SC Governor Criticizes IRS Over State Tax Data Breach

Law360, New York (November 21, 2012, 7:37 PM EST) -- The governor of South Carolina on Tuesday faulted the Internal Revenue Service for failing to require states to encrypt stored federal tax information following a security breach that exposed the personal information of 3.8 million state residents who filed their taxes electronically.

Gov. Nikki Haley sent a letter to the IRS “strongly encouraging” the agency to implement tougher security measures for states handling tax data, arguing the IRS should require encryption for stored data the same way it does for transmitted data.

“It must be the...
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