CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. US States Must Do More To Protect Taxpayer Privacy, TIGTA Urges

US States Must Do More To Protect Taxpayer Privacy, TIGTA Urges

by Leroy Baker,, New York

05 September 2007

A new report by the US Treasury Inspector General For Tax Administration (TIGTA) has concluded that insufficient attention has been given to ensuring that state government agencies protect taxpayer information.

TIGTA's findings were published in an audit of the Internal Revenue Service's Safeguard Review program, which is designed to ensure that states have adequate security in place so that taxpayer information doesn't become vulnerable to identity theft or other fraudulent activities.

The audit followed up a 2005 review which also noted security weaknesses with regard to federal tax information provided to state agencies. However, according to TIGTA: "Corrective actions to the prior report have not yet been taken or have not been effective to improve the scope of the Safeguard Reviews and to monitor corrective actions. Also, the IRS is not timely reporting the results of its Safeguard Reviews to the States."

The Treasury Department watchdog attributed these weaknesses to a "lack of management oversight".

During the course of the review, TIGTA became "very concerned" at the lack of management attention being directed to the Safeguard Review program. As a result, TIGTA expanded the review to assess the administration of the contract with the contractor.

The IRS signed a five-year contract with Booz Allen Hamilton to conduct further reviews of the program, but TIGTA accused the IRS of failing to oversee the contract properly.

"Controls over the contract were insufficient to ensure the Federal Government receives the services for which it contracted, on time, and in accordance with specifications," TIGTA observed.

The report stated that additional oversight for the contract is needed, so that the IRS can ensure it is prudently spending the $1.4 million designated annually for the Safeguard Review program. The IRS agreed with TIGTA's findings, and has planned a series of corrective actions to tighten security.

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »