Audit: Taxpayer info still at risk

“IRS has various initiatives underway to bolster security over its networks and systems; however, until the agency corrects the identified weaknesses, its financial systems and information remain unnecessarily vulnerable to insider threats, including errors or mistakes and fraudulent or malevolent acts by insiders,” the report found.

A large part of the problem, the GAO found, is that the IRS had not totally put into place a comprehensive information security program. Until it did so, and implemented past recommendations on a variety of issues, “financial and taxpayer information are at increased risk of unauthorized disclosure, modification, or destruction.”

The watchdog agency also had a new set of eight recommendations for the IRS, including to update its policies on password controls. 

In its response to the audit, the IRS said protecting taxpayer information was crucially important and that the agency is making progress on the issue.