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.”
Hellbound and Down 