IRS Wants Cash--And Security - InformationWeek
IoT
IoT
News

IRS Wants Cash--And Security

By March, the Internal Revenue Service expects three private debt collectors to be helping it collect from tax deadbeats. Given the IRS's record working with contractors, and the business world's problems protecting sensitive information, the strategy raises concern.

It sounds like smart economics, with the IRS reckoning private collectors can bring in $1.4 billion dollars in back taxes in 10 years. The companies keep up to 25%.

And the IRS is setting tough security rules. The work must be done in the United States. Contractors must purge taxpayer information from their IT systems as soon as work on an account is completed, or guarantee its protection if they can't immediately purge it. They must adhere to federal security standards, including knowing where tax returns and information are at all times.

But the Government Accountability Office has criticized the IRS's management of contractors. In an April 27 letter, GAO financial management and assurance director Steven Sebastian identified internal control problems at the IRS that "adversely affected safeguarding of tax receipts and information." It found some contractors got stafflike access to restricted areas without undergoing background investigations.

The business world's track record will do little to improve public confidence. Poor security at a third-party processor caused one of the biggest scandals last year, exposing millions of customer records of the major credit-card companies. And last week, People's Bank joined the growing list of companies that mishandled customer data, when a tape with account and Social Security numbers on 90,000 customers was lost while being transported by UPS.

Membership in the "dang, I lost your data" club keeps growing. Hopefully, it's a club the IRS can stay out of.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2018 State of the Cloud
2018 State of the Cloud
Cloud adoption is growing, but how are organizations taking advantage of it? Interop ITX and InformationWeek surveyed technology decision-makers to find out, read this report to discover what they had to say!
Commentary
The Staying Power of Legacy Systems
Mary E. Shacklett, Mary E. Shacklett,  4/15/2019
Commentary
Q&A: Red Hat's Robert Kratky Discusses Essentials of Docs
Joao-Pierre S. Ruth, Senior Writer,  4/15/2019
Commentary
How Cloud Shifts Security Balance of Power to the Good Guys
Guest Commentary, Guest Commentary,  4/11/2019
Register for InformationWeek Newsletters
Video
Current Issue
A New World of IT Management in 2019
This IT Trend Report highlights how several years of developments in technology and business strategies have led to a subsequent wave of changes in the role of an IT organization, how CIOs and other IT leaders approach management, in addition to the jobs of many IT professionals up and down the org chart.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll