IRS suspends its contract with Equifax amid new security concerns

IRS suspends its contract with Equifax amid new security concerns

The U.S. Internal Revenue Service has temporarily suspended a contract worth more than $7 million it recently awarded to Equifax Inc following a security issue with the beleaguered credit reporting agency's website on Thursday.

"The IRS notified us that they have issued a stop-work order under our Transaction Support for Identity Management contract", an Equifax spokesperson said on Friday.

"During this suspension, the IRS will continue its review of Equifax systems and security", the agency said in a statement, adding that "there is still no indication of any compromise of the limited IRS data shared under the contract".

"So when we came down to September 29 when the Equifax contract expired, we had to either stop the service, which means millions of taxpayers would not be able to get their transcripts, including those that are in need of it, like in the hurricane disaster areas they use those tools to get their transcripts, or do a bridge contract with Equifax until GAO decides on the protest and we move forward", he said.

"We remain confident that we are the best party to perform the services required in this contract", the spokesperson said.

According to Politico, Equifax was contracted "to verify the identities of taxpayers when they create accounts on its website", however their current 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". We are engaging IRS officials to review the facts and clarify available options. If you have already enrolled, you're fine and can continue to access your account online.

The IRS has put that contract it holds with Equifax on standby.

IRS officials argued prior their hand was forced on the awarding of the sole-source contract because Equifax, the incumbent contractor on a previous deal, had protested the July decision to give it to another vendor.

An "alert" on the IRS website says the Secure Access service "is unavailable for new users at this time".

"Our focus now remains on protecting consumers and getting answers for the 145 million Americans impacted by this massive breach", they said. "We can not know taxpayers are protected until Equifax is banned from all federal contracts".

The Government Accountability Office later disputed the assertion that IRS had no choice, saying contracting law allowed for the agency to start working with Experian by citing urgent and compelling circumstances that would significantly affect the interests of the USA government.

Related Articles

  • Hostess Brands (TWNK) Downgraded by UBS AG to

    Hostess Brands (TWNK) Downgraded by UBS AG to "Sell"

    TRADEMARK VIOLATION NOTICE: This piece of content was first reported by Week Herald and is the sole property of of Week Herald. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink .
    Quentin Tarantino breaks silence on longtime partner Harvey Weinstein

    Quentin Tarantino breaks silence on longtime partner Harvey Weinstein

    Weinstein was also slated to work with Tarantino on his upcoming Charles Manson film focused on the Tate family murders.
    Maria Chappelle-Nadal, censured Missouri state senator, compares Trump to Hitler

    Maria Chappelle-Nadal, censured Missouri state senator, compares Trump to Hitler

    Louis, and Shalonn "Kiki" Curls, D-Kansas City - did not go along with the plan. Louis who are protesting white supremacy and inequities in policing.
  • Zedd to play drums at charity concert honouring Linkin Park's Chester Bennington

    Zedd to play drums at charity concert honouring Linkin Park's Chester Bennington

    They said they released the video, filmed a week before Bennington committed suicide, with the family's blessing. The rockers also blast out versions of Outkast's Hey Ya and the Red Hot Chili Pepper's Under The Bridge .
    Microsoft Releases Edge For iOS and Android

    Microsoft Releases Edge For iOS and Android

    If not, what do you think the best mobile browser is? At its core, Microsoft Edge on iOS is basically just like any other browser. With things like OneDrive documents or Outlook emails, you can access the options and have that appear back on your PC.
    Pranab right to be upset at my elevation as PM: Manmohan

    Pranab right to be upset at my elevation as PM: Manmohan

    He was speaking at the launch of President Mukherjee's new book, 'The Coalition Years: 1996-2012, ' in Delhi. He said running the coalition government seemed hard but everything worked out smoothly.
  • U.S.  dollar slides amid Fed minutes

    U.S. dollar slides amid Fed minutes

    Louis Fed President James Bullard told Business Insider that there was "no hurry to raise rates" with inflation below target. The dollar has dropped to a 2-week low of USD1.1850 against the Euro Wednesday afternoon, from an early high of USD1.1794.
    Netflix stock hits $200 for first time

    Netflix stock hits $200 for first time

    This milestone moment comes shortly after the company announced a price-hike in the US and several other markets around the world. The stock is now moving below its 20-Day Simple Moving Average of -1.29% with a 50-Day Simple Moving Average of -0.6 percent.
    Toro Rosso announces Hartley for US GP

    Toro Rosso announces Hartley for US GP

    COTA is a track I really enjoy and one I have raced at recently. That is, at least, for all the grands prix excluding Austin. Who that replacement is, though, has yet to be revealed.
  • India's rank at Global Hunger Index lower than Nepal, Bangladesh, Myanmar

    India's rank at Global Hunger Index lower than Nepal, Bangladesh, Myanmar

    Prevalence of wasting in Sri Lankan children under five years increased to 21.4 percent in the five-year period from 2012-2016. However, he said that the on-going efforts are expected to make significant changes in improving the existing situation.

    Featured Stock: Nabors Industries Ltd. (NBR)

    Finally, Royal Bank Of Canada reaffirmed a "buy" rating on shares of Nabors Industries in a research note on Tuesday, June 20th. The Firm is a well-known provider of offshore platform drilling rigs in the United States and multiple worldwide markets.
    USA  dollar slides amid Fed minutes

    USA dollar slides amid Fed minutes

    Financial markets have priced in a roughly 88 percent chance of a rate hike in December , according to CME Group's FedWatch tool. Louis Fed President James Bullard told Business Insider that there was "no hurry to raise rates" with inflation below target.