Another IRS Data Breach

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This is the second time the IRS has experienced a data breach. Hackers used social security information to create PINs for E-filing, which could allow them to capture tax refunds for 101,000 people.  

In a statement posted on its website, the IRS tries to deflect the issue: "Using personal data stolen elsewhere outside the IRS..."

 IRS Statement

Last year, hackers made away with $50 million in refund money. A federal investigative report concluded: "The Return Review Program Enhances the Identification of Fraud; However, System Security Needs Improvement." 

Discussion Starters: 

  • How well does the IRS statement rebuild taxpayer confidence? 
  • Read the 2015 report. Which principles from Chapter 10 are followed? Based on the report, should the IRS have done more in the past year?