CHAPTER 4 VIGNETTE “Privacy Concerns Abound with New IRS Systems”

Discussion Questions:

   1.    What information about you is being held, who is holding it, and what is this information being used for?

        Over 30 million individuals pay federal taxes and file private information with the IRS each year. The data collected by the IRS includes not only names and addresses, but also Social Security numbers and financial information. The federal government has issued stringent security requirements for storing, accessing and manipulating this data.

   2.    What measures are being taken to safeguard this information and what happens if it is inadvertently or deliberately stolen? 

        Personal information of the tax payers is the tempting target for identity thieves. The auditors found that the disaster recovery plan was deficient and that the systems were vulnerable in other ways.  Backup tapes stored at an offsite location were not being tested regularly to check that data had been retrieved correctly and should be used to restore the system if necessary. Many people object to the data collection policies of government and business on the basis that they strip individuals of the power to control their personal information.