Report shows IRS not conducting required background checks on contract workers

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13 Investigates has learned the IRS has been putting millions of taxpayers at an increased risk of fraud and identity theft.

A new report obtained by WTHR shows the Internal Revenue Service has not been conducting required background checks on many of its contracted workers.

As a result, sensitive taxpayer information has been in the hands of government contractors who should not have access to it.

According to an investigation by the US Treasury Inspector General for Tax Administration, one of those contractors is an IRS courier with a long criminal history, including a 21-year prison sentence for arson and attempted escape.

The IRS has about 10,000 contracted workers who have access to IRS facilities and sensitive information.

Following the TIGTA investigation, IRS administrators say they will review and improve the agency's security practices.