IRS Failed To Properly Dispose of Sensitive Tax Documents, Report Finds
Earlier this year, a federal judge sentenced a former IRS contractor to five years in prison for leaking the tax returns of multiple high-profile billionaires. The case involves genuine wrongdoing by someone entrusted with people’s private information. But a new report from the U.S. Treasury Department found the IRS itself was routinely negligent with taxpayer documents in its possession.
“The IRS receives and creates a significant volume of sensitive documents and is responsible for protecting these sensitive documents from receipt to disposal,” according to a report from the U.S. Treasury Inspector General for Tax Administration (TIGTA). Specifically, federal agencies must “shred, burn, mulch, pulp, or pulverize sensitive documents beyond recognition and reconstruction.”
The TIGTA report notes that since 2009, the IRS has contracted with an unnamed “outside national vendor” to do this. The vendor provides IRS facilities with locked bins to store sensitive documents, which are later picked up to dispose of the documents securely.
This vendor services “387 (75 percent) of 514 IRS facilities,” the report notes, while another 17 facilities contract with local companies. But for the rest, it’s apparently a free-for-all: “We found that the IRS is unaware of what sensitive document destruction capabilities are in place for the 110 facilities not covered under a contract. For example, the IRS initially thought the Andover, Massachusetts, facility was covered by a local sensitive document destruction contract. After we inquired about the contract, the IRS discovered that this facility was not covered by any contract.”
When the auditors then performed a site visit at that facility, they found “trash containers being used for all waste, including sensitive documents that contained tax information and Personally Identifiable Information.”
The auditors also conducted seven other site visits, during which they found that “some bins were unlocked, altered, and/or damaged,” including in such a way that inspectors “were able to reach their hands through the bin disposal slot and easily retrieve discarded sensitive documents.”
At one facility in Ogden, Utah, inspectors even found an open trash can labeled “Classified Trash Only.” According to the report, “IRS management instructed employees at this facility to store sensitive documents in these open containers, so employees did not have to leave their desks to throw the sensitive waste in the secured sensitive document destruction bins.”
“The IRS has yet to establish or communicate to personnel at its various facilities the standard operating procedures for sensitive document destruction,” the report notes—despite the fact that the agency had previously acknowledged the need to develop standard procedures after a 2009 TIGTA report.
The report “is the latest evidence the agency does not care about taxpayer privacy despite an enormous infusion of taxpayer funds,” according to Americans for Tax Reform. “The IRS is failing taxpayers in this area.”
It’s unlikely that anyone will face serious consequences for these lapses—the report makes no mention of anyone being fired. But it’s w
Article from Reason.com
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.
