IRS failed to do background checks on contractors

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WASHINGTON (AP) — The IRS failed to do background checks on some private contractors who handled confidential taxpayer information, exposing more than a million taxpayers to an increased risk of fraud and identity theft, a government investigator said Thursday.

In one case, the IRS gave a printing contractor a computer disk with names, addresses and Social Security numbers of 1.4 million taxpayers, but didn’t require a background check for anyone who worked on the job, said a report by the Treasury inspector general for tax administration.

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