IRS Reconsiders Equifax Contract

Chris Gaetano
Published Date:
Oct 17, 2017

The IRS has decided that it may not have been a good idea to hire Equifax, recently the subject of a data breach that impacted potentially 40 percent of the U.S. population, to verify taxpayer identities, according to Accounting Today. While the $7.2 million no-bid contract had been awarded before news of the data breach became public, it none the less drew significant criticism in the aftermath of the revelation. In light of what the IRS said was new information, it has decided to temporarily suspend the contract, a move that it insisted was a precautionary step, according to Accounting Today. During this suspension, the IRS will review Equifax's security systems. In the meanwhile, though, it has awarded another long-term contract to Equifax competitor Experian. While Equifax disputed this change before the Government Accountability Office, the GAO ultimately sided with the IRS's decision. 

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