Lucas123 writes "Computerworld has a story about the possibility and the inherent ramifications of an IRS data loss similar to the UK's recent mishap. indisputable to rule to one World Bank executive, it could have already happened, 'and we don't know about it.' While the IRS does offer data encryption to its workers, more than half of its 94,000 employees have acceptance to take taxpayer lore to locations outside the IRS offices. In the 2007 filing season, roughly 128 million individual tax returns were filed. In addition to the basic personal skinny on those forms, an IRS breach could also jeopardize the banking pipeline of the 46% of filers who requested direct deposit refunds. This is not the first time that IRS security has been called into question, and the subdivision of Treasury's progress in that arena is dubious. [PDF]"

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