[Dataloss] Kansas City IRS data lost

[Henry Brown]

 From Houston Chronicle:

http://www.chron.com/disp/story.mpl/ap/nation/5469430.html

KANSAS CITY, Mo. — Federal investigators blame city officials for the 
loss in 2006 of 26 IRS computer tapes containing taxpayer information.

In a heavily redacted report obtained by The Kansas City Star through a 
Freedom of Information Act request, the Treasury Department's inspector 
general for tax administration said the city failed to follow "proper 
safeguards for protecting federal tax return information."

The tapes were delivered to City Hall in August 2006 to help revenue 
officials make sure people living or working in Kansas City are paying 
the 1 percent city earnings tax.

City officials said they realized the tapes were missing in late 2006, 
touching off the investigation that began on Dec. 19, 2006, and lasted 
until Nov. 1, 2007. The tapes have never been found.

"The investigation revealed the city did not follow and was not 
following the proper safeguards for protecting federal tax return 
information," the inspectors wrote.

The information released to The Star and published in a story Saturday 
did not elaborate on the city's mistakes. Most of the information in the 
42 pages provided to the paper was blacked out, and the agency said it 
wasn't handing over another 105 pages because that "could impede its law 
enforcement activities."

The IRS has never said what was on the tapes, how many taxpayers may 
have been affected or whether taxpayers would be told of the lost 
information.

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