-Caveat Lector-

from - http://www.wired.com/news/politics/0,1283,49615,00.html?tw=wn20020110

IRS' Case of the Missing Laptops
By Declan McCullagh

2:00 a.m. Jan. 10, 2002 PST

WASHINGTON -- Losing your laptop may be a major headache for most people,
but for America's tax collectors it happens all the time.

The IRS has lost or misplaced 2,332 laptop computers, desktop computers and
servers over three years, according to a recent report -
http://www.ustreas.gov/tigta/2002reports/200210030fr.html - by Treasury
Department auditors. They concluded it's a persistent problem: The IRS has
"reported a material weakness in inventory controls" every year since 1983.

This week, Charles Grassley of Iowa, the top Republican on the Senate
Finance committee, concluded that America's most-hated federal agency needs
an audit of its own. In a letter -
http://grassley.senate.gov/releases/2002/p02r1-08.htm - to the Bush
administration, Grassley called the shoddy record-keeping "shocking" and
threatened to slap limits on the agency's budget.

"The IRS wouldn't accept from a taxpayer the non-answer it has given
regarding the missing 2,300 computers," Grassley said. "Just as a taxpayer
would be held accountable for missing receipts, so must the IRS be held
accountable for missing 2,300 computers."

Grassley said that until the mystery PCs were unearthed, Congress could no
longer take the IRS seriously when it asked for billions of dollars to spend
on its highly touted modernization project -
http://www.irs.gov/news/irs-mod.html

The report from the Treasury Department's Inspector General, dated Nov. 29,
2001, said that the IRS was "unable to easily provide information concerning
the number of lost or stolen computers during the course of this review.
Though total counts were eventually provided, no detailed numbers of lost,
stolen, or damaged items of inventory could be provided. This was due, in
part, to the manner in which missing items are recorded on the inventory
records."

Also unclear is what confidential taxpayer information might be stored on
the missing computers.

Bruce Friedland, an IRS spokesman, said "the missing computers haven't
compromised taxpayer information." When asked whether confidential tax
returns and audit records might be stored on the computers' hard drives,
Friedland replied: "I believe the answer to that is 'Yes.' But I believe the
software applications are not easily available for anyone to use."

Friedland also said that 1,597 of the misplaced or stolen PCs have been
found since last November. "I don't have where they were located nor where
they are located. They're not all in one place," he said.

In addition to mishandling some of its 163,000 computers -- that number
includes the missing and found machines -- the IRS seems to have a problem
keeping track of its firearms, badges and radios.

The Inspector General concluded that 502 "investigative items" were lost or
stolen, including 40 badges for IRS agents, 50 radios and "15 electronic
surveillance devices that could compromise the public's safety or ongoing
investigations." (No further details were given, except for a brief note
saying: "Information determined to be restricted from public release has
been redacted from this document.")

Reported incidents include an IRS agent losing his firearm after his
unlocked car was robbed, and another agent dropping a gun into the ocean
during a boating accident.

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