Following the IRS’ admission that its data breach was actually larger than it originally reported and caused fraudulent tax returns to be filed affecting over 330,000 taxpayers, the IRS was sued this week in a proposed class action for failing to prevent the data breach.
The suit outlines that the IRS was aware that taxpayer information was not properly secured, through the Government Accountability Office and the Treasury Inspector General reports warning the IRS of its inadequate security. The plaintiffs allege that the IRS ignored the reports and stated “As custodians of taxpayer information, the IRS has an obligation to protect the confidentiality of sensitive information against unauthorized access or loss.”