The controversy revolves around CADE, which manages information on taxpayers, as well as AMS, the tool that lets IRS employees access that taxpayer information, according to Vnunet.
In its report, the Inspector General has asserted that although employees knew of the security problems, the systems were employed anyway.
"Security weaknesses in controls over sensitive data protection, system access, monitoring of system access, and disaster recovery have continued to exist even though key phases of the CADE and the AMS have been deployed.
"As a result, the IRS is jeopardizing the confidentiality, integrity, and availability of an increasing volume of tax information for millions of taxpayers as application releases are put into operation."
However, AP has said that the issues raised in the September report have been addressed, and the IRS has also taken measures to correct other faults.