IRS Auctions of Seized Property Put Taxpayer Data at Risk

The IRS should better protect taxpayer information stored in automobile component systems and other items seized by the agency, the Treasury Inspector General for Tax Administration said in a report.

“Personal items that were not supposed to be taken in the seizure are sometimes found inside seized assets such as vehicles,” said the TIGTA report, released Aug. 31. The Internal Revenue Manual (IRM) also doesn’t address the issue of clearing taxpayer data from installed navigation and garage door-opening systems in some vehicles, it said.

The IRM does have rules for seized computer systems, which require the Internal Revenue Service ...