TAILIEUCHUNG - The Internal Revenue Service Is Not Adequately Protecting Taxpayer Data on Laptop Computers and Other Portable Electronic Media Devices

SAIs of the “courts of audit” type have, as one of the results of their audit mission, juridical functions, primarily with respect to financial irregularities, as well as the audit responsibilities found in other SAIs. These are collegiate bodies, typically incorporating judges and at times following court procedures. They are headed by a “President” or “First president” and may have an independent Prosecutor General who can participate to the quality control process. Central direction and management of the court is focused on consensus on important issues like strategy, programme planning and publications, as well. | TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION The Internal Revenue Service Is Not Adequately Protecting Taxpayer Data on Laptop Computers and Other Portable Electronic Media Devices March 23 2007 Reference Number 2007-20-048 This report has cleared the Treasury Inspector General for Tax Administration disclosure review process and information determined to be restricted from public release has been redacted from this document. Redaction Legend 3 d Identifying Information - Other Identifying Information of an Individual or Individuals Phone Number 202-927-7037 Email Address Web Site http DEPARTMENT OF THE TREASURY WASHINGTON . 20220 TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION March 23 2007 MEMORANDUM FOR CHIEF INFORMATION OFFICER CHIEF MISSION ASSURANCE AND SECURITY SERVICES FROM Michael R. Phillips Deputy Inspector General for Audit SUBJECT Final Audit Report - The Internal Revenue Service Is Not Adequately Protecting Taxpayer Data on Laptop Computers and Other Portable Electronic Media Devices Audit 200620001 This report presents the results of our review to determine whether the Internal Revenue Service IRS is adequately protecting sensitive data on laptop computers and portable electronic media devices. The audit focused on the security of laptop computers and the encryption of sensitive data maintained on laptop computers. We also evaluated the storage methods for backup tapes at non-IRS offsite facilities. Impact on the Taxpayer The IRS annually processes more than 220 million tax returns containing personal financial information and personally identifiable information such as Social Security Numbers. We found hundreds of IRS laptop computers and other computer devices had been lost or stolen employees were not properly encrypting data on the computer devices and password controls over laptop computers were not adequate. As a result it is likely that sensitive data for a significant number of taxpayers .

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