The IRS announced that it has contacted several potential vendors about a $130 million RFP to develop its own suite of identity verification services. This strategy is not part of the existing governmental strategy to verify specific user’s identies. Recently, it is reported that hackers gained detailed information on more than 100,000 individuals through unauthorized access to IRS systems. This seems like a bit of locking the barn door after the horses have been stolen.
The President signed an executive order last year requiring governmental agencies to increase security measures and to protect governmental information and provide “multi-factor authentication” to those who wish to access data. The IRS has consistently been under recent attack for operational issues from political targeting, to tax evasion within their own employees, to poor service to US taxpayers during tax season. The recent hack of US taxpayer data simply adds to concerns about the IRS and the private information of US taxpayers.
Let us remember that the IRS continues to exercise broad powers over US taxpayers, and that we must do everything possible to protect our own information as well as the integrity of the data we provide to the IRS. While it may appear from the outside that the IRS Is in disarray, internally there are effective strategic initiatives that are designed to generate substantial revenues through IRS audits and the penalties and interest associated with OVDP and FBAR related tax controversies.
If you have been contacted by the IRS for an audit, or they are requesting “clarification” of specific information within your return you should contact our experienced tax attorneys at 866-631-3470 for a free consultation. The IRS is a formidable adversary, and US taxpayers should never face the IRS alone.
