IRS Admits Failure in Protecting Taxpayer Data, Apologizes to Ken Griffin

By Elena Cordelia

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IRS Admits Failure in Protecting Taxpayer Data, Apologizes to Ken Griffin

The Internal Revenue Service (IRS) has issued a rare public apology to billionaire hedge fund director Ken Griffin and thousands of other wealthy Americans for a data breach that exposed their personal financial information. This apology was part of a settlement between Griffin and the U.S. tax agency following a 2022 lawsuit.

The Lawsuit and Data Breach Incident

Ken Griffin sued the IRS after a significant data breach led to ProPublica revealing private data on some of the wealthiest U.S. taxpayers.

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This breach included information on Griffin, former President Donald Trump, Elon Musk, and many others. The individual responsible for the breach, former IRS contractor Charles Littlejohn, pleaded guilty to stealing the returns and was sentenced to five years in prison earlier this year.

IRS Public Apology

In a statement posted online, the IRS expressed its sincere apologies to Ken Griffin and the other affected individuals. The IRS acknowledged that the illegal disclosures by Littlejohn violated the terms of his contract and betrayed the trust of the American people.

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Measures Taken by the IRS

The IRS admitted its failure to prevent Littlejohn’s criminal conduct and the unlawful disclosure of confidential data. In response, the IRS assured Griffin and other victims that substantial investments have been made to strengthen the safeguarding of taxpayer information. The agency emphasized its commitment to preventing future breaches and improving data security.

This incident highlights the importance of robust data security measures and the consequences of failing to protect sensitive information. The IRS’s public apology and commitment to improving security are steps towards rebuilding trust with American taxpayers.

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Elena Cordelia

Elena is a seasoned tax consultant with a decade of expertise in income tax management. Graduating with top honors in Finance, she embarked on a career journey focused on simplifying tax complexities. Elena's insightful articles on thecsc.org provide practical guidance to taxpayers.

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