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This single IRS change can improve how we apply for credit

This single IRS change can improve how we apply for credit
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When you try to think of your favorite government-run service, the IRS is most likely the last one you would name. Tax collectors have always been decried by civil societies, and the United States IRS is no different. Do a quick Google search for "IRS jokes" and you will see what I mean.

There has been a lot of controversy over the funding of the IRS organization for many years. And although the organization's reach and responsibilities continue to grow, their budget has been decreased by nearly 18 percent since 2010 and is expected to continue to fall under the current administration.

The shrinking of the budget has resulted in an IRS workforce reduction of approximately 13,000 employees.

Tech saving the organization

Currently, the IRS relies on fairly dated technology to process financial data from tax returns and supply the information to private credit bureaus. This could be changed thanks to bipartisan legislation introduced to Congress by Rep. Patrick McHenry (R-NC) and Sen. Cory Booker (D-NJ).

This legislation introduces a new API (Application Programming Interface) that will greatly speed up and automate processes that are currently cumbersome, manual, and labor intensive. This will allow creditors to get more detailed information about applicants, preventing financial fraud and improving credit prices for everyone overall.

With the biggest tax overhaul in 30 years on the horizon, and continuing budget cuts in the upcoming year, the IRS needs all the help it can get.

Concerns

As with anything that conglomerates a lot of data, it will become another huge target for hackers looking to expose massive amounts of personal data. If a hacker were to gain access to the API it could have devastating consequences on our economy. But, hacking is a concern whether this API is implemented or not, this will just create another potential target that we need to stay vigilant about.

Ancestry.com suffers big data leak - 300,000 user credentials exposed

As with any avenue that holds personal data, it seems only a matter of time before users are exposed by hackers. Learn all about the newest massive hack at Ancestry.com.

Click here and find out if you are one of the 300,000 users exposed by Ancestry.

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