IRS Hands Equifax $7.25 Million No-Bid Contract to Help “Verify Taxpayer Identities”

❝ With no apparent sense of irony, the nation’s tax collectors have awarded embattled credit-reporting agency Equifax a contract to assist the IRS in verifying “taxpayer identities” as well as assist in “ongoing identity verification and validations,” according to contract award posted to the Federal Business Opportunities database.

The no-bid contract, which pays $7.25 million, is listed as a “sole source” acquisition, meaning the IRS has determined Equifax is the only business capable of providing this service — despite its involvement in potentially one of the most damaging data breaches in recent memory…

❝ Equifax, of course, is facing intense criticism over a cybersecurity incident which reportedly compromised the personal information of roughly 145 million Americans. The company’s former CEO, Richard Smith, was taken to task on Tuesday while testifying before the House Energy and Commerce subcommittee. Smith resigned last week amid backlash over the company’s handling of the breach.

Republicans and Democrats alike lambasted the former chief executive over Equifax’s response. Representative Greg Walden was perhaps the harshest in his criticism: “I don’t think we can pass a law that fixes stupid…”

Not a case I would say of “The blind leading the blind” — more like “Stupid leading the incompetent”.

2 thoughts on “IRS Hands Equifax $7.25 Million No-Bid Contract to Help “Verify Taxpayer Identities”

  1. Update says:

    IRS temporarily suspends contract with Equifax http://www.politico.com/story/2017/10/12/irs-equifax-contract-suspended-243732 The short-term suspension means that taxpayers will not be able to establish new accounts through a program called Secure Access, which grants them access to online records and transcripts. Those taxpayers who already have accounts will not be affected, the agency said.
    The decision comes after media reports earlier today that the Equifax website may have been compromised a second time. The embattled credit-reporting company disclosed in September that it had been hacked earlier this year and the data of as many as 145.5 million Americans had been breached.
    The IRS plans to continue reviewing the security of Equifax’s systems during the suspension. The agency had previously said its hands were tied and it had to keep the contract with Equifax.

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