Report: Better shields needed for private tax data

AP News
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Posted: Oct 23, 2014 1:15 PM

WASHINGTON (AP) — Federal investigators say the IRS and the states should improve how they protect the security of confidential tax information of people getting benefits under the 2010 health care law.

A report released Thursday said states operating health insurance exchanges — where consumers can buy coverage — should be required to get independent assessments of the security of tax information they get from the IRS. It said states also must do a better job of making sure managers ensure that the systems are secure.

The IRS provides data on lower-income people who apply for tax credits to help pay for their health insurance.

The report said IRS officials agreed with the recommendations.

The report was by the Treasury Inspector General for Tax Administration, which audits the IRS.