• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
TechCyber Saturday

Irate Over Taxes? IRS Progress on Cybersecurity Will Only Make You Angrier

Robert Hackett
By
Robert Hackett
Robert Hackett
Down Arrow Button Icon
Robert Hackett
By
Robert Hackett
Robert Hackett
Down Arrow Button Icon
April 16, 2016, 3:44 PM ET
US-ECONOMY-IRS
A man walks into the Internal Revenue Service building in Washington, DC on March 10, 2016. / AFP / Andrew Caballero-Reynolds (Photo credit should read ANDREW CABALLERO-REYNOLDS/AFP/Getty Images)Andrew Caballero-Reynolds—AFP via Getty Images
Add Fortune on Google for similar content.

A version of this post titled “Cyberattacks on taxpayers” originally appeared in the Cyber Saturday edition of Data Sheet, Fortune’s daily tech newsletter.

Have you filed yet?

Monday is Tax Day, of course—everyone’s favorite holiday. It’s that time of year when the weather begins to warm up, the sun spends more time in the sky, and the government comes knocking on your coffers. Not far behind: Hackers and fraudsters trying to score some of the levied loot.

This past week John Koskinen, commissioner of the Internal Revenue Service, has been making the rounds on Capitol Hill. He has borne the unenviable task of explaining to various committees how the agency has used its “constrained resources” to secure its computer systems and protect taxpayer information—though neither approach appears to be working. Indeed, thieves have been pummeling the agency with cyberattacks—more than one million per day, by Koskinen’s count. And the attackers have been making out like bandits by impersonating citizens and exploiting website weaknesses. In February the agency said that hackers looking to fraudulently claim tax refunds had stolen 724,000 people’s data—double the number it estimated last summer. It hasn’t helped that the IRS has debuted faulty transcript tools, nor that the agency has had at least one identity thief within its own ranks.

For more on stolen tax refunds, watch:

For a worthwhile summary of the agency’s technology troubles, read this overview by my colleague Jen Wieczner, which appeared in the April 1st issue of Fortune magazine. Or you can read this damning report from the Government Accountability Office, which concluded that the IRS has remained “unnecessarily vulnerable” with “significant deficiency in internal control.” The title of the assessment? “IRS Needs to Further Improve Controls over Financial and Taxpayer Data.” Although specifics about the office’s 43 technical recommendations are reserved for a separate, private report—to keep the information from falling into the wrong hands—the imperative is clear: Improve.

To be fair, the IRS is a top target for cybercriminals. The GAO is a known harsh grader. And the agency has faced a multitude of funding challenges over the past few years. The IRS’s $11.2 billion budget for fiscal 2016 is less than its inflation-adjusted budget in 1995, even while attacks have increased, as Wieczner points out. To make matters worse, the government has had an unquestionably tough time luring talent away from the private sector, where technologists are in high demand—and compensated accordingly.

These points are all elements of Koskinen’s plea: Thanks for the $290 million year-end bump in cybersecurity funding—really, thank you—but it’s not quite enough. (Not a surprising position given the raison dêtre of the agency he leads: Taxation.) Specifically though, Koskinen has asked for the reauthorization of a provision that allowed the IRS to attract IT and business smarts since 1998. The so-called streamlined critical pay authority expired in fiscal 2013.

“Out of the many expert leaders and IT executives hired under critical pay authority, there are only 10 IT experts remaining at the IRS, and we anticipate there will be no staff left under critical pay authority by this time next year,” he told the Senate Finance Committee on Tuesday, per his prepared remarks. Referencing the President’s fiscal 2017 budget, which reinstates the pay measure, he added: “I urge the Congress to approve this proposal.”

Say what you will about the federal government’s ability to spend smartly: Cybersecurity is worth paying for.

About the Author
Robert Hackett
By Robert Hackett
Instagram iconLinkedIn iconTwitter icon
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

How foodservice giant Sodexo is embracing AI and robotics to reshape the kitchen
NewslettersCIO Intelligence
How foodservice giant Sodexo is embracing AI and robotics to reshape the kitchen
By John KellJuly 1, 2026
6 hours ago
Anthropic CEO Dario Amodei
AIAnthropic
Anthropic’s AI models are back online after a two-week government standoff—settling the company and administration into a fragile truce
By Tristan BoveJuly 1, 2026
6 hours ago
Nikesh Arora, chief executive officer at Palo Alto Networks
SuccessJobs
CEO of $248 billion cybersecurity company says workers are about to face a ‘Darwinian moment’ thanks to AI: Evolve or get cut
By Emma BurleighJuly 1, 2026
8 hours ago
Current price of Ethereum for July 1, 2026
Personal FinanceEthereum
Current price of Ethereum for July 1, 2026
By Joseph HostetlerJuly 1, 2026
10 hours ago
In this photo illustration, a Cisco logo is displayed on a smartphone with Artificial Intellingence (AI) symbols in the background.
AICFO Daily
Cisco is rolling out AI agents to every single one of its 90,000 employees
By Sheryl EstradaJuly 1, 2026
10 hours ago
senate
CommentaryCongress
One rare bipartisan AI bill is moving through Congress. Here’s why it deserves to pass
By Neil Björkman and Betsy BrewerJuly 1, 2026
12 hours ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
7 days ago
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
16 hours ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
5 days ago
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
Newsletters
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
By Diane BradyJuly 1, 2026
14 hours ago
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
2 days ago
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
Commentary
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
By Marc AndersenJune 30, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.