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April 17, 2007

Is the IRS Keeping Your Data Safe?

Today is tax day in the United States. Procrastinators will be spending time wrapping up their returns, either on-line or racing to the local post office.

But, is the information you provide the IRS secure?

According to a recent article in Computerworld, your information is probably not as protected as we'd like to think. "In an audit by the Treasury Inspector General for Tax Administration, found that between January 2, 2003, and June 13, 2006, a 'large number' of laptops were stolen from the vehicles and homes of IRS employees, while 111 were stolen from various agency facilities", according to the story.

A separate test on laptop computers currently in use by employees found 44% contained unencrypted sensitive data, including taxpayer data and employee personnel data. Most disappointing is these findings mirror those found in a similar July 2003 report.

As the report indicated, "the IRS had not taken adequate corrective actions." The article includes a response from IRS Commissioner Mark Everson where he says, "Our systems have extensive protection from outside penetration", but that seems to indicate a failure to recognize the threat of not only laptops theft, but other insider data threats.

The IRS expects a great deal from taxpayers when we prepare our returns. It's time for taxpayers to expect more from the IRS when it comes to protecting our privileged information.

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Comments

I couldn't agree more - especially when the technology, deployment framworks, and expertise exist to map out a concrete plan to address the gaps.

I wonder what will happen when they go through a PCI audit... Will taxpayers get the fine $$$?

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