(bolding added).Feds: Kansas City, Mo., lost IRS data
[Associated Press; Saturday, Jan. 19, 2008
from
http://news.yahoo.com/s/ap/20080119/ap_ ... cJDI5I2ocA
]
Federal investigators blame city officials for the loss in 2006 of 26 IRS computer tapes containing taxpayer information.
In a heavily redacted report obtained by The Kansas City Star through a Freedom of Information Act request, the Treasury Department's inspector general for tax administration said the city failed to follow "proper safeguards for protecting federal tax return information."
The tapes were delivered to City Hall in August 2006 to help revenue officials make sure people living or working in Kansas City are paying the 1 percent city earnings tax.
City officials said they realized the tapes were missing in late 2006, touching off the investigation that began on Dec. 19, 2006, and lasted until Nov. 1, 2007. The tapes have never been found.
"The investigation revealed the city did not follow and was not following the proper safeguards for protecting federal tax return information," the inspectors wrote.
[ . . . ]
The IRS has never said what was on the tapes, how many taxpayers may have been affected or whether taxpayers would be told of the lost information.
Amy Jones, a disclosure officer for the inspector general's office, told The Star that the agency typically withholds information such as witness interviews and investigation techniques.
"The information was compiled for law enforcement purposes and the privacy interests of the third parties outweighs the public's interest in having the information released," the agency said.
According to the report, a copy was provided to the IRS but not to the U.S. attorney's office.
[ . . . ]
City spokeswoman Mary Charles said the city has tightened its policies for securing taxpayer information but is still waiting for the IRS to share its concerns.
[ . . .]
City officials added that the tapes are unreadable without special equipment.
Charles said the city is no longer receiving IRS information but is sharing information with the state and Jackson County to make sure workers and residents are paying the earnings tax.
For background, IRC section 6103 provides (in part):
(bolding added)(d) DISCLOSURE TO STATE TAX OFFICIALS AND STATE AND LOCAL LAW ENFORCEMENT AGENCIES. --
(1) IN GENERAL. --Returns and return information with respect to taxes imposed by chapters 1, 2, 6, 11, 12, 21, 23, 24, 31, 32, 44, 51 and 52 and subchapter D of chapter 36 shall be open to inspection by, or disclosure to, any State agency, body, or commission, or its legal representative, which is charged under the laws of such State with responsibility for the administration of State tax laws for the purpose of, and only to the extent necessary in, the administration of such laws, including any procedures with respect to locating any person who may be entitled to a refund. Such inspection shall be permitted, or such disclosure made, only upon written request by the head of such agency, body, or commission, and only to the representatives of such agency, body, or commission designated in such written request as the individuals who are to inspect or to receive the returns or return information on behalf of such agency, body, or commission. Such representatives shall not include any individual who is the chief executive officer of such State or who is neither an employee or legal representative of such agency, body, or commission nor a person described in subsection (n). However, such return information shall not be disclosed to the extent that the Secretary determines that such disclosure would identify a confidential informant or seriously impair any civil or criminal tax investigation.