Senators Ron Wyden (D-Ore.) and Elizabeth Warren (D-Mass.) are raising concerns about the Treasury Department’s continued use of the private identity verification platform IDMe. In a letter to Treasury Secretary Scott Bessent and IRS Chief Executive Officer Frank Bisignano, the senators asked for more information on why the IRS is using the private platform over the government alternative Login.gov.
“The reliance on IDMe raises significant concerns about privacy, cybersecurity and data breaches and accountability and oversight. Moreover, federal law requires agencies to implement the government’s single-sign-on platform unless the statutory exception is satisfied. If Treasury or the IRS believes that an exception applies, an explanation must be provided to Congress,” the senators wrote.
Jeremy Grant, director of the Better Identity Coalition, told Federal News Network that as more transactions move to digital environments, the government hasn’t kept pace. He added that the government’s reliance on the private sector for digital capabilities is an indicator that the government needs a digital counterpart to physical credentials.
“It’s created a market opportunity for the private sector to try and come up with innovative solutions that are in many cases trying to guess what only the government knows since they’re the only authoritative issuer of identity,” said Grant. “The government hasn’t taken steps to close what other countries have said is an obvious gap where the government should play a role.”
The IRS told Federal News Network in a statement that the agency offers “multiple ways for taxpayers to verify their identity and access IRS online services.” IRS said taxpayers can use Login.gov or IDMe, which gives them more choice, convenience and security for the 2027 filing season.
The question of using IDME is not new. In 2024, Wyden and Warren asked the IRS to stop using ID.me for the Direct File program. The senators were concerned over the accuracy of IDMe’s facial recognition software. They also highlighted that requiring the use of facial recognition technology could create more barriers for certain groups of taxpayers.
“Direct File was created in part to ensure taxpayers have an option to not give their money and personal information to private companies when filing their taxes. But by contracting with IDME, taxpayers concerned about their privacy are required to hand over personal data to yet another private company,” the senators wrote in 2024.
Supporting Treasury since 2021
An IDMe spokesperson told Federal News Network that it’s supported the Treasury Department since 2021 and has earned and maintained the trust of 24 other federal agencies. The spokesperson said IDMe outperforms competitors, including Login.gov, in customer service, ease of use and protecting taxpayer data.
“We do not sell, rent or trade users’ personal information. Biometric data collected in connection with TreasuryDirect verification additionally stays within IDMe’s walls, is never sold or shared, and is not matched against outside databases,” the spokesperson said. “IDMe’s model puts users more in control of their personal data so organizations are less reliant on the data broker industry.
The spokesperson added, “IDMe remains committed to ensuring the end user’s privacy and control of their own data. This stands in contrast to the business model, well-documented track record and poor performance of the data brokers used by Login.gov.”
In 2022, the IRS announced its intention to transition away from using IDMe and use Login.gov at some future date, after a bipartisan group of lawmakers also raised alarm bells about IDMe’s use of facial recognition technology as part of the verification process during sign-up.
Despite ongoing concerns, the IRS continues to use the private sector services.
“The technical basis for continuing to require ID.me is unclear,” the lawmakers wrote. “GSA offers Login.gov identity verification that meets IAL2 requirements, along with multi-factor authentication, fraud prevention capabilities, U.S. passport verification and in-person verification through participating U.S. Postal Service locations. Login.gov is already used by over 180 million users across 54 agencies and states. Yet the IRS continues to tell taxpayers that they need IDME to access most IRS accounts and services, and as noted above, the Treasury Department is expanding its reliance on IDME.”
Answers due soon
In August, the Office of Management and Budget released a memo mandating, whenever possible, that the Login.gov platform serve as the single source for authentication and verification. The mandate doesn’t apply to every system that touches the public, nor does it apply to those run by the Defense Department or those considered national security systems.
“Agencies must phase out identity solutions that do not meet this description and should routinely reevaluate the need for continued use of solutions other than Login.gov, including by assessing each solution’s volume of active users,” the memo states. “When offering other solutions, agencies must promote Login.gov as the default option for new account creation for any user population that Login.gov is able to serve.”
Grant said that the OMB memo shows the progress of Login.gov’s capabilities compared to the private sector. He pointed to Login.gov’s partnership with the National Institute of Standards and Technology to use mobile drivers licenses to verify citizens’ identities when accessing government services and improve user experience.
“In some ways, Login.gov is a little further ahead of some private sector companies. The problems that an agency had a few years ago aren’t the ones they have now, and that’s leveling the playing field quite a bit,” said Grant.
Lawmakers are seeking answers or data around 12 questions and topics from the IRS and Treasury by Nov. 9.
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