• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

2

Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living

3

The stock market is about to suffer a 'snapback' and will lose much of this year's gains as 'speculation is hitting extreme levels,' BofA warns

1

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

2

Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living

3

The stock market is about to suffer a 'snapback' and will lose much of this year's gains as 'speculation is hitting extreme levels,' BofA warns
TechCyber Saturday

Irate Over Taxes? IRS Progress on Cybersecurity Will Only Make You Angrier

Robert Hackett
By
Robert Hackett
Robert Hackett
Down Arrow Button Icon
Robert Hackett
By
Robert Hackett
Robert Hackett
Down Arrow Button Icon
April 16, 2016, 3:44 PM ET
US-ECONOMY-IRS
A man walks into the Internal Revenue Service building in Washington, DC on March 10, 2016. / AFP / Andrew Caballero-Reynolds (Photo credit should read ANDREW CABALLERO-REYNOLDS/AFP/Getty Images)Andrew Caballero-Reynolds—AFP via Getty Images
Add Fortune on Google for similar content.

A version of this post titled “Cyberattacks on taxpayers” originally appeared in the Cyber Saturday edition of Data Sheet, Fortune’s daily tech newsletter.

Have you filed yet?

Monday is Tax Day, of course—everyone’s favorite holiday. It’s that time of year when the weather begins to warm up, the sun spends more time in the sky, and the government comes knocking on your coffers. Not far behind: Hackers and fraudsters trying to score some of the levied loot.

This past week John Koskinen, commissioner of the Internal Revenue Service, has been making the rounds on Capitol Hill. He has borne the unenviable task of explaining to various committees how the agency has used its “constrained resources” to secure its computer systems and protect taxpayer information—though neither approach appears to be working. Indeed, thieves have been pummeling the agency with cyberattacks—more than one million per day, by Koskinen’s count. And the attackers have been making out like bandits by impersonating citizens and exploiting website weaknesses. In February the agency said that hackers looking to fraudulently claim tax refunds had stolen 724,000 people’s data—double the number it estimated last summer. It hasn’t helped that the IRS has debuted faulty transcript tools, nor that the agency has had at least one identity thief within its own ranks.

For more on stolen tax refunds, watch:

For a worthwhile summary of the agency’s technology troubles, read this overview by my colleague Jen Wieczner, which appeared in the April 1st issue of Fortune magazine. Or you can read this damning report from the Government Accountability Office, which concluded that the IRS has remained “unnecessarily vulnerable” with “significant deficiency in internal control.” The title of the assessment? “IRS Needs to Further Improve Controls over Financial and Taxpayer Data.” Although specifics about the office’s 43 technical recommendations are reserved for a separate, private report—to keep the information from falling into the wrong hands—the imperative is clear: Improve.

To be fair, the IRS is a top target for cybercriminals. The GAO is a known harsh grader. And the agency has faced a multitude of funding challenges over the past few years. The IRS’s $11.2 billion budget for fiscal 2016 is less than its inflation-adjusted budget in 1995, even while attacks have increased, as Wieczner points out. To make matters worse, the government has had an unquestionably tough time luring talent away from the private sector, where technologists are in high demand—and compensated accordingly.

These points are all elements of Koskinen’s plea: Thanks for the $290 million year-end bump in cybersecurity funding—really, thank you—but it’s not quite enough. (Not a surprising position given the raison dêtre of the agency he leads: Taxation.) Specifically though, Koskinen has asked for the reauthorization of a provision that allowed the IRS to attract IT and business smarts since 1998. The so-called streamlined critical pay authority expired in fiscal 2013.

“Out of the many expert leaders and IT executives hired under critical pay authority, there are only 10 IT experts remaining at the IRS, and we anticipate there will be no staff left under critical pay authority by this time next year,” he told the Senate Finance Committee on Tuesday, per his prepared remarks. Referencing the President’s fiscal 2017 budget, which reinstates the pay measure, he added: “I urge the Congress to approve this proposal.”

Say what you will about the federal government’s ability to spend smartly: Cybersecurity is worth paying for.

About the Author
Robert Hackett
By Robert Hackett
Instagram iconLinkedIn iconTwitter icon
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Exclusive: Xbox’s CEO on 3,200 layoffs, four studios cut, and her blunt warning that ‘we spread ourselves too thin’
Big TechMicrosoft
Exclusive: Xbox’s CEO on 3,200 layoffs, four studios cut, and her blunt warning that ‘we spread ourselves too thin’
By Sebastian HerreraJuly 6, 2026
8 hours ago
‘Our business today is not healthy’: 1,600 Xbox employees among the 4,800 laid off by Microsoft as it looks to ‘reset’ gaming division
Big TechMicrosoft
‘Our business today is not healthy’: 1,600 Xbox employees among the 4,800 laid off by Microsoft as it looks to ‘reset’ gaming division
By The Associated PressJuly 6, 2026
9 hours ago
EasyJet’s stock shows Castlelake bid is far from a done deal
InvestingEasyJet
EasyJet’s stock shows Castlelake bid is far from a done deal
By Kate Duffy and BloombergJuly 6, 2026
11 hours ago
Torsten Slok holds his hands apart as he speaks on stage.
AIProductivity
Top economist says AI just hasn’t delivered on the productivity hype—and it means a ‘painful repricing’ of markets is very possible
By Sasha RogelbergJuly 6, 2026
12 hours ago
In this photo illustration, a Microsoft logo is displayed on a smartphone with Artificial Intelligence (AI) symbols on the background.
AICFO Daily
Microsoft’s Frontier push aims to turn AI spending into measurable returns
By Sheryl EstradaJuly 6, 2026
13 hours ago
A businesswoman uses a smartphone in modern conference room.
NewslettersFortune Workplace Innovation
The tech attention crisis has hit the workplace. One company thinks AI is the cure
By Kristin StollerJuly 6, 2026
13 hours ago

Most Popular

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
AI
Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
By Marco Quiroz-GutierrezJuly 5, 2026
1 day ago
Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
Success
Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
By Preston ForeJuly 4, 2026
3 days ago
The stock market is about to suffer a 'snapback' and will lose much of this year's gains as 'speculation is hitting extreme levels,' BofA warns
Investing
The stock market is about to suffer a 'snapback' and will lose much of this year's gains as 'speculation is hitting extreme levels,' BofA warns
By Jason MaJuly 5, 2026
1 day ago
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
Law
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
By Wyatte Grantham-Philips and The Associated PressJuly 2, 2026
4 days ago
Gen Z was 'jaded about employment before we ever entered the workforce'—now psychologists say the stare has hardened into something worse
Economy
Gen Z was 'jaded about employment before we ever entered the workforce'—now psychologists say the stare has hardened into something worse
By Nick LichtenbergJuly 6, 2026
18 hours ago
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
AI
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
By Nick LichtenbergJuly 3, 2026
4 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.