|This procurement is a critical component of the Department’s overall need to secure taxpayer data and ensure the confidentiality of both State Taxpayer Information (STI) and Federal Taxpayer Information (FTI). Further, the Internal Revenue Service (IRS) requires compliance with its regulations for securing FTI and has the ability to revoke access to FTI, which could cost the State more than $150 million in annual revenue collections. The Department is over 4 years behind in establishing proper physical controls over FTI as specified in publication IRS-1075, therefore, it is imperative that the security project is completed as soon as possible to avoid this outcome.|
The State of Illinois is working in good faith with the IRS to implement security enhancements at each of its facilities as soon as practicable to secure Federal Taxpayer Information per publication IRS-1075, which went into effect on August 24, 2010. Each month that goes by, the State is putting at risk our relationship with the IRS and we are violating federal rules. The IRS recognizes that attaining compliance with Publication 1075 is difficult, but the expectation is that IDOR take advantage of every possible means to expedite these physical modifications. If the IRS would rule to withhold FTI from the State, the State would suffer an estimated $150 million in lost revenue collections, annually. Therefore, the financial impact to the State if this procurement was denied would be catastrophic.
The time and money spent to date for security consulting with BPS would be wasted and IDOR would be forced to start over with a new Contractor. BPS is acting as the Architect/Engineer (A/E) on this project and continuity of planning/execution is imperative. We are mid-way through the implementation of the Willard Ice Building (WIB) Security project because this project has been put on hold by CDB due to the State budget freeze. The Willard Ice Building has demolition and partially completed construction throughout and it is vital that we are able to continue where we left off in a timely fashion one we get a State budget.