Conclusions

A number of serious control weaknesses in IRS’ electronic filing systems  placed personal taxpayer data in IRS’ electronic filing systems at significant  risk of unauthorized disclosure, use, and modification during last year’s tax  filing season. IRS recognized the importance of promptly addressing these  weaknesses and stated that it has taken steps to correct them prior to the  current tax filing season. Ensuring that ongoing controls over electronic  filing are effective requires top-management support and leadership,  disciplined processes, and consistent oversight. IRS’ efforts to achieve the  goal that 80 percent of all tax and information returns be filed  electronically by 2007 must be balanced with the need to adequately ensure  the security, privacy, and reliability of taxpayer and other sensitive  information. Failure to maintain adequate security over IRS’ electronic  filing systems could erode public confidence in electronically filing tax  returns, jeopardize IRS’ ability to meet the 80 percent goal, and deprive IRS  of the many benefits that electronic filing offers.
What GAO Found

A number of serious control weaknesses in the Internal Revenue Service's (IRS) electronic filing systems placed personal taxpayer data in IRS' electronic filing system at significant risk of unauthorized disclosure, use, and modification during the 2000 tax filing season. IRS recognized the importance of promptly addressing these weaknesses and stated that it has taken steps to correct them prior to the current tax filing season. Ensuring that ongoing controls over electronic filing are effective requires top-management support and leadership, disciplined processes, and consistent oversight. IRS' efforts to achieve the goal that 80 percent of all tax and information returns be filed electronically by 2007 must be balanced with the need to adequately ensure the security, privacy, and reliability of taxpayer and other sensitive information. Failure to maintain adequate security over IRS' electronic filing systems could erode public confidence in electronically filing tax returns, jeopardize IRS' ability to meet the 80 percent goal, and deprive IRS of the many benefits that electronic filing offers.