The IRS has been identified in a recent TIGTA report as having over 1,100 data-sharing agreements with external organizations that receive federal tax information. The report raised concerns about the governance, tracking, and safety measures in place for these data-sharing processes, particularly as its discovered that the IRS lacked a centralized database for all its agreements, with 30 FTI-related agreements being unknown to the IRS's Privacy, Governmental Liaison and Disclosure office. As data sharing is likely to increase in modern tax administration, concerns about privacy, data security, and accountability grow, necessitating more precise control and regulation.
The IRS holds some of the most sensitive financial information in the United States. Income, addresses, dependents, employers, refunds, tax credits, bank details, business activity, and identity information all pass through the tax system because taxpayer...
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