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IRS Leaves Taxpayer Data Largely Unprotected

LogError writes "Two weeks ago, Department of Treasury received a D-minus grade in the Federal Computer Security Report Card for 2005, down from a D-plus grade in 2004. The majority of Treasury systems are those belonging to IRS. The government-wide computer-security grade for 2005 was D-plus, while Homeland Security and Defense both received an F. Grades are based on reports submitted to Congress by the agencies; the reports are required under the Federal Information Security Management Act of 2002.8 The scores are meant to reflect whether departments meet federally mandated security standards."

39 of 152 comments (clear)

  1. See! by Average_Joe_Sixpack · · Score: 5, Funny

    This is why I refuse to pay income taxes!

  2. Surprised? Not really. by AKAImBatman · · Score: 4, Insightful

    IRS Leaves Taxpayer Data Largely Unprotected

    This story acts as we should be surprised. The government serves the people. The IRS, on the other hand, serves the government. I let you figure out where the disconnect is.

  3. IRS Hacking by jimbolauski · · Score: 2, Funny

    Who in their right mind would hack into the IRS sure it would be nice to add a zero to my return but you don't f*** with the IRS.

    --
    Knowledge = Power
    P= W/t
    t=Money
    Money = Work/Knowledge so the less you know the more you make
    1. Re:IRS Hacking by Alias777 · · Score: 3, Funny

      This is the Internet. You can say "fuck" here.

  4. Security, the Gold Standard by WillAffleckUW · · Score: 4, Insightful

    Cost of providing security against non-existent WMDs that couldn't reach the US even if they existed ... $100 Billion

    Cost of providing security against al-Qaeda attacking US from Iraq, even though they weren't there ... $400 Billion

    Cost of providing security against really obvious IRS forms that let people steal your money and assets easily ... $0.0005 Billion (of $500 million)

    Realizing you've been taken to the cleaners due to your own gullibility ... Priceless!

    --
    -- Tigger warning: This post may contain tiggers! --
    1. Re:Security, the Gold Standard by Xiroth · · Score: 5, Funny

      There are some things money can't buy. For everything else, there's the American taxpayer.

    2. Re:Security, the Gold Standard by Millenniumman · · Score: 2, Informative

      A billion can also be 1000000000000, or 10^12 in the long scale which is used in most non-English speaking countries.

      --
      Stupidity is like nuclear power, it can be used for good or evil. And you don't want to get any on you.
  5. What a surprise by ZorbaTHut · · Score: 5, Insightful

    Here's a question. What does it cost the IRS if taxpayer data is stolen?

    Oh yeah. Squat. Why *should* they care? It's no skin off their back.

    If our government wanted to make sure this didn't happen, they'd fine the IRS every time there was a security breach. In fact, they'd fine the IRS just for having bad security. And then things would improve.

    'Course, in reality, why would they do that? There's no reason our government would want to hurt the IRS in any way.

    Really, what should be happening is the people of America suing the IRS for not guarding our information properly. I wonder how *that* lawsuit would go.

    Here's the fundamental issue: If you want someone to behave in a certain way, you have to make it worth their while. Right now the IRS has no incentive for keeping our info safe. Want to change that? Change it at the source.

    --
    Breaking Into the Industry - A development log about starting a game studio.
    1. Re:What a surprise by TopShelf · · Score: 3, Interesting

      The government fining the IRS? That's a laugh...

      That's basically taking a million out of one pocket and putting it in another. What's the point?

      --
      Stop by my site where I write about ERP systems & more
    2. Re:What a surprise by TopShelf · · Score: 2, Insightful

      So the IRS's budget would get reduced, leaving them fewer resources to do their job (of which the scope won't change), so the situation gets worse... I don't see that fining the IRS would do any good.

      Instead, I'd put the heat on your local Congressman, as well as write to this gang, who provides Congressional oversight to the IRS.

      Dig up egregious examples of conduct (in the article, it mentions an IRS contractor digging up political info on taxpayers), and write to your local newspaper.

      --
      Stop by my site where I write about ERP systems & more
    3. Re:What a surprise by AKAImBatman · · Score: 3, Interesting

      To what end? Will we fine the IRS until they can't collect taxes?

      If you want to see the IRS punished, make heads roll when bad things happen. Which means things like:

      1. Management can be fired if a huge screwup happens
      2. Massive screwups can result in fines against management
      3. Charges can be brought against the parties responsible for the screwup

      Once their necks are on the line, you can be certain that the top level of IRS management will put pressure on the entire organization to prevent security issues.

      That being said, the IRS is likely suffering from the same problem as the rest of the goverment agencies: Too much work, not enough manpower/funding. Putting more pressure on the IRS may only result in making it harder to find IRS employees.

  6. Is A Pleasure To Have In Class by American+AC+in+Paris · · Score: 4, Funny
    Hey, a D- is a passing grade--what's wrong with that?

    I mean, wouldn't you much rather have a national government that was more like you, instead of some kind of intellectual-elite government scoring all "A"s? Better to have a government that understands people like you than a government that is out of touch with mainstream American values, I say!

    (Break out the hookers and blow! Party at Treasury!)

    --

    Obliteracy: Words with explosions

    1. Re:Is A Pleasure To Have In Class by multisync · · Score: 2, Funny

      Don't you mean nucular?

      --
      I don't care why you're posting AC
  7. Careful... by JeanBaptiste · · Score: 5, Funny

    This is why I refuse to pay income taxes!

    Careful, they got a D- in protecting data, but they have an A doubleplus in 'tracking your ass down and throwing you in jail'. ask Al Capone.

    1. Re:Careful... by VJ42 · · Score: 4, Insightful

      they have an A doubleplus in 'tracking your ass down and throwing you in jail'.

      It's for this reason that I've never understood why governments don't set the tax services (I don't live in the USA; We call the equivilent of the IRS the Inland revenue, there's no service about it on this side of the Atlantic.) onto "Teh Terrorists!!!" They are the only branch of the state that can track anyone down quickely and eaisly; surley they should be put in chrge of what you call "homeland security". ;)

      --
      If I have nothing to hide, you have no reason to search me
    2. Re:Careful... by Valdrax · · Score: 2, Interesting

      They are the only branch of the state that can track anyone down quickely and eaisly; surley they should be put in chrge of what you call "homeland security". ;)

      I know you're joking and all, but I still feel like pointing out for those who modded you Insightful why this isn't so simple.

      American taxpayers sign up each year and tell the government whether they're obeying the law or not by filing (or not filing) their tax returns. Terrorists don't register with the government to say that they're terrorists. The government has a much easier time knowing whether your a tax evader than a terrorist because it's all on record.

      After that, it's a simple matter or when and where you next use your SSN or other government ID to nail you down. Alternately, it's a matter of when you get caught using fake ID to evade the government to nail you down. Once you've ID'ed a tax evader, tracking them down isn't hard because evading the government once it actually wants you is much, much harder than you might think unless you completely cut yourself off from society.

      --
      If it's for-profit but free, you're not the customer -- you're the product (e.g., the Slashdot Beta's "audience").
    3. Re:Careful... by Fulcrum+of+Evil · · Score: 4, Interesting

      The 5th amendment protects you from being compelled to testify against yourself in a court. If you volunteer the information, you're out of luck.

      You are compelled to list your income and occupation on the tax forms. Therefore, the IRS cannot share that info with the FBI or local cops. If you're a hooker and you declare that you made $150,000 last year and give uncle sam his cut, they won't do a damn thing to you. They won't (can't) tip off vice, because it's illegal.

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    4. Re:Careful... by Elemenope · · Score: 4, Informative

      The SC has ruled (on more than one occasion) that a person cannot lawfully evade filling out an accurate Tax statement, ergo it is compelled and not volunteered, ergo it is not admissable against you in criminal proceedings not involving tax evasion.

      --
      All the techniques ever used to make men moral have been themselves thoroughly immoral... (Nietzsche)
    5. Re:Careful... by Swanktastic · · Score: 4, Funny

      I know you're joking and all, but I still feel like pointing out for those who modded you Insightful why this isn't so simple.

      The rod up your butt must have a rod up it's butt.

  8. The IRS is insecure?!?!? by Anonymous Coward · · Score: 2, Informative
  9. IRS is in the middle of a change over anyway by vtechpilot · · Score: 5, Informative

    I work for a company that creates electronic filing software for the IRS, and I work with them on a regular basis. While Electronic filing has really only been popular the last few years its history goes back a very long time (in computer years). For example, currently to file a form 1040 electronically, it gets formatted in custom text format, attached to a whole bunch of other forms, gets all sorts of headers and summary information tacked on. It gets gzipped, then pushed through a z-modem connection over a telnet session, inside of an SSL connection. Why? Because it evolved that way. There was a time when electronic filing meant putting magnetic media in the mail. So the file formats go way back and are all fucked up because they are constantly updating the forms in respons to legislation. when they stopped with the magnetic media and started using modems, the whole thing was run like a BBS, so ta-da z-modem. When the bbs system was moved to the internet, it became telnet. Then they said oh shit its on the internet, we need encryption, so they moved that into an SSL connection.

    Case in point the whole system is fucked up because its doing things it was never designed to do. So now we introduce Modernized E-File. MEF is basically the IRS rebuilding its entire system from the ground up. File formats are getting moved to XML, the network connections are moving to SOAP, and all sorts of other cool stuff.

    Given the amound of stuff thats going on right now I would expect them to be scored poorly because basically the existing system is held together with duct tape while the new system is being built, and the new system probably wasn't considered in the score since its not completly up and running yet.

    --
    Slashdot is an anagram for Has Dolts, and I am Dolt number 468543
  10. Old News by lynxpardinus · · Score: 2, Funny

    We all knew this already. If a chick like Trinity could hack into the IRS... how good could their security be?

  11. Let's be fair by truthsearch · · Score: 2

    Let's be fair here. Isn't a D-minus really an F? Let's not split hairs, people. If I got a C-minus my scholarship would have been dropped. Can't we drop them from the government for not even grading an average C?

  12. zerg by Lord+Omlette · · Score: 2, Funny

    In 2004, the Department of Commerce got an F.
    In 2005, the Department of Commerce got a D+.

    Clearly, they must have improved slightly. Why didn't anyone highlight these improvements to show the DOJ, NRC and Treasury that, even if you're completely retarded, you can still make some improvement?

    --
    [o]_O
  13. Did any one pass? by sirnuke · · Score: 2, Funny

    Did any department pass?

    In other news, the department of agriculture passed with flying colors. Though they haven't figured it how to plug in their 486 yet, so it's not entirely a fair fight.

    --
    Zing!
  14. Defense gets an F? by Araxen · · Score: 2, Insightful

    It's pretty funny the department that gets the most funding gets a F grade. What a joke!

    Meanwhile NASA only gets a drop in the bucket.

    1. Re:Defense gets an F? by Doc+Scratchnsniff · · Score: 4, Insightful

      You may have cause and effect backwards. These scores appear to be self-reported. The department of Defense has realized that the best way to get more money is to give themselves a bad score.

  15. Just one more reason to enact the FairTax by thepuma · · Score: 5, Interesting

    We need to get rid of the IRS altogether and replace it with the FairTax.

    The FairTax would replace the complex and difficult to understand federal income tax with a fair and simple national sales tax.

    Under the FairTax, Americans will take home 100% of their paychecks, allowing them to save more money for education and retirement, as well as make investments that will stimulate our economy. Not only will American workers take home their whole paychecks, each registered household will receive a monthly "prebate" check to refund taxes paid on necessities. This combination of sales tax and monthly prebate makes the FairTax the only tax proposal that completely "untaxes" the poor.

    The FairTax is revenue neutral. While the American worker has everything to gain under this new system of taxation, the government will lose nothing in federal funding.

    The current system of taxation is beyond repair. Compliance is difficult and expensive, often prohibitively so for aspiring small businesses.

    --

    Free your ecomony and enact the FairTax

    1. Re:Just one more reason to enact the FairTax by Syberghost · · Score: 3, Insightful

      And in regards to this specific story, under the Fair Tax there wouldn't be an IRS, nor would any other government agency need comprehensive files about every single American that contain sufficient information to steal their identity.

      Hackers can't steal what isn't there.

    2. Re:Just one more reason to enact the FairTax by pi_rules · · Score: 2, Informative
      Also, Walmart would rule the world with this one. Their lower prices would now be significantally lower than the mom and pop shops, since the tax overhead is much higher.


      I haven't worked it out yet, but it sounds false to me at first glance. Let's see if this is true.

      Let's say I make $100 under the current system. Immediately 30% is lopped off by the Federal government (give or take a little here and there) so I have $70 to buy stuff with.

      Let's say state sales tax is 6%

      If Wal-Mart has an item for $5 we'll presume the mom-and-pop has it for $6 -- a 20% increase in the overall price. Sound fair?

      The final cost at Wal-Mart would be $5.30, or (5.30/70.00) = 7.57% of my take-home income.

      The price at the mom-and-pop is $6.36 or (6.36/70.0) = 9.09% of my take-home income.

      Now under FairTax the Feds would have a 23% sales tax.

      The final price at Wal-Mart (5.00 * 1.06 + 5.00 * 1.23) = $11.45. Then (11.45/100.00) = 11.45% of my take-home income.

      At the mom-and-pop: (6.00 * 1.06 + 6.00 * 1.23) = $13.74. Then (13.74/100.00) = 13.74% of my take-home income.

      Percentage increase at Wal-Mart is (11.45/7.57) = 151% increase
      Percentage incrase at mom-and-pop is (13.74/9.09) = 151% increase.

      Nope... not seeing the Wal-Mart advantage here.
    3. Re:Just one more reason to enact the FairTax by TrappedByMyself · · Score: 2, Insightful

      I'm confused, is this simple real world example that hard to comprehend?

      at 6% now, 23% fair tax, 5$ at Walmart, 6$ at Mom&Pop

      now
      Mom&Pop = $6.36
      Walmart = $5.30
      difference = $1.06

      fair tax
      Mom&Pop = $7.38
      Walmart = $6.15
      difference = $1.23

      As the sales tax percentage goes up, the price difference goes up. People look at the prices of the products, not arcane crap like the percentage of take home pay and the increase over what the price used to be. The higher the tax goes, the bigger advantage it is for the lower price.

      --

      Help me take back Slashdot. When did 'News for Nerds' become 'FUD and Conspiracy Theories for Extremist Nutjobs'?
  16. Do it like Japanese, publish it. by QuessFan · · Score: 2, Interesting

    Personally, I think Japan has the better system of publish list of top 100 tax payer, how much they earn and how much they pay in tax, etc.

    The privacy of tax return had allowed too many tax loopholes and evasions to go un-notices. If tax returns are public, the transparancy and public outrage would ensure loopholes are plug and tax system remains fair.

    In the U.S. the finanacial accounting and tax accounting had been allowed to drifted away from each other. If public investors are allowed to see the tax returns of their holdings, they can get much better sense of a corpration's performance. A lot of recent corporate scandals would had been discovered sooner or prevented all together.

  17. Legitimacy of the tests by Short+Circuit · · Score: 2, Interesting

    Has it occured to anyone that perhaps DHS and the DoD get failing grades because they take different, more effective approaches to security than what's handed down by a beauracracy?

  18. Entire report card by flooey · · Score: 2, Informative

    For those interested, the entire report card is available here.

  19. IRS E-File insecurity by Anonymous Coward · · Score: 2, Interesting
    Funny that this post should come up today. This Wednesday, I finally got around to doing my taxes, so I went to the IRS website and clicked on one of their endorsed partners to receive my free online tax submission.


    Everything was going fine until I filled out the address of my employer from my W2. On the W2, it was listed as "Comptroller's Office, SoAndSo Corp.". So I typed that in, verbatim, to the website. Surprise of surprises, I got back an ASP debugging page saying that an SQL syntax error had occurred and 's' was an invalid command.


    For those of you that don't know, this just screams SQL Injection vulnerability. I went back to the login page and tried logging in with "abc'abc". Not only did I get an SQL syntax error on this page as well, but the debugging information showed the IP address, user name, and password of the MSSQL server used to store all of the tax information. *sigh*


    This was at about 10:00 pm, so my immediate attempts to contact the company failed. I also contacted the IRS, and eventually got a case assignment after about three different calls to various help desks. I called the company again in the morning and carefully explained the dangers of A) not turning off ASP debugging information on production systems and B) creating SQL statements by concatinating user input. The IRS did eventually call back, and I was able to connect them up with the company spokesman. I'm sure they had an interesting talk.


    Moral of this story... there really isn't one. The IRS had linked to these people directly, and in that way endorsed them, but no one, from the IRS or the company, ever thought of placing a single quote into any one of their text fields. Also, this site was verified by TRUST-e, but apparently they're only worried about SSL. Oh, and after all that, the site still isn't fixed. They've turned off ASP debugging. But that's it. I can still log in with "username'--" and an invalid password. Anyone know where I should go next? Who to talk to?

    1. Re:IRS E-File insecurity by ScrewMaster · · Score: 2, Interesting

      Try the FBI. I can't believe that outfit isn't running afoul of some serious Federal laws somewhere.

      --
      The higher the technology, the sharper that two-edged sword.
  20. A literalist hacker helps you today! by Valdrax · · Score: 2, Funny

    ...it would be nice to add a zero to my return...

    I decided to help you out there. Here you go.
    Instead of getting a return of $237.13, you will now receive $237.130.

    Have a nice day!

    --
    If it's for-profit but free, you're not the customer -- you're the product (e.g., the Slashdot Beta's "audience").
  21. Taking a jab... by wuffalicious · · Score: 2, Funny

    It's good to know that when other government agencies are starting to become increasingly paranoid, there is one that values keeping their records available to the public.

  22. The report card by OldManAndTheC++ · · Score: 2, Informative
    The full report card is certainly interesting, especially since those agencies that have high profiles in national security matters (Defense, State, Homeland Security) all received an "F". Department of Justice (think FBI, DEA), and the Nuclear Regulatory Commission fared about as poorly with a "D-".

    The Social Security Administration scored an "A". As I recall they were also one of the first federal agencies to complete their work on the Y2K project. Score another one for monolithic bureacracies over fragmented bureaucracies :)

    --
    Soylent Green is peoplicious!