Treasury inspector general says IRS loses millions of sensitive tax records

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Treasury inspector general says IRS loses millions of sensitive tax records
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The IRS lost millions of sensitive taxpayer records at two different agency facilities, according to a federal watchdog.

In its Tuesday report, the Treasury Inspector General for Tax Administration documented that millions of business and individual tax records, which should have been transferred from a closed California storage facility, were missing. Additionally, thousands of records could not be found at a Utah warehouse. In both cases, the IRS stored these old records in microfilm backup cartridges.

Notably, the contractor responsible for creating the backup cartridges abruptly went out of business in 2018. Although it didn’t disclose the exact number of missing documents, the report said an average of 42 million business tax records and 190 million individual tax records were stored on microfilm in fiscal years 2021 and 2022 alone, according to documentation the inspector general obtained from the IRS’s Office of Information Technology.

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