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Big Letdown

IRS fumbles security for its e-file system.

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This story appears in the October 2001 issue of Entrepreneur. Subscribe »

A recent report from the General Accounting Office (GAO) revealed the IRS didn't take adequate steps to protect the security of its e-file systems and electronically transmitted taxpayer data on 1999 federal returns.

As a result, unauthorized individuals could have accessed IRS systems and viewed and modified taxpayer data, says Sen. Fred Thompson (R-TN), chair of the Senate Governmental Affairs Committee.

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