US tax office slammed over security flaws

The US tax office, the Inland Revenue Service (IRS), has failed to rectify security flaws found in its computer system two years ago, according to the latest report from the General Accounting Office (GAO).

The report states that despite some progress made since its last check in 1997, serious weaknesses continue to exist while new problems have also been found.

The IRS uses its automated information systems to process over 200 million tax returns a year, and collects over $1,600bn in taxes annually. Besides tax returns, the IRS depends upon the system to maintain taxpayer data, calculate interest and penalties, and generate funds.

The report claims the IRS has not yet fully institutionalised its security management programme, leaving sensitive taxpayer data, facilities and software open to hackers and unauthorised personnel. In addition, the revenue service is unable to detect unauthorised changes to data or restore essential IRS operations should an emergency occur.

The IRS said last March that it spent $400m modernising the system. According to the GAO, disaster recovery plans have not been completed, adequately tested or developed, leaving IRS operations with little chance of recovery should a disaster occur.