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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."

18 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. 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.

  4. 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 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.

  5. 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

  6. 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 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"
    3. 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)
    4. 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.

  7. Re:IRS Hacking by Alias777 · · Score: 3, Funny

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

  8. 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
  9. 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.

  10. 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.