IRS must resolve devastating security breaches

The Internal Revenue Service has estimated it paid $5.2 billion in fraudulent identity-theft related refunds in the 2013 tax season. As many as 18 states were affected by the breach.

In August 2013, during an audit of the IRS, Iowa Rep. Tom Latham asked hard questions regarding the discovered release of 100,000 Social Security numbers of citizens being posted on governmental websites. In February, the Federal Bureau of Investigation opened a new probe to determine whether a computer data breach at the IRS led to the filing of false tax returns through TurboTax software.

The investigation came following several states' attempts to deal with a significant number of bogus state tax fillings through TurboTax's website, which also involved federal returns. At that time TurboTax actually temporarily halted state e-filing.

Locally, several University of Iowa physicians, faculty and staff identities were stolen in the IRS security breach.

On May 26, Americans learned that once again 100,000 taxpayers' past tax returns were accessed illegally. The criminals used Social Security numbers and other personal information stolen from other entities to claim $50 million in fraudulent tax refunds.

One would have thought that after 1.2 million taxpayers were affected by the January security breach, that the IRS would have made definite strides in protecting Americans' identities. We keep hearing the IRS has opened an investigation into the breach but the May 26 revelation does not seem to indicate any significant changes have been made.

Why would the IRS not use another form of identity authentication other than Social Security numbers? Security experts also have criticized the agency for not adding another security layer to passwords, for not deploying technology that can identify suspicious activity in a timely fashion and for not encrypting sensitive information.

It is reported that dealing with fraudulent tax claims has been a challenge to the IRS. But what about the devastating cost to Americans who find themselves victimized far beyond their tax returns? If criminals have become so adept at hacking government entities, why does not the government do more to protect citizens' sensitive personal data? The consequences could be devastating.

Unfortunately, rather than increasing the IRS budget and demanding more rigorous security measures to protect taxpayers from fraud, self-interested politicians actually cut the agency's budget. No doubt, they had an ax to grind against the agency for targeting political organizations and demanding extra scrutiny of their tax-exempt filings.

Rep. Sander Levin (D-Michigan), ranking member of the House Ways and Means Committee, said 'it is vital that both sides of Congress must work together to ensure the IRS has adequate resources to protect confidential taxpayers information”. One would hope so and that the thus-far deadlocked Washington do their job and protect those who have elected them.

As taxpayers, it is becoming clear that electronic filing systems, despite their obvious advantages, have also resulted in massive harm to consumers. With advancement of technology, security is lagging, costing millions of dollars to consumers and financial companies, alike.

Iowans must demand of their representatives and their government immediate, thorough investigation, and final resolution to these ongoing security breaches by the IRS and other governmental entities.

' Shams Ghoneim is coordinator of the Muslim Public Affairs Council's Iowa chapter and a member of The Gazette Writers Circle. Contact: shamsghoneim@mchsi.com