IG Criticizes Poor Controls On Access To IRS Web Portal
May 18, 2010
| 11:04 AM
A new report from the Internal Revenue Service's inspector general said the agency failed to implement adequate security measures to protect sensitive data that tax professionals entered into a Web portal, Nextgov.com reported Monday.
A fiscal 2009 audit by the Treasury IG for Tax Administration showed tax professionals were able to transfer authorization to access the Registered User Portal to individuals who did not go through the standard checks for tax compliance, past violations of e-file requirements and criminal records. The IRS performs suitability checks when principals or officials of a tax firm apply for entry, but then allows them to delegate their access rights to others by filing for power of attorney, auditors found.
"Taxpayers expect the IRS to protect their personal data, and we believe the power of attorney document does not provide the same assurance as the suitability check," the IG stated. "Any individual can become a delegated user. Many of the delegated users may have questionable backgrounds."
The audit found there were 9,988 delegated users permitted to file income tax returns electronically through the portal. About 6,500 of them also had access to electronic services that enabled them to retrieve and manipulate taxpayer data.
In addition, the IRS allows authorized users to assign a special principal consent privilege to a delegated user, which lets that user to extend his or her privileges to others.
"A delegated user could steal taxpayer data for identity theft purposes and grant access to other unscrupulous individuals," the IG said. To read more, click here.
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