The lawmakers sent a letter to IRS Acting Commissioner Daniel Werfel in response to a federal audit released last week that concluded the IRS needs to improve its security control processes and develop a fraud mitigation strategy concerning its administration of the tax credits.
The Treasury Inspector General for Tax Administration audit recommended implementing a plan to correct failed security tests and completing development of an antifraud plan. However, the IRS disagreed with the recommendation concerning the security tests, saying it already has policies in place that satisfy that suggestion.
“We find IRS’ refusal to adopt a corrective action plan of serious concern as the sensitive personal information of American taxpayers may be at risk,” Reps. Black and Meehan wrote to Commissioner Werfel. “This audit raises important questions as to whether the IRS can successfully protect taxpayer data against fraud and abuse.”
The Republican legislators have requested the IRS provide a written explanation of its process plan as well as copies of the documented policies for resolving the failed security tests. They also asked for an explanation of how the IRS will ensure change management guidelines are followed and the premium tax credit computation engine isn’t impaired in response to other concerns raised by the audit. .
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