Introduction
Most Americans use the IRS (Internal Revenue Service) online to complete tax-related procedures. Many taxpayers must go through a service called ID.me to verify their identity. However, a government auditing agency, the IRS, has found that there are serious problems with this system.U.S. Government Accountability OfficeThis was revealed in a recent report by the Government Accountability Office (GAO).
This time, we will provide a clear explanation of the issues pointed out in this report.
The core of the problem: lack of oversight
What isn't the IRS checking?
Surprisingly, the IRS has done very little to check ID.me's performance. Specifically:
- No independent evaluation has been conducted – The IRS relies heavily on ID.me's own reports
- No clear goal – There is no standard for what constitutes “good performance”
- Not using data – I am not making effective use of the weekly reports I receive from ID.me
- There is no mechanism for sharing information – There is no procedure for sharing information between related departments
In private companies, this would be like accepting work from an outsourced company without any checking.
The current situation where there are no options
The problem with ID.me
Between 2021 and 2024,Over 1 million timesEven though most logins were done through ID.me, taxpayers have no choice but to use ID.me.
In response to criticism, the IRS promised to provide a government-led option (Login.gov) in 2022, but three years later, ID.me remains the only option. Incidentally, I heard that the delay in the release of the draft fourth edition of the beloved NIST SP3-800 was also related to the ID.me scandal.
Current situation of Login.gov
In fact, Login.gov added a facial recognition feature last year and now meets the same security standards as ID.me. In other words, it is technically a viable alternative, but for some reason its adoption has been delayed.
AI regulation issues
Not meeting legal requirements?
ID.me uses AI as part of its facial recognition technology, which the IRS hasNot registered in AI inventoryThis is despite being required by law, Executive Order, and the IRS's own policies.
The lack of registration means that "the IRS cannot ensure that ID.me complies with its requirements or government-wide AI use principles," the Government Accountability Office said.
Technical challenges and fairness issues
The limitations of facial recognition technology
Facial recognition technology faces challenges such as:
- Accuracy Variation – The accuracy of matching selfies and ID (identity document) photos varies greatly depending on the product.
- Difficulty in detecting fake IDs – Many solutions struggle to detect fake IDs
- Racial and gender bias – Discriminatory results revealed in 2019 government tests
Cost and contract issues
The IRS is turning to ID.meOver $2 million (approximately 4,200 billion yen)However, the nature of the contract did not require a quality assurance monitoring plan to measure performance.
The current contract is up for renewal in August, which provides a great opportunity to improve monitoring.
ID.me's response
Here's what ID.me claims:
- Improved the success rate of identity verification from 40% to over 70%
- Improved access to segments that previously had difficulty receiving services
- Other government agencies also offer only one identity verification option
- I completely agree with the recommendations of the U.S. Government Accountability Office.
Recommendations for the future
Urgently needed improvements
- Strengthening of monitoring system – IRS establishes its own performance evaluation system
- Set clear goals – Establishing measurable performance indicators
- AI Regulation Compliance – Proper registration in AI inventory
- Providing Choices – Early adoption of Login.gov gives taxpayers choice
Why is this important?
Tax procedures are essential to people's lives. If the identity verification system that is the entry point to these procedures is not properly managed, the following risks will arise:
- Invasion of privacy
- Unfair treatment due to technical bias
- Lack of alternatives in the event of a system failure
- Reduced convenience for taxpayers
Conclusion
The GAO report revealed that the IRS was overly reliant on private vendors and was failing to provide proper oversight, which is a serious problem. In the digital age, sound relationships with technology vendors and proper oversight are essential to ensure the quality and fairness of government services.
The August contract renewal will be a critical turning point in resolving these issues, and attention will be focused on what measures the IRS will take to improve them.
This article, GAO: Taxpayer Identity Verification: IRS Should Strengthen Oversight of Its Identity-Proofing Program,NextGov FCR: IRS isn't sufficiently checking the performance of its identity proofing vendorFor the latest information, please refer to the official announcement.