Can We Still Trust the IRS? What the Data Leak Means for Taxpayers

The IRS (Internal Revenue Service) is responsible for collecting taxes and keeping our financial information safe. But after a huge data breach, where 405,000 taxpayer records were leaked—including former President Donald Trump’s—many Americans are questioning their trust in the IRS.

If the government agency responsible for tax security can’t keep our information safe, how can we trust them?

Let’s break down what happened, what the IRS is doing to fix the problem, and how you can protect yourself as a taxpayer.

What Happened in the IRS Data Leak?

In one of the largest IRS data leaks in history, a former IRS contractor named Charles Edward Littlejohn stole and leaked thousands of taxpayer records.

Key Facts About the Breach:

Who was responsible? A former IRS contractor, Charles Edward Littlejohn.
How many people were affected? Over 405,000 taxpayers.
Who was impacted? Many high-profile figures, including Donald Trump.
What happened to the contractor? He was sentenced to five years in prison.
Why is this a big deal? The IRS is supposed to protect our personal tax information, but this breach shattered public trust.

Many people are now wondering if the IRS can still be trusted to protect their tax records.

How Did the IRS Let This Happen?

The IRS has millions of taxpayers’ records, making it a top target for hackers and criminals. But this leak wasn’t caused by hacking—it was an inside job.

The main problems with IRS security include:

Too many employees have access to private data – The IRS gives thousands of workers access to taxpayer information, making it easier for bad actors to misuse it.
Weak security checks – The IRS didn’t have strong enough monitoring systems to detect suspicious behavior by employees.
Failure to encrypt sensitive information – If stolen tax records were encrypted, they wouldn’t be readable. But some IRS data is not properly secured.
Lack of regular security audits – The IRS should frequently check who is accessing sensitive information and why. Stronger audits could prevent future leaks.

Can We Still Trust the IRS?

The IRS is facing serious trust issues. Many taxpayers are asking: "If they can’t protect Trump’s tax records, how can they protect mine?"

While the IRS plays a crucial role in the U.S. economy, they need to prove they can be trusted. Here are some ways they are trying to regain public trust:

Improving Cybersecurity
- Limiting who can access private tax records.
- Increasing monitoring of employee activity.
- Encrypting all taxpayer data to prevent leaks.
- Using AI technology to detect unusual access to records.
Firing Employees Who Misuse Data
- The IRS is now removing employees who abuse their access to private taxpayer records.
- They are also increasing background checks before hiring new employees.
Stricter Laws for Data Breaches
- Government officials are pushing for harsher punishments for anyone who leaks or steals taxpayer information.
- This could discourage future leaks.
Giving Taxpayers More Control
- The IRS is testing a new system that allows taxpayers to:
  - See who has accessed their records.
  - Limit IRS employee access to their data.
  - Report suspicious activity directly to the agency.

If these changes happen, taxpayers will have more power over their information.

What Can You Do to Protect Your Tax Information?

Even though the IRS is responsible for keeping your data safe, you should also take steps to protect yourself.

1. Set Up an IRS Online Account

Go to IRS.gov and create a secure online account.
This allows you to monitor any activity on your tax records.
You can also receive alerts if someone tries to access your tax info.

2. File Taxes Electronically Through Secure Channels

Use IRS-approved tax software (like TurboTax or H&R Block) instead of mailing paper forms.
E-filing reduces the risk of your tax documents being stolen.

3. Use an Identity Protection PIN (IP PIN)

An IP PIN is a special 6-digit code from the IRS that only you can use to file your taxes.
Even if someone steals your Social Security number, they cannot file a tax return in your name without your IP PIN.
You can request an IP PIN through your IRS online account.

4. Be Aware of IRS Scams

The IRS will NEVER call, email, or text you asking for personal info!
If you receive a suspicious email, phone call, or text from someone claiming to be the IRS, do not respond.
Report tax scams to the IRS Fraud Division.

5. Work with a Trusted Tax Professional

If you use a CPA or tax preparer, make sure they are certified and trustworthy.
Check for:
- IRS Preparer Tax Identification Number (PTIN).
- Positive online reviews and client recommendations.
- Secure document portals for tax filings.

Final Thoughts: Is the IRS Still Trustworthy?

The IRS needs to regain public trust after this massive data breach. While they are making security improvements, they must do more to show that taxpayer data is truly safe.

They must hold employees accountable for security violations.
They must strengthen cybersecurity to prevent future leaks.
They must give taxpayers more control over their private information.

Until then, it’s up to you to take extra steps to secure your tax data. Stay informed, be cautious, and use security tools like IRS accounts and IP PINs to protect yourself.

Key Takeaways

The IRS suffered a massive data breach, leaking 405,000 taxpayer records.
A former IRS worker stole and shared private tax information, including Trump’s records.
The IRS is improving security, but trust in the agency has been damaged.
Taxpayers should monitor their IRS accounts, use IP PINs, and be cautious of scams.
The IRS must do more to prove that taxpayer information is truly secure.