Drake Software blog for tax pros, covering tax, IRS news, and more

New IRS Tax Application May Make Data Vulnerable

New IRS Tax Application May Make Data Vulnerable

 Information Week reports on a new IRS online tool that lets consumers download transcripts of their tax filings. But a former IRS attorney, Kenneth Ryesky, warns that the new self-service tool may be a target for thieves, and that the agency's data security practices aren't as strong as they need to be. 

Those security practices are expected to come up when the newly appointed IRS commissioner, John Koskinen, testifies at a House Ways and Means Oversight Subcommittee hearing on Wednesday, Feb. 5. 

The new self-service tool, Get Transcript, was introduced for the current tax filing season to meet consumer demands while easing the back-office burden on IRS employees.

 All transcript requests are being referred to the online tool, though individuals can still request a copy to be sent by mail. After creating an account and going through an authentication process (similar to attaining online bank access), users can get what they need with one click.  The service change means that individuals will no longer need to wait up to 10 days to get a copy of their records via mail. 

But several security concerns cannot be overlooked. Though the IRS has taken steps to authenticate users and secure the system, Get Transcript could become a target for identity thieves. Kenneth Ryesky, a former IRS attorney who teaches business law and taxation at Queens College, told us thieves would need little more than a person's Social Security number, which the IRS requires online users to provide. 

"The IRS has long directed itself to data security practices." However, "it has done an abysmal job of data stewardship -- that is, how it processes, handles, verifies, and utilizes the data it strives to keep secure," Ryesky said. "Look at the recent indictments and convictions, and you will find that more than a few identity thieves are tax return preparers who are victimizing their own clients." 

In announcing the hearing, Ways and Means Oversight Subcommittee chairman Charles Boustany said improper payments and identity theft remain major challenges for the agency. "The problems at the agency are many, and they are diverse, but what they all have in common is it will be up to Commissioner Koskinen to begin correcting them."

 

 

Source:  Information Week at http://www.informationweek.com/government/cybersecurity/new-irs-tax-app-invitation-to-thieves/d/d-id/1113673

admin taxing_subjects

The Taxing Subjects staff is proud to cover the latest in tax-industry-related news, from tax law and IRS updates to technology and business strategies. If you have questions about an article or just want to reach out to the Taxing Subjects staff, email comments@taxingsubjects.com.

comments powered by Disqus