Under pressure from Congress, IRS suspends Equifax contract

Equifax
FILE - This July 21, 2012, file photo shows Equifax Inc., offices in Atlanta. Prospects are good for a public shaming, but it’s unlikely Congress will institute sweeping new regulations after hackers accessed the personal information of an estimated 143 million Americans in the Equifax data breach. (AP Photo/Mike Stewart, File)

WASHINGTON (AP) – The IRS has suspended a $7.25 million contract with the credit reporting company Equifax after members of Congress complained the tax agency had awarded a no-bid contract to a company that recently had a massive data breach.

The IRS had contracted with Equifax to validate the identity of taxpayers communicating with the agency on the telephone or through its website.

In a statement Friday, the IRS said it suspended the contract as “a precautionary step” while the agency reviews the company’s security systems.

Equifax revealed in September that hackers had obtained the personal information of more than 145 million people.

The IRS said none of its data was compromised.

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