Hacking Into The IRS Computer

Government investigators were able to hack into the Internal Revenue Service computer system last year and access Social Security numbers and other sensitive information from electronically filed tax returns, a congressional report said Thursday.

"We demonstrated that unauthorized individuals, both internal and external to IRS, could have gained access to IRS' electronic filing systems and viewed and modified taxpayer data contained in those systems during the 2000 tax filing season," the General Accounting Office report stated.

The investigators said they were able to gain access to taxpayer information because the IRS had not securely configured its operating systems, implemented adequate password management practices or used encryption technology.

The IRS said it had no evidence that real intrusions actually occurred, but the GAO concluded the agency did not have "adequate procedures to detect such intrusions."

The IRS also said in its response that it had taken steps to better protect taxpayer privacy this year.

Sen. Fred Thompson, R-Tenn., chairman of the Governmental Affairs Committee, asked for the investigation.

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