VA Data Theft: Here Come the IRS Contractors

The VA data theft response just gets more and more tangled. Now, Sen. Max Baucus, D-Mont., is concerned about plans for the IRS to help VA contact veterans by mail to let them know their personal information has been stolen. Here's Baucus' concern, outlined in a letter sent to outgoing Treasury Secretary John Snow Friday:

It is my understanding the IRS plans to hire private contractors to produce these letters, giving non-government employees access to the IRS’s confidential taxpayer information. Please provide me with a detailed report on how the notification process will work and what steps will be taken to protect the privacy of the veterans’ personal information.

That's all we need right now, a scandal within a scandal if contractors end up with access to the veterans' records. Then again, if Baucus and others want to deal with this situation using only federal employees, it may end up taking a long time to resolve.