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Sensitive Business and Individual Tax Account Information Stored on Microfilm Cannot Be Located

On November 29, 2022, we notified the Director, Submission Processing, Wage and Investment Division, of the need to improve inventory controls over microfilm cartridges that are stored at the Tax Processing Centers. We recommended that the IRS conduct a detailed inventory of all microfilm cartridges on hand to include the beginning microfilm count, microfilm disposed of (or missing), microfilm obtained, and the ending count of microfilm. The inventory records should include the following information: type of register, cycle, number of sets, and number of cartridges per set. In addition, we recommended that the IRS develop and implement a process to ensure timely inventory and reconciliations are performed in the future.