IRS data breach.

IRS Data Breach Response: Essential Steps for Taxpayers

  • May 15, 2024

Understanding the Littlejohn IRS Data Breach

The Internal Revenue Service (IRS) has notified over 70,000 taxpayers about a significant security breach, originating from the actions of former IRS contractor Charles Littlejohn, who illegally accessed and disclosed sensitive tax information.

This breach, known as the Littlejohn Breach, is considered one of the largest in IRS history and includes high-profile cases such as the unauthorized disclosure of former President Donald Trump's tax returns.

Immediate Actions for Taxpayers Affected by the IRS Data Breach

Affected individuals should take immediate steps to safeguard their identity and assess the potential for damages. This involves understanding the content of the IRS notices (Letter 6613-A) received, which outline the breach details and the rights of the taxpayers, including the potential for civil claims.

Statutory Damages and Legal Recourse

Under Section 7431 of the Internal Revenue Code, taxpayers may seek civil damages against the United States for unauthorized disclosures. However, the challenge lies in the statutory damage caps, which may deter some from pursuing litigation.

Those considering legal action should be mindful of the two-year limitation period starting from the date of discovery of the breach.

Key Steps to Secure Your Tax Information

  1. Request and Review Your IRS Tax Transcript: This can help identify any unauthorized or suspicious activities.
  2. File an Identity Theft Affidavit (Form 14039) with the IRS if you suspect your information has been compromised.
  3. Contact Major Credit Bureaus: Obtain and review your credit reports, set up fraud alerts, and consider a credit freeze to prevent new unauthorized accounts.

Proactive Measures to Enhance Your Data Security

Despite the reactive nature of the situation post-breach, there are several proactive steps you can take to protect your personal information:

  • Regularly review your IRS tax transcripts and credit reports.
  • Use strong, unique passwords and enable multi-factor authentication for all sensitive online accounts.
  • Consider applying for an Identity Protection PIN from the IRS.

Need Assistance or Have Questions? Contact Tax Problem Solver

If you receive an IRS notice informing you that your data was compromised in the Littlejohn Breach, or if you have any questions about safeguarding your information, do not hesitate to contact me or any member of my team at Tax Problem Solver. We can guide you through the necessary steps and provide the advice you need during this challenging time.

And, of course, for any tax matters of any kind, you can reach us by one of the contact methods below in the blue box, or email me at Larry@TaxProblemSolver.com and we can review your specific issues and solve them. You can also click here to book a free consultation.

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About the Author Larry Heinkel J.D. LL.M

Larry Heinkel is a tax and bankruptcy attorney with more than 38 years experience helping businesses and individuals, solve their state and federal tax problems. Mr. Heinkel has been extremely successful in representing his clients before IRS and DOR, and is known throughout Florida as an expert in tax problem resolution.

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