Introduction
Most people in the United States use IRS (Internal Revenue Service) services online because they handle tax-related procedures online. In doing so, many taxpayers must go through an identity verification service called “ID.me.” However, a recent report by the government audit agency, the U.S. Government Accountability Office (GAO, Government Accountability Office), has revealed serious problems with this system.
This article explains the problems identified in the report in plain language.
The Core Problem: A Lack of Oversight
What Is the IRS Failing to Check?
Surprisingly, the IRS performs almost no checks on how well ID.me is doing its job. Specifically:
- No independent evaluation – The IRS relies entirely on reports from ID.me itself
- No clear goals – There are no criteria defining what constitutes “good performance”
- Failure to use data – Weekly reports from ID.me are not being used effectively
- No information-sharing mechanism – There are no procedures for sharing information among relevant departments
In the private sector, this would be like accepting a contractor’s work without checking it at all.
The Current Lack of Alternatives
The Problem of ID.me as the Only Option
Between 2021 and 2024, an astonishing more than 100 million50 million logins were processed through ID.me. Despite this, taxpayers have no option other than ID.me.
After facing criticism in 2022, the IRS promised to provide a “government-run option (Login.gov)” as well, but 3 years later, ID.me remains the only option. Incidentally, I have heard that the delay in releasing the draft of everyone’s favorite NIST SP 800-63 Revision 4 was also connected to the ID.me scandal.
The Current State of Login.gov
In fact, Login.gov added facial recognition last year and now meets the same security standards as ID.me. In other words, it is technically a viable alternative, yet its adoption has somehow been delayed.
The AI Regulation Problem
Does It Fail to Meet Legal Requirements?
ID.me uses AI as part of its facial recognition technology, but the IRS has not included it in its AI inventory. This is despite such registration being required by law, an executive order, and the IRS’s own policies.
Because it is not registered, the U.S. Government Accountability Office notes that “the IRS cannot ensure that ID.me complies with agency requirements and government-wide principles for the use of AI.”
Technical Challenges and Fairness Concerns
Limitations of Facial Recognition Technology
Facial recognition technology faces the following challenges:
- Variations in accuracy – The accuracy of matching selfies with identity document (ID, Identity Document) photos varies greatly by product
- Difficulty detecting fraudulent identity documents – Many solutions struggle to identify fake identity documents
- Racial and gender bias – Discriminatory results revealed by government testing in 2019
Cost and Contract Issues
The IRS has paid ID.me more than 200 million42 million dollars (approximately ¥350 billion). However, because of the nature of the contract, a quality assurance surveillance plan for measuring performance was not required.
The current contract is scheduled for renewal in 8, presenting an excellent opportunity to improve oversight.
ID.me’s Response
ID.me makes the following claims:
- It improved the identity verification success rate from 40% to over 70%
- It also improved access for groups that had traditionally found it difficult to obtain services
- Other government agencies also offer only a single identity verification option
- It fully agrees with the U.S. Government Accountability Office’s recommendations
Recommendations for the Future
Improvements Needed Urgently
- Stronger oversight – Establish an independent performance evaluation system within the IRS
- Clear goals – Establish measurable performance indicators
- Compliance with AI regulations – Properly register the system in the AI inventory
- Provide alternatives – Give taxpayers a choice by introducing Login.gov promptly
Why This Matters
Tax procedures are essential to citizens’ lives. If the identity verification system serving as their gateway is not properly managed, it creates the following risks:
- Privacy violations
- Unfair treatment caused by technological bias
- Lack of alternatives when the system fails
- Reduced convenience for taxpayers
Conclusion
The U.S. Government Accountability Office (GAO) report revealed a serious problem: the IRS has failed to provide adequate oversight because of its excessive reliance on a private vendor. In the digital age, a sound relationship with technology vendors and appropriate oversight are indispensable for ensuring the quality and fairness of government services.
The contract renewal in 8 could mark an important turning point for resolving these problems. Attention will be focused on what improvements the IRS implements.
This article is based on , GAO: Taxpayer Identity Verification: IRS Should Strengthen Oversight of Its Identity-Proofing Program, and NextGov FCR: IRS isn’t sufficiently checking the performance of its identity proofing vendor. Please consult official announcements for the latest information.