Cyber Thieves Hit the IRS—and 100,000 Taxpayers
Identity thieves hacked into an Internal Revenue Service data system earlier this year, potentially gaining access to personal financial information for at least 100,000 taxpayers.
The IRS issued a statement today saying that its online system, “Get Transcript,” was breached between February and May, the Associated Press first reported. The portal possesses information including tax returns and other taxpayer data stored by the IRS.
Related: Tax Thieves Could Boost Their Income by 262 Percent
The IRS’s statement said the tax thieves were able to penetrate the system because they had knowledge of 100,000 taxpayers, including dates of birth, Social Security numbers and tax filing details.
The massive hack comes as identity theft is at a record high. Earlier this year, the Treasury Inspector General for Tax Administration (TIGTA) reported that 1.6 million taxpayers were affected by identity theft in 2014 – compared to just 271,000 in 2010.
The IRS’s ability to catch fraudsters was even added to the GAO’s “High Risk List” or the list of federal programs that are most-vulnerable to waste, fraud and abuse.
Auditors attribute the increase to the uptick in electronic filing, which is more convenient for tax filers, but also easier for fraudsters to file fake returns.
TIGTA says the IRS doled out more than $5.8 billion in fraudulent refunds related to identity theft during the 2013 filing season.
The shift to electronic filing is also apparently making taxpayer information even more vulnerable according to the latest breach.
Related: IRS Struggles to Help Victims of Identity Fraud
The hack is obviously bad news for the agency, which is already struggling to address cases of identity theft as they stack up. TIGTA reported the IRS took about 278 days on average to resolve identity theft cases in 2013, despite the agency claiming that it takes about 180 days or six months to resolve issues of identity theft.
When it does complete cases, the IG found that about 10 percent of the “resolved” were riddled with errors.
The latest report comes at a tough time for the IRS, which is struggling with a recent round of budget cuts and is operating with an even greater workload while enforcing at least 40 new tax provisions under the president’s health care law.
The agency said it has temporarily suspended the online service that was the subject of the breach until the vulnerabilities are resolved.
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The 10 Worst States to Have a Baby
The birth rate in the U.S. is finally seeing an uptick after falling during the recession. Births tend to fall during hard economic times because having a baby and raising a child are expensive propositions.
Costs are not the same everywhere, though. Some states are better than others for family budgets, and health care quality varies widely from place to place.
A new report from WalletHub looks at the cost of delivering a baby in the 50 states and the District of Columbia, as well as overall health care quality and the general “baby-friendliness” of each state – a mix of variables including average birth weights, pollution levels and the availability of child care.
Mississippi ranks as the worst state to have a baby, despite having the lowest average infant-care costs in the nation. Unfortunately, the Magnolia State also has the highest rate of infant deaths and one of lowest numbers of pediatricians per capita.
Related: Which States Have the Most Unwanted Babies?
On the other end of the scale, Vermont ranks as the best state for having a baby. Vermont has both the highest number of pediatricians and the highest number of child centers per capita. But before packing your bags, it’s worth considering the frigid winters in the Green Mountain State and the amount of money you’ll need to spend on winter clothing and heat.
Here are the 10 worst and 10 best states for having a baby:
Top 10 Worst States to Have a Baby
1. Mississippi
- Budget Rank: 18
- Health Care Rank: 51
- Baby Friendly Environment Rank: 29
2. Pennsylvania
- Budget Rank: 37
- Health Care Rank: 36
- Baby Friendly Environment Rank: 51
3. West Virginia
- Budget Rank: 13
- Health Care Rank: 48
- Baby Friendly Environment Rank: 50
4. South Carolina
- Budget Rank: 22
- Health Care Rank: 43
- Baby Friendly Environment Rank: 49
5. Nevada
- Budget Rank: 39
- Health Care Rank: 35
- Baby Friendly Environment Rank: 46
6. New York
- Budget Rank: 46
- Health Care Rank: 12
- Baby Friendly Environment Rank: 47
7. Louisiana
- Budget Rank: 8
- Health Care Rank: 50
- Baby Friendly Environment Rank: 26
8. Georgia
- Budget Rank: 6
- Health Care Rank: 46
- Baby Friendly Environment Rank: 43
9. Alabama
- Budget Rank: 3
- Health Care Rank: 47
- Baby Friendly Environment Rank: 44
10. Arkansas
- Budget Rank: 12
- Health Care Rank: 49
- Baby Friendly Environment Rank: 37
Top 10 Best States to Have a Baby
1. Vermont
- Budget Ranks: 17
- Health Care Rank: 1
- Baby Friendly Environment Rank: 5
2. North Dakota
- Budget Rank: 10
- Health Care Rank: 14
- Baby Friendly Environment Rank: 10
3. Oregon
- Budget Rank: 38
- Health Care Rank: 2
- Baby Friendly Environment Rank: 14
4. Hawaii
- Budget Rank: 31
- Health Care Rank: 25
- Baby Friendly Environment Rank: 1
5. Minnesota
- Budget Rank: 32
- Health Care Rank: 5
- Baby Friendly Environment Rank: 12
6. Kentucky
- Budget Rank: 1
- Health Care Rank: 33
- Baby Friendly Environment Rank: 20
7. Maine
- Budget Rank: 25
- Health Care Rank: 10
- Baby Friendly Environment Rank: 15
8. Wyoming
- Budget Rank: 22
- Health Care Rank: 17
- Baby Friendly Environment Rank: 7
9. Iowa
- Budget Rank: 14
- Health Care Rank: 25
- Baby Friendly Environment Rank: 9
10. Alaska
- Budget Rank: 50
- Health Care Rank: 6
- Baby Friendly Environment Rank: 2
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Worried About a Recession? Here’s When the Next Slump Will Hit
The next recession may be coming sooner than you think.
Eleven of the 31 economists recently surveyed by Bloomberg believed the American recession would hit in 2018, and all but two of them expected the recession to begin within the next five years.
If the recession begins in 2018, the expansion would have lasted nine years, making it the second-longest period of growth in U.S. history after the decade-long expansion that ended when the tech bubble burst in 2001. This average postwar expansion averages about five years.
The recent turmoil in the stock market and the slowdown in China has more investors and analysts using the “R-word,” but the economists surveyed by Bloomberg think we have a bit of time. They pegged the chance of recession over the next 12 months to just 10 percent.
Related: Stocks Are Sending a Recession Warning
While economists talk about the next official recession, many average Americans feel like they’re still climbing out of the last one. In a data brief released last week, the National Employment Law Project found that wages have declined since 2009 for most U.S. workers, when factoring in cost of living increases.
A full jobs recovery is at least two years away, according to an analysis by economist Elise Gould with the Economic Policy Institute. “Wage growth needs to be stronger—and consistently strong for a solid spell—before we can call this a healthy economy,” she wrote in a recent blog post.
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