U.S. Senator Max Baucus (D-Mont.), Ranking Member of the Senate Finance Committee in a letter to Treasury Secretary John Snow, asked for detailed information on IRS plans to use private contractors to produce and send letters to veterans. The IRS is planning to send letters to all veterans who were vitims of the recent VA data theft. Baucus urged Snow to avoid creating additional confusion among veterans receiving notification from the IRS of a security breach at the VA. The excerpts of the letter follows:

“It is my understanding the IRS plans to hire private contractors to produce these letters, giving non-government employees access to the IRS’s confidential taxpayer information. Please provide me with a detailed report on how the notification process will work and what steps will be taken to protect the privacy of the veterans’ personal information. A fundamental tenet of our voluntary tax system depends on the protection of taxpayer information. Treasury must exercise the utmost care to ensure that the privacy of these veterans is completely protected and not further compromised. Veterans deserve assurances that the IRS’s notification process will not result in their further victimization.”

“Already, this incident has proved upsetting to many of our nation’s veterans, who are now legitimately concerned that the security of their identities is at risk. Notification letters from the IRS may themselves add confusion. Letters from the IRS may cause veterans to wonder whether their tax or financial information has been compromised or whether they have a tax matter that needs to be addressed. I urge Treasury to ensure that these IRS letters are clear in their purpose and won’t further complicate what could be an alarming situation for many veterans.”

It appears like too many hands are getting in the pot. 

 VA official quits in aftermath of data theft
A high-ranking official in the Veterans Affairs Department has submitted his resignation in the wake of the theft of personal data on millions of veterans from an employee’s home