessed paper tax returns. Now, with the loss of sensitive records, concerns about the IRS’s ability to protect taxpayer data are growing.
IRS Response and Future Steps
IRS Wage and Investment Commissioner Kenneth Corbin responded to the report, acknowledging that the agency’s reduction in staff, redirected to higher priority tasks, may have contributed to the unknown whereabouts of the records. However, he assured the public that the IRS is actively working on processing shipments of tax records and is confident that the remaining cartridges will be incorporated once the backlog of non-tax documents is cleared.
As the investigation continues, it is crucial for the IRS to address these security lapses and take immediate steps to safeguard taxpayer information. The public’s trust in the agency’s ability to protect their sensitive data hangs in the balance.
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